Oct. 2, 2012
-- Atlantico Hotel Advisors, a boutique European and African hotel advisory with offices in Dublin and Amsterdam, highlights the importance of short-term hotel asset management solutions in today’s evolving investment climate. “Now more than ever, stakeholders want to work together to achieve a positive outcome, and this usually begins with a discussion of value,” said Zachary Schwartz, Principal of Atlantico Hotel Advisors. (http://www.atlanticoha.com)
The aim of short-term hotel asset management solutions is to advise the client, usually a bank or owner, on the optimal next steps for maximising any hotel upside returns, and then execute those recommendations on their behalf. At Atlantico Hotel Advisors, the team obtains a deep understanding of the current state of the asset through interviews, analysis of operating statements and market research. Then, it identifies areas where value can be added by affecting change. “Whether stakeholders want to sell within the next three to six months or want to hold the asset for another three to six years, they first need an external assessment of the shortcomings of their asset to make an informed decision,” continues Mr. Schwartz. Atlantico Hotel Advisors provides clients with a Critical Asset Action Report (CAAR), which is Atlantico Hotel Advisors’ proprietary, short form review of an asset’s critical risk and opportunity areas.
The CAAR provides commentary and recommendations regarding the hotel’s market competitiveness, pricing, staffing, margins, sales & marketing, product and branding. “In every respect, there is a core review of management effectiveness, as value often hinges on the ability of the operator to properly execute within its competitive environment,”
continues Mr. Schwartz. With an understanding of the asset, Atlantico Hotel Advisors provides a current opinion of value and also an opinion of future value (with the recommendations outlined in the report fulfilled). This future value incorporates any market recovery, so clients have a full understanding of any upside returns as well as the optimal time to sell within the cycle.
With regard to the asset sale, Atlantico Hotel Advisors makes a recommendation on timing (sell now, short hold, medium hold or long hold), marketing period, pricing and preferred brokers in that market. “Because we are not agents, we are completely impartial in our views and recommendations regarding the asset sale,” continues Mr. Schwartz. On completion of the report, Atlantico Hotel Advisors can be then be commissioned to act on the recommendations of the CAAR, hence the need for short-term asset management solutions begins. “Our focus is on rapid, high yield changes that can be carried out in the short term, as this is usually the goal of the client as well,” concludes Mr. Schwartz.