asset management and development

Hotel asset management is a set of services that create and maintain a constructive relationship between hotel owners and operators. Although having an independent asset manager is commonplace in the US and Western Europe and Asia the potentials have not completely been embraced in the CEE, SEE and CIS regions. The benefit of having an independent asset manager for your property benefits owners by alleviating them from the burden of controlling management performance and finances, and constantly managing the friction between the owners’ and the operators’ interest. One of hotel asset management’s key aim is to maximise property owners’ returns on their assets by making sure that the operator is acting in the proprietor’s best interest.

To learn more about how an asset manager can help increase the value of your investment, read our article here.

challenges:

The division of property owners and hotel operators in the hospitality industry creates a complex relationship between the two stakeholders. While proprietors may see hotels as an investment vehicle and a part of their portfolio, they would like to find the balance between high returns and risk aversion. Hotel operators’ motivations however might diverge, even though the two parties are working towards a common goal: a successful hotel.

our solution:

This division of interest is the easiest to navigate with the help of professional hotel asset managers who have an understanding of both parties’ interest. Asset managers provide the link between investment and operation and are able to assist owners throughout the lifecycle of their property from acquisition through on-going controlling to the eventual sale of the asset. The financial benefits of a well-managed asset manifest themselves in both higher returns for owners as well as lower risks.

We believe that involving an independent professional hotel asset manager can add value for your property by:

• providing a concise operational overview on the performance of your properties

• rigorous cost controlling measures by the asset manager

• providing an overview and recommendations on CAPEX related questions

• giving regular expert opinion on the financial and operational performance of your hotels

• seeking to maximise income for the ownership