“The Greatest Asset of a Company is its People Who Take Care of your Assets.” A decade ago, hotel owners struggled a lot to manage their investment properties, but now things have changed. With the increased opportunities for Hotel Asset Management, many hotel owners would no longer be required to take the risk of managing their assets.
So, what is Asset Management? The process of managing the value of the owner’s investment is called Asset Management. Investment in hospitality asset management services is rising and so, the requirement of Hotel Asset managers becomes more urgent, and also more important than before.
In this article, the experts of the Hotel Management Group will explain to you the role and responsibilities of the Hotel Asset Manager.
Role of Hotel Asset Manager
A Hotel Asset Manager will play an important role that involves a lot of responsibility. The first and foremost responsibility of a Hotel Asset Manager is to evaluate all the revenues generated by the different departments of Middle East Hospitality such as Rooms, Spa, Foods & Beverages, etc.)
Apart from evaluating the revenues generated from different platforms, they also need to analyze the ways to maximize revenue from different departments to ensure the profitability of the hotel management group.
The main role of the asset manager from Hotel Management Group is to know all the details of the property. They need to examine all the fields of hospitality and need to find out the new source for increasing the productivity of hotels.
An experienced hotel manager needs to do a competitor analysis and drive the perfect strategy on hospitality asset management services which makes the hotel stand out from the competition. They can also use their industry knowledge and expertise to provide guidance for the refurbishment of services, the addition of new departments in hotels, introducing new programs to attract more guests, and so on.
Challenges Faced by Hotel Asset Manager
In today’s competitive world, hotel asset managers are expected to face many challenges to take the business towards the path of success. Hotel Asset Managers need to keep themselves updated on extreme factors such as the economy, politics, finances, and tourism industries. Because all these factors have the power to affect the hospitality industry at any time.
So, asset managers should be always keeping an eye on these things, so if any difficulties arise, then they can easily overcome them.
Important Reasons for Having Hotel Asset Manager
Gone are the days that your hotel General Manager takes care of all the things from A to Z. But today, your clients need perfection in all the things and also, the competition is a lot in today’s market. To stay ahead of this competitive industry, you need to build a very good team that provides effective hospitality management services.
If you’re a hotel owner, still looking for a valid reason to have a Hotel Asset Manager for your investment, here we have provided the top 3 important reasons:-
Reason #1: Bridge the Knowledge Gap
Hotel owners are investors, rather they aren’t always experienced hoteliers. They come with more knowledge in financial audits, funds, real estate market knowledge, and so on, but they may have less knowledge in hospitality. This lack of knowledge and lack of experience in hospitality asset management services may affect their market growth, as well as their revenue.
Here comes the importance of the hotel asset management group. They can bridge the knowledge gap of hotel owners, as the asset managers are well-versed in hotel operations, providing better hospitality, and also, they will support with profits & loss audits, balance sheets, cash flow as well advice on capital expenditure. They also craft strategies with regards to sales, food, and beverage marketing plans, and any other plans to take the hotel business towards the path of success.
Reason #2: Work on Behalf of Hotel Owners
Hotel Asset Managers need to work on behalf of hotel owners, but they need to have better communication with a hotel owner. They need to be proactive and truthful in all reporting by producing a monthly market review and a monthly profit as well loss report which highlights the benefits and major issues.
Reason #3: Resolving Tensions between Owners and Operators
Although the main role of hotel asset managers is to work for hotel owners, they need to be also cooperative by building relationships across different teams. To achieve the best results, hotel asset managers work on behalf of the owners by working with the operator’s corporate office as well as local people on the ground.
Hope now you have understood the importance of hotel asset managers for your hotel hospitality management. Choose the right Hospitality and Hotel Management company & manage your investment in a cost-effective way!