Multi Property Asset Management

Multi Property Asset Management – CIS

Key Service: Asset Management
Location: CIS
Product: Operational maximisation and owner representation

Horwath HTL has been retained since 2014 to provide full operational asset management services to the developer-owners of a portfolio of four properties located across three cities in eastern CIS, all operated under long-term management agreements with a major international operator.

Our primary remit was to act as the client’s representative in dealing with the operator, using our specialist and informed understanding of hotel operations to challenge performance, drive revenues and increase profit conversion.

Scope of work
The portfolio comprises a prestigious branded luxury property, two upper-upscale core-brand properties and branded serviced apartments.  One of the properties had been open only a few months when we became involved as was struggling to gain traction and all of them have faced a range of specific and significant challenges over the three years that we have been involved including major and repeated currency devaluation, significant changes to the economic environments in which they trade and the advent of new competition.

Horwath HTL’s focus has been on working closely with all the properties to help them better understand their own businesses through in-depth analysis of both internal and industry benchmark data and, based on this better understanding, supporting them in developing and implementing clear strategies to drive the business forward.  We have also provided very hands-on assistance in a number of key areas including pricing strategy, yield management, and product and service improvement.

The instruction was initially signed in 2014 for an initial one-year period, by the end of which Net to Owner on a like-for-like basis (i.e. excluding the recently opened hotel) had been improved by an average of over 16% across the portfolio and by over 60% at one of the properties.  Our instruction has been renewed annually ever since and remains ongoing.