How to Be Successful in Hotel Asset Management

Hotel asset management requires the understanding of two processes. These are known as the asset cycle as well as the market cycle. The asset cycle focuses on the relative age and condition of the hotel itself, while the market cycle refers to the shape of the economy at the time. The asset cycle can be a complicated part of hotel asset management. However, as some experts and hotel asset management certificate programs explain, there are four basic stages involved with it. Hotel asset managers have the responsibility of managing the investment in the property and making sure it is profitable. There are many hotel asset management techniques that are covered in different certificate programs which can help in your career as a manager or owner. These programs can provide you with the tools, skills, and strategies you need to meet your objectives.

As a hotel asset manager it’s important to know how to oversee, negotiate, and manage contracts, assess payments and manage their execution and to manage expenses in order to reduce costs. Managers should also learn how to handle a property’s finances by measuring the performance of the hotel up against the economy, and then evaluate the risks according to the current market conditions. Managers should be able to understand and identify different refinancing opportunities that could reduce debt or allow more money for investments. All of the knowledge needed to be a successful hotel asset manager can be gained through many useful certificate programs in hotel asset management.

Perhaps the most helpful information you can learn in hotel asset management certificate programs is about the asset and market cycles. The asset cycle is probably the first process that managers should understand. The first part of the asset cycle is the introductory state. The next stage is known as the growth stage, followed by the mature stage, and finally ending with the decline. After the fourth stage, the decline, hotel asset managers usually have two options. These options are to either get rid of the hotel property altogether or decide to renovate. The market cycle is another process that managers should know about. It involves the different stages that the economy encounters. First, the economy picks up and the market rises, then revenue grows, revenue slows down, the market peaks, the market declines because of a drop in revenue, and then finally the market bottoms out.

It’s important to understand these cycles because it will help you make smarter decisions as a manager. For example, if you know that your hotel is scheduled for a cosmetic renovation at the bottom of the market cycle, then you know that it’s the perfect time to have the renovation because revenue is set to pick up again soon. Going through with the renovation at this time will end up paying out big dividends. Another example is if this same cosmetic renovation for the same property was set to take place during a time when the market is beginning to decline. You would understand that going through with the renovation wouldn’t make sense financially. Maybe you would decide to do very minimal renovations instead. These decisions, in context with how the market is doing, are very important in hotel asset management. Once you understand how the cycles work you can make better decisions and eventually become a very successful manager.

Author Bio: David Shoemaker is Vice President of Learning Solutions and Innovation at eCornell. For more information on hotel asset management, certificate programs, or eCornell, please visit http://www.eCornell.com

Category: Business Management
Keywords: hotel asset management, certificate programs

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