by Diogo Canteras - Founding Partner, HotelInvest

Within the ample scope of action of the Strategic Hotel Asset Manager, there are five crucial tasks for the increase of investor profitability and generating value for the business:

1.    Regular Market Analysis

One of the key roles of an asset manager is to keep up with industry trends, constantly assessing demand and supply within the local market in order to identify growth opportunities and possible threats to the hotel's performance. Monitoring risk factors such as economic variations and changes in local legislation helps protect investments, aligning the appropriate measures with the business continuity strategy and the interests of investors.

2.    Financial Analysis and Budget Monitoring    

Detailed analysis of a hotel's financial and performance reports can reveal details of its operation, investment needs and even procedures that need to be revised. Monitoring the annual budget aims to ensure that the hotel operates within the established financial limits by keeping track of the projected income and expenditure.

3.     Relationship with the investor

In Brazil, where the condo-hotel model is widespread, the role of the Asset Manager goes beyond mediating the relationship between investors and the hotel operator, acting as a middleman and working to ensure that the interests of the parties are preserved and do not conflict. Regular communication and transparency about the hotel's information and needs help build a trustworthy relationship with investors.

4.    Maintenance and Asset renovation

Asset maintenance and renovation are key to ensuring a hotel's longevity and competitiveness. The asset manager is responsible for overseeing the physical condition of the property and suggesting renovation and modernization projects, with a an eye on improving the guest experience, remaining competitive and increasing the property's value. Monitoring CAPEX (Capital Expenditures) in line with investors' objectives is crucial.

5.    Regular negotiations with the hotel administrator

The Asset Manager's role in negotiations with hotel operators goes beyond contract renewal. Changes in brand standards, CAPEX needs, crisis management due to specific hotel or market circumstances, mean that the strategic manager is continually involved in negotiations with the operator, aiming to protect the interests of investors and optimize results.

Carrying out these five activities requires a specific set of skills and knowledge, so by doing so effectively, the asset manager contributes significantly to the return to investors and the maximization of asset value.