Hotel, Motel & Resort Management General
With our Management Philosophy as a guide, IHM provides Hotel Management Services to a wide variety of hotels in a number of different locations across the United States. As a hotel operator/manager we have the capacity to maximize cash flow and return on investment for your property, thus increasing its value. The following gives you information on how we do it.
Getting to know the Property. When we take on a property we make an initial property visit during which our goal is to gain a complete understanding of the physical facilities, their condition, the market environment, operating procedures, and existing management personnel. From this point, we are able to formulate and begin to implement the changes that will be necessary to operate the hotel more efficiently and maximize revenues.
Cash Flow Maximization. In addition to maximizing revenues and managing expenses appropriately, this includes regular cash flow forecasting, weekly cash sweeps to concentrating accounts with excess funds automatically invested. We will monitor and help challenge real estate taxes and insurance costs. We will make debt service and other payments for the owner and assist in debt renegotiation.
Business Planning. Proper planning and information is required for a hotel to best reach its operating potential. IHM sees to it that a Business Plan is prepared annually for each hotel that we manage. The plan includes details on the hotel's market, capital improvement needs, and operating history. The preparation of the plan involves the use of activity calendars for planning and future monitoring. The information provided will work to support the hotel's marketing plan and operating budget.
Property Visits. Visits to the property occur on both a regularly scheduled and unscheduled follow-up basis for the purpose of inspection, consultations with management personnel, and ongoing operations and marketing reviews. Our quality control process also includes regular visits by anonymous shoppers who use report formats tied to our operating standards. This allows us to see our hotels through a customer experience.
Weekly Reports. We provide weekly reports to owners depending on their needs. Our accounting system allows owners to view financial data at any time using a web-browser. For instance, some owners receive a weekly report detailing month-to-date revenues, occupancy and Average Daily Rate (ADR) for the current month while others simply look at that data over the Internet at convenient times and places of their own choosing.
Volume Purchasing Agreements. Whenever practical, volume-purchasing agreements are negotiated. Many hotels managed by IHM are franchised and full advantage is taken of the franchiser purchasing programs. Additionally, it is sometimes possible to arrange marketing and other hotel operations purchases in conjunction with other hotels we manage. When such arrangements are possible and provide a discount, costs are prorated to the properties benefited. No fees, commissions or other arrangements are charged or collected to benefit the management company for these services and our contract specifically forbids “Hidden Fees.”
Redecorating and Refurbishing. With our knowledge of current trends and products in the hotel and hospitality industry, we are adept in supervising the redecorating and refurbishments of properties. Redecorating and refurbishing 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.
Environmental. Implement an effective Environmental policy to lower operation Expense and capitalize on the increasing demand for Environmentally conscious travelers.
Green Plan. Design and implement a conversion plan of the existing facility to a Green Hotel utilizing key contacts and "hands on" knowledge within the "Green Hotel Community". The final product will allow the facility to actively market to the growing Environmentally conscious traveler and streamline the current operation towards a more efficient and Environmentally friendly operation. Once the conversion is complete the hotel usually experiences a higher Average Daily Rate, REVPAR and Customer Satisfaction due to the ability of "tiering" the hotel's rate structure with enhanced amenities.
Asset & Oversight Management
Goal. The goal of oversight 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.
Things Change. 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 oversight 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.
Technical & Pre-Opening Services
General. With IHM on board for a property opening or major repositioning, you will be working with hotel management experts that have gone through the hotel development and opening experience a countless number of times. We have the capacity to oversee everything from concept development, site selection, design coordination and contractor selection to the stocking of shelves and obtaining the right equipment, décor, licenses, and staff as well as the organizing of opening events. We can help any investor through the experience of developing and opening any size hotel, motel, or resort.
Professional Input and Opinions. With our knowledge of and background in hotel operations we are able to consult with the architects and designers concerning design criteria, requirements, and layouts of all functioning areas of the hotel. We can also lend our expertise to the development of general themes and concepts and can assist in the selection and preparation of designs for all furnishings, operating equipment, and operating supplies. Additionally, we are able to review and advise schematics, architectural and engineering plans, and specifications for all aspects of a hotel property. With our expertise we are able to make recommendations and advise changes to plans and specifications whenever necessary.
Compliance.As the operator we are able to obtain and maintain all licenses and permits required of the owner. We will assist the owner in understanding and adhering to all applicable laws, rules, regulations, requirements, and ordinances that are pertinent to hotel operation such as employment law and ADA requirements.
