Hotel Asset Management

A Professional Approach and International Perspective

Authored by: Florian Aubke , Theodor Kubak

The Routledge Companion To International Hospitality Management

Print publication date:  November  2020
Online publication date:  November  2020

Print ISBN: 9781138386372
eBook ISBN: 9780429426834
Adobe ISBN:

10.4324/9780429426834-18

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Abstract

What once started as private homes open to strangers and travelers to provide shelter and safety, turned into a substantial segment of the real estate industry over the past two decades. Driven by institutional investors, hotels are now considered income-producing assets that contribute to the yield of large portfolios. As a phenomenon branching out from developments in the United States and then following international investments streams, the hotel asset management profession is now an established stakeholder in the global hospitality industry. One of the key developments, the separation of hotel ownership from hotel operations led to agency problems that required monitoring and moderation. Essentially representing the interests of the owners against the sometimes conflicting interest of the operators, the asset manager’s goal is to maximize the asset value. This chapter provides an applied introduction to the principles and practices of hotel asset management as an international practice. The case of the successful Temple Bar Hotel redevelopment is used to showcase the value creation opportunities at different stages of the hotel life cycle. Asset managers are needed at each stage, as consultants during the acquisition phase, controllers during the operational phase, and analysts for divestment considerations. As long as hotels are considered investment opportunities, asset management as a profession and career opportunity is likely to grow.

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