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 client’s portfolio. Asset managers work in the owner’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.