Overview

This chapter seeks to define asset management as an activity, by examining the current role of the asset manager and how the role has developed following changes in ownership within the hotel industry and the advent of more experienced debt providers. There is a description of the types of organization employing asset managers ranging from owners of single assets to portfolio owners and to branded hotel operators and an assessment of the different skills required by these different organizations. Subsequently, the chapter looks at the significance of the asset manager s role and how that role can benefit the operation and development of the hotel. This includes the importance of strategic planning and product benchmarking to secure the continued competitiveness of a hotel and hence its financial robustness from an owner s standpoint, a robustness that will often need to survive the life of the operating agreement.

The chapter also covers the different types of organization supplying asset management services and how these have been impacted by the change in ownership patterns as well as changes in lease and management contracts, which have made asset management more relevant to a larger investor population. Further consideration is given of current best practice within the industry and includes case studies. Finally current trends are reviewed and in particular the advent of the financial investor and the impact that this has already had and is likely to have in the coming years. This has to a large extent...