Editorial Board   Guest Author

Mr. Olsen

Derek Olsen

Senior Vice President, CