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The asset management as a concept in the hotel industry also links the owner/ investor with the operator or the hotel management companies in India and the team underground which is done by the asset manager, he keeps a thorough check on operatoru2019s workings and makes sure to give an update to the owner/investor. This helps the owner/investor to be able to connect himself to the property and its functioning more and in every minute details.<br><br>Read the full blog now to know more!<br><br>www.promiller.in/post/hotel-asset-management-from-the-lens-of-a-hotel-management-graduate
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Hotel Asset Management: From the lens of a Hotel Management graduate
The need to maximize your profit not only through your rooms and food & beverage outlets but also through different opportunities within your own property has become important. In the long- term running of the hotel, this is where we need to have an asset manager who can be dedicated to always thinking about a unique opportunity which benefits the hotel.
An asset manager also helps the owner choose correct projects which are feasible for the company in this fast pace environment, they also help the owners/investors to obtain any asset on behalf of them by looking at not only the feasibility aspect but also the market aspect which is to acquire it at the right price and with the right outcomes at the end resulting into proper asset management.
We all are well aware that an asset does not start giving returns on the first day itself, it requires a lot of hard work and patience. We need to understand these very important 5 steps of the asset cycle as it is necessary for every asset manager to explain the owner/ investor the importance of this cycle and how an asset acts in each of these step
The first step is when the Introduction of the asset is done to the owner/investor in order to educate them with the following points below. This is to thoroughly understand the asset as well as an idea of proceeding furthermore. ● Forecast of future market trends ● Cost-profit ratio ● Product quality ● Pre-opening activities (Training, Market analysis, Social media) ● Market feedback
The Growth stage in estimated as the first 3 years of any property where you won’t really see any type of profits. Maturity is usually tagged after 3 years operations of a hotel which is the next step after growth where we see breakeven point (total cost=total revenue), profits for the hotels which can only be achieved with great turnovers and business by teamwork of all the three parties mentioned above i.e. investor/owner, operator and the hotel staff.
The renovation step is usually performed keeping in mind the financial status of the hotel, the wear and tear of the asset and also the need of it, this step differs for each asset for example some asset managers feel the need of it as they see a lot of new hotel brands opening up with better facilities or is there actually a need to upgrade our rooms, etc. so it is necessary to evaluate all the factors before doing a renovation on the asset
The EXIT step which is shown like a separate step after maturity is when the owner/investor decides to sell of his/her asset at some market value, the asset manager comes into picture here where they help the owner to evaluate the exact amount of the asset and sell them in a right price to the next party to not hinder the activities of the hotel.
The exit strategy could be done in a better way being considerate of the following: ● Risks and opportunities ● Do an independent and realistic market study or feasibility ● Study the transaction trends ● Get yourself a knowledgeable broker ● Have all the documents that represent the hotel ● Most importantly do not become desperate, by consider alternative opportunities. ● Get good professional advices in legal, finance, restate ● Make sure to not spoilt the operations of the hotels in the process
The asset manager here is very important in each step to guide every party be it the owner, operator or the hotel staff, as any mistake in any of these steps would lead to direct influence on the ROI, guest satisfaction.