Asset Management and Consulting for Hotels in 2025

by | Jan 9, 2025

Building a Bright Future and Securing Long-term Success


Why would a hotel owner need an asset manager? The unique skills and knowledge an asset manager
brings are invaluable. While a strong general manager may report directly to ownership, an asset
manager or consultant
can provide expertise in areas such as digital marketing, revenue management,
engineering, housekeeping, front office operations, food and beverage, sales, and most importantly,
budgeting and financial management. Their safety and security knowledge is often beyond that of many
GMs. They also have the contacts to hire everyone needed and understand the human resources and
legal requirements of operating in your state.


Embrace the relief and peace of mind that a comprehensive asset management process tailored to your
specific needs can bring. It involves a deep dive into historical financial information, the annual budget,
and your business/marketing plan, all with the best interests of the hotel and the owner in mind. This
thorough review ensures that no aspect of your hotel’s operations is overlooked, providing a sense of
security and comprehensive service.


The firm does not need a proprietary assessment mechanism to evaluate the market and competition,
carefully review the management agreement, and regularly meet with property team members to
understand focus and direction. However, the asset manager or consultant must be at a level well
beyond the GM and must be able to:

  • Monitor the hotel’s financial performance, analyzing revenue, expenses, and profitability
  • Provide market analyses and develop long-term strategies to improve the hotel’s market position
  • Refine operations to increase efficiency and reduce costs
  • Identify and mitigate potential risks to the hotel’s financial health
  • Work with ownership to make informed decisions about investments and potential sales
  • Enhance the hotel’s brand and market presence through targeted marketing and sales strategies
  • Implement improvements and upgrades to increase the hotel’s value over time


In essence, an asset manager helps ensure the hotel is a wise investment, maximizing its potential while
keeping a close eye on its day-to-day operations and market trends.


What should you expect from a professional?

You should receive a monthly summary report for ownership, including a review and analysis of hotel
operations and financial statements, budget, and capital improvement reviews. Additionally, sales and
marketing evaluations, a review of expense requests, third-party contracts, leases, and
concession agreements, and any spending outside of the budget or national averages are required. This
regular reporting will keep you informed and in control.


Annual reporting should include a review of the annual business plan and assistance with its
preparation, custom-made to the owner’s needs. It should also include historical performance,
forecasts, capital expenditures, budgets, market summaries, capital account summaries, and return on
investment analyses.

Who performs the asset management?

If you require a team due to the sophistication of your business, a strong operator, marketer, and
finance executive makes for a good team. Hospitality principals typically assigned or available to assist
might include a CFO, HR expert, and other disciplines as needed. A food and beverage executive is a
must for a full-service hotel. If you have a simple, limited-service hotel, a consultant can assist if he/she
is a strong generalist. With a robust asset management team, you can feel empowered and supported in
your business decisions.


Given the current debt scenario, where loans are maturing, a seasoned pro or asset management team
can advise on renovations, using automation/technology at the hotel, and much more. The hotel
industry is now more science than art. The team that an asset manager or consultant can bring might
include a broker for loans or valuation or any number of experts. Typically, you can get free advice from
a consultant on your first visit.


Special Note: Our thoughts, prayers and empathy are with our Los Angeles area brothers and sisters – to
all hoteliers, please consider being generous with any of our neighbors in LA who need short-term
accommodations!

0 Comments

Submit a Comment

Your email address will not be published.Required fields are marked *

Related Posts