Asset Management

Owner's Representation

In a case where the hotel ownership and operational responsibilities are separated, there is strong possibility that each parties’ objectives are not always aligned, causing the relationship to become strained.

One of the more negative aspects of having a large group as your operator is that their General Managers tend to change every two to three years.  The result of this is commonly that the outgoing GM’s interest may be more focussed on his performance bonus, as opposed to maintaining the standards and the product / building.

As your “eyes and ears”, we offer an objective external perspective of the hotel’s and the operators’ performance, acting as the link between you and them. Our primary objective is to assist hotel owners to realize their vision and investment goals.

Here are some examples of the most common issues we come across, where operators’ objectives are not 100% aligned with those of the owners’/ investors’: 

• Excessive floats, surplus cash and too high a par stock levels and inventories.
• Mismanagement of CAPEX and Major R&M projects.
• Sacrificing on-going maintenance programs to prop up failing financial performance.
• Brand building at the owner's expense.
• Too high an age-analysis of the debtors’ book.
• Excessive litigation and resultant legal costs.
• Poor controlling of procurement and cost of sales.
• Mismanagement of the marketing budget.