Asset Management

HTI Consulting’s Asset Management team focuses on maximising the returns that can be generated by a hotel property. On the African continent it is estimated that between 60% to 70% of owners have a limited knowledge of the hospitality industry and the skills and experience of our team have assisted investors in growing and expanding their business.

Our approach towards Asset Management is multi-faceted and our skills and experience in real estate finance, hospitality accounting, hotel and restaurant operations, capital expenditure, finance raising, market benchmarking, risk management and sales and marketing drives tailored solutions that results in:

  • Increased Real Estate Values
  • Improved Cash Flows and ROI
  • Enhanced Capital Expenditure Controls
  • Reduced risk
  • Operational efficiencies
  • Clear understanding of trends in the operating environment

Our approach also prioritises establishing a better balance of power between the owner and operator through the alignment of objectives.

image

Asset Management Assignments

Asset management of two upscale hotels in Mauritius over a period of three years. The two assets combined comprised of 257 rooms and generated over €8 million of annual revenue. HTI Consulting participated in the repositioning of the two assets in May 2015 by renegotiating the management contract with another operator.
  • Provided monthly, quarterly and annually reports analysing the financial performances of both properties;
  • Made recommendations regarding revenue maximisation and cost optimisation to improve the operational performance;
  • Reviewed and approved of the annual budgets and capital expenditure for both hotels;
  • Participated in a risk/benefit analysis related the property improvement plan;
  • Analysed and optimised synergies between the two properties;
  • Assessed the competitive environment to improve the positioning of both hotels in their respective submarkets;
  • Provided an analysis on the online pricing strategy of both resorts to implement the optimal packaging offers and maximise revenue;
  • Reviewed and approved the strategic and marketing plans; and
  • Monitored the management company practices and made sure of the management agreement terms was enforced;
  • Acted as the Owner representative during meetings with the executive team of the Operating Company

 

Asset management advice for 6 years for the owner of Kievits Kroon Country Estate who is based in Belgium. Kievits Kroon Country Estate is a 140-room 4-star hotel, conference and wedding venue outside of Pretoria with annual revenues in excess of R 50 million;
  • Managed the asset providing monthly, yearly and ongoing management and financial advice and benchmarking relating to the performance of the asset and was instrumental in the improved performance of the asset;
  • Assisted in the development and approved annual operational and capital expenditure budgets;
  • Developed, updated and implemented a marketing strategy and plan and acted as the Marketing Director for 2 years, improving performance, exposure and occupancy and ARR performance;
  • Approved and assisted with the recruitment of key staff and management;
  • Identified and implemented performance improvement plans;
  • Played a client representative role and was involved in a number of development projects, overseeing decisions and representing the interests of the owner;
  • Conducted operational audits as and when required and made recommendation on improvements;
  • Together with the General Manager, made recommendations and decisions regarding conversions, upgrades, expansions, new developments, Black Economic Empowerment, joint ventures, DTI grants, outsourcing, strategic relationships and other strategic items.
  • Assisted in the raising of R 14 million in finance for a 22-room expansion and R 30 million for a 40-room expansion, upgrade of the reception, bar and conversion of the existing two restaurants; and
  • Assisted in the development of the company’s annual strategic plan.

 

Operational processes and property inspections of seven luxury safari camps throughout Tanzania mainland;

Market study and operational review of a property in Franschhoek, South Africa. The analysis of the operation allowed us to build recommendations prior the acquisition of the property by a new owner.

Operational troubleshooting, marketing and financial advisory and asset management consulting for an underperforming 5-star lodge in Umhlanga. A number of improvements were implemented which increased the asset value and eventually resulted in the culmination of the sale of the lodge;

Conducted operational improvement assistance to the management and staff of a 32 bed Lodge on the banks of the Kafue in Zambia. Conducted training, uplifted standards, developed new procedures and controls and made strategic recommendations relating to revenue generation, capital improvements, marketing and finance, which resulted in the improved performance of a 32 bed Lodge on the banks of the Kafue River in Zambia.