Market specialisation
As the hotel sector moves into the mainstream as an asset class, many investors are entering it for the first time. It is important to offer advice tailored not to the sector, but to the hotel segment they are investing into.
Tip: Know your market, be that budget or luxury.
Full view / Global strategy
Asset managers are traditionally viewed as limited to one asset, up and operating. We are seeing growing demand for strategic advice across an investor’s full portfolio, which draws on our industry knowledge and experience to position hotels correctly.
Tip: Get to know the full portfolio to maximise value.
AI implementation
Project management is an important element of our roles as asset manager and we see costing and budgeting as obvious choices to deploy AI, which has the capacity for more advanced calculation than a human can do quickly, stepping in to save time.
Tip: look for areas heavy with data to make the most of AI.
Brands Detach from Operations
As brands grow larger, hotels often struggle to reach their full potential because they are just one property among hundreds or even thousands. Operational excellence tends to take a backseat, leaving it to the owners and asset managers to prioritise this goal.
Tip: Regularly assess your asset’s performance and focus on improving operational efficiency to boost revenue.
Lenders turn to asset managers
With the finance market continuing to feel pressure, although easing slightly, banks are looking for deeper levels of reassurance when dealing with hotels, and asset managers are being called on to deliver this.
Tip: Tell your owner about the role asset managers can play in financing.
F&B shift
Hotels have been moving away from F&B, with competition from restaurants around the property drawing guests away. However, done well, good F&B can deliver not only an increased sense of place, but profits.
Tip: F&B doesn’t have to be long term, pop ups can be very attractive to guests.
Create your destination
With costs still very much a factor in operations, low seasons can help to drive revenue into a hotel and smooth the rough edges in operations. Creating a reason to visit, such as a food festival, helps to drive demand.
Tip: Get to know your local area and its gastronomic specialism.
More platforms
Private equity remains eager to participate in the hotel sector and, to achieve the returns it needs, it has been building platforms, particularly in luxury and resorts. For asset managers this means a more complex role, but a fascinating one.
Tip: Clients will require geographical, as well as asset knowledge.
Experience creep and qualified staff
‘Experience’ was the watchword of 2024 and this isn’t likely to change in 2025. As more luxury hotels open, they will need to offer increasingly exceptional experiences to stand out from the pack. Staff are essential to ensure exceptional guest experiences, operational efficiency and high service standards; retaining them through competitive benefits, growth opportunities, and a positive work environment is equally crucial for long-term success.
Tip: Guests appreciate experiences which connect them to the local region and invest in robust recruitment, training and retention programmes.
All inclusive
The all-inclusive market has traditionally been the domain of the value-conscious traveller, but recently we have seen the luxury segment start to adopt the model. As this expands in 2025, asset managers will have to learn more about this burgeoning offering.
Tip: All-inclusive at the luxury end of the market includes not only the stay, but transfers and experiences.
Alex Sogno
CEO & Senior Hotel Asset Manager
Global Asset Solutions
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