Staffing.In assisting with your opening, we can creatively recruit, hire, and effectively train the right people to help you accomplish your goals. Our employment process includes criminal and credit check for all staff followed by detailed orientation and training leading to industry wide certification that contribute to the professionalism and retention of the hotel’s staff.
Pre-Opening Marketing. Grand opening activities should help to launch your property into the market. IHM’s sales and marketing experience is a great asset in this endeavor. As operator we can coordinate all grand opening activities, sales efforts, advertising, and promotion necessary for the opening of a property. The scope and style of the opening activities need to be appropriate for the hotel itself, the community and the targeted demand generators / markets.
Banking, Reporting, and Record-keeping. We are able, on behalf of the owner, to deposit and disburse the appropriate monies and keep record of the monies utilized in the development of the property. Every month, we will provide the appropriate detailed financial statements, schedules and progress reports. In addition, we will maintain the appropriate records related to development.
Planning and Progress Monitoring. software helps us manage schedules and resources, collaborate on projects, and analyze project information. When projects are larger, more complex and involve more people and companies we can use Microsoft Project Server which allows Internet access for all those involved in managing and carrying out the development or repositioning project.
Fees and Staffing. Fees for Technical and Pre-Opening services are entirely a function of the level of responsibility and involvement IHM assumes. For staffing an appropriate balance is found between current staff and temporary staff and consultants so that our client’s resources are used most efficiently.
Overview. IHM Management Company has expertise in the management of hotels in transitional and distressed circumstances and has extensive experience being appointed receiver. With our expertise we are able to provide efficient and cost effective Receivership Services for lenders that are preparing to foreclose and sell a property.
Appointment. Our principal officers are well acquainted with the court proceedings involved in the appointment of a receiver. Our experience gives us the ability to efficiently go through the legal process with our clients including insuring that the all important Order Appointing a Receiver is adequate in its scope and provides the necessary tools for both a smooth transition but also cleaning up unpaid bills and leases.
Takeover. Utilizing our management know-how and our company’s flexible structure, we are able to smoothly take over operation of the property, on very short notice if necessary. When we become receiver, we enter it as we would any hotel we manage. As you would expect, we will be present at the hotel at the time of takeover to become familiar with its operations and implement the necessary changes. The appropriate background checks are performed on all employees and they are rehired and placed on the payroll of an affiliate of ours in order to reduce the investor’s associated risk.
Management. We make sure that the assets of the property, both physical and monetary are protected and accounted for. Financial and accounting work for the property is done by experienced staff in our offices. The accounting system that IHM utilizes permits our clients to view financial data over the Internet using a web browser, allowing the interested parties to stay up to date with the business of their asset. Additional reports are prepared and submitted as necessary.
Why Us? IHM Management Company is able to efficiently develop and execute the necessary hotel business plans that will increase the efficiency and appearance of a hotel. This will help the selected hotel broker show the hotel in the best possible light to prospective buyers. We will work hard to help effectively dispose of the hotel asset.
Usually No Additional Cost Receivership Services generally cost no more than regular management services for other hotels that IHM manages. The exception is when extra court appearances are required or when borrowers challenge the Receiver entity on some matter. In that case reasonable hourly rates are charged and all concerned are advised in advance. As Receiver we do retain outside counsel and this is an expense of the Receivership.
Our philosophy regarding our compensation is fundamentally that we make every attempt to create a situation where our clients never question our motivations. We try to align our fee structure to the owner's financial goals.
Management Contracts. We prefer to divide Management Fees into two parts. The Base Management Fee is intended to cover our basic costs of providing our services. An Incentive Management Fee ties our profitability to the results of our efforts as shown in the profitability of the hotels we manage,
Base Fee. This is usually a percentage of Total Revenues, or a minimum monthly amount, whichever is greater. The percentage ranges from two to four percent.
Consulting and Oversight Management Services. Consulting fees are negotiated on an individual basis depending on the services provided and the time involved. On certain projects, fixed fees are applied while others are on an hourly basis. Hourly fees vary with the level of staff experience necessary and the complexity of the assignment.
Asset Management Fees are also divided into two parts. The Base Asset Management Fee is intended to cover our basic costs of providing our services. An Incentive Asset Management Fee ties our profitability to the results of our efforts as shown in the profitability of the hotels we manage. The Asset Management Base Fee is usually a flat monthly amount based on the services provided.
Incentive Fee Once the owner’s financial goals for the hotel are understood and achievable results are agreed upon, an Incentive Asset Management Fee is negotiated which relates to those goals and our level of influence over management.