Asset Management Services for the Hospitality Industry
Hotel Asset Management
The fiduciary role of managing the hotel asset over time to accomplish stated financial objectives. This typically means to enhance the asset's market value through management of the hotel operator, capital expenditures and the asset's position in the investment cycle (i.e. sell/hold).
1 - Managing the operator
2 - Managing capital
3 - Managing the investment (hold/sell)
Once SHW has established a fiduciary responsibility with an owner, we are bound and become one legal entity. As asset management specialists, our ultimate goal is to surpass all financial objectives, and we work very closely with owners and third-party hospitality management companies to do so. SHW employs a proven five-step evaluation process to determine whether an asset is viable and can be turned around. By providing superior guidance and supervision on all capital expenditure, we set ourselves apart from other hotel and asset management companies.
Our Five-Step Asset Evaluation Process
- Situational Analysis – First and foremost, we will examine an asset's budget and business plan in order to assess the strengths and weaknesses of every department of the hotel, resort, castle, or other business.
- Management Changes – If the asset is indeed viable but mismanaged, we will then make the necessary personnel changes to return the property to a thriving enterprise.
- Emergency Action Plan – At this stage, SHW will implement our "Emergency Action Plan" to stabilize operations and calm nervous investors. From reviewing operations and cutting expenses to eliminating waste and increasing productivity, day-to-day operations will dramatically change course with our hotel and asset management services.
- Restructure the Business – Once the preceding fundamentals have been streamlined, SHW will develop a new business plan and budget. Additional financing will also be secured (if necessary) to revitalize an asset to generate the income needed for a 10 to 15 percent profit over the next 12 to 18 months.
- Return to Normalcy – During this final step, guidance from new leadership will result in less frustration and conflict, which in turn will increase guest satisfaction and allow the marketing department to confidently sell the asset to potential clients.
In the unlikely event that all efforts prove to be futile, SHW can also assist in the disposition of a property.