MANAGEMENT
Curbing
RAMPANT TRANSITION
COSTS
Contributed by CHRIS RUSSELL CEO , SPIRE HOSPITALITY , IRVING , TEXAS
questions . Beware of hidden fees and expect full transparency .
Doing your due diligence before transitioning to another third-party management company is key to cutting transition costs . Don ’ t leave any stone unturned when vetting a potential partner about transition costs . Understand every step of the transition process and don ’ t be afraid to push back when something doesn ’ t add up . Many transition costs are avoidable with the right third-party management company .
For instance , effectively managing a transition team is key to significantly cutting transition costs . You can accomplish this by ensuring there ’ s an efficient transition process with a well-defined critical path in place before transitioning to another third-party management team .
What does the transition process entail ? How long does it take ? When ’ s the best time of week for the transition to take place ? What type of impact will the transition have on the property ? Will new licenses need to be obtained for the property ? What about the technology throughout the property ? The property management system ( PMS )? The revenue management system ( RMS )? Do they need to be swapped out for newer systems ? If so , what are the associated costs with that ?
The transition team also doesn ’ t need to be large to prove strength . It doesn ’ t need to have all bells and whistles or a stable of consultants to opine on what is needed . Instead of sending a huge team with undefined roles , have a specific day-by-day list of action items to complete during the transition . Your plan should be specific to the needs of the property at transition , and cover what you can remotely what doesn ’ t have to be completed on property .
Sometimes it ’ s worth getting out of your comfort zone and taking a risk . What ’ s important is that it ’ s a calculated one . In a time where labor costs are rising and brand standards are evolving ( and at times unpredictable ), curbing expenses , including significant costs , is essential to keeping a property afloat . Protect your bottom line by curbing rampant transition costs .
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