The primary role of the Hotel Asset Management team is to meet the commercial objectives set down by the owners.
In doing so, the team evaluates capital expenditures and represents the interests of owners by monitoring the hotel’s overall performance. The Hotel Asset Management bears three main responsibilities on behalf of owners:
1. Identify and secure an operator and ensure compliance with the management contract: The hotel asset manager is partly responsible for selecting the appropriate hotel operator to manage an owner’s property. Not all operators are suitable for a specific owner’s profile. The Asset Manager’s expertise will ensure a perfect match.
2. Challenge budget proposal to optimise returns: The Hotel Asset Management team represents the hotel owner during the hotel pre-opening stage and ensures the Capital Expenditure (CAPEX) and the operational budget is in line with the required Return On Investment (ROI) by the owner. In day-to-day operations, the Hotel Asset Manager works to improve top-line performance and bottom-line yields while reducing unnecessary costs.
3. Resolve conflicts:The Asset Manager also works in the interest of the hotel management company. Unlike the hotel owner, they offer their depth of understanding in the field in which they can easily communicate with the hotel management company. Hotel Asset Managers work to reduce potential conflict between the hotel owner and hotel operator.
As the owner’s portfolio size increases and more hotel management contracts need to be signed, it is imperative they engage a professional Hotel Asset Management team to manage their assets.
The employment of a hotel Asset Manager establishes a win-win position for both hotel owner and hotel operator. They offer critical support to ease the owner’s workload, provide professional services and assist hotel operators in maximising returns.
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