Hotel asset management is the process of optimizing the financial performance and value of a hotel property through effective management of its physical, operational, and financial assets. The goal of hotel asset management is to maximize the return on investment (ROI) for hotel owners and investors by enhancing the revenue and profitability of the hotel while also managing costs- that’s essentially what all Hotel Asset Management Companies in India set out to achieve.
Our hotel asset management service or owner representation service can be understood by a triangle where the Hotel Asset Manager (HAM) works as a bridge between the three stakeholders involved, i.e. Hotel Owner, Hotel Operator (optional) and the Hotel Asset [Find the graphical representation below]
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Hotel asset managers typically work on behalf of owners or investors in the hotel property, and their primary goal is to maximize the return on investment for these stakeholders. They may be involved in a wide range of activities, including:
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Monitoring the financial performance of the property, analyzing key performance indicators (KPIs) and identifying areas where performance can be improved.
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Developing and implementing strategies to increase revenue and reduce costs, such as marketing initiatives or operational efficiencies.
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Conducting regular property inspections to ensure that the physical assets are well-maintained and that any necessary repairs or upgrades are made in a timely manner.
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Negotiating contracts with vendors and service providers to ensure that the property is getting the best value for its money.
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Analyzing market trends and conducting competitive research to stay up-to-date on industry developments and identify opportunities for growth.
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Hotel asset management is a complex and highly specialized field that requires a deep understanding of the hospitality industry, as well as expertise in finance, real estate, and operations management. Successful hotel asset managers are able to balance the needs of the property owners with the demands of the market, and they are skilled at identifying and capitalizing on opportunities for growth and profitability.
Opposite to what is widely known, in addition to financial management, hotel asset management also encompasses oversight of the physical assets of the hotel, including the property's physical condition, maintenance, and renovation. Asset managers may work with hotel operators to develop and implement a long-term capital improvement plan to ensure the property remains competitive in the market and maintains its value. In Hospitality Asset Management, generating revenue is as crucial as the upkeep and maintenance of the hostel asset or hospitality asset- but unfortunately, that’s something that most of the Hotel Management Companies in India forget about.
Hotel asset managers typically work closely with hotel owners and operators to develop and implement strategies that align with the owners' investment objectives. This may include developing and monitoring operating budgets, implementing cost-saving measures, negotiating contracts with vendors and suppliers, and identifying opportunities to increase revenue through sales and marketing initiatives. This could be typically done in association with either an in-house operations team or one of the Third Party Hotel Management Companies.
A Hotel Asset Manager employs the best operational as well as management strategies to multiply cash flow and at the same time, hotel's market value. We offer extensive hotel asset management services through all the stages of your property. As a hospitality asset management company, we aim to discover the latent potential of the current hotel business module by tweaking the existing structures. We use 'communication' as a tool to keep expectations clear from all parties to resolve conflicts and increase overall profits of the hospitality asset.
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For operator-driven hotels, Hotel Asset Manager works as a conduit between the hotel owner and the operator. As part of the scope of hotel asset management for operator-driven hotels, regular audits (mystery audits or otherwise) are performed on the hotel operations. This includes analyzing the existing work-flows of the hotel and identifying areas of improvements.
SCOPE OF SERVICES IN HOTEL ASSET MANAGEMENT
BENEFITS OF HOTEL ASSET MANAGEMENT IN INDIA
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In short run, our clients have seen far superior revenues and reduced costs which have resulted in improved profits and cashflows
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In long term, our clients have seen improvement in their gross and net profits- two key drivers of increased valuation of hotel assets
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Our team comprises of highly skilled individuals in the field of hotel asset management
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We are the only brand with majority of our team members being under 35 years. We are experts in the new-age industry practices in the sphere of hotel management offering next-generation managed services
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We refrain from using old-school and redundant practices as we are led by Asia's youngest Hotel Asset Manager, who started the hotel asset management practice at a young age of 21
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We leverage on our leading strategic alliances across industries in the field of engineering, audit & accounts, global sales associates, real-estate, finance and manpower- wherever required for our assignments
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We align our hotel operation strategy with the interests of the hotel owners/investors
Note: Promiller remains the first and only company to bring Hotel Asset Management to independent hotels across India- big and small- with elements specially customized to suit the dynamic ecosystem of Indian hotels
