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Approach

TMA has been designed from the ground up to help hotel investors and owners achieve three major goals. (How can we do that? See Services)
1. Increase Revenue
 

The revenue earned on a hotel property is commonly measured as RevPAR (Revenue Per Available Room). This metric is an indicator the overall health of the property as it includes both utilization (how full is the property) and realization (how much is earned by each room per night). Not surprisingly, total revenue can be increased by raising the occupancy rate, or raising the rate per room. Both of these factors, however, are related to the perceptions of the hotel property in the marketplace. To improve the perceptions of the property, TMA focuses on two key areas, sales & marketing and property presentation.

The sales & marketing initiative begins with review the marketing plan for the hotel. Some of the issues to be considered include;
• Who is your target market?
• What are their key needs?
• How do you address those needs?
• What is your Unique Selling Proposition?
• What media do you use to market your hotel?
• What is your tactical marketing plan?
• What kind of frequency/loyalty programs are in place?

Property presentation describes the design and physical condition of the hotel property itself. Often, the perceptions of guests will be influenced by the overall layout and decorating of the property, but also by cleanliness, and the lack of visible damage and tatter. While many of these aspects are long-term capital decisions, simple changes and adherence to cleaning and maintenance procedures can often greatly improve the perceptions of guests. Our experience with the standard procedures of the preeminent hotel chains allows us to make recommendations to improve the physical presentation of the property.

Room utilization is, of course, increased by more travelers visiting the hotel. Also, this utilization can be impacted by the hotel procedures themselves. When focusing on room optimization we will consider issues such as:
• Frequency of planned empty rooms for major maintenance
  purposes
• Frequency of unplanned empty rooms for emergency
  maintenance purposes
• Room cleaning schedule optimization
• Number of customer complaints regarding the initial state of
   the room.
• Room optimization measurement systems

2. Reduce operating expenses
 

Actually, reduced operating expenses is one of many benefits of optimizing the internal procedures that make a hotel work. Our experience as owners and operators of hotel properties allow us to assess where your procedures, the instructions given to your employees every day, are not in alignment with your objectives, or are not being followed.

As part of this operational review, we will examine a number of operational processes including:
• Hotel Operations
• Accounting
• Engineering
• Human Resources

In each case, TMA evaluates the current situation in relation to industry “best practices”. Where the underlying procedures are not adequate to ensure this standard is consistently met, we identify methods to correct the gap.

3. Increase the long-term value of the property.
 

After many years of buying and selling our own properties, we understand the levers that lead to increased value in a hotel property. We call the cumulative effect of the improvement initiatives described above “value acceleration” because of their positive impact on the long-term value of a property. Our “value acceleration” methodology will allow you to achieve:

• Maximized profits by increasing RevPAR and reducing operating expenses. The result is an ongoing positive cash flow.

• Repeatable processes that allow the hotel to consistently produce results regardless of personnel changes and to establish metrics by which to measure performance.

• Accurate financial statements and more useful management information.

• Increased safety of the investment knowing assets are safeguarded by an appropriate set of internal controls, including risk of loss from corporate fraud, excess worker’s compensations claims, litigation, or REIT violations.

 

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Improve hotel's RevPar ratio

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Reduce operating expenses

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Increase the value of the property

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