In the wake of the current pandemic, where hotel revenues have decreased, and asset values have dramatically declined, how quickly can the hospitality industry recover? The answer may lie with a well-experienced asset manager, who can expedite the process, make a clear difference and help struggling hotels get back on track.
Turab Saleem, Head of Asset Management in Al Khozama, a Saudi hospitality and property management company, highlights that the pandemic has forced the industry to rethink, adopt and re-emerge for a different future. He points out that today’s owners want a focused approach towards their assets and investments, however it would not make sense to ask a struggling hotel operator that has cut resources and that manages a few hundreds or even thousands of hotels to accomplish this.
Post-Covid, major players in the industry need to re-adjust their mindset to be able to keep operating at their full potential. It will require resources, planning and investment, which most of the operators will not be able to commit to, he adds.
However, an asset manager can work with the hotel team and hotel operator to accomplish these challenging tasks by filling in the blank spaces, allowing the hotel operators to regroup and refocus on more core responsibilities such as property and resource management.
A smart and well experienced asset manager can work together with the hotel operator to initiate new and diverse revenue streams, tap new feeder markets, drive footfall into the hotel through outsourced PR and Social Media, while also bringing in new techniques to gain exposure and raise awareness.
Saleem says, “The post-Covid situation requires out-of-the-box thinking; hotels need to find way to reduce costs by outsourcing activities to specialists. Marketing and accounting can be outsourced, engineering and maintenance department activities can be outsourced, bakery and pastry production can be outsourced, specialty restaurants can be operated by having a JVs with well-known and well-established brands, which can enhance footfall and add value to the overall profile of the hotel.”
He explains, “One of the main benefits of collaborating with asset managers is that they are able to tap into new technologies & new systems to save cost and allow the hotel to better serve its customers. Their ROI is noteworthy as they are able to shuffle funds around to serve the hotel’s best interests. They facilitate each and every revenue generating department/facility allowing them to operate at full potential with a complete business plan, marketing plan, social media campaign, and clearly defined KPIS and targets.”