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| The goal of oversight
management is to advise a client on the operations and financial management
of a hotel to help maintain or improve its value. The client might
be the owner of the property, a lender or other interested party.
We work for the client by monitoring the on-site property manager
(individual or Management Company) on a regular basis for operating
performance and maintenance of this valuable asset. |
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| Things Change |
| Many factors influence
when a client may be forced to examine market position, financial
structure, operating policies or management of a hotel. Competitors
with modern technology, aggressive marketing or changing brand affiliations
put pressure on owners and lenders to reexamine their situation. Rising
remodeling costs make it more important to maintain a hotel or motel
at its best. Without good oversight management, the equity and reputation
built up over the years may diminish rapidly. More importantly, the
value of the property does not achieve its maximum potential so cash
returns from either operations or a sale may not reach the owner's
goals. |
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| Insurance Worth the
Price |
| Through recommendations
to improve the physical facility, increase revenue growth, and provide
consistent quality of service, and reviewing the market strategy and
expense controls, efforts are made to enhance the value of the asset.
The property is visited on a regularly scheduled basis for inspections
and consultations with management personnel on ongoing operations,
marketing, and the implementation of suggested changes made during
previous visits. |
| Written reports regarding
property visits and meetings with corporate and on-site management
are submitted as appropriate. Additionally, written comment is provided
to the owner as a follow-up on reports from the Operator and their
staff. These follow-up reports include an analysis and critique of
the financial statements. |
| Oversight management
provides an independent perspective on the hotel and insures owners
or lenders that their interests are being addressed. |
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| How We Do It |
| Maximize the interest
level of the Operator and productivity levels of the property's staff
so as to increase cash flow. |
| Insure that the physical
maintenance and the capital expenditures to improve the property are
completed thereby maintaining or improving the physical condition
of the hotel. |
| Assist the Owner in
developing realistic goals for the property, communicating those to
the Operator and subsequently encouraging their achievement by reviewing,
in detail, the Operator's efforts towards achieving those goals. |
