Global Asset Solutions · 27 Jul
The damage inflicted by COVID-19 cannot be underestimated, it is imperative that hotel owners, including Private Equity (PE) funds stay vigilant and have aligned interests with all concerned parties. What better way than to engage the likes of a Hotel Asset Manager (HAM) who is an extension of the PE fund with relevant industry know-how and expertise. He/she will provide an array of services which can help the hotels navigate this period. For this to happen effectively, PE funds need to trust and have faith in their hired HAM to perform as it is a two-way street.
Global Asset Solutions · 22 Jul
With the advent of the 'new normal', hotel owners and operators must begin considering the various financial and operational scenarios in their forecasts extending into 2021. Accurate forecasting is notoriously tricky, even in "business as usual" scenarios. Often, some operators need more pressure to deliver detailed break-downs forecasts, and they rarely extend more than three months in the future. The objective of a forecast plan is to ask the hotel operator to propose tangible actions: to increase the performance of specific areas of the hotel, to manage the production of the personnel, to schedule productive activities, and to increase customer satisfaction.
Global Asset Solutions · 17 Jul
As hotels begin to re-open, it is crucial that they're mindful of their Break-Even Point (BEP) to understand their cost levels and to determine what RevPAR level is necessary to re-open. COVID-19 presented many challenges for hotels who are currently striving to merely break-even instead of maximizing profit as usual. While hotels usually aim for 35% occupancy threshold, many are hoping that COVID-19 cost reductions will lower the breakeven threshold.
Global Asset Solutions · 26 Jun
COVID-19 introduced the hotel industry to a lot of uncertainties for the future. It also revealed several weak spots and high-risk areas within hotel management agreements (HMA's). As these weaknesses become more evident, it is important to decide which points to focus on, how they can be adapted moving forward, and how each party can make the necessary adjustments to help each other out.
Global Asset Solutions · 22 Jun
Stronger together! Merge to survive… and thrive! For hotel owners and investors, access to friendly capital, shared resources and additional capital appreciation provided by entering assets into a partnership - that famous "portfolio effect", can these days be what stands between survival and losing control.
Global Asset Solutions · 19 Jun
Balance Sheets deserve more attention and are an often-overlooked financial statement. While it is the Operator's responsibility to ensure accuracy, the simple fact that it isn't tied to management fees means there is often little effort going into keeping it accurate. Meanwhile, the P&L statement predominates negotiations and is keenly scrutinized by all partners involved in the Hotel.
Global Asset Solutions · 5 Jun
Sustainability is regarded as the key to a successful business in the 21st century. It is fast becoming a top concern for public and private sectors alike. The hospitality industry is no exception. 2020 was set to be a year of collective action on climate change until COVID-19 brought many unknowns, including how future travel behavior will develop and whether sustainable initiatives will be forgotten or gain priority. While travel will remain limited in the short-term and the industry will continue to suffer from excess capacity, the ability to offer the right experience to these fewer travelers will be crucial in attracting them. The question thus becomes whether, in the post-COVID-19 world, ethical and sustainable experiences matter more or less to customers than before.
Global Asset Solutions · 21 May
Much has already been written about insurance issues arising from the Covid19 virus. With many hotels closed throughout the world it's inevitable that hotel owners/ investors are looking to their insurance policies for compensation under the Business Interruption section.
Global Asset Solutions · 18 May
An essay on the importance of trust and communication, during these days of COVID-19. As you're reading this, regardless of where in the capital stack you sit, you probably have a stronger than usual desire to know exactly what's going on with the underlying asset, the cash flow, the promised CapEx program, the debt covenant compliance, and how badly you mispriced your risk (you're not alone).
Global Asset Solutions · 15 May
As hotel asset managers, we are able to work alongside hotel owners and operators to guide a hotels' recovery from COVID-19. We can use our expertise to guide and create a re-opening action plan, bring back the hotel's property value, and enhance communication between the owner and the management team. This article will outline the key areas where hotel asset management can come into play to improve and adjust your operations post COVID-19. Hoteliers, owners, you are not alone.
Global Asset Solutions · 14 Mar
Thanks to the increasing complexities of today's hospitality market where disruptors seemingly turn up out of nowhere and operators consolidate at a fast rate - it is easy to understand why.