Asset Management

Results Driven Performance

The Opportunity

With the ever increasing cost of hotel development, operating costs and over-supply all result in the threat of diminishing returns. Ròya expertise transforms owner headaches into opportunity.

The Demand

Hotel owners and investors are demanding a more hands-on skilled, professional involvement in the long term management of their assets.

The Solution

Our unique hotel management oversight service has one key objective: Ensuring that our hotel owner’s strategic financial and non-financial objectives are met.

Ròya’s Asset Management Practice

Our Asset Management division delivers a comprehensive range of services designed to maximize operational profitability and minimize risk. At the forefront of industry trends, using our understanding of current and future value drivers, we ensure the maintenance, appreciation, and profitability of every owner’s asset.

We currently oversee more than 50 properties of various asset types and sizes ranging from unique boutique hotels to landmark mixed-use retail/commercial complexes. The properties are geographically spread and operate in widely diverse markets throughout the GCC, the EEC, the United Kingdom, Spain, and Switzerland.

The portfolio has 13 separate international and regional brands and, although predominantly managed by renowned international operators (including brands such as Anantara, Edition, Jumeirah, Park Inn, Radisson, Rotana, St. Regis, W, Waldorf Astoria), it also includes self-managed properties as well.

Ròya’s Asset Management division works closely with the operator and/or owner’s management team to achieve optimal property performance, whilst ensuring that the owner’s interests are protected. All operator requests and management are evaluated to remain in line with contractual terms, product positioning and changing market conditions.

The Asset Management function also handles pre-openings on behalf of clients, whereby Ròya acts as the Client Representative on all hospitality related matters. During such assignments, Ròya works closely with the operator to facilitate a smooth opening within the agreed time, cost and quality parameters.

Other services of the Asset Management function include hotel operator negotiations or renegotiations of existing contracts, where Ròya has supported more than 120 assignments in this regard. Additional ad hoc services include budget reviews, year-end reviews, and operational assessments.

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Hotel Pre-Opening Consultancy

It all starts with Pre-Opening

Preparing a hotel to greet its first guest is a complex and often stressful part of the development journey.

Success factors: A combination of good timing and a detailed understanding of the process. With more than 120 hotel management agreements, the introduction of more than 15 new international hotel brands to the region and over 50 hotel asset management assignments, Ròya has a proven track record of successfully guiding clients through this process.

Key Hospitality Services at a glance

  • Assist with the definition of the entire pre-opening program process
  • Review of the pre-opening budget, projected financial forecasting
  • Manage the compilation of projected financial projections
  • Review and analysis for the Year One operational budget
  • Management of the operational and development schedule
  • Branding and concept development
  • Contribute to the overall marketing strategy
  • Monitor the pre-opening standards of products and services
  • Review of all hotel activities submitted by the operator/appointed management
  • Manage the interface with the operator/appointed management
  • Review the development set-up, and implementation of operating guidelines, policies and procedures
  • Support in the establishment of procurement systems
  • Assist in the key executive appointment process
  • Recommend the latest and best practice reservation systems and pricing structures
  • Facilitate a smooth handover from contractor to the operator/management
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Hotel Management Oversight (HMO)

Our HMO services provide a comprehensive, experienced liaison service between our client and their hotel management team.

Being a hotel investor is a complicated task - far more demanding and complex than any other real estate venture. Our asset management services are a comprehensive skill set that includes an understanding and knowledge of hotel operations, management of revenues and costs, dealing with governmental requirements, human resource management, accounting, marketing, economics, measuring the market, and preservation of the asset.

Key Services At A Glance

  • Ongoing financial performance analysis through scheduled reviews of actual performance versus budget and forecast; benchmarked performance reporting
  • Owner's investment performance by assessing cash flow and returns versus the original investment plan, advising on variances
  • Capital expenditure analysis by reviewing annual budget proposals, evaluating expenditure impact on profitability, ensuring that Capital Expenditure is aligned with Owner's interests
  • Overall asset performance by evaluating the efficiency and competitiveness of major systems; Regularly inspecting the physical asset and verifying compliance with governmental and industry best practice health and safety requirements
  • Review the budgeting process by assessing proposed budgets and operating plans ensuring alignment with the Owner’s best interests and maximization of the asset’s potential
  • Assess the hospitality investment environment in order to advise the Owner on potential exit strategies by tracking sales prices for comparable properties and capitalization rates

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Mergers, Acquisitions and Disposals

At all stages of the M&A process, Ròya International seeks to maximize the value of the asset, whether it is a disposal of a hotel property that may be underperforming, or an acquisition of a new opportunity that presents a high value interest.

Ròya’s M&A team operates as an objective partner from the initial assessment to closing the transaction in a timely and efficient manner. Roya helps ensure that the M&A plan is the result of a carefully developed strategy, not just a deal driven reaction.

Our confidential service, conducted by our team of industry professionals, focuses on assisting clients in the development of a strategy and financial rationale for any merger, acquisition or disposal. We have brokered joint venture agreements between private companies and government institutions and work closely with financial institutions in managing hospitality real estate funds. We have done complex M&A agreements in the MENA region and countries such as the UK, Pakistan, Seychelles and Maldives.

The Ròya M&A Process

Our approach means we listen and understand our client’s investment needs and objectives, while holistically reviewing the project’s credentials to create a broad investment strategy. The decision to sell a property or business is one which many owners make once, with only one chance to get it right. We guide our clients through each and every stage of the transaction to help ensure that they achieve the best terms and conditions possible.

Our team of professionals applies industry and market expertise, evaluating market conditions and the property itself, in order to best position the asset.

Throughout the process Ròya continually assesses the due diligence and relevant documentation against the objectives agreed at the outset, in order to provide sound investment advice for our clients. Ròya has the capability and experience to successfully manage the process from initial assessment to closing the transaction in a timely an efficient manner.

  • Initial assessment
  • Positioning period
  • Negotiations strategy
  • Due diligence & closing of the transaction
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Real Estate Advisory

With our extensive knowledge of the real estate sector, we are often asked by clients to assist in maximizing the positioning of their real estate portfolio.

We ensure the optimal level of occupancy and income using our market knowledge and expertise to identify suitable and potential tenants, conducting due diligence to ensure that our clients expectations for the asset are achieved.

Together with the client’s legal counsel at the outset of negotiation, we oversee the following:

That the value of the leasing opportunity is maximized
Anticipating of tenant fit-out issues and generation of the correct documentation
Maintaining the asset value by creating the framework for payment protocols, maintenance and future fit outs.

Key Services At A Glance

  • Real estate development strategy
  • Real estate marketing, sales, pricing and leasing strategy
  • Real estate product positioning
  • Best mixed use
  • Appointment of property managers