This document discusses hotel asset management. It explains that ownership, management, and branding of hotels are becoming more specialized. Hotel asset managers act on behalf of owners to ensure assets are acquired and managed appropriately. They monitor financial and operational metrics, analyze competitive properties, oversee life cycles and budgets, provide rotation strategies, and supervise management companies and brand franchises. The company's asset management programs cover these six core areas and are tailored to client needs. Their clients include hotel asset owners and financing companies.

1. Hotel
Asset
Management
PHG!HOTELS & RESORTS!

2. A
pragma(c
approach
for
the
success
of
your
hotel
project

3. 2
Hotel
asset
management
The
course
towards
disassocia(ng
and
specialising
property
ownership,
asset
management
and
brand
management
in
the
hospitality
sector
is
becoming
more
evident.
Banks,
investment
funds
and
private
equity
firms
require
an
objec(ve
perspec(ve
on
management
performance
by
a
third
party
expert.
In
Southern
Europe,
this
growing
trend
has
also
benefited
from
the
entry
into
the
hotel
market
of
ins(tu(onal
financial
groups
in
gradually
higher
numbers.
In
our
current
fast
pace
environment,
private
equity
groups
and
investment
funds
require
of
feasibility
analysis
and
asset
management
teams
that
can
be
deployed
on
site
and
on
demand
for
selected
hotel
asset
porFolios
located,
not
only
in
Southern
Europe,
but
oGen
also
in
the
wider
Mediterranean
area
and
in
La(n
America.
Hotel
asset
management
specialists
act
on
behalf
of
the
owner
to
ensure
the
asset
is
acquired
at
the
right
price
and
the
appropriate
yield,
always
taking
into
account
its
poten(al
upside
and
local
characteris(cs.
Property
management
by
a
hotel
chain
is
audited
on
a
regular
basis
to
make
sure
a
poten(al
divesture
can
be
executed
at
the
appropriate
(me.
Business
process
reengineering
is
a
constant
in
the
analysis
to
reach
the
agreed
value
targets
in
the
most
efficient
manner.
Last
but
not
least,
we
would
like
to
stress
that
the
roll
out
of
an
effec(ve
asset
management
programme
requires
also
a
of
a
mul(-­‐
disciplinary
approach
that
takes
care
of
equipment
audit,
regula(ons
enforcement
and
sales
&
marke(ng
aspects.

4. 3
Our
asset
management
methodology
PHG
asset
management
programmes
cover
six
core
areas
of
work:
1.
Financial
and
opera6onal
KPI
monitoring:
• Pre-­‐opening
budget
nego(a(on
and
control
• Performance
of
current
results
versus
budget
and
previous
year
• Budget
audi(ng
and
property
accoun(ng
• Compe((ve
set
performance
benchmarking
• Supervising
new
revenue
acquisi(on
and
cost
control
ini(a(ves
• Screening
of
property
related
costs
and
expenses
• Sales
&
marke(ng
monitoring,
sales
channel
alloca(on
and
booking
costs
• Customer
and
employee
sa(sfac(on
surveys
• Working
capital
requirements
supervision
2.
Analysis
of
relevant
asset
evolu6on
in
our
compe66ve
set:
• ADR,
occupancy
and
RevPAR
review
for
poten(al
compe(tors
• Iden(fica(on
of
key
demand
generators
in
our
market
• New
market
entrants
and
exits
follow-­‐up
• Refurbishment
and
capex
benchmark
in
compe(ng
assets
• Compe((ve
pricing
and
distribu(on
programme
ac(vity
reac(on

5. 4
3.
Asset
life
monitoring:
• Regular
property
inspec(on
and
capital
expenditure
requirements
budge(ng
• Health
&
safety
rules
&
regula(ons
compliance
• HVAC
(Hea(ng
Ven(la(ng
&
Air
Condi(oning),
PMS
(Property
Management
System),
telephone,
internet,
video/TV
system
inspec(on
• Onsite
property
representa(on,
when
appropriate
• Third
party
contract
review
and
consul(ng,
par(cularly
lease
contracts
• Supervision
of
refurbishment,
conversion
and/or
property
expansion
plans
on
behalf
of
the
property
owner
• Insurance
policy
check
and
approval
• Property
tax
audi(ng
4.
Budget
prepara6on:
• Budget
planning
with
hotel
management
company
and
brand
franchise
• Review,
challenge
and
adjustment
of
proposed
budget
plans,
marke(ng
plan
and
investment
plan,
in
the
context
of
current
and
expected
market
condi(ons
and
owner’s
objec(ves
• Monthly
review
of
devia(ons
on
behalf
of
the
owner

6. 5
5.
Asset
rota6on
strategy
advice:
• Annual
yield
review
versus
ini(al
investment
plan
• Annual
value
appraisal
and
review
of
available
strategies
(investment,
upgrade,
conversion,
neutral,
divesture,
etc.)
• Monitoring
of
compe((ve
set
asset
transac(ons
and
market
financial
trends
6.
Hotel
management
company
and
brand
franchise
supervision:
• Hotel
management
company
and
brand
franchise
search
and
selec(on
advice
• Contract
nego(a(on,
compliance,
modifica(ons
and
monitoring
• Valida(on
of
impact
of
specific
proprietary
brand
features
or
hotel
plaForm
systems
such
as
CRS,
PMS,
rewards
systems,
etc.
Nego(a(on
with
the
brand
of
those
aspects

7. 6
Who
are
our
clients?
Hotel
asset
management
programmes
by
PHG
are
tailor
made
to
fit
the
specific
requirements
of
our
clients.
AGer
we
carry
out
an
ini(al
analysis
of
the
proper(es
and
your
requirements
we
specifically
address
those
aspects
that
are
cri(cal
to
your
company
in
par(cular.
Our
service
is
specially
designed
for
hotel
asset
owners
or
companies
directly
or
indirectly
related
to
hotel
investment
or
financing
opera(ons,
such
as:
• Banks
and
savings
banks
• REITs
• Hotel
investment
funds
• Private
equity
groups
• Pension
and
insurance
funds
• Family
offices
• High
net
worth
individuals
• Real
estate
groups
and
construc(on
companies
• Government
bodies
About
PHG
Hotels
&
Resorts
PHG
was
founded
in
2009
as
a
personalised
and
pragma(c
alterna(ve
to
the
larger
more
generalist
consul(ng
firms.
Our
partners
bring
the
unique
exper(se
of
having
held
execu(ve
posi(ons
at
hotel
proper(es
and
hotel
companies.
They
can
introduce
to
you
executable
solu(ons
and
prac(ces
based
on
real
life
experience
acquired
during
decades
of
hotel
asset
management
in
a
variety
of
leading
hotel
groups.
Should
you
like
to
experience
first
hand
our
approach
or
go
into
more
detail
into
our
hotel
management
prac(ces,
please
do
not
hesitate
to
contact
us
at
phg@phghr.com

8. PHG!HOTELS & RESORTS!
PHG Hotels & Resorts
Lagasca, 26 – 2ºD
28002 Madrid
Spain
email: phg@phghr.com
www.phghr.com