An Asset Manager is effectively engaged as the Owner’s Representative tasked with ensuring that an Hotel or Serviced Apartment operation is acquired for a fair ‘workable’ price; is subsequently managed properly during the period of ownership; and ultimately is sold, if that is the strategy, at an appropriate time and at the best price.

Many Management Companies do not think like owners as they continually want additional investment for reasons which will not necessarily add incremental value to the business or asset. The Asset Manager, working with the owner, is continually focused on the aligning of possible conflicting interests associated with the Management of the business and property. This is particularly so when requests are made for major refurbishment projects to be undertaken or for new plant and equipment.

Typical Asset Management activities include, but are not limited, to the following:

• to monitor ongoing financial performance;
• to monitor the competitive market;
• to monitor the state and maintenance of the asset;
• to review the budget;
• to advise the owner about management issues;
• to advise the owner of changes to relevant legislation
• to advise the owner about possible investment strategies;
• to select and manage the Management Company and any consultants;
• to negotiate and administer contracts; and
• to approve and monitor capital venture.