Asset Managment in the CIS
Office: Horwath HTL UK
Overview: Horwath HTL has been retained since 2014 to provide full operational asset management services to the developer-owners of a portfolio of four properties located across three cities in eastern CIS, all operated under long-term management agreements with a major international operator. Our primary remit was to act as the client’s representative in dealing with the operator, using our specialist and informed understanding of hotel operations to challenge performance, drive revenues and increase profit conversion.
Solution: The portfolio comprises a prestigious branded luxury property, two upper-upscale core-brand properties and branded serviced apartments. One of the properties had been open only a few months when we became involved and was struggling to gain traction. All of them have faced a range of specific and significant challenges over the three years that we have been involved including major and repeated currency devaluation, significant changes to the economic environments in which they trade and the advent of new competition. Horwath HTL’s focus has been on working closely with all of the properties to help them better understand their own businesses through in-depth analysis of both internal and industry benchmark data and on supporting them in developing and implementing clear strategies to drive their respective businesses forward. We have also provided very hands-on assistance in a number of key areas including pricing strategy, yield management, and product and service improvement.
Implementation: The instruction was initially signed in 2014 for an initial one year period, by the end of which Net to Owner on a like-for-like basis (i.e. excluding the recently opened hotel) had been improved by an average of over 16% across the portfolio and by over 60% at one of the properties. Our instruction was renewed for 2015 and again for 2016.