Hotel Management with Eduard Rezhinsky, CEO of Maestro Hotel Management. Learn about the magic that goes into every hotel project.

What is a management company and what functions does it perform?

A management company (MC) is responsible for managing something – a facility, a process or a business. The work of a management company has broader objectives than the activities of a single person hired from outside – a manager. Relations with the manager are limited by the Labor Code, while all the nuances of cooperation with the MC are spelled out in a detailed contract. The management company provides comprehensive services for the management of the object and the level of responsibility is much higher than in the case of a contract with a single person.

Eduard Rezhinsky: “When you hire a management company, you get a team of professionals who are committed to your hotel as much as you are. We not only manage, we create the image of the hotel, its atmosphere and success.”

In our case, we take responsibility for the hotel facility and all kinds of processes – all internal procedures, including the legality of the business, reputational costs, staff training, sales and financial management strategies, property, and others. We accept a property with a certain rating level and our contractual task is not to deteriorate it, but to improve it by developing the brand, service and increasing profitability.

What is the specialty of Maestro Hotel Management company?

Maestro Hotel Management is a Ukrainian company, which in its existing form started working in 2019, that is, it was formed shortly before the pandemic. The concept of the company is quite unique for the Ukrainian market.

Eduard Rezhinsky: “Our uniqueness lies in the fact that we create common standards of work and manage the facilities from the main office, and directly in the hotels the facility team works. We took the western principle of hotel management and tried to realize it in Ukraine”.

Eduard Rezhinsky: “We strive not just to manage facilities. Our goal is to create real masterpieces of hotel industry”

Maestro Hotel Management also pays a lot of attention to staff development. Their employees have the opportunity to work on various hotel projects, acquiring new knowledge and increasing their competence. It is competence that helps acquire references that has led to the company now managing a portfolio of approximately $75 million worth of properties.

The combined experience allows the company to specialize in premium hotels, even those that require crisis management. Their portfolio includes real stars, indicating a high level of skill.

• M1 Club Hotel 5* (68 rooms)
• Villa le Premier 5* (15 rooms and “Grand Villa”)
• IL Decameron (61 rooms)
• Alexandrovskiy Hotel 4* (84 rooms)
• Weekend Family Hotel 4* (36 rooms)
• Wall Street Hotel 4* (26 rooms)

What are the advantages of letting a property be managed by a management company for a hotel owner?

Obviously, not only do hotel owners not have to worry about the operational process, but they get a unique perspective and approach from the Maestro team, which makes their hotels true gems in the hospitality industry.

Eduard Rezhinsky: “We offer hotel owners and investors comprehensive hotel management services: from creating an architectural concept and proposing the most efficient use of space to technical support of construction and implementation of high service standards. We give hotel investors back confidence that this is a lively and profitable business, that their facilities can be effectively developed, that it is possible to multiply the financial flow and enhance their reputation, and that it is not necessary to demolish and rebuild everything”.

Are there downsides to handing over a hotel to management?

When asked about the risks of putting a hotel under management, Eduard Rezhinsky emphasizes that any business has its own challenges. But all the obligations that the management company has are spelled out in a detailed contract.

Eduard Rzhinsky: “We always calculate risks and plan in advance. It is important that our main principle is partnership and effective interaction with the hotel owner”.

Do you preserve the individuality of each brand you take under management?

Eduard Rezhinsky: “We invest in increasing the hotel’s recognizability without changing its essence”.

This is a mandatory condition stipulated in the contract. We do not call the objects by our name and work with the brand we have. The maximum that we can do is to carry out a small rebranding, “refresh” the brand, change positioning and methods of marketing promotion. That is, we develop the existing hotel brand, strengthening its recognizability and reputation.

Our standards of work take into account the specifics of each brand, for which a separate marketing program and sales strategy is developed. This is how our principle of separate work with each brand is realized.

What has changed in your work under martial law?

The specifics of the current context have been a challenge for Maestro Hotel Management. They had to look for new staff and adapt their work to the new conditions.

