While an asset manager's job is never easy, top line growth over the last couple of years has made it more straightforward to mitigate rising costs. That all looks set to change in 2024. How then should asset managers be thinking about their job and what should they be focusing on?
At this year’s IHIF the Hospitality Asset Managers Association (HAMA) Europe, will once again recognize the key role played by the industry in sustainably growing asset value and driving underlying investment returns with the presentation of the Asset Management Achievement Award.
Ahead of the deadline for first round submissions is (Feb. 6) Hotel Management sister publication Hospitality Investor caught up with a group of experts to discuss the challenges facing the industry at the start of 2024.
1. Slow growth and cost creep
The early signs are that growth on the top line is slowing with growth in revpar expected to be in the low single digits. We're heading back to the normality of the pre-pandemic era. The challenge is obviously predicting what's going to happen with costs, and that varies region by region. In Europe, for example, energy pricing was the big factor whereas in the US the bigger issue is around labor. So far a lot of these cost increases have been offset by rising rates, but what happens if and when this is no longer the case?
To read the rest of the article, please visit our sister site, Hospitality Investor.