With the growth of tourism in China, hotel investment has become increasingly attractive. However, managing hotel assets properly is crucial to maximize investment returns. Professional hotel asset management helps control pre-opening costs, ensure efficient operations, regularly evaluate property performance, and determine the optimal time for asset exit. Key services like development support, pre-opening preparation, performance review and renovation planning are provided.
Appoint hotel asset manager early in development stage
Hotel projects often face cost overruns in development stage due to lack of experience. Appointing an asset manager early on can help provide guidance on design, contractors selection, budgeting and control pre-opening expenses. They also have expertise to ensure brand consistency, positioning and access distribution channels to start building market presence.
Prepare smooth commencement with specialized pre-opening support
The pre-opening phase is crucial for hotel’s success. A professional asset manager facilitates activities like recruitment, training, service standards establishment, policy and procedures roll out, licensing acquisition and reservations system testing. Thorough pre-opening preparation ensures smooth commencement of operations.
Regular performance benchmarking essential for value enhancement
Ongoing performance measurement is key to improving RevPAR and asset value. A hotel asset manager conducts monthly and quarterly performance reviews, benchmarking KPIs like occupancy rate and RevPAR with competitive set. Performance issues are identified early for correction. Data-driven investment decisions can be made to drive better returns.
Strategic renovation planning critical for lifecycle management
Periodic capital investment is needed to keep properties competitive. Hotel asset managers provide renovation planning and budgeting services, coordinating design, contracting and supervising projects. This keeps disruption to operations minimal while enhancing property attractiveness and lifetime value. Owners can thus optimize lifecycle costs.
Asset exit strategy ensures investors harvest returns
An asset manager also helps owners formulate and execute asset exit strategies. Services like buyer profiling, marketing preparation, sales negotiation and due diligence support are offered to secure optimal valuation on sale. This allows owners to capitalize at the right time and reinvest proceeds into new opportunities.
Appointing hotel asset managers early in the project lifecycle is crucial for returns maximization. Their specialized services in development, pre-opening, ongoing operations and eventual exit ensure cost efficiency, performance optimization and investment value preservation.