Asset Management
“I have an excellent Finance Manager, why would I need an Asset Manager on top?”
It is the specialization!
The cycle of asset management starts when a hotel asset is acquired or developed for a reasonable price; is then operated properly during the period of ownership; and ultimately ends with its disposal at an appropriate time and price.
Finance Managers and Asset Managers, both having important roles in the hospitality industry, may have some overlapping responsibilities but there are distinct differences in their areas of focus and responsibilities as well as their background and experience.
While Finance Managers, who typically work within the hotel organization, are primarily focused on internal financial operations and day to day financial performance, Asset Managers in the hospitality industry are mostly external advisors, consulting the owners on the strategic management and optimization of the hotel asset on a wider and long-term view, investment strategy, and long-term value creation throughout its lifecycle.
Being a Hotel Asset Manager in the hospitality industry is a complicated task. It is necessary to have the knowledge of:
- Hotel operations, finance and market economics;
- Real Estate, Physical Assets and Maintenance;
- Contractual and Legal Affairs;
- EU Taxonomy, ESG 2.0 and Sustainability.
During the period of ownership and operation, hotel management companies are more focused on protecting their brand standards and growing their network, whereas Hotel Owners want to increase and maximize the value of their assets. The asset manager can bridge the gap between the Owners and the Management company.
Owners turn increasingly to asset managers, not only to align these two aims, but also to ensure the following:
- Have proper supervision over their operator and hotel operations;
- To reverse the fortunes of under-performing properties;
- To provide strategic direction and oversee their implementation;
- To continuously improve standards to result in maximum profitability;
- Comprehensive profit and loss statement evaluation and performance comparisons to assets of similar quality and configuration in the neighbourhood;
- Energy management and effective cost controls. To retain the asset value, the importance of complete and comprehensive data in relation to the full energy use of assets and the full footprint of hotels is paramount;
- Human resource management;
- Safety standards;
- Brand compliance for franchised hotels;
- Effective, result-oriented sales and marketing assessment.
As Asset Managers, we ensure that your asset is profitable by following a disciplined, process-driven approach to increase efficiency, reduce investor risk, and drive performance and profitability. As part of this consultancy, we encourage environmental sustainability policy like using smart building technology and Green Conservation Programs.