Ten years on from the launch of Capstone Hotel Management, Founder and Managing Director, CLARE DAVIES, spoke to RUTH HOGAN about market competition, strategic partnerships and the future of hotels.
White-label management is continuing to gain momentum in the Asia Pacific hotel landscape with many experienced hoteliers turning their hand to this model to capitalise on increased demand from owners.
Clare Davies was ahead of the trend.
Ten years ago, Davies established Capstone Hotel Management, now recognised as New Zealand’s leading white-label hotel management company.
Locally-owned and operated, Capstone continues to go from strength to strength with new property openings, strategic partnerships and the opening of a second office in Auckland.
Clare, congratulations on 10 years in business. Can you explain a bit about your career background and why you launched Capstone?
Thank you! I’ve had a long and rewarding career in the hotel and hospitality industry. I’ve been a General Manager and later became a major shareholder in a resort in Nelson. After selling my stake in that business, I identified an opportunity to support independent hotels and lodges. These smaller establishments often couldn’t attract global brands, but they were owned by passionate and independent investors who needed effective management and distribution solutions. This led to the launch of Capstone, a business model dedicated to providing tailored support and strategic solutions specifically designed for these independent hotels.
How has the white-label management scene developed in New Zealand over the 10 years that you’ve been in business? Are there more competitors now than there was when you launched?
The white-label management scene in New Zealand has evolved significantly since Capstone first entered the market in 2014. When we launched, the concept of white-label hotel management was relatively new and not widely adopted. We recognised an unmet need among hotel owners and investors for a flexible, locally attuned management solution.
Today, the landscape is markedly different. There has been a noticeable increase in competitors offering white-label services, reflecting the growing demand for this hybrid management model. More hotel owners are recognising the advantages of maintaining operational control while leveraging the marketing and distribution power of established brands.
Despite the increased competition, Capstone has maintained a strong market position by continually adapting to industry trends and client needs. Our deep understanding of the New Zealand market, combined with our strategic partnerships with global brands has kept us at the forefront of the white-label management scene.
Tell us about Capstone’s partnerships with major hotel operators.
Capstone has strategically partnered with prominent global brands Choice Hotels and Best Western Hotels (BWH) as a white-label partner in New Zealand and is open to working with other global partners. This collaboration provides an exceptional solution for larger hotel assets, allowing them to leverage global brand recognition and benefits while maintaining localised management expertise.
Through these partnerships, Capstone enables hotels to connect with global brands, benefiting from their extensive marketing networks and loyalty programs. At the same time, Capstone ensures that on-the-ground management remains attuned to the unique characteristics of the local market. This approach ensures that hotels can navigate the seasonal fluctuations and specific demands of the New Zealand hospitality landscape effectively.
Hotels under this model are well-equipped to achieve both brand prestige and operational excellence.
What are you hearing from hotel owners and developers on why they’re choosing white label?
Hotel owners and developers are increasingly choosing white-label partnerships for their ability to leverage the expansive reach of global brands like Choice Hotels and BWH, while retaining localised control. Owners appreciate the operational support and resources these partnerships provide for their assets. White-label arrangements offer access to sophisticated marketing tools, loyalty programs, and industry best practices without the rigid constraints of full brand integration, which helps to optimise hotel performance and enhance guest satisfaction. This model offers flexibility for owners. It strikes a balance, offering the best of both worlds: global brand advantages and local operational autonomy.
How do you expect the New Zealand hotel landscape to evolve over the next 10 years?
Over the next decade, I imagine that AI will have a significant impact on personalising guest experiences, while streamlining operations, and enhancing revenue management. Sustainability will play a crucial role, with growing awareness of environmental issues; guests are and will continue to demand greener practices. Hotels will have pressure to invest in energy-efficient systems, waste reduction programs, and sustainable sourcing.
I believe we will continue to see a rise in boutique and lifestyle hotels as travellers seek unique, authentic experiences that offer local cultural immersion. Our workforce will be even more crucial in the coming years, with a greater emphasis on employee well-being and development. Attracting and retaining talent will be paramount, with hotels offering more flexible work arrangements, career growth opportunities, and training.
This interview was first published in the October issue of HM Magazine.