Asset Management

What is the meaning / definition of Asset Management in the hospitality industry?

Asset Management is the systematic process of developing, operating, maintaining, upgrading and disposing of assets cost-effectively. An asset is any resource owned by a business.

Companies operating in the field of Asset Management, manage investments on behalf of others and make it their duty to maximise the value of their clientโ€™s portfolio. Asset managers work in the ownerโ€™s interest and assist in maximising the value of the asset/property throughout its different life cycles. In the hospitality industry, the first step to effectively manage an asset is by evaluating all the revenues generated by the different departments (rooms, spa, food and beverage, etc.).

Through thorough research asset managers are able to identify new sources of income stemming from both the operational and property side of the hotel. As all assets, especially properties, are exposed to the effects of the economy, politics and finances an asset manager relies on frequent research in order to plan ahead and act accordingly.

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About the Author:

As CEO and Founder of XOTELS, Patrick Landman has made it his mission to turn hotels and resorts into local market leaders. XOTELSยด diverse expertise and deep-knowledge across revenue management consulting, hotel management, and hotel consulting, enables us to drive results for independent boutique hotels, luxury resorts, and innovative lodging concepts. Below you will find opinion articles written by Patrick Landman.