PERSPECTIVE
HOW THE
ASSET MANAGER has moved from elective to essential
Contributed by ALEX SOGNO , GLOBAL ASSET SOLUTIONS
It is said that to truly learn a foreign language , one must leave the classroom and immerse themselves in that language day to day , preferably in a country where it is spoken . Language is not just vocabulary , it is the interpretation that comes from also understanding culture , feel and colloquial nuance . The same can be said of many professions , employing a specialist language that can sometimes feel designed to keep the outsider at bay .
Hotels are no different . Only when one strays into the more theoretical end of physics does the workplace become more fraught with the potential for confusion . Whole conversations can be undertaken that would be incomprehensible to anyone with less than a decade of hotel experience , not forgetting the importance of throwing in a healthy dose of travel .
But rather than just speaking louder , better to find an experienced translator .
Within the hotel sector , many owners are only slowly coming to terms with the idea of handing over the operation of their hotel to an expert . The need for such specialism has grown in recent years , with operational knowledge mingling with asset potential and returns . The search for profit is increasingly challenging and the pace of change is accelerating . For too long , investors have assumed that an understanding of the real estate is sufficient ; this is a big mistake .
OPERATIONAL ASSET MANAGEMENT In the hotel industry , operational asset managers concentrate on creating value through the day-to-day business , working closely with the operator to obtain a much higher return , above-average revenue and greater flow-through . Those asset managers superintend the operator , optimize performance and strategic direction , support operations , increase the brand ’ s value and ensure the reasonableness of the operator ’ s costs . They guide the operation to increase the operating profit and the cash flow , with the goal of increasing the property ’ s value and maximizing the ROI on exit .
36 hotelsmag . com May 2023