In a fast-paced industry such as hospitality, the role of a hotel asset manager is becoming increasingly important in overseeing owners’ assets and ensuring optimal returns for each investment. For this reason, TFG Asset Management sought to identify some of the hotel asset management best practices to asset manage a diverse portfolio of hotels.
The four principles surrounding TFG Asset Management’s strategy comprise evaluating the top-line to bottom-line performance and taking decisions at tactical and strategic levels.
On the top line, it is advisable for hotel asset managers to focus on a range of revenue generators; across Rooms, Food and Beverage and Other Operating Departments, in addition to assessing other potential sources of income.
On the bottom-line, it has been noted that in order to harvest high profit margins in the long-run, hotel owners are required to invest in areas that may require a longer period for savings and returns to be realised, such as investment in green initiatives and refurbishment.
With regard to tactical decision-making, it is critical to analyse the hotel’s positioning and its competitive set instead of solely viewing the RevPAR index as a final performance metric.
In terms of strategic decision-making, the hotel asset manager must have an in-depth understanding of the hotel investment market and be able to identify the optimal moment to apply divestment strategies.
The full column article can be found on Hospitality Net.
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