Building a new facility is a challenging process for everyone involved and definitely requires extensive experience in organizing and executing the entire project.
Anyone who wants to build a new hotel may not have the knowledge or experience needed to manage the project and see it through to completion. Undertaking a task like this without the help of experts carries significant risks of wasting capital, time, and personal energy.
IHCS is a consulting firm specializing in the development of hotels, resorts, and hostels. We are experts in revenue management and maximizing returns for hotels and various types of accommodations.
The involvement of experts, such as IHCS, while maintaining centralized project management, is the ideal combination that will guarantee any investor a successful outcome for the new project.
An integral part of “Project Management” is ensuring that your hotel operates as it should—completed on time, within budget, and achieving the expected results.
In a highly competitive market, where new accommodations are constantly being added, working closely with the right professionals is what can lead to the creation of a highly functional and efficient new product.
How Can IHCS Help with Asset Management?
IHCS is a leading international company that manages hotel projects and investments. Our asset management strategy is divided into three phases: initial phase, pre-opening, and post-opening.
Initial Phase
Before launching a hotel project, it is essential to prioritize smart planning. At IHCS, we support you as you develop your plan. During this phase, you must make crucial decisions such as:
- Product Concept.
- ROI Estimate.
- Sales, marketing, and revenue management plan.
- Search for and selection of the best hotel company.
- Securing financing.
Pre-Launch At this stage, strategies should be developed regarding:
- Establishing profiles for key personnel.
- Defining FF&E and OS&E.
- Developing SOPs (operational procedures).
- Developing a pre-opening budget.
- Implementing a sales, marketing, and revenue management plan.
Post-Opening
Once the IHCS hotel project is up and running, it could continue to provide assistance with:
- Coaching and hotel management in operations and operational cost management.
- Monitoring the performance of the on-site team and ensuring consistent service quality standards.
- Identifying opportunities to maximize cash flow while maintaining or improving market position.
- Improving the hotel’s physical attributes.
- Overseeing property maintenance to ensure it remains in optimal condition.
Some Hotel Management Indicators
It is important to remember that at IHCS, we will also increase revenue through our expertise in revenue management. Our goal is to boost the overall financial performance of hotel properties by optimizing the return on investment as much as possible.Our primary mission is to turn your property or hotel project into a profitable business in the short, medium, and long term. To succeed, we must move away from traditional operating models to elevate the hotel asset to a whole new level.
IHCS helps you uncover the hidden revenue potential in every hotel project. We support revenue management with tools (KPIs) such as:
RevPAR
RevPAR (an acronym) stands for revenue per available room. It is a KPI used in the hotel industry to evaluate financial and business performance.
This metric reflects both room revenue and the occupancy rate. This data is crucial for understanding a hotel’s overall performance. It is an essential element of an effective revenue management strategy.
GOP
GOP (Gross Operating Profit) refers to gross operating profit. It is a metric that shows a hotel’s profits after deducting all operating expenses. It provides information on a hotel’s level of operating profitability.
This indicator is vital for assessing the company’s financial health. It is widely used by hoteliers and investors, as it shows how well the asset is being managed.
GOPPAR
Gross Operating Profit Per Available Room (GOPPAR) uses the same metrics as GOP but goes into greater depth. It takes the hotel’s operating profit and compares it to the number of available rooms. This metric shows a hotel’s overall performance and helps align the top line with the bottom line. It is calculated by dividing GOP by the total number of available rooms.
NOI
NOI is one of the best indicators for analyzing a hotel’s profitability. It is also known as the bottom line or net income. Remember, net income is equal to total revenue minus total expenses. In simple terms, it’s what a hotel earns after paying all its bills.
This KPI is extremely important because it provides information on the hotel’s overall status and analyzes its operational performance.
NOP
NOP (Net Operating Profit) is a metric that calculates net operating profit after subtracting all operating expenses from a hotel’s revenue.
Simply put, NOP shows how much money a hotel has earned after subtracting distribution costs and operating expenses. It is very important to know this figure, as it allows you to see whether a hotel is earning more than it spends or operating at a loss.
This performance metric is often a key figure for investors in estimating a property’s value.
EBITDA
EBITDA is a metric that shows earnings before interest, taxes, depreciation, and amortization. This KPI is widely used in hotel management because it measures operating profitability, taking into account only daily operating costs.
This KPI measures day-to-day operating profitability. By excluding items such as interest, taxes, depreciation, and amortization, it provides insight into performance beyond accounting, financial, and political factors.
EBITDA is widely used by hotels with a large number of properties and by organizations with significant debt. This is because EBITDA shows creditors the cash available to cover interest payments and illustrates potential profitability when accounting and financial maneuvers are set aside.
Whether you’re about to start a hotel project or already have one, the support of a hotel management firm like IHCS is crucial.
IHCS is your best partner for managing hotel project development and investments anywhere in the world!
