Owners and revenue managers share many of the same goals, even if it doesn’t always seem that way to revenue managers.
But the revenue managers who put in effort to bridge that gap through effective communication will be poised for success, according to a panel of asset management experts at the HSMAI Revenue Optimization Conference. That effort includes putting in the leg work to figure out what their owners are truly looking for.
Speaking during the “Executive perspective: Think like an owner” session, Robert Hayward, SVP at CHMWarnick, said successful RMs understand the top goal of any owner is to maximize asset value.
“Owners today are investing a significant amount of capital, not only in the initial acquisition but in maintaining properties over time,” he said. “So getting the maximum return on that capital is key.”
Revenue managers should strive to get on the same page as their owners on what key performance indicators matter most and overall strategy for the hotel, Hayward said.
“The positioning of the asset and maintaining it within their portfolio of whatever strategy they may have are key,” he said.
Chris Nixon, VP of revenue optimization for Ashford, Inc., agreed it’s important for revenue managers and owners to have a shared understanding of metrics and benchmarks. His company, which oversees two hotel real estate investment trusts, puts a large emphasis on revenue-per-available-room index and metrics that judge flow through to the bottom line, he said, and he believes RMs need to judge themselves on that basis.
“You have to figure out what’s important to your owner then make your interests their interests,” he said.
The importance of communication
Liz Perkins, SVP of corporate strategy and reporting for Apple REIT, said that often comes down to effective communication and collaboration from both sides of the equation.
“We have to ensure we are clear on what our expectations are and that we’ve aligned our interests,” she said.
