Five Key Asset Management Tasks Are:·
Asset Acquisition: Develop a focused asset acquisition strategy for optimum revenue and ROI generation.
Asset Development: Analyzing, creating and building the right concept for the market.
Asset Utilization: Utilizing assets effectively and to its maximum profit and value potential.
Asset Performance: Measuring and controlling asset performance over time to maximize owner investment.
Asset Realization: Defining the best moment to sell or re-invest in the asset.
Asset Management Covers:
Physical Assets Aspects: Building, Grounds And Equipment - All physical aspects of the hotel/asset. These factors directly impact a hotel/asset’s ability to attract and retain guests, generate revenue and remain competitive over time.
Intellectual Assets Aspects: Brand, Reputation And Customer Data - Intellectual assets can significantly affect a hotel/asset’s financial performance and overall success. Brand creation and reputation are key intellectual assets that will influence guest loyalty, drive revenue growth and asset value.
Asset Management Planning: The asset management will outline the lifecycle of each asset and its status, the budget for asset management activities, such as repairs, replacements, and upgrades, and identify key performance indicators to measure the efficacy of the asset management strategy.
Asset Lifecycle Stages:
1. The Market Evaluation – Where, What & Why: The starting point is understanding the market being considered.
2. The Concept – Idea & Purpose: Finding your “niche” and developing your hotel/asset concept accordingly.
3. Feasibility – Making Financial Sense: Feasibility is determining, if the idea/project makes financial sense.
4. The Project – Architecture & Design: Working on the practical aspects of developing the hotel/asset project and turning the idea/concept into a realistic project.
5. Realization – Building & Interiors: Moving from planning to action and construction.
6. Pre-opening – Getting Ready: Preparing for the hotel/asset’s opening and receiving of the first guests.
7. Management – Operations & Service: Welcoming the first guests and start of regular operational activity.
8. Return-On-Investment – Achieving The Investment Target: Achieving a good return-on-investment. Each hotel/asset will have targets that it needs to achieve or exceed, before re-investing or divesting.
The Asset Management System Contains:
Financial Management & Performance Reporting
· Pre-opening budget negotiation and control
· Performance of current results versus budget and history
· Budget auditing and activity accounting
· Competitive set performance benchmarking
· New revenue acquisition and cost control initiatives
· Sales & marketing, channel allocation and booking costs
· Working capital requirements supervision
· Monthly reporting & Balanced Scorecards
Sales, Marketing, Distribution & Revenue Management
· Tender participation and negotiation
· Sales contracts and performance control
· Sales/reservation processes
· Channels, Channel costs and Channel Management
· Rate structure and quoting
· Rate discounts and volume performance
· Rate shopping and competitive performance according to asset strategy.
· Distribution strategy and timeliness
· Revenue Management Implementation and Performance success
· Credit contracts and credit management
· Partner satisfaction
Analysis Of Relevant Asset Evolution In Our Competitive Set And Market
· ADR, Occupancy and RevPAR review for potential competitors
· Asset value of similar properties
· Asset transactions in the market
· Key demand generators in our market
· Key aspects that have a negative influence on the market performance and capacity.
· Pipeline management - New market entrants and exits follow-up
· Market performance reporting
· Refurbishment and capex benchmark in competing assets
· Competitive pricing and distribution activity reaction
Management Areas
· Cashflow and operating needs
· Cash and funds handling
· Refunds and deletions
· IT Systems and restrictions
· Staff satisfaction - Employee satisfaction surveys
· Management execution and reporting
· Purchasing
· Inventory management
· Compensation plans
· Power-of-attorneys, signature rights and limitations
· Customer Satisfaction surveys and data analysis
· External/Internal management control systems
Optimize The Guest Experience And Reputation
· Guest review system(s)
· External reputation review system(s)
· Loyalty programs and performance
· Guest feedback and monitoring
· Trends in guest segments to be monitored with regards to volume, regularity and spend.
· Management reaction and corrective measures
· Identify strengths and weaknesses and develop measures to improve and correct.
· Training and improvement systems
· Incentives
Maintenance & Capex Management - Asset Lifecycle Monitoring
· Regular property inspections
· Capital expenditure requirements
· Health & safety rules & regulations compliance
· HVAC (Heating Ventilating & Air Conditioning), PMS (Property Management System), telephone, internet, video/TV systems.
· Third party contract reviews, particularly lease contracts
· Refurbishment and refurbishment supervision, conversion and/or property expansion plans
· Insurance policies, checks, costs and approvals
· Tax auditing
· Preventive maintenance systems
· Building inventories, amortisation and replacement plans/budgets
· OS&E, FF&E and asset usage challenges
· Utilities & Other Cost Saving Areas
· Technological improvement opportunities
Monitoring The Market And Investment Conditions
· Market economy
· Sector performance
· Asset supply & demand trends
· Transportation developments
· Market segments and spending analysis, as well as changes in them.
· Benchmarking comparisons and analysis
· Asset values and transactions on the market, as well as volume and duration analysis.
· Monitor financial conditions and other regulations affecting asset performance or value.
· Market investment opportunities
· New Investment & Divestment benefit analysis
Budget preparations
· Budget planning with hotel/asset management and hotel brand
· Review, challenge and adjustment of proposed budget, marketing and capex plans, in the context of current and expected market conditions and owner’s objectives
· Monthly review of deviations on behalf of the owner
Strategic Planning & Divesting - Asset Rotation Strategy
· Annual yield review versus initial investment plan
· Yearly value appraisal and review of available strategies (investment,
· Upgrade, conversion, neutral, divesture, etc.)
· Monitoring of competitive set asset transactions and market trends
Franchise or Operator Affiliations - Management And Brand Supervision
· Hotel management company and brand franchise search and selection
· Contract negotiation, compliance, modifications and monitoring
· Validation of impact of specific proprietary brand features or hotel platform systems, such as CRS, PMS, rewards systems, etc.
