Tips For Selecting The Right Hospitality Asset Management Company
Posted on: 13 November 2019
Many companies, firms, or very high income individuals invest in hotel ownership, but hotel owners often have little to no hospitality experience or direct knowledge of the day to day operation of a hotel. Thus,many hotel owners opt to hire hospitality asset management companies to assist in the operation of one or more hotels. Choosing a hospitality asset management company is a huge decision-- selecting the wrong one can lead to a huge loss of revenue if a hotel is not run properly. Thus, selecting a hospitality asset management company is a huge decision for a hotel owner. Some of the things to consider when selecting a hospitality asset management company include:
Local Market Experience
The day to day operation of a hotel located in a ski resort area is very different than running a hotel located on a tropical beach. Guest demographics are different, expected amenities can vary, and high and low seasons won't be the same. When looking for a hospitality asset management company, one of the best things that you can do is select one that has a lot of experience working in the local market where your hotel is located. This will help ensure that the hospitality asset management company already knows what to expect and will have the expertise needed to properly run the hotel.
Profit Margins
Before hiring a hospitality asset management company, you should always ask to documentation of the profit margins at other hotels under their management. As a hotel owner, your main goal is likely to increase both revenue and profits year after year. If a hospitality asset management company has a proven track record of good profit margins at other hotel properties, there is a good chance that they have a system in place that will also work well for your hotel.
Customer Service
Many hotel owners choose hospitality asset management companies that successfully oversee numerous hotels. While doing this can guarantee that the management company has skills and expertise, you still need to look at the level of customer service that you will receive as the hotel owner. A good hospitality asset management company will ensure that senior management is not spread to thin-- you should have the peace of mind of knowing that your hotel will get personalized attention. In addition, make sure that it is easy to get in touch with the senior management at a hospitality asset management company before signing a contract.
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