Hotels Are Unique
Maximizing cash flow and return on investment in this unique business investment are best accomplished by a team of experienced professionals with outstanding experience and training combined with impeccable credentials. Through our refined technical resources and thorough operational systems, HVS Hotel Management has a proven ability to deliver service and value. Services HVS Hotel Management provides include hotel management, oversight management, and consulting services in all areas of the hospitality industry.
HVS Hotel Management was founded by Kirby D. Payne, CHA, a 30 year veteran of the hospitality industry. Our staff has the depth of experience to manage your hotels professionally, regardless of their scope and number of rooms. In addition, we are skilled in the design and implementation of viable plans to increase a hotel's profile and profitability. HVS Hotel Management Company's corporate structure allows us to focus our attention on your hotels and give personalized service to our clients.
With staff located in New England and South Florida near major airline hubs we are able to reach our clients and their properties quickly, inexpensively and on short notice. We can provide constant personalized supervision of a property when necessary, not just monthly visits.
The information contained here provides an overview of our experience, our services, and our philosophy. You will see how HVS Hotel Management assists the hospitality investor to maximize cash flow and return on investment in this unique and exciting industry.
Hotel marketing is more than a few standard, tried and true sales techniques. At HVS Hotel Management we begin by taking the time to understand the unique environment in which each hotel operates. Specific marketing strategies are devised and then translated into a detailed plan of action. The thoroughness of our marketing plan process translates into an efficient and effective marketing effort. HVS Hotel Management understands that implementing a hotel's marketing strategy means much more than telling salespeople what to do. It also means impressing upon the entire staff the importance of customer service because a satisfied customer is the best marketing tool available.
At HVS Hotel Management we believe that accounting serves a purpose beyond presenting the historical financial position of a hotel. Timely accounting information, properly presented, is information that management can use to improve future performance and compare income and expenses to past performance and future goals. The Uniform System of Accounts, endorsed by the American Hotel and Motel Association, is used to present financial information. Additionally, statistics that are useful in analyzing the financial statements are included. Full supplementary schedules and balance sheet reconciliations are provided monthly. We will assist client asset managers in the preparation of their internal reports. Accounting is accomplished using the most advantageous arrangement for the hotel. We can either perform all of the accounting, from disbursements to statement processing, at our corporate office or decentralize any portion of the process to the hotel level. At HVS Hotel Management, tight internal and cash controls, combined with strong manager responsibility, are key to maximizing profitability.
Maintenance and Energy Management
Maintenance is a key to maximizing guest satisfaction and the hotel's economic life. Maintenance is primarily preventive, therefore we make every effort to schedule it. Energy management is carefully monitored by reviewing the hotel's expenses, and, where necessary, by direct meter readings. To minimize expenses, energy suppliers are consulted on a regular basis to insure that full advantage is being taken of all programs and all economically viable technology. Guest satisfaction is always a consideration in energy management decisions.
Food and Beverage
A hotel restaurant should do more than provide food to hotel guests. It should attract attention to the hotel, introduce potential guests to the hotel's high quality of service and make a profit. To make this happen we stress CREATIVITY, QUALITY and CONSISTENCY. These same principles apply to liquor outlets, room service and banquet areas. Creativity means making sure our restaurants and lounges meet the needs of our potential customer. Each hotel has a unique location, target market and local culture that can and should be integrated into the hotel's outlets. Quality is expressed by the people we hire, the products we purchase and the service we provide. We select our employees carefully and provide rigorous training and supervision. Quality products are used in our restaurants and lounges because we demand them and we train our employees to find them. Consistency is what makes a good restaurant notable. We attain it by placing the proper procedures and systems into the restaurant and by recruiting and training people who are competent and caring.
1. Creative recruiting and careful selection of all employees.Sale Of Hotel
In cases where the hotel is for sale, we will work closely with the owner and the brokers to facilitate the sale and the closing.
This includes regular cash flow forecasting and the use of electronic draft capture, weekly cash sweeps to concentrating accounts with excess funds automatically invested. When our compensation is based in part on incentive fees, or for an additional fee, we will monitor and challenge real estate taxes and insurance costs. When appropriate, we will make debt service and other payments for the owner and assist in debt renegotiation.
Scheduled and unscheduled property visits are conducted regularly. Initially, we visit the property for a lengthy period to begin to gain a complete understanding of the physical facilities, their condition, the market environment, operating procedures, and existing management personnel. Subsequently, visits to the property occur on both a regularly scheduled and unscheduled follow-up basis for the purpose of inspection and consultations with management personnel on ongoing operations and marketing. A review of the implementation of suggested changes made during previous visits to the properties operations is also conducted
Our company is available to act as Receiver for hotels in transitional circumstances. If we are also operating the hotel, most of the Receiver's time is included in the management fee.
Clients have on line access to our accounting system where they can generate periodic reports depending on their needs. For instance, some owners generate a weekly report detailing month-to-date revenues, occupancy and Average Daily Rate (ADR) for the current month. Monthly Financial Statements are provided to the client by e-mail or Federal Express.
Business Plans are prepared annually for each hotel. The plan includes details on the hotel's market, capital improvement needs and operating history. This information supports the hotel's market plan and operating budget. Activity calendars are also used as for planning and monitoring.
Volume Purchasing Agreements
Whenever practical, volume purchasing agreements are negotiated. Many hotels managed by HVS Hotel Management are franchised and full advantage is taken of the franchisor's purchasing programs.
Redecorating and Refurbishing
HVS Hotel Management will supervise redecorating and refurbishments at hotels on behalf of owners. Work may be done by hotel employees, contractors, or design firms, depending on the project's scope. Fees, if any, depend on the scope of the work and the level of our responsibility.
HVS Hotel Management provides consulting services covering a wide range of subjects including operations, marketing, and financial structure. We also coordinate consulting assignments with major international firms and members of the International Society of Hospitality Consultants, with which we enjoy special relationships, so that our clients get the maximum benefit for their dollars invested in consulting.
Operational and Marketing Analysis
We conduct operational and marketing reviews of hotels for the purpose of identifying shortcomings in marketing efforts, operational inefficiencies, service deficiencies which may be inappropriate for that particular hotel, improper and wasteful payroll scheduling and other waste. These reviews are very useful for increasing cash flow, developing workout plans or analyzing budgets and cash flow forecasts for hotels.
Impact Analysis, Market Overviews and Demand Studies
We conduct Impact Analysis services for owners finding themselves in situations where they must respond to their franchisor locating an affiliate within the competitive area or for situations where either new construction is underway or a major refurbishing will drastically change the distribution of demand within the market. We also prepare abbreviated Market Overviews and Demand Studies which consist of a five to ten page report discussing the potential hotel market, how the proposed property should be positioned within it and include estimates of annual Occupancy Percentage and Average Daily Rate. Estimates of operating results over the first five years of operation are prepared. In cases where a full market demand study is required by a lender from an independent consulting firm, we coordinate and supervise the engagement to insure its accuracy and cost effectiveness.
Litigation Support and Expert Testimony
Our staff are experienced in assisting attorneys with hotel industry information, practices and analysis so as to support litigation involving hotels. That litigation experience includes operations, contract practices, marketing, financial structure, mortgage reviews and financial statement reviews, among others. We have a staff who are experienced in both courtroom and administrative hearings.
The goal of asset management is to advise a client on the operations and financial management of a hotel to help maintain or improve its value. The client might be the owner of the property, a lender, or other interested party. We work for the client by monitoring the on-site property manager (individual or management company) on a regular basis for operating performance and maintenance of this valuable asset.
Many factors influence when a client may be forced to examine market position, financial structure, operating policies or management of a hotel. Competitors with modern technology, aggressive marketing, or changing brand affiliations put pressure on owners and lenders to reexamine their situation. Rising remodeling costs make it more important to maintain a hotel or motel at its best. Without good asset management, the equity and reputation built up over the years may diminish rapidly. More importantly, the value of the property does not achieve its maximum potential so cash returns from either operations or a sale may not reach the owner's goals.
Insurance Worth the Price
Through recommendations to improve the physical facility, increase revenue growth, and provide consistent quality of service, and reviewing the market strategy and expense controls, efforts are made to enhance the value of the asset. The property is visited on a regularly scheduled basis for inspections and consultations with management personnel on ongoing operations, marketing, and the implementation of suggested changes made during previous visits. Written reports regarding property visits and meetings with corporate and on-site management are submitted as appropriate. Additionally, written comment is provided to the owner as a follow-up on reports from the Operator and their staff. These follow-up reports include an analysis and critique of the financial statements. Oversight management provides an independent perspective on the hotel and insures owners or lenders that their interests are being addressed.
How We Do It
Maximize the interest level of the Operator and productivity levels of the property's staff so as to increase cash flow. Insure that the physical maintenance and the capital expenditures to improve the property are completed thereby maintaining or improving the physical condition of the hotel. Assist the Owner in developing realistic goals for the property, communicating those to the Operator and subsequently encouraging their achievement by reviewing, in detail, the Operator's efforts towards achieving those goals.
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