global asset solutions
How to Create a Forecast Plan for Hotel Businesses in Unknown Times
Global Asset Solutions | September 11, 2020
With the advent of the ‘new normal’, hotel owners and operators must begin considering the various financial and operational scenarios in their forecasts extending into 2021. Accurate forecasting is notoriously tricky, even in "business as usual" times. Often, some operators need more pressure to deliver detailed breakdown forecasts and they rarely extend more than three months in the future. The objective of a forecast plan is to ask the hotel operator to propose tangible actions: to increase the performance of specific areas of the hotel, to manage the production of the personnel, to schedule productive activities and to increase custom...
How to Calculate and Monitor Your Break-Even Point
Global Asset Solutions | August 26, 2020
COVID-19 presented many challenges for hotels who are currently striving to merely break-even instead of maximizing profit as usual. While hotels usually aim for 35% occupancy threshold, many are hoping that COVID-19 cost reductions will lower the break-even threshold. How can a hotel understand when is the right time to resume operations? What occupancies and rates should they be aiming for? How has the pandemic effected the BEP considerations? Through calculating a hotel’s BEP, hotel asset managers are able to determine when is the optimal time for a hotel to reopen or if it may be better to remain closed until higher occupancy levels are...
Take Charge of Your Capital: You May Think You Are, But This May Not Be the Case
Alex Sogno | July 28, 2020
By Alex Sogno As you’re reading this, regardless of where in the capital stack you sit, you probably have a stronger than usual desire to know exactly what’s going on with the underlying asset, the cash flow, the promised CapEx program, the debt covenant compliance, and how badly you mispriced your risk (you’re not alone). Your focus is likely on re-balancing your risk/return proposition the best you can, by either 1) increase your return or 2) decrease your risk. During these Corona days, the most likely strategy to succeed would be the latter. Or is it? Given the right agreements with the right parties, and a shared understandin...
Best Practices for Reassuring Your Customers and Employees During the Closure of Your F&B Outlets
Alex Sogno | May 12, 2020
By Alex Sogno During this disruptive time, most hoteliers and F&B managers agree on one thing: A not-so “business-as-usual” future will follow the current changes. We know that as the hospitality industry begins recovering from COVID-19, there will be many new challenges ahead. But what can be done with F&B outlets now, to come out of this crisis stronger and better prepared for these future changes? Together with industry experts, we compiled best practices for providing reassurance to customers and employees during the closure of your F&B outlets. Furthermore, we offer you some suggestions on how to build up relationships...
A Crisis Management Framework to Leverage Your Housekeeping Department in COVID-19
Global Asset Solutions | May 6, 2020
By Alex Sogno With many hotels already closed, the first step of reacting to this crisis has been completed. This critical action hits pause on numerous cash outflows. Therefore, we suggest a financial restructuring framework [1] as a crisis response approach to look for what to do next. Now is the time to stabilize your employees, develop and implement your reopening plan to come out of these challenging times stronger than before. While often not at the forefront of hotel owners’ or asset managers’ minds, housekeeping is arguably one of the most important departments. After all, the housekeeping team takes care of the “house...
People Management During COVID-19
Global Asset Solutions | April 28, 2020
By Alex Sogno An industry of people taking care of people; Ladies and Gentlemen Serving Ladies and Gentlemen; People, Product and Profit. Whichever way you phrase it, people are at the core of hospitality. As a service-focused industry, our product is inseparable from the person delivering it. Therefore, a hotel’s success depends on how motivated, happy and engaged their employees are as this directly affects its product. So how does a people-focused industry take care of their people during COVID-19? 1. Communication is Key (even when it’s virtual) We’ve all heard it a million times, especially now when we cannot be face-to-face: ...
3 Important Reasons Why Hotel Asset Managers Have Become Such Hot Property
Fred Novella | March 13, 2019
By Fred Novella Hotel asset management is a booming profession. Thanks to the increasing complexities of today's hospitality market where disruptors seemingly turn up out of nowhere and operators consolidate at a fast rate – it is easy to understand why. Indeed, given the volatility in the travel market many hotel owners would no longer take the risk of entering a relationship with a hotel operator without the ongoing support of a hotel asset manager. Employed by the asset owner, the role of a hotel asset manager is to ensure a property reaches its full potential so that it can create increased returns in the long term or be sold ...
