Asset management provides a vital link between hotel owners and operators that can enhance results, add value and lead to ultimate success for both parties, according to Patrick Smith, Vice President, Asset Management, IFA Hotels & Resorts.Talking at a panel discussion on The Value of Asset Management at the Arabian Hotel Investment Conference, Smith claims that asset management can lead to better understanding between owners and operators, providing a vital middle man service.
“The asset management function enhances the long term underlying value of the asset (hotel, resort, etc) by maximising the relationship between owner and the hotel operator. Asset managers ensure the operator’s vision in terms of delivery and servicing of the asset is aligned with the owner’s standards, ultimately resulting in a positive and long term partnership between the operator and the owner ,” Smith said.
IFA Hotels & Resorts is a developer of integrated and mixed-use hotel and tourism resort projects and luxury leisure services. IFA currently has a number of resorts either in operation or under development and works with several hotel brand operators, such as Fairmont Hotels & Resorts, Kempinski Hotels, Mövenpick Hotels & Resorts, Sheraton Hotels & Resorts and Sun International.
Talking of how these owner/operator relationships can benefit from asset management, Smith said: ” Owners are putting asset mangers in place to handle the relationship between owner and operator and to manage the asset on their behalf.
“Operators can embrace asset managers as dedicated resources employed to evolve a direct relationship with the client through regular interfaces and meetings to better understand and support the vision of the operator and the owner, and to manage expectations, ensuring the ultimate success of both parties.”
Listed on the Kuwait and Johannesburg Stock Exchanges, IFA Hotels & Resorts has a market capitalization of over US $1 billion and has entered into strategic alliances and joint venture partnerships with leading companies such as Kingdom Hotel Investments, Nakheel and Istithmar.
The Value of Asset Management panel discussion was moderated by Graham Windle, Director, CB Richard Ellis Hotels. Smith was joined on the panel by Paul Bell, Chief Operating Office, ALDAR Hospitality; Christopher Evans, Partner, Hamilton Hotel Partners; Alex Mavridis, Executive Director Asset Management, Istithmar.