A Hospitality Asset Management Company Increases Profits


Are you certain you’re reaping all the profits your hotel is capable of producing? A hospitality asset management company can ensure you’re maximizing the value of your hotel across the board.

Every facility and feature of your hotel contributes to its value. From your brand name and reputation to the furnishings in your guest rooms, every element has a specific value. The trick is to maximize that value to add extra profits to your bottom line.

A company specializing in hotel asset management can suggest many ways that your hotel assets can be utilized better to add more profits to your operation. Some of the methods can be obvious, but require special experience to put into practice. Your hotel may have functions rooms and a ballroom, but you lack the marketing experience to fill them on a regular basis. Or, your food and beverage suppliers may need to resourced to find the most inexpensive ones that offer the same quality.

If you’re developing a hotel from the ground up, hospitality asset management companies should be brought into the project early on in the development phase. By guiding you correctly in how assets are purchased and maintained, they will eventually lead to greater profits as much as renting out your ballroom regularly will.

In-Depth Approach to Asset Management

Hotel asset management companies take both a blanket and an in-depth approach to a hotel’s assets. They consider every asset, no matter how small or large, as a facet of a hotel’s total value. Then, by sorting all these assets into different categories, they can research ways into maximizing the value of these assets individually.

For some categories, such as linens, carpets and furnishings, it’s balancing the costs of the items against the longest useful lifespan to find the most profitable balance.

For other categories, such as the function rooms and ballrooms, it becomes a combination of facets that determines the most profits. The asset management company will look at all the factors considered in renting a venue. Does the room offer audio and video equipment and the staff to set up and run them? Do you need to refocus your marketing to appeal to both business and private potential customers? Addressing all the requirements to increase profitability is crucial in realizing the most value.

Getting the Details Right

Some hotel owners are so fixated on creating the big picture of a hotel concept that they neglect the small details that go into that concept. But hotel guests tend to focus on the details, especially when something is not to their liking.

Asset managers focus on the total asset to ensure it’s providing the greatest value to the hotel, as well as performing well for guests. By partnering with a hotel asset management company early on in the development phase of your hotel, you can reduce the number of adjustments and reassessments by a considerable margin and streamline the development of your project to include the most profitable assets.