"The best business models are those that deliver the most profit to their owners and challenging the status quo is essential in achieving this"

Hotel Asset Management

Hotel operating margins are under pressure, with Payroll, Online Travel Agent Commissions and Sales & Marketing capable of pushing up operating costs by over 20%. Owners are having to pick up the tab for this and they are increasingly looking for alternative and better means of Hotel Asset Management.

Maximising Cash Flows is the key objective in Hotel Asset Management. This requires a balanced long term approach that understands, in detail, the ownership strategy and the operational implementation; aligning the objectives of both sides. Traditional financial hotel models must be synchronised to the current, fast-paced, changing hotel environment and to achieve this, increasing numbers of owners are engaging third-party management companies.

Hospitality Business Development is an Asset Manager that not only understand your investment strategy but also understand Hotel operations and financial models.  We have extensive inside knowledge and experience of the hotel business and work to deliver an immediate increase in equity return in the first year of our involvement.

How?

The best business models are those that deliver the most profit to their owners and challenging the status quo is essential in achieving this. Reducing traditional operator fees and improving flexibility with management contracts will add significantly to profitability and value proposition when it comes to the hotel sale.

We will guide you through all stages of hotel development and help you to achieve an earlier and better return on your capital investment by finding the best position in the market for your hotel through effective marketing, pricing, selling and tight cost control from the start – complete hotel asset management.

Our objective advice helps to: –

  • Actively asset-manage a single or portfolio of select-service and extended-stay hotels by effectively interacting with stakeholders and aligning investment objectives with the operators and the teams on the ground.
  • Develop sales and revenue management strategies in line with latest technologies and techniques, drive improved performance, and maximize asset value.
  • Create viable strategic plans with key success and risk factors catered for, which have been agreed by owners and operators, BEFORE financial commitment
  • Review, benchmark and analyse hotel- and portfolio-level financial data and keep informed of the dynamics of each market area to develop a strong understanding of the hotels and their respective markets.
  • Prepare monthly, quarterly and year-end summary reports for senior management and owners.
  • Review, understand and ensure compliance of management agreements and loan documents.
  • Install razor sharp financial control – with a strong commercial approach towards balancing the needs to maximise revenues and minimise unnecessary costs and wastage
  • Review and manage operating budgets, capital budgets and marketing plans.
  • Travel to the properties as needed to inspect the facilities, meet with management and tour the market areas and competitive set of hotels.
  • Build relationships with the various hotel brands, management companies, and partners.
  • Effectively interact with in-house departments including but not limited to investments/acquisitions, accounting, capital markets, and legal to ensure a consistent understanding of the performance and any potential issues of the hotels.
  • Provide oversight of renovation projects to ensure projects are completed on time, within budget, and with the least amount of financial impact to the hotel.
  • Keep informed of hotel industry trends and how such trends may impact the Company’s portfolio of hotels and wider hotel asset management.

At HBD, we see Asset Management as a collaborative process, that connects your vision and investment goals with our experience and industry expertise. Without commitment, we would welcome the opportunity to discuss your requirements in more detail.

 

Would you like to know more?

Download our latest White Paper entitled “Why Return on Hotel Investment Can Significantly Underperform” or contact me, Lucienne Mosquera (Managing Director) for an informal conversation about your Investment.

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