Hotel Business Development

Advice transaction

HOTEL ASSET MANAGEMENT

The development within the hospitality branch tends to lead to a separation of the ownership of the hotel real estate and the operational management. That is why new investors and private equity funds are increasingly looking for flexible forms of cooperation. For the hotel asset-management, this explains the need of hotel related know-how.

Are the interests of the owner or the renter in the existing operator contract considered in their best way possible?
Does the economic success of the operator correspond to the potential of the hotel real estate?
Is the cost structure of the operator incl. management fees and hidden costs appropriate?
How can the economic success of the hotel be seen in proportion to the market and competition?
Are the planning and budget values a realistic challenge for the operator and are there risks for budget errors?
Are there any turnover increasing or cost saving potentials?
Does the investment planning of the operator consider current trends or branch-related market developments accordingly?
Identification of an exit strategy for hotel real estate?

MANAGEMENT CONTRACT
In contrast to the classical asset management of lease objects which requires knowledge in areas related to controlling and accounting, more detailed knowledge from the area of hotel consultation is usually required from operator or management companies. The background is that the value of the property largely depends on the ability to generate cashflows and from the earning power of the hotel company. Hence, our understanding of hotel asset management is the project-related support of the real estate owner in all operational and investment related questions. Our herewith linked areas of operation are:
- Representing the investor or owner
- Contract management (existing / new or other contracts)
- Support and monitoring of negotiations (e.g., in the case of a new contract or contract extension)
- Monitoring and examination of the business strategies, business statistics and the business budget of the tenant (e.g., with the help of the budget to the operational and financial result desired, guest satisfaction assessments etc.
- Regular reporting to the investor or owner (e.g., analysis of the performance by target-performance comparisons and benchmarks)
- Planning, examination and coordination of the investment budget (e.g., by investment and FF&E plans and monitoring of the renovations)