One playbook, many personalities

Can you run multiple properties the same way? As more independent regional operators look to grow from a single property into a portfolio of two or three. The short answer is yes — but only with the right systems and processes in place, and each property’s unique selling point kept intact.

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Incorporating the same systems from one successful business should be consistent. The property management system, daily, weekly and monthly checklists, the reporting, the way maintenance requests are handled as well as the way a new staff member is onboarded. Creating the same procedures into future properties is essential in creating a manageable property portfolio. It’s what allows owners, managers and staff to step into any property and know within an hour whether it’s running well. It’s what allows a manager to move between properties, or a relief staff member fill in, without everyone relearning how things are done.

Because the properties themselves most likely won’t be identical. Each one still needs its own unique selling point — its own reason a guest chooses it over the alternative down the road.

I’ve seen this personally from operating an accommodation business in a coastal region then moving to an inland area which still offers summer excitement; however, the guests and offerings are completely different. Trying to market properties the same way leaves money on the table at both ends.

This comes back to the principle I’ve written about before when it comes to mixing up your customer base within a single property — having more than one reason for a guest to book protects you when one segment goes quiet. Run that thinking across a portfolio and it compounds. If each property has its own drawcard and its own mix of markets, a slow patch in one location doesn’t drag the whole business down. The operator with three points of difference across three properties is in a much stronger position than the one running the same offer three times over.

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There is absolutely an opportunity to build on one successful business into multiple. By creating a reputable brand in one location, this can be transferred to other properties.

Consistent branding with colours, service level and procedures can be replicated. This can provide guests with confidence in their stay. Where this can go wrong is when consistency gets confused with sameness. An owner builds one strong system at their first property, then simply copies the marketing, the packages, and the room configuration onto the next one, assuming what worked once will work again. Sometimes it does. More often, the second property has a different guest base walking past it, and the copy-paste approach means it never quite finds its feet.

When taking on a new property it’s important to get to know the property first. I’ve heard business brokers mention to new operators, to avoid making changes in the first six months of their tenancy. This allows the new operator to understand the property in detail before making any major decisions. This is true in all aspects of property operations. An experienced operator who believes their procedures are failsafe can still get caught out — introducing a system too quickly at a new property can be costly in revenue and occupancy.

Taking the time to review a new property’s booking sources, occupancy levels throughout the year, recent marketing or promotions that were undertaken and how successful they were as well as any key dates in the region to track will help to understand the strengths and opportunities for the property.

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Strong systems give operators the time and headspace to focus on what makes each property different. And it’s that difference, not the systems behind it, that will entice guests to book each property.

Investing in multiple properties isn’t about replicating systems, it’s about replicating what makes a property well-run. Get your systems right once, and take the time to understand what makes each new property different. That difference is what a guest is actually paying for.

Having the right systems in place is one part of the equation. The other is making sure you and your team can actually sustain it — a topic for another day.

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