The CBRE Hotels Strategic Solutions team has launched a new asset review program designed to enhance hotel operational performance and property values.
The Strategic Operational Asset Review (SOAR) program was launched late last month at CBRE Hotels’ inaugural annual client function at Sydney’s Shangri-La Hotel.
CBRE Hotels Senior Director, Strategic Solutions, Oscar Westerlund said the new, automated program analyses and monitors key aspects of a hotel property’s activities on a periodic basis.
SOAR benchmarks a property’s performance against similar assets in the market in terms of key metrics relating to departmental revenues, costs and profitability; business mix; overhead costs and overall profitability.
“These benchmarks provide a valuable guide to a hotel’s relative performance in specific areas and aids in rationalising ‘market facing’ stretch budgets and identifying areas for improvement,” Mr Westerlund said.
“The key objective is to better understand trading dynamics and maximise operational performance through specific benchmarking and analysis, translating into asset value growth.”
Mr Westerlund said SOAR was an innovative, cost effective solution to hotel asset management that was designed to be customised to each client’s needs depending on the size of their hotel portfolio, hotel characteristics and strategic goals.
