Hotel Management

Active oversight and strategies proven to enhance operational performance and align property management with ownership investment objectives.

Because hotels are an operating business, management for hotels is far more complex than for any other real estate asset class. The role of a hotel manager is multifaceted and must encompass a variety of disciplines including: hotel and restaurant operations, sales and marketing, real estate finance, accounting, project management, contract law, technology, capital expenditure planning, and building systems management.

The BWBH team combines hands-on experience in all facets of the hospitality industry, and as a company, has been in existence for over 20 years. The depth of our resources, both in-house and through affiliated subject-matter specialists, is unparalleled for a company of our size.

BWBH approaches hotel management with a focus on two primary objectives.

  • Achieve Owner’s Financial Objectives - We focus on increasing asset value, maximizing cash flow, capital planning, and developing an effective and well-timed exit strategy.
  • Limit The Downside - Our approach is centered on asset protection, and implementation of secure financial controls.

BWBH achieves these objectives through a four-step approach: Goal Setting, Oversight, Remediation, and Foresight.

Goal Setting

Goal setting applies mainly to short and intermediate-term business planning. While there are multiple components and processes involved, the key ones are:

  • The Annual Business Plan consisting of the marketing plan, the operating budget, and a one-year capital budget.
  • Periodic Forecasting as operating businesses, hotels must adjust to changing business conditions and do so in a timely manner.
  • Long-term Capital Plan typically three or five year cycles.

Oversight

Oversight includes more than the routine monitoring of a hotel’s operational performance and reporting variances to ownership. A key point of differentiation amongst hotel operators is how information is used and applied to attain the underlying owner’s objectives. For instance, identifying that room sales fell short of budget is important, but identifying what can be done about it is what separates us among asset managers. We focus on trends and situations that affect the property and work with the on-site management team to develop timely corrective measures.

Our oversight includes monitoring the physical condition of a property and ensuring that sufficient reserves are in place to cover required repairs. We constantly re-prioritize fund allocation to address those projects that yield the greatest financial return and minimize ownership’s risk and exposure.

BWBH’s approach to operator oversight is collaborative. We act as a coach in furtherance of on-site management’s success.

Remediation

Even with good intentions and appropriate attention, things happen in and to complex operating businesses like hotels. With significant expertise and experience in every aspect of the hotel business, BWBH is fully capable of assessing problems that arise and implementing the necessary changes...and we do so in a timely manner, thoroughly educating and conferring with an owner on changes in strategy.

Foresight

Whereas remediation is a reactive process, foresight is proactive and encompasses three key things.

  • A Good Radar - Market knowledge is essential. This pertains not only to supply and demand trends in a given market, but also macro-trend analysis of consumers needs, the lodging industry, and advancements in technology.
  • Good Filters: In a world flooded with information, it is important to know what is relevant and meaningful to an owner’s business.
  • Good Business Instincts: This entails an ability to convert knowledge into action. Our team has a lot of practical experience, having traversed multiple investment cycles. We’ve made or seen others make mistakes, so you don’t have to make them.