Hotel  Asset  Management  

PHG!HOTELS & RESORTS!

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

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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.  

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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  

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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    

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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  

 

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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    

PHG!HOTELS & RESORTS!

PHG Hotels & Resorts Lagasca, 26 – 2ºD

28002 Madrid Spain

email: phg@phghr.com www.phghr.com