A transformative shift is underway in asset management across the hospitality industry, driven by technological advancements and the evolving expectations of investors.
Owners are understandably seeking to optimize their returns and ensure their products remain competitive, which
has raised several topical questions. For example, should innovation be used primarily to generate new revenue streams or focused on improving operational efficiencies? And how do emerging trends in space utilization fit into the equation?
Pursuing new revenue streams
Innovation has the potential to unlock new revenue streams for hotels, thereby benefiting asset managers by delivering better returns. For example, the development of sophisticated algorithms and artificial intelligence (AI) offers opportunities to create customized investment products, tailored to specific investor needs. This, in turn, can play a part in attracting new clients and increasing revenue. Blockchain technology can also be leveraged to streamline processes, reduce costs and introduce new financial instruments.
Significantly, when we asset manage a property, we invariably explore innovative ways for our team to engage with clients and look at how to generate additional income, from the development of digital platforms that support personalized services to educational content and community forums. These platforms can foster deeper relationships with clients and lead to cross-selling opportunities, especially in mixed-use products.
Spotlight on operational efficiency
While innovation can drive new revenue streams, it is equally important for asset managers to ensure their products and their partners benefit from improved operational efficiency. Automation, for example, can streamline back-office tasks, reduce errors and free up resources for more strategic activities. Cloud computing can enhance scalability, improve data security and lower costs in fields that range from reservations to managing the overall customer journey.
Of equal importance, advancements in data analytics can help asset managers gain deeper insights into their properties’ spending trends, therefore identifying investment opportunities that have the potential to generate revenue and optimize overall return of their portfolio. This can lead to improved risk management, enhanced performance and reduced operational costs.
Key role for space utilization
The concept of space utilization is a particular favorite of mine, perhaps, in part, because it is so often overlooked. But it is now becoming increasingly relevant for efficient asset management. At a time when brands are seeking to optimize their physical footprint and reduce costs, asset managers need to assume the role of gatekeeper, ensuring they are exploring innovative ways to use their overall space, starting with the office area. This includes looking at co-working arrangements, flexible workspaces and the adoption of technology-enabled solutions that facilitate remote work.
A balanced approach
While the pursuit of new revenue streams is essential for the long-term success of asset managers, it is equally important to focus on improving operational efficiency. A balanced approach that leverages innovation to achieve both goals is likely to be the most effective.
For example, we and other asset managers are investing in AI-powered tools to automate back-office tasks, while simultaneously developing new investment products that leverage the same technology. This can help owners to reduce costs and increase revenue at the same time.
There’s no doubt that innovation is a powerful tool that can help asset managers navigate the challenges and opportunities of the modern investment landscape. By focusing on both revenue generation and operational efficiency, owners can position themselves for long-term success and stay ahead of the competition.
Bastien Blanc,
CEO and board member
TroKadero Hospitality Global
tkh.global
@blancbpe
