Hotel asset management is a hot topic, and for good reasons. It helps hotel owners with multiple properties improve performance across the entire portfolio to maximize revenue and build relationships with top accounts for long-term success.
Let’s look at the importance of hotel asset management and the three pillars of portfolio group sales success.
The Importance of Hotel Asset Management
Hotel asset managers oversee various properties to meet the owner’s goals and drive profitability across their portfolio. They are responsible for managing the financial results of all the hotel assets and optimizing the overall return on investment (ROI).
Hotel asset management must understand each property’s relationship to the market and competition to maximize their revenue potential. This ongoing process requires professional expertise in many areas, including group business trends and access to timely data-driven insights.
The Three Pillars of Portfolio Group Sales Success
Managing a hotel portfolio is challenging. Hoteliers must consider multiple variables and how they affect each property’s performance, which, in turn, impacts the portfolio’s profitability.
Market conditions have shifted post-pandemic, and hotels can’t rely on first-party data and knowledge about the market from the pre-COVID era. Hotel owners and asset managers must refocus their efforts — starting with these three pillars for effective group sales and hotel asset management:
Hotel Asset Management Pillar #1: Improve Asset Performance
Managing based on relative performance will help increase the revenue potential of each asset and the overall value of your portfolio. Start by comparing each property against others in the portfolio to determine where to focus your time and resources.
You can’t simply look at aggregated data from all properties. Instead, you need a granular view of each asset’s performance to identify top and bottom performers. Then, you can implement remediation programs and best practices to grow your portfolio value.
Hotel Asset Management Pillar #2: Increase Portfolio Market Share
The group business dynamics have shifted and benchmarking each property’s performance against its pre-pandemic data will not give you a complete and accurate view of what’s happening in the quickly evolving market.
You must benchmark property group performance against your competition and market to stay ahead and gain share. The insights will show you where the action is so you can deploy sales resources strategically to strengthen positioning and overall group business share.
Hotel Asset Management Pillar #3: Increase Sales Productivity
Improving each property’s sales performance will help increase the revenue potential of each asset and the overall value of your portfolio. You must ensure each hotel is deploying its limited sales resources effectively to optimize profitability.
We’ve evaluated the RFP process since the pandemic in light of smaller sales teams. We recommend a four-step process for streamlining how RFPs are handled so you can allow for time to focus on target accounts and sales development for each property. Read our article: The Fallacy of the Hotel Request for Proposal.
Identify the top target accounts at each property, its comp set, and its market to focus sales resources on the most active prospects and clients. Drill down to the details to understand their needs and revenue potential so you can target active accounts with the highest lifetime value.
Unlock Hotel Asset Management Success
The three pillars sound good, but how do you turn strategy into action in today’s challenging market environment?
Increased consolidation and uncertain economic conditions mean hoteliers must have a bird’s-eye view of how each property contributes to its portfolio’s overall performance. You also need access to unified data on all your properties and the ability to compare them side-by-side to generate timely and accurate insights.
Yet, it’s easier said than done. Properties in your portfolio may use various software to manage their data. Each may collect different metrics and normalizing the data from multiple platforms to generate meaningful insights is time-consuming and labor-intensive.
That’s why we created Knowland Portfolio Capture.
This brand-new tool shows you competitive group sales performance data across all your portfolio properties in one place. You can effortlessly identify top and bottom-performing properties to improve asset performance, benchmark property group performance to grow portfolio market share, and focus on top target accounts to improve sales productivity.