Editorial Board   

Mr. Redington

Neale Redington

Partner, Deloitte

Redington has been an advisor to major real estate firms for more than 17 years in the REIT and hospitality sectors. He brings opportunities for wealth creation to hotel owner/operators and management companies through performance of annual audits, operations reviews, due diligence procedures, and assistance with initial public offerings. Last year, Redington provided accounting advisory assistance to KSL Recreation with its $2.2 billion sale of luxury resorts, including Grand Wailea and La Quinta Resort, to CNL Hospitality. This was the largest US luxury hospitality transaction during 2004 and was recently awarded "Transaction of the Year" at the Americas Lodging Investment Summit. Redington has been instrumental in many REIT formation transactions, dating back to the early 90s with G&L Realty and Alexander Haagen Properties. More recently, he has worked with Casden Properties, CNL Hotels and Resorts, and CB Richard Ellis. During his career, he has provided due diligence assistance in many major real estate transactions, including Southern California deals such as Cendant's acquisition of Coldwell Banker and Century 21 and national transactions such as Blackstone's acquisition of Homestead Group and KKR's disposition of Red Lion Hotels. Redington is co-author of the Hospitality chapter of the Real Estate Accounting Handbook, and has participated in the development of the 10th Edition of the Uniform System of Accounts for the Lodging Industry. He frequently speaks on hospitality issues at trade events and with the media. Redington attended Birmingham University where he received his BCom(Acc)(Hons). He is active in the Manhattan Beach community where he lives with his wife Marissa and three children.

Mr. Redington can be contacted at 213-688-4762 or nredington@deloitte.com

Coming up in October 2019...

Revenue Management: Focus On Profit

Revenue Management is still a relatively new profession within hotel operations and as such, it continues to evolve. One significant trend in this area is a shift away from using revenue as the foundation to generate key performance indicators (KPIs) and to instead place the emphasis on profit. Traditionally, revenue managers have relied on total revenue per available room (TrevPAR) and revenue per available room (RevPAR) as the basis of their KPIs. Now, some revenue managers are using gross operating profit per available room (GOPPAR) as their primary KPI. This puts profit at the center of revenue management strategy, and managers are increasingly searching for new ways to increase the profitability of their hotels. Return on Investment is the objective of any hotel investment, so it is only logical that profitability and ROI will be emphasized going forward. Another trend is an expanded focus on direct hotel bookings. Revenue managers know that one way to increase profitability is to steer guests away from online travel agencies (OTAs) and book directly with the hotel. This tactic also reinforces brand identity and loyalty, and encourages repeat business. In addition, it provides a valuable platform to market the hotel directly to the customer, and to upsell room upgrades or other services to them. Another trend for revenue managers involves automation in their software programs. Revenue management systems with automation are far more desirable than those without it. Automating data entry and logistics increases efficiency, allowing managers to spend more time on formulating strategy. As a bonus, an automated system helps with aggregating and interpreting data. The October issue of the Hotel Business Review will address these developments and document how some leading hotels are executing their revenue management strategies.