Asset and Oversight Management 

for Small- to Medium-Sized Hotels

Definition

Asset and Oversight Management is a method of monitoring the profitability of hotel properties by monitoring the on-site property managers’ operating performance and maintenance. Asset Managers act as a third-party between owners and investors, and the General Management who run the day-to-day operations of a hotel. The client may be the owners or other key stakeholders. An asset manager may only need 3 to 5 days per month to monitor the property.

Values and Benefits

There is tremendous benefit in employing a middleman between the owner and the on-site General Manager. Asset Managers add value to the bottom line. They concentrate on maximizing profitability from an operational and real estate perspective. This position also represents an important control element for the actions and decisions of the General Manager. While the General Manager will sometimes be more concerned with high occupancy rates to achieve higher market share, the Asset Manager is focused on the owner’s profitability.

Asset Managers make recommendations to:

• Improve the physical facility
• Increase revenue growth
• Provide consistent quality of service
• Improve the market strategy and expense controls

The mandate of the Asset Manager is to enhance the value of the asset. The property is visited regularly for inspections. Asset Managers consult with management personnel concerning ongoing operations, marketing, and follow-ups on implementing suggested changes.

Written reports regarding property visits and meetings with corporate and on-site management are submitted as appropriate. Additionally, written comment is provided to the owner as a follow-up on reports from the Operator and their staff. These follow-up reports include an analysis and critique of the financial statements.

Roles of Asset Management

The Asset Manager can have varying levels of involvement in the business.

Some possible roles include:

• Owner’s Representative
• The ‘Desktop’ Asset Manager: examines profits and losses, business potential and goals.
• Hands-on Asset Manager
  • Examines profits and losses
  • Analyzes financially with the General Manager
  • Makes concrete revenue generation and profitability suggestions
  • Examines the Sales, Marketing and Action Plan.

Why Hire An Asset Manager?

Several factors can influence a client’s decision to examine or re-examine market position, financial structure, operating policies or management of a hotel. One or more of the following factors may put pressure on owners and lenders and signal the need for asset management.

• Competitors with modern technology
• Aggressive marketing
• Branding or changing brands
• Rising remodeling costs
• Retirement or exit strategies

Taking care of your assets like they are our own. Contact us to learn more.

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