Understanding objectives
“Understanding your ownership group’s objectives is critical as every owner, from private-equity firms to public agencies to family offices, has different investment goals. Once the owner’s objectives are established along a broad spectrum of investment criteria—including time horizon, return threshold, risk tolerance and community development—hotel asset managers can work backwards to develop the strategies necessary to make ownership goals a reality. With success defined differently for every owner, the roadmap becomes critical to evaluating each stop along the investment continuum in relation to their specific investment criteria to achieve the desired final outcome unique to each owner.”
--Derek Olsen
SVP, CHMWarnick, which asset manages the Hyatt Regency Denver at Colorado Convention Center
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Constant communication
“Many asset managers occupy an important space between the investor/owner and the operator. Clear and effective communication is critical. Owners don’t like surprises, and both owner and operator need to understand the objectives for the property and the plan to achieve those objectives.”
--Matthew Arrants
EVP, Pinnacle Advisory
Prioritize benchmarking
“To understand how each of our hotels performs, we benchmark both revenue and expense line items with comparable hotels. This is one way opportunities are identified to improve the owners’ bottom lines.”
--Nina Kleiman
EVP, HotelAVE
Be active in hiring
“Be personally involved in the selection of key people in the operations, give them the tools, support them and hold them accountable. Most management companies welcome this input on hiring only the best and appreciate your expertise.”
--Paul Breslin
Managing Director, Horwath HTL