The goal of the LaKota Asset Management Service is to maximize cash flow and protect the economic value of ownership’s investment, providing guidance on all aspects of day-to-day operations as well as evaluating investment strategies to ensure the optimum return on investment.
LaKota has direct hands-on management experience in all areas of hotel operations, thus understanding the challenges faced by ownership. In an effort to maximize financial returns, we also explore brand selection as well as advising on franchise and management agreements.
We will start by touring the property, interviewing key management, and understanding the local competitive market. After gaining a full understanding of operations within the competitive environment and evaluating the physical asset, LaKota’s initiatives include:
• Reviewing sales and marketing strategies compared to the competition; attaining knowledge of any new products coming into the market posing a threat to your property
• Reviewing management, and any other operating agreements to ensure terms are fair and equitable and understanding the entire scope of services so the operator is held accountable to the terms and conditions of the contract
• Researching the market: touring competing hotels, gaining understanding of the demand generators, attractions, and idiosyncrasies of that market
• Visiting the operator’s home office to gain understanding of their key executives, strengths of the organization, and how their various disciplines work, to be able to maximize LaKota’s effectiveness in working work with them for the best result for the owner
• Monitoring achievement of actions in place – participating in operations/marketing meetings when needed
• Conducting bi-annual one-on-one meetings with hotel executive committee staff members (i.e., general manager, director of food and beverage, director of sales and marketing, controller, director of human resources) and assisting as necessary in identifying talent
• Reviewing and analyzing all relevant monthly sales and marketing, financial, guest satisfaction, employee satisfaction, and capital expense, reports, and communicate questions and suggestions to owner
• Working collaboratively with onsite team to implement changes and adjustments when necessary
• Monitoring physical maintenance activities and the proper completion of capital expenditure projects in order to insure that funds are spent effectively
• Monitoring guest satisfaction and employee satisfaction indicators
• Reviewing and facilitating the approval of the annual Operating Budget, Sales and Marketing Plan, and Capital Improvements Plan
• Providing open communications with the owner, and hotel executive team on a regular basis
• Ensuring that the terms of the management agreement and other agreements are respected, monitored, and enforced
• Reviewing actual & projected cash flow compared to the current investment underwriting, identifying deviations from the original plan and strategizing accordingly
• Reviewing and facilitating the approval of the annual Operating Budget and Sales & Marketing Plan
• Closely monitoring the financial performance and providing oversight to identify performance upside, reviewing weekly and monthly reports, and working with ownership and the management company to implement changes and adjustments
• Touring the property on a regular basis and monitoring physical maintenance activities and the proper completion of capital expenditure projects to insure funds are spent effectively
• Reviewing and facilitating the approval of the capital improvement plan, ensuring conformance with brand and legal requirements
• Ensuring that the terms of major contractual agreements are respected, monitored, and enforced, including the management agreement and franchise agreement.
• Reviewing insurance of sufficient coverage for the assets, liabilities, business disruption and by third party service agreements
• Advising ownership as to management issues, providing open communications with owner, hotel executive team and management company corporate team on a regular basis
Regular scheduled monthly meetings with management will provide continuity of asset oversight with structured but flexible agendas and written reports to ownership.
LaKota embraces your investment as its own, addressing the multitude of issues that influence your return on investment, and outlining a road map to produce the cash flow necessary to support and grow the value of your asset.