PHG! HOTELS & RESORTS! Hotel Asset Management

Transcription

1 PHG! HOTELS & RESORTS! Hotel Asset Management

2 A pragma(c approach for the success of your hotel project

3 Hotel asset management The course towards disassocia(ng and specialising property ownership, asset management and brand management in the hospitality sector is becoming more evident. Banks, investment funds and private equity firms require an objec(ve perspec(ve on management performance by a third party expert. In Southern Europe, this growing trend has also benefited from the entry into the hotel market of ins(tu(onal financial groups in gradually higher numbers. In our current fast pace environment, private equity groups and investment funds require of feasibility analysis and asset management teams that can be deployed on site and on demand for selected hotel asset porfolios located, not only in Southern Europe, but ogen also in the wider Mediterranean area and in La(n America. Hotel asset management specialists act on behalf of the owner to ensure the asset is acquired at the right price and the appropriate yield, always taking into account its poten(al upside and local characteris(cs. Property management by a hotel chain is audited on a regular basis to make sure a poten(al divesture can be executed at the appropriate (me. Business process reengineering is a constant in the analysis to reach the agreed value targets in the most efficient manner. Last but not least, we would like to stress that the roll out of an effec(ve asset management programme requires also a of a mul(- disciplinary approach that takes care of equipment audit, regula(ons enforcement and sales & marke(ng aspects. 2

4 Our asset management methodology PHG asset management programmes cover six core areas of work: 1. Financial and opera6onal KPI monitoring: Pre- opening budget nego(a(on and control Performance of current results versus budget and previous year Budget audi(ng and property accoun(ng Compe((ve set performance benchmarking Supervising new revenue acquisi(on and cost control ini(a(ves Screening of property related costs and expenses Sales & marke(ng monitoring, sales channel alloca(on and booking costs Customer and employee sa(sfac(on surveys Working capital requirements supervision 2. Analysis of relevant asset evolu6on in our compe66ve set: ADR, occupancy and RevPAR review for poten(al compe(tors Iden(fica(on of key demand generators in our market New market entrants and exits follow- up Refurbishment and capex benchmark in compe(ng assets Compe((ve pricing and distribu(on programme ac(vity reac(on 3

5 3. Asset life monitoring: Regular property inspec(on and capital expenditure requirements budge(ng Health & safety rules & regula(ons compliance HVAC (Hea(ng Ven(la(ng & Air Condi(oning), PMS (Property Management System), telephone, internet, video/tv system inspec(on Onsite property representa(on, when appropriate Third party contract review and consul(ng, par(cularly lease contracts Supervision of refurbishment, conversion and/or property expansion plans on behalf of the property owner Insurance policy check and approval Property tax audi(ng 4. Budget prepara6on: Budget planning with hotel management company and brand franchise Review, challenge and adjustment of proposed budget plans, marke(ng plan and investment plan, in the context of current and expected market condi(ons and owner s objec(ves Monthly review of devia(ons on behalf of the owner 4

6 5. Asset rota6on strategy advice: Annual yield review versus ini(al investment plan Annual value appraisal and review of available strategies (investment, upgrade, conversion, neutral, divesture, etc.) Monitoring of compe((ve set asset transac(ons and market financial trends 6. Hotel management company and brand franchise supervision: Hotel management company and brand franchise search and selec(on advice Contract nego(a(on, compliance, modifica(ons and monitoring Valida(on of impact of specific proprietary brand features or hotel plaform systems such as CRS, PMS, rewards systems, etc. Nego(a(on with the brand of those aspects 5

7 Who are our clients? Hotel asset management programmes by PHG are tailor made to fit the specific requirements of our clients. AGer we carry out an ini(al analysis of the proper(es and your requirements we specifically address those aspects that are cri(cal to your company in par(cular. Our service is specially designed for hotel asset owners or companies directly or indirectly related to hotel investment or financing opera(ons, such as: Banks and savings banks REITs Hotel investment funds Private equity groups Pension and insurance funds Family offices High net worth individuals Real estate groups and construc(on companies Government bodies About PHG Hotels & Resorts PHG was founded in 2009 as a personalised and pragma(c alterna(ve to the larger more generalist consul(ng firms. Our partners bring the unique exper(se of having held execu(ve posi(ons at hotel proper(es and hotel companies. They can introduce to you executable solu(ons and prac(ces based on real life experience acquired during decades of hotel asset management in a variety of leading hotel groups. Should you like to experience first hand our approach or go into more detail into our hotel management prac(ces, please do not hesitate to contact us at phg@phghr.com 6

8 PHG! HOTELS & RESORTS! PHG Hotels & Resorts Lagasca, 26 2ºD Madrid Spain