The Panthers Group’s $110m five-star hotel, the Pullman Sydney Penrith, will be
operated by a new American-style independent hotel management company.

Panthers, one of Australia’s largest entertainment groups with more than 125,000
members across five licensed premises, has appointed Trilogy Hotels, an
independent management company founded in Australia by high profile lawyer
Tony Ryan last year.

Since its launch, Trilogy has won the rights to manage nearly 1200 hotel rooms
across four hotels, principally owned by Jerry Schwartz, one of Australia’s largest
private hotel owners.

Trilogy is on target to have another 1200 rooms under its management by the end
of the year, said Mr Ryan, a lawyer who helped deliver Accor’s $US940m takeover
of Mantra Group in 2018.

In a statement, Panthers chief executive Brian Fletcher said the deal with Trilogy
Hotels would help the club maximise the potential of its newly built 153-room
Penrith hotel, the first luxury hotel built in Western Sydney.

“With Trilogy Hotels we are poised to elevate our offerings, enhance operational
efficiency, and drive sustainable growth in the dynamic hospitality industry,” Mr
Fletcher said.

Pullman Sydney Penrith and Western Sydney Conference Centre has appointed
Michael Thomas as general manager of the hotel.

Mr Thomas has previously worked for the Peninsula Group, Shangri La, Banyan
Tree, Hilton and Accor.

Mr Ryan said under the Trilogy Hotel management model the group was
incentivised for higher profitability.

“We give direction to the general manager, we have full control of the asset on
behalf of the owner. The predominant fee is based on the profitability of the hotel,”
he said. “And with smaller properties we can drive savings. (But) we are not chasing
motels in regional areas such as Wagga.”

He said Trilogy, which was formed to look after investment grade assets, would
target hotels which were sold with vacant possession.

In February 2024, Trilogy Hotels announced a major deal with the Schwartz Family
Company securing the management of the Mercure Sydney, Ibis Sydney World
Square, Mercure Canberra and Fairmont Resort Blue Mountains. Dr Schwartz has
acquired another Blue Mountains property, buying the Leura Gardens Resort for
$25m last week.

Trinity manages the hotel operations and drives the operational and profit
performance while providing access to operational systems, training and team
development. “This is the preferred operating model in the US and is rapidly
growing globally,” Mr Ryan said.

Trilogy Hotels acknowledged that under a franchise agreement hotel brands such as
Marriott, Accor, or Hilton for example, can provide strong globally established
branding, distribution and loyalty programs.

On behalf of the owner, Trilogy manages the hotel operations and drives the
performance.

“In Australia and New Zealand, the industry has relied heavily on the traditional
hotel management agreement model where hotel owners engage with a particular
hotel brand for both their distribution and operating capability,” said Trilogy chief
executive Scott Boyes.

“In the US and Europe the independent management model, with brand support
under a franchise agreement is the predominant model preferred by hotel owners
and hotel brands alike,” Mr Boyes said.

“We are expanding that model further and tailoring it for the Australian and New
Zealand market to help hotel owners feel more connected with their investment,
while partnering with and utilising the exceptional distribution capability of a global
hotel brand.”

The first of its kind in Australia the deal will see the Trilogy team manage operations for more than 1000 rooms across four hotels in NSW and the ACT. Hotels included in the deal are Mercure Sydney, Ibis Sydney World Square, Mercure Canberra and Fairmont Resort Blue Mountains.

Trilogy Hotels has secured a landmark deal with Schwartz Family Company, pioneering the adoption of the independent hotel management model for investment-grade hotels in Australia.

The first of its kind in Australia the deal will see the Trilogy team manage operations for more than 1000 rooms across four hotels in NSW and the ACT. Hotels included in the deal are Mercure Sydney, Ibis Sydney World Square, Mercure Canberra and Fairmont Resort Blue Mountains.

This is the first deal announced for Trilogy Hotels since the December 2023 launch of the business.  The venture was conceived by three of Australia’s top hospitality innovators, Scott Boyes, Grant Alchin and Tony Ryan. Trilogy Hotels provides hotel owners and hotel brands with an operating platform for investment-grade assets where hotel operations are managed independently by Trilogy’s experienced team.

CEO of Trilogy Hotels, Scott Boyes, has worked with Dr Jerry Schwartz and his family for many years and believes this deal marks a turning point for the hotel industry in Australia.

“It’s an incredible moment for Trilogy Hotels. This long-term agreement is a true meeting of the minds. We each share a passion for the hotel industry and understand what hospitality can achieve when everyone is playing to their strengths,” says Boyes.

In the dynamic world of our great hotel industry, two primary management models stand out: Branded Operator and Independent Management Company (IMC).

In the case of the Branded Operator, the branding company is also the management company, as exemplified by well-known names such as Hilton and Marriott. In this case, the hotel owner enters into an agreement with the Branded Operator, who conducts and supervises the day-to-day operations of the hotel and makes available its brand and distribution system.  In some cases, the brand company will, under a franchise agreement, provide only its brand and system, leaving management to the owner or an Independent Management Company.

