ASSET MANAGEMENT SERVICES
The first mistake some investors and lenders make about hotels is to confuse them with real estate. But it is the operating business that determines the value of the property and the interests of the operators do not always align with the interests of the hotel’s owners. Our role is to partner with management to maximize the value of the hotel, both short-term and in the future.
There are a number of very competent hotel asset management firms, so why choose Berins & Co., LLC?
Many hotel asset managers have never worked in a hotel and only know the operating business from the numbers. This lessens their credibility when working alongside operators to improve results. You get David & Debbi Berins, not people who may be brilliant analysts but who lack hands-on management experience. We get deep into the operation, not just the data. We spend time in the departments, observing processes, talking to management, encouraging new ideas, and helping to remove obstacles to success. That’s why we rarely oversee more than 2-3 hotels or resorts at any one time, not 10-12 as is common with big asset management organizations.
Our experience adds the most value to luxury and upper upscale full-service hotels & resorts managed by branded or third party management companies and to independent lifestyle and boutique hotels.
We are very focused on the future, not the past. We spend 80+ percent of our communications with the property talking about the next 30/60/90 days, not dissecting last month’s operating statement.
We are not sold on the value of “benchmarking.” Comparing the results of one hotel with others can only be meaningful if the hotels are virtually identical in terms of physical attributes, market positioning and markets. Labor availability, skill and wages are examples of yardsticks that differ significantly from one city to another. Staffing is different in a four-story hotel and a 40-story tower with the same room count.
We prefer to use a “zero based” approach to measuring results. We measure revenues and expenses against what they should be rather than those of another property. This should be is a built-up annual plan based on a deep dive into both revenues and expenses line by line, revenue management tactics, service standards, staffing guides and the like. These are reviewed and discussed in detail with management.
Because o our involvement in so many hotels, marketed and managed by many companies, we have seen, heard, tried and studied lots of different ways to get things done. When we see roadblocks from the operator’s corporate or regional staff or from ownership affecting property-level management’s ability to succeed, we’re not bashful about recommending action.