David Shackleton (Dusit International): Developing hotel investor-owner relations can be a competitive differentiator

25 May 2015  2040 | World Travel News

During the Asia-Pacific Hotel Investment Conference (APHIC), held 19-20 May in Bangkok, we had the opportunity to meet with David Shackleton, the Chief Operating Officer of Dusit International who did a very inspired presentation about “How to Develop and Foster Investor–Operator Relations for Long-Term Mutual Return”. As Mr Shackleton stressed, most investors don't pay so much attention in developing a close relations with the hotel owner which is actually the competitive advantage of Dusit International.

TravelDailyNews: Your keynote presentation at APHIC 2015 in Bangkok is about “How to Develop and Foster Investor–Operator Relations for Long-Term Mutual Return”. Could you please elaborate for us the main points of this issue?

David Shackleton: Essentially it is developing owner relations as a key issue in the growth strategy and institutionalize these efforts in a systematic and regular way. It is about developing owner relations as competitive differentiator. In summary the main points can be distilled into the 4 P’s;

Purpose… establishing long term healthy relationships

Perceptions… understanding problem and opportunity areas, gaining and maintaining mutual trust, having a goal of mutual success and seeking first to understand

Progress… ensuring accountability for the relationship within the organization, ensure there is consistent and regular contact and reporting, thinking long time and allocating time to build the relationship, going beyond the dollar value and ensuring candor in the relationship

Process… institutionalizing company-wide the need for building and improving owner relations, investing in the relationship for the long term, constantly looking at ways to improve the relationship and reinforcing the importance of the relationship.

TDN: What are the new trends in hospitality industry that any investor should take into account?

D.S.: The impact of the emergence of ‘shared economy’ and the likes of airbnb.com and how this will impact the hotel business; yet to be seen.

Move to hotel app’s and mobile as ways to attract and retain customers. Ensure the operator is prepared and has invested in the technology.

Increase cost in labour and more efficient operating models. Reduction in the amount of space dedicated to food and beverage and restaurants. Focus on profit per square meter and not just have additional outlets for the sake of a “grand hotel”. Ensure the hotel is designed as energy efficient as possible and ensure the property is maximizing the use of new technology in building materials and systems. Review all space as potential revenue producing areas.

Move to developing mixed-use projects rather than stand-alone hotels due to increased land prices.

TDN: How can local hotel brands compete and survive among regional and international hotel brands? What would you suggest to them?

D.S.: I believe there will always be a place for local brands however you need first to define how you can win competitively. As a local company you need to define, refine and develop what your niche is and ensure you execute it well.

TDN: AEC is around the corner. How do you expect to affect the hospitality industry in terms of investments, labor mobility and tourism arrivals?

D.S.: I think it is too early to tell. From everything I read and hear the short term impact will be negligible as the countries involved have still many issues to resolve. In the longer term I believe it may pose a threat to genuine Thai hospitality as more workers from countries like the Philippines, Myanmar, Laos etc gain access to Thailand. I also believe that in the long term Thailand will have to improve the English language curriculum at schools to remain competitive.

TDN: What kind of innovative services and products you expect to see in the hospitality industry the next decade?

D.S.: Technology is having a profound impact on our industry. In fact I suggest that the industry has changed more in the last 10-15 years than it has in the last 100. We still have not fully calibrated the impact mobile technology will have on our industry whether it be through Apple watches or smart phones. Also the likes of Google have huge potential to disrupt the OTA space. AirB2B now is responsible for 6% of the room nights in New York so the potential to disrupt the conventional hotel industry is huge. Uber is now testing take away meals or hiring chefs which may impact the catering revenues of hotels. Technology is also having a profound effect on building systems, materials etc which ultimately will make buildings more efficient and arguably cheaper to run. The list is endless but the changes are here and can’t be ignored.


David Shackleton is the Chief Operating Officer of Dusit International and responsible for all operational priorities and challenges of the hotel division in terms of financial performance, market share, brand image and employee and guest satisfaction.

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