Third-Party Asset Management
LWHA Asset Management Group offers a comprehensive range of customized asset management and advisory services to maximize the profitability, value, and potential of all types of hospitality organizations. LWHA Asset Management Group is committed to delivering excellence in hotel operations, profitability, and guest service through a hands-on approach and practical experience.
Third-Party Asset Management
The success of a well-structured hotel real estate investment creates value and provides benefits to all stakeholders. LWHA Asset Management Group offers the comprehensive knowledge base and experience in dealing with the critical complex aspects of success, namely: the value of hotel real estate investments and the dynamics of the financial and operational aspects of those investments, asset management, and management contracts. We assume the responsibility of overseeing single assets and portfolios of lodging investments, with a goal to exceed the expectations of our hotel owner clients. LWHA’s expertise includes: administration and negotiation of hotel management contracts, evaluation of capital expenditures and management of their execution, monitoring of expenses to reduce costs, benchmarking an asset’s revenue and expense performance against its past performance and the market, performing asset risk analyses tailored to current market conditions, evaluation of potential refinancing opportunities to reduce debt costs or free up capital for other investment opportunities.
Our team possesses the required industry knowledge, competence, experience, and contacts to ensure the most appropriate outcomes within an efficient timeframe.
The key to maximizing asset value of a hotel is the selection of an optimal brand and/or operator. The advantages of successful branding are immense, from global marketing coverage to increased in-house efficiencies. Furthermore, under any structure, including a lease, franchise, or management agreement (brand or white label management group), it is imperative that the terms of all agreements be at prevailing market levels. The team at LWHA Asset Management Group possesses the required industry knowledge, competence, experience, and contacts to ensure the most appropriate agreement(s) is put in place, at optimal market terms, and within an efficient timeframe.
Capital Budgeting is the process of determining how much to spend on property and equipment and which assets to purchase. A significant relationship exists between a capital budget and an operational budget. Sophisticated owners plan capital and/or construction budgets for several years into the future however one wrong decision can affect the durability of an enterprise. Senior executives of LWHA Asset Management Group possess the required industry knowledge, competence, experience, and contacts to ensure that Capital Budgeting results in long-term benefits that outweigh costs.
LWHA Asset Management Group Food & Beverage / Restaurant Consulting services include: market feasibility analysis, operational reviews, revenue and cost control reviews, concept and/or menu design/redesign, management and/or franchise selection and/or negotiation, site selection, lease negotiation, facilities planning, and strategic recommendations.
LWHA Asset Management Group specializes in developing and implementing effective and efficient internal control policies and procedures applicable to all facets of a hotel’s operation, from purchase through sale. LWHA senior executives are highly skilled at detecting and preventing fraud and protecting an organization’s assets. We are experienced at ensuring the integrity of property financial and accounting information, achieving operational and profitability goals, and communicating formulated management principles, rules, and guidelines to achieve long-term success.
LWHA Asset Management Group is highly skilled at analyzing lodging investments through a surgical investigation of a physical asset and/or an operating company. LWHA’s Hotel Investment Counseling & Due Diligence processes unearth unknown and/or potentially surprising detail(s) which positions would-be investors to either confirm an original LOI offer, renegotiate based on due diligence findings, or cease pursuit of a transaction.
LWHA Asset Management Group is experienced with a variety of hotel workouts including debt reorganization, forbearance, foreclosures or deed-in-lieu transfers, bankruptcy, and attracting new capital. Restructuring debt that is too onerous to service or refinance is part art and science. We concentrate on a myriad of restructuring issues while staying laser-focused on the prerequisite of having sufficient liquidity to complete the process. LWHA facilitates maximization of property value, cash flow, and a strategy that benefits both debtors and creditors.
LWHA Asset Management Group conducts detailed reviews of hotel operations to ensure maximization of revenues and minimization of expenses. LWHA Operational Review & Analysis mandates encompass the following steps:
- Confidential review of guest perception of service delivery
- Confidential review of brand compliance
- Critical asset review of a physical plant and FFE/capital expenditure planning
- SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis
- Marketing, sales, revenue, and distribution management study
- Labor management review
- Internal processes, policies, and procedures analysis – establishment of SOP Guidelines
- Operational cost analysis
- Profit & Loss forecasting review
- Credit management and cash-flow management review
- Third-party management contribution analysis
- Conclusion(s), strategic recommendation(s), and written action plan
LWHA Asset Management Group provides guidance as to an optimal strategy for pursuing a successful hotel property tax appeal based on an asset’s situation and the jurisdiction involved. In most jurisdictions, a hotel assessed at a higher valuation than other similar properties may bear a very heavy burden of proof in a tax appeal. Before undertaking an appeal based on uniformity or equal protection requirements, owners should consult with LWHA for assistance regarding the relative benefits and costs of pursuing this type of action.
LWHA Asset Management Group facilitates hotel receivership services to secure and stabilize a hotel when time is of the essence and collateral value is at risk. LWHA receivership services include reviewing receivership orders, court appearances, pre- and post-takeover service, and reporting assistance.
LWHA Asset Management Group Sales and Marketing Services focus on:
- Achieving optimum balance between Direct vs. Indirect Channel Sales
- Optimizing use of the Internet, online distribution channels, and eMarketing
- Collaboration with group business generators, meeting planners, wholesalers, incentive travel companies, corporate travel departments, and franchise-sponsored marketing programs
- Deploying effective marketing campaigns
- Employing effective sales incentive programs
- Establishing professional sales administrative processes
- Developing effective approaches to prospecting, qualifying, selling, and closing
- Trade show presence
- Review of monthly sales reports
- Press release creation and dissemination
- Assist with optimizing business segmentation across commercial, group, and leisure
- Create and maintain internal RFP response processes for maximum capture of Corporate and Consortia demand
LWHA Asset Management Group hotel staffing, wages & benefits analyses are designed to evaluate labor practices and identify appropriate levels of staffing for all hotel departments. Employees are the vital resource of a hotel’s success, and LWHA offers proven techniques and methods to improve service levels while reducing turnover rates and saving money on recruitment costs. LWHA provides custom detailed reviews of every aspect of labor management, including recruiting, business volume forecasting, staffing levels, labor standards, scheduling and deployment, work processes, time and attendance tracking, and labor management reporting.
LWHA Asset Management Group provides individual asset and company Strategic Planning & Investment Analysis services which involve extensive scrutiny of the market and the development of alternative strategies. LWHA’s evaluation of each strategy considers: a SWOT analysis, level of required capital investment, potential risk(s) and reward(s), and final determination of a course of action and a plan for implementation. Strategic Planning & Investment Analysis mandates include:
- Buy / Sell / Lease Analyses
- Financing/Refinancing Analyses
- Renovation, Rebranding, & Repositioning Analyses
- Capital Expenditure Review
- Value Optimization
- Benchmarking Against Relevant Competitive Set
- Title And Form of Ownership
- Capital And Corporate Structure
- Business Plan Evaluation
- Investment Underwriting
- Concept Development & Positioning Analysis
- Space Programming