There’s a common misconception that property value is primarily determined by the factors outside of your control. While market forces certainly play a role, there’s a lot that you can do to increase the value of your hotel. MyHotelAccountants can give you control over your hotel’s value so that you can keep growing without interruption.
Understand Your Hotel’s Value
The first step to increasing the value of your hotel is to determine your current standing. Determining the value of an asset in the hospitality industry isn’t a simple task. A host of factors contribute to your hotel’s value and leaving any of them out can give a distorted picture. Furthermore, valuation is an approximation and an inexact science. It requires a great deal of experience and expertise.
For this reason, you’re going to need a team of experts to handle this task. And MyHotelAccountants is an excellent choice for a number of reasons. Our accountants have extensive experience with valuation. Our meticulous approach guarantees a well-reasoned assessment. In addition, we’ll help you understand all the critical factors affecting your hotel’s value to unlock opportunities for improvement.
Maximize Revenue
Your hotel’s revenue is a primary determinant of its value. It’s also one that you can influence the most. Understanding the way your hotel generates revenue is an essential step to increasing the property’s value. And of course, your hotel generates revenue from many sources and with various strategies. This is why hoteliers often find it hard to understand their revenue in great detail.
Over the years, MyHotelAccountants has had a chance to work with hotels of all backgrounds. From long experience, our team knows precisely how hotels generate revenue and how they can increase it. We’ll pair this knowledge with our hotel business accounting expertise to find new ways of growing your income. In doing so, you can take a significant step to increasing your property value.
Cut Departmental Costs
Departmental costs influence your hotel’s value in different ways. Firstly, they directly impact your profit, which means hoteliers should always be on the lookout for new ways to minimize these costs. Also, departmental costs reflect your hotel’s efficiency. All too often, we come across hotels with overly high departmental expenses and on closer inspection, discover that it’s mostly due to inefficiencies.
Our experts use the best hotel accounting practices to examine costs and determine where you can make savings. We’ll show you everything you need to know about your expenses, the reasons they’re incurred, and what you can do to minimize them. In doing so, you’ll unravel new opportunities to maximize your hotel’s profitability and value.
Manage Your Investments Wisely
One of the most apparent ways to increase your property’s value is investing in upgrades. Your hotel’s value can skyrocket after an addition, renovation, or another structural upgrade. The only question is at what cost. Structural upgrades usually require substantial investments. If you’re not careful, you might be putting money into something without satisfactory returns. This can be even more detrimental if you’re using external financing to upgrade your property.
Toward this end, the experts at MyHotelAccountants will make sure that you only commit to investments that make sense. We’ll show you what’s possible in terms of upgrades so that you can invest with confidence. And if you need financing, we can also be of help. In particular, with advice and the preparation of all the financial statements and projections needed to apply for and to obtain financing.
Understand the Market
Market forces have a significant impact on your hotel’s value. Even though many of these forces are external, it doesn’t mean that you can’t do anything about them if you’re looking to improve the value of your property. If you know where to look, you’ll discover a range of things that you can do to bend these market forces in your favor. And that’s why hoteliers must have an in-depth knowledge of their markets. Without this, you’ll be leaving the value of your hotel in the hands of chance and market forces.
To support your hotel’s growth, our team can provide you with all the knowledge needed. We keep track of all the relevant market trends just so we’re always at the ready to provide our clients with actionable advice. We can give you information on how the market forces are influencing your hotel’s value and what you can do about them. It’ll become evident that you have more control over your hotel’s value than you might have previously thought.
Take Calculated Risks
It’s too passive to just wait for the value of your hotel to grow on its own. Instead, you need to take actions that can directly influence your hotel’s growth. Since it all comes with a certain degree of risk, you’d have to assess the risk beforehand.
Our team will help you understand the risks involved. Your hotel’s financial performance data shows us everything needed to determine whether you should execute certain strategies. We’ll gather all the relevant data and give our advice about what’s the best way to proceed, or not to proceed. That’s so you can grow your property’s value with confidence.
Track Your Hotel’s Performance and Value
You’re going to have to do a lot of work if you want to grow your hotel’s value. To begin with, you have to keep track of your hotel’s performance to see if the strategies employed are working. Or else you might be investing too many resources without knowing if they’re contributing to the value of your property.
That’s only one benefit of engaging a team of experienced accountancy and financial consultants. At MyHotelAccountants, we know all the metrics that hoteliers should track with regard to the value of their hotel. More importantly, we know how to influence those metrics and what you can do to enhance your hotel’s value over time extraneous to any structural improvement. Our team will look at every important aspect of your hotel’s value and inform you as to what you can do to increase the value.
