Why Hotel Asset Managers are Essential in Today’s Market: Three Key Reasons

3 Key Reasons Why Hotel Asset Managers are in High Demand

The profession of hotel asset management is rapidly growing in importance. With the increasing complexities and disruptions in today’s hospitality market, hotel owners are increasingly relying on asset managers for their expertise and support. An asset manager assumes the role of the go-between for the owner and operator, ensuring the operations are being optimized to realize the owner’s objectives and enhance the asset’s overall value. This also involves managing the owner’s expectations and ensuring they are feasible and achievable for the management team.

Reason #1: Bridging the Knowledge Gap

Hotel asset managers play a crucial role in aligning the differing objectives of hotel owners and operators. While operators focus on brand protection and expansion, owners aim to maximize profits and asset value. Asset managers, with their extensive experience in hotel operations, contract negotiations, and performance management, help bridge this gap, ensuring both parties’ goals are met. They offer a broad understanding of various markets, property types, and best practices, aiding owners in selecting the right operator and preventing future conflicts.

Reason #2: Acting as the Owner’s Eyes and Ears

Effective communication between owners, management companies, and local teams is essential for a hotel’s success. Hotel asset managers ensure that all relevant information, both positive and negative, reaches the ownership promptly, fostering transparency and trust. They produce regular reports on market conditions, financial performance, and capital expenditure, providing owners with a clear picture of their investment’s status. Their proactive approach helps avoid surprises and keeps the hotel on track to meet or exceed its targets.

Reason #3: Mediating Conflicts

Hotel asset managers serve as mediators in resolving potential tensions between operators and owners. Their role is not to micro-manage but to facilitate collaboration and harmony between all parties involved. By understanding the unique dynamics and limitations faced by general managers and their teams, asset managers help align interests and ensure justifiable expenses. They provide additional support to general managers, advocating for necessary resources and improvements, ultimately benefiting both the owner and the operator.

Conclusion

Hotel asset management is a thriving profession, especially in upscale, full-service hotels. The stability and clarity brought by asset managers are highly valued in the complex hospitality market. Their expertise in real estate, operations, sales, capital expenditure, strategic positioning, and marketing makes them indispensable partners in successful owner-operator relationships. By maximizing profit and asset value, hotel asset managers play a pivotal role in the ongoing success of hotel properties.