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Asset Management in the Hotel Industry

Asset Management in the Hotel Industry

Asset management is a concept that is quite in vogue within the hotel industry, but what does it really mean? It is considered to be the management of quick assets, which in turn is complimented by a good valuation analysis that allows you to define the most appropriate and profitable investment plan.

These days, the investment market is bullish. There are many hotel owners, developers, and private investors who hold assets, but do not have the experience to find buyers; there are also new investors who are considering developing new hotel projects or simply potential investors who have trouble taking control of internal hotel management. This is where Asset Management comes in.

In order to make a project a reality or improve one that is already up and running, you need investors. And to invest, you need professionals capable of gathering the right information and analyzing it so that you can make the right decisions. This is crucial to setting the project on a path to success. Internal hotel operations and their marketing and sales policies are tasks that must be carried out by professionals, in addition to ensuring that the acquired hotel asset has the right price and will provide good returns.

Increasing the value of an asset is essential in asset management; in fact, it is important to find strategies that are practical when increasing the value of the interests and ensuring that the hotel asset is sold in the best way possible. IHCS has a global reach, managing assets in Spain and other areas in Europe, Latin America, Africa, and Asia.

Our team has experience operating and managing different kinds of assets. One of its most important objectives is to maximize the value and potential of all of these assets by recommending and implementing the necessary changes. Changes to hotel asset management have been marked; in recent years, the industry has changed its focus, seeking higher profit margins and streamlining Revenue Management.

All Asset Management specialists manage general financial results from hotel assets, optimizing the return on their hospitality investment. A hotel may create an exceptional ROI by developing a unique product and creating an incredible experience for guests in order to reach the local market and make the asset the market leader. Nevertheless, doing a feasibility study is important in order to consider whether the hotel’s relationship to the market, location, costs, and financing are feasible.

Keeping up-to-date with the latest investment and hotel distribution trends can be a real challenge, as they are constantly changing. Many hotels are set in the traditional ways of managing operations; that’s why it is important to take the hotel asset to the next level, thereby discovering its revenue potential. The hotel business is highly regulated and also liberalized, so, paying attention to the hotel business regulations set forth in each asset’s location is essential.

Accordingly, a key part of consulting is keeping track of the different licenses and permits associated with the hotel business, and understanding the conditions to maintain said licenses and permits in the event the hotel changes ownership is essential. Similarly, emphasizing the importance of reviewing urban planning matters that may negatively impact or even halt the future of the hotel’s business will require a detailed analysis providing sufficient guarantees for the buyer.

All of this is part of a concept called “due diligence”. In purchase processes, carrying out several complex due diligence processes helps to prevent undesired surprises, considering the complexity of the hotel business and the myriad of permits, licenses, and details to be analyzed for everything to be in order.

The increasing arrival of foreign investors, especially from the Asian market, interested in acquiring hotel assets makes having quality legal advice essential. These services aim to facilitate the transition and takeover of a new hotel for the hotel operator, minimizing issues and potentially unforeseen circumstances.

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