TFG Asset Management (TFGAM) has recently published on Hospitality Net their latest asset management guide, the last edition focuses on the international hotel operator search and the importance on choosing the right partner for your property. It is essential that owners and asset managers approach this process carefully as these decisions lead to partnerships of 15 years or more.
The first step we focus on is the feasibility phase, during this phase an in-depth analysis is made of the market in which the property stands which will highlight the service gaps and opportunities. From this analysis owners can derive the hotel criteria that will lead to the most optimal performance like the size, room mix, facilities, service level…
From the feasibility phase an operator search can be made, as owners and their asset managers can match their hotel criteria with different brands in the sector. Local brand presence, owners priorities, brand standards are some of the key factors that need to be taken into account when shortlisting the different brands to approach. A request for proposal is then sent to the final selected operators with detailed information of the project, this well then follow up by multiple encounters and negotiations from which the asset management team will select a final operator that offers the most appropriate hotel management agreement for the property and its owner.
A letter of intent is then signed with the selected operator outlining the different clauses and fees of the contract. An experienced asset manager in this process can make a huge difference, they are able to achieve a beneficial agreement for both parties in a shorter time period. When such an agreement is one that lasts for a long time it is crucial the right steps are taken to lead to a fructiferous relationship between all parties.
To access the full article, visit Hospitality Net.
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