With the ever increasing cost of hotel development, operating costs and over-supply resulting in the threat of diminishing returns, hotel owners and investors are demanding a more hands-on skilled, professional involvement in the long term management of their assets.
As consultants in the hospitality space, clients would often request us to assist them in reviewing budgets, conducting comparative studies, instituting capital expenditure plans etc. With our gaining knowledge base and expertise M & A is ideally positioned to offer asset management services.
When undertaking asset management the primary aim is to seek to maximise the value of our clients interests. Every report delivers detailed recommendations for adjustments to improve profitability and continued performance success.
M & A has been providing Asset Management services to its clients since 2011. M & A has a dedicated team of professionals from diverse backgrounds, that includes hotel operations, finance, projects and engineering.
M & A provides the following services in relation to Asset Management of Hotel projects
– Detailed review of the Annual Operating Budget and Capital Expenditure Plan for the Hotel prepared by the Hotel's operator. This is in addition to quarterly reviews where the owner feels necessary.
– Review the monthly financial summary on the operations. Analyse such information in relation to industry / competitive set comparisons both on revenue and expenses taking into account the market positioning of the Hotel.
– Identify specific targets with the operator with respect to the operations of the Hotel and assess their achievement on a monthly basis.
– Analyze and identify potential risks to the operation of the Hotel and engage the operator in addressing such risks while minimizing any potential negative impact on the Hotel's profitability
– M & A has a very strong internal audit practice that can also be deployed, where members of our team are required to actually verify and check systems and books and records of the hotel. These services can either be provided or supervised by us (if a local firm is used) and is an independent activity.