Independent Management Companies, as the name suggests, manage the hotel on behalf of the owner and do not prescribe or even require a brand. However, if the owner wishes, the IMC can operate the hotel with the benefit of a brand and system under a franchise agreement. Initially prevalent among smaller hotels, this approach has evolved to include large-scale corporate and luxury hotel properties.

The surge in popularity of third-party/IMC agreements underscores owners’ increasing preference for flexibility and input into how their assets are operated. It has also shown that IMCs can yield higher profits, all while aligning seamlessly with brands as franchise partners and thus creating an ecosystem where everyone plays to their strengths.

Trilogy Hotels is an Independent Management Company. It is a privilege to apply our skills and experience for our current and future hotel partners.

Three notable figures in the Australian hospitality landscape have joined forces to propel the independent management model for hotel operations in Australia and New Zealand.

Trilogy Hotels – a venture run by Scott Boyes, Tony Ryan and Grant Alchin – is based on the trilogy of owners, guests and team members, and aims to positively impact the lives of these core stakeholders.

At the time of launch on Thursday December 14, Trilogy Hotels says it is in the final stages of securing a major deal in Australia and New Zealand.

The independent management model is well-established model in the US, and Trilogy Hotels CEO Scott Boyes sees great potential for this model in the ANZ market.

“Here in Australia and New Zealand, the industry has relied heavily on the traditional hotel management agreement model where hotel owners engage with a particular hotel brand for both their distribution and operating capability,” Boyes said.

However, in the US and Europe the independent management model, with brand support under a franchise agreement is the predominant model preferred by hotel owners and hotel brands alike.

“We are expanding that model further and tailoring it for the Australian and New Zealand market to help hotel owners feel more connected with their investment, whilst partnering with and utilising the exceptional distribution capability of a global hotel brand. We look forward to collaborating with multiple global brands to deliver great outcomes for owners.”

Prior to founding Trilogy Hotels, Boyes had spent close to 30 years with Accor, in a career which saw him start out as a graduate front office manager to become its Senior VP of Operations, Pacific North. During this time, he was responsible for 85 hotels across NSW, ACT, QLD and the NT.

Tony Ryan, a commercial and legal advisor to hotel and hospitality businesses, brings more than 35 years’ experience. Specialising in complex and major transactions, Ryan helped deliver Accor’s US$940 million takeover of Mantra Group.

Grant Alchin, a former Head of Asset Management at diversified real estate group, CapitaLand, has also worked within Accor and IHG, and is highly regarded for transforming underperforming hotels into profitable operations.

Independent management model

Trilogy Hotels will provide hotel owners and brands with an operating platform for investment-grade assets where hotel operations are managed independently by Trilogy’s team.

Hotel brands may, under a franchise agreement, provide globally established branding, marketing, distribution, and loyalty programs, while Trilogy manages the hotel operations and drives the operational and profit performance on behalf of an owner.

The company also provides access to operational systems, training and team development.

A major success story in the US market, Aimbridge Hospitality has been widely recognised, including by key leaders at Marriott, Hilton and IHG, for its adoption of the independent management model.

Having started out in 2003 with eight hotels, the business has since grown rapidly to more than 1,500 properties across 23 countries.

Marriott International Area Vice President for Australia, New Zealand and the Pacific, Sean Hunt, has already thrown his support behind the independent hotel management model and expects there will be opportunities for Marriott to collaborate with Trilogy Hotels in the future.

“We commend Trilogy Hotels on their decision to enter the market and have no doubt that their high calibre personnel will offer certain hotel owners a valuable alternative to traditional hotel management models,” Hunt said.

“We anticipate powerful opportunities will exist for Marriott International to bolster Trilogy’s success by partnering with them under franchise agreements with our global brands. This collaboration will be central to maximising distribution reach and financial performance for assets under Trilogy’s management, and will deliver genuine benefits to hotel owners, their management company, and our hotel brands.”

JLL Hotels and Hospitality Managing Director, Gus Moors, has also thrown his support behind Trilogy Hotels’ approach, saying owners and investors are seeking a more localised approach.

“In a mature market like Australia and New Zealand, I’m very much in support of the approach that Trilogy Hotels is looking to adopt as it lines up with successful investment trends in both Europe and the US,” Moors said.

“By blending independent operations with brand support under a franchise agreement Trilogy Hotels offers hotel investors a compelling opportunity. I believe both hotel owners and investors are looking for ways to achieve positive outcomes through more local and bespoke hotel operations while still benefiting from the global distribution and presence of successful hotel brands.”

“Hotels can change lives”

Boyes, Ryan and Alchin say they are driven by a shared passion for hospitality, a desire to improve the industry overall, and the belief that “hotels can change lives”.

“Hotels are spaces where stories intertwine, where dreams are nurtured, and where connections are forged,” said Boyes.

“With an unwavering commitment to our hotel owners, team members, and guests, we also recognise our role in positively influencing the environment and the communities in which we are privileged to operate.”