Asset Management Class - NOVA

WHAT IS THE PRIMARY GOAL OF ASSET MANAGEMENT IN HOSPITALITY?

• TO ENSURE CONSISTENT GUEST SATISFACTION SCORES ACROSS ALL SERVICE DEPARTMENTS

• TO MAINTAIN BRAND STANDARDS AND ENSURE COMPLIANCE WITH OPERATIONAL GUIDELINES

• TO MAXIMIZE THE LONG-TERM VALUE AND RETURN ON INVESTMENT OF THE HOSPITALITY ASSET

• TO SUPERVISE DAILY OPERATIONS AND EMPLOYEE PERFORMANCE AT THE PROPERTY LEVEL

WHICH OF THE FOLLOWING IS NOT TYPICALLY PART OF AN ASSET MANAGER’S RESPONSIBILITIES ?

• CONDUCTING DUE DILIGENCE ON POTENTIAL INVESTMENTS

• ENSURING COMPLIANCE WITH TAX REGULATIONS IN ALL CLIENT JURISDICTIONS

• MONITORING PORTFOLIO PERFORMANCE AND MAKING ADJUSTMENTS

• DEVELOPING INVESTMENT STRATEGIES BASED ON CLIENT OBJECTIVES

WHY IS ASSET MANAGEMENT IMPORTANT IN HOSPITALITY?

• TO HANDLE DAILY FRONT-DESK OPERATIONS AND GUEST RELATIONS

• TO DESIGN THE INTERIOR LAYOUT OF HOTEL ROOMS AND PUBLIC SPACES

• TO ALIGN OPERATIONAL STRATEGIES WITH OWNERSHIP GOALS AND MAXIMIZE ASSET VALUE

• TO ENSURE COMPLIANCE WITH FOOD SAFETY AND HEALTH REGULATIONS IN HOTEL KITCHENS

WHAT KIND OF AGREEMENTS MIGHT AN ASSET MANAGER BE INVOLVED IN NEGOTIATING OR REVIEWING?

• EMPLOYMENT CONTRACTS FOR HOUSEKEEPING STAFF

• FRANCHISE AGREEMENTS AND HOTEL MANAGEMENT CONTRACTS

• INDIVIDUAL GUEST BOOKING CONFIRMATIONS

• EQUIPMENT LEASING TERMS FOR KITCHEN APPLIANCES

WHICH OF THE FOLLOWING WOULD BE AN EXAMPLE OF CAPEX PLANNING?

• SCHEDULING STAFF SHIFTS FOR THE HOUSEKEEPING DEPARTMENT

• LAUNCHING A PROMOTIONAL CAMPAIGN FOR LOW SEASON BOOKINGS

• BUDGETING FOR THE REPLACEMENT OF ALL GUEST ROOM HVAC SYSTEMS NEXT YEAR

• NEGOTIATING GROUP RATES WITH TRAVEL AGENCIES FOR THE UPCOMING SEASON

WHICH OF THE FOLLOWING BEST ILLUSTRATES THE ASSET MANAGER’S ROLE IN ALIGNING BRAND STANDARDS WITH OWNERSHIP OBJECTIVES?

• EVALUATING IF BRAND-MANDATED RENOVATIONS DELIVER SUFFICIENT ROI FOR OWNERSHIP

• REJECTING ALL BRAND-MANDATED UPGRADES TO REDUCE EXPENSES

• ENSURING STAFF ARE TRAINED IN DAILY OPERATING PROCEDURES

• REPLACING THE BRAND OPERATOR WITH AN INDEPENDENT MANAGEMENT COMPANY IMMEDIATELY

WHAT FINANCIAL METRIC WOULD AN ASSET MANAGER MOST LIKELY USE TO COMPARE HOTEL PERFORMANCE ACROSS DIFFERENT MARKETS AND OPERATORS?

• NET PROMOTER SCORE (NPS)

• AVERAGE EMPLOYEE TENURE

• NUMBER OF TRIPADVISOR REVIEWS

• GROSS OPERATING PROFIT PER AVAILABLE ROOM (GOPPAR)

WHEN MIGHT AN ASSET MANAGER INTERVENE IN OPERATOR DECISION-MAKING?

• TO APPROVE ROOM SERVICE MENU PRICING

• TO REALIGN COST STRUCTURES DURING UNDERPERFORMANCE RELATIVE TO PRO FORMA

• TO SCHEDULE THE FRONT DESK ROSTER DURING PEAK SEASON

• TO SUPERVISE DAY-TO-DAY GUEST COMPLAINT HANDLING

IN A HOTEL UNDER A THIRD-PARTY MANAGEMENT AGREEMENT, WHAT IS THE MOST APPROPRIATE WAY AN ASSET MANAGER ENSURES ALIGNMENT BETWEEN OPERATOR INCENTIVES AND OWNERSHIP OBJECTIVES?

• SETTING DAILY ROOM RATE TARGETS FOR THE FRONT DESK TEAM

• NEGOTIATING KEY PERFORMANCE INDICATORS (KPIS) INTO THE MANAGEMENT CONTRACT THAT TIE FEES TO GOP OR NOI PERFORMANCE

• CONDUCTING WEEKLY INSPECTIONS TO VERIFY STAFF PERFORMANCE

• ENFORCING A STRICT CAP ON MARKETING EXPENSES REGARDLESS OF SEASONALITY

IN WHAT SITUATION WOULD AN ASSET MANAGER MOST LIKELY CHALLENGE A PROPOSED BRAND-MANDATED PIP (PROPERTY IMPROVEMENT PLAN)?

• WHEN THE RENOVATION COST IS SLIGHTLY OVER BUDGET

• WHEN THE DESIGN ELEMENTS ARE OUTDATED

• WHEN THE GENERAL MANAGER EXPRESSES DISSATISFACTION WITH THE NEW BRAND COLOR PALETTE

• WHEN THE PIP REQUIRES REMOVING A PROFITABLE LEASE SPACE TO COMPLY WITH DESIGN STANDARDS