The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Bahamian small hotel business model “can be much better”, a resort’s managing partner believes, adding that Abaco is not a “deal/discount” destination.

Michael Hartman, managing partner, of the Hope Town Harbour Lodge, and managing director of the Bahamas Boutique Hotel Group, which recently purchased the 25-room resort, told the Abaco Business Outlook conference that there was needed improvement in the business model of boutique resorts.

“I really believe that boutique hotels are the strength of Abaco and the strength of the Bahamas,” he said.

“I think small boutique hotels are the forefront of the tourism industry. I’m not saying they anchor the tourism industry, but the small hotels are a part of it. We’re the visible ones out there, we provide the experience. There is strength in the sector. The business model is good but it can be much better.”

Mr Hartman, who is also the developer and former operator of Tiamo Resort on South Andros, added: “We have to improve the business model. In operations we have to look for greater efficiencies.

“Most of our operators in this country are very ‘Mom and Popish’. We have lot of ‘Mom and Pop’ operations that don’t have the efficiencies to make these things work. To achieve the average annual occupancies that we need to achieve, to shut down for two months does nobody any good. This seasonality thing, which I want to break, in my opinion was a lifestyle decision by ‘Mom and Pops’ who desperately needed a break.”

Mr Hartman said Abaco was not a deal/discount destination. “You can’t be a discount destination when your electricity is 40 cents a kilowatt hour,” he explained.

“It’s also been a tough life here, and a tough life here costs more in many ways. It’s also a beautiful island, it’s an incredibly appealing destination, but it’s not inexpensive and it’s not a deal/discount destination.

“Abaco should not be that, and nor should we as an economic community foster developers or folks that think that they can build something that will succeed in that,” said Mr Hartman.

He added that while the Hope Town Harbour Lodge was only witnessing 37 per cent occupancy levels, he saw it rather as an opportunity to recover 63 per cent.

Mr Hartman said one of the biggest challenges facing the industry was the ability to sell “the experience”.

“I think it’s crucial to understand that we are selling an experience,” he explained.

“We have got to see this market as a bigger destination that’s filled with many more things than we typically target. This is an amazing product, but we have got to do a better job of defining it for what it is and telling the world in a much more clearer way how they can get there and experience Abaco.”

Mr Hartman noted that the Bahamas Boutique Hotel Group, which features local investors such as Peter Andrews and Craig Symonette, was looking to acquire or build between four-five properties over the next several years, adding that there was significant opportunity in the boutique hotel sector.