Vision eyes Middle East and India expansion
One of Europe's largest hotel asset management companies has set up shop in the Dubai, with the regional office set to cover the Middle East, North Africa and India
One of Europe's largest hotel asset management companies has set up shop in the Dubai, with the regional office set to cover the Middle East, North Africa and India.
Vision Hospitality Asset Management has a background in Europe of advising institutional investors and high net worth individuals who might be unfamiliar with the hospitality industry.
Regional director Middle East and Asia Nigel Teasdale told Hotelier Investor that the company liked to get involved with owners at an early stage of a hotel's development.
"We believe we can deliver value during operator selection and management contract negotiation," he explained. "Typically, particularly where there are a large number of hotels under development and a limited number of brands, it tends to be an operators' market, and as a result very often the terms of a management contract are not particularly equitable.
"That's the first area we believe we can deliver some value, because we can make sure the terms of the contract, the fees, the length of contract are more equitable and offer something more to the investor than they might otherwise."
The company could also assist during pre-opening phases to rein in unnecessary costs, and during a hotels operation by managing monthly reports and providing proactive strategic planning.
"Each little cost may not look like a lot, but when you put it all together you can make quite significant savings to the bottom line and deliver more returns to the owner," he said.
"We think that is going to be particularly appropriate in the Middle East region where we have a situation where there is a lot of pressure on labour costs, and food costs, and supplies generally. There is quite a lot of inflation, so controlling costs is going to become more and more important.
"There will always be concerns of over-supply which affect the market, and it will become more competitive. In this situation our sales and marketing experience, and our ability to look at different sectors of demand to spread the business base will help with top-line revenue."