Eduard Rezhinsky: “Martial law is a difficult situation for us, but we are not only coping, but also developing. We are learning a new rhythm and finding ways to recover.”

After the war started, some of the top managers went abroad, so we had to look for new specialists. Given the specifics of our work, it is quite difficult to find specialists with experience similar to ours. That is why we relied on internal staff. We had a task to restore the work of the main office in 6 months, which we did.

We also needed to restart the work of the facilities that were shut down at the beginning of the war. We reorganized our work and also strengthened security measures. We did everything necessary, however, we are still adjusting our work according to the current situation in the country.

Is it possible to say that the advantages of UC are particularly pronounced now, under the conditions of martial law?

The war has had an extremely negative impact on the work of hotels. Some large management companies have stopped developing in the market, and there is a staff hunger – many managers of hotel facilities have left Ukraine.

All of this has contributed to the emergence of many hotel properties – chain and independent – that have financial and staffing problems. To solve their problems and restore their operations, such properties require the intervention of external crisis managers, such as our company. This concerns Kyiv to a greater extent than, for example, hotels in the west of Ukraine, where the market is overheated.

The main problem of premium hotels is that at one time they were built and launched as an additional line of business for their owners. The presence of a hotel in the portfolio of assets was perceived by them as a business card. Their owners had other, more important lines of business, and there was no evaluation of hotel performance. That is why, with the war and revenues falling by up to 70%, premium hotels are experiencing serious problems that they cannot solve on their own.

Can you tell us with a concrete example about the advantages of cooperation with your management company?

The history of Maestro Hotel Management has illustrative examples. For example, we got one of the hotels when there was an internal management crisis at the site. We formed a new team and have been successfully managing the hotel for 7 years. The facility had a good load when we took it under management, but thanks to the fact that we were able to establish internal processes and improve service, we have raised the average rate by 2 times in a few years, while maintaining high utilization. We also developed the restaurant business, which had a significant impact on the overall revenues of the complex.

Another hotel case was no less interesting: thanks to an additional investment of 10% of the initial cost and reconstruction, it now has a banquet hall and a restaurant, and the number of rooms increased from 59 to 85. With the increase in the number of rooms and the creation of new areas for guests, the hotel has reached a whole new level of profitability.

In what areas is the company working and what are the plans for development?

Maestro Hotel Management is more than just hotel management. The company is actively developing in several other areas, including hotel development, investment and consulting. Their specialization is manifested in the study of market needs and calculated approaches to implementation.

Eduard Rezhinsky: “We create and invest in the future of the hotel industry.”

It has already been said about management. As part of hotel development, we support projects in Odessa. As of now, we have two active projects: M1 Club Apartments and SOHO House. We advise them until the launch and then we will take them under management. We also have an active consulting business, but with the aim of further long-term cooperation.

Maestro Hotel Management’s mission is to take the hotel business to a new level. Their plans include entering the markets of Kyiv and Lviv in the same 4-5* segment. The company is ready to show that in the conditions of challenges and changes it is possible to find the way to success and stability.

Eduard Rezhinsky: “Now we have the strongest position in Odessa, but we are working towards expanding our presence in the market. We are planning to move the main office to Kiev, and a regional representative office will remain in Odessa. We want to show the owners of premium hotels, particularly in Kiev, that despite the war it is possible to work efficiently and profitably”.

What is the current competition in the market of management companies?

The market of management companies is constantly growing and changing. Now there are already new players, but the number of professional staff remains insufficient. There is a widespread opinion among hoteliers that it is impossible to achieve success under extraordinary circumstances. Maestro Hotel Management is actively working to convince hoteliers otherwise.

Eduard Rezhinsky: “We root for the success of each property and are ready to help overcome challenges.”

Maestro Hotel Management is a team of masters who turn hotel properties into true masterpieces of hospitality and profitability. Here every step is a step towards new success, and every hotel is a new page in the history of professional growth and unforgettable experiences.