Maximising hotel value through effective asset management
Source: Knight Frank , Author: Posted by BI-ME staff
Posted: Mon October 9, 2017 1:35 pm

UAE. Hotel operators and owners are looking at ways to drive incremental value from their existing portfolio due to the increasingly challenging environment facing the UAE’s hospitality sector .

In order to bridge the gap between actual and budgeted returns, concerned stakeholders are turning to new ways of increasing the bottom line both by streamlining costs and creating new revenue streams.

The recently released Knight Frank Hospitality report: ‘Driving Hotel Value’ highlights key initiatives that can impact hotel value. According to the report, If many small changes are implemented to the way hotels operate, net revenue can be stimulated in a meaningful way.

The implications are clear as increasing net revenue leads to increased hotel value. The reports says hotel values can increase by up to 22 percent with nominal capital investment. (see graph below)

The potential uplift in hotel value can be achieved through a combination of initiatives aimed at both increasing revenues and decreasing expense:

-  Rooms based initiatives can increase room revenue by over 10 percent

-  F&B based initiatives can stimulate outlet revenue by over 10 percent

-  Spa & recreation based initiatives can enhance net revenue by over 2 percent

-  Energy based initiatives can create utilities expense savings of up to 20 percent

Click here to read the full report.

About Knight Frank
Knight Frank has a strong presence in the Middle East with offices in Abu Dhabi, Dubai, and Saudi Arabia. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants.

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and together with its New York-based global alliance partner, Newmark Grubb Knight Frank, operate from over 413 offices, in 60 countries, across six continents and has over 14,000 employees.

For further information about the Company, please visit www.knightfrank.ae

 

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