Hotel Asset Managers Are on the Rise Worldwide
Skift Take
Hotel asset managers can be specialist advisors and go-betweens for owners and operators. As the asset-light model and third-party management spread in Asia Pacific and beyond, asset managers will gain influence as strategic allies.
Early Check-In
Editor’s Note: Skift Senior Hospitality Editor Sean O’Neill brings readers exclusive reporting and insights into hotel deals and development, and how those trends are making an impact across the travel industry.Expect a rising demand for hotel asset managers, especially in Asia Pacific. This is a trend I believe has gone mostly unnoticed. The demand will be driven by changes in ownership structure.
My colleague Peden Bhutia recently interviewed Hilton's president for Asia Pacific, Alan Watts. The interview was wide-ranging, but I was struck by comments Watts made on how Asia Pacific's hotel market would evolve. Today, most Asia Pacific hotels are either owner-operated or their owners hire a brand like Hilton to run them. Yet Watts said owners will increasingly hire non-brand management companies. “At some stage, Asia will see ... the rise of third-party white label management companies acting on behalf of both brands and owners,” Watts said.As more hotel investors adopt third-party management, a parallel trend is emerging: Many hotel brand groups are moving to an asset-light model.
The asset-light model means that hotel groups rarely own or lease long-term lease hotel real estate. Groups instead mostly run properties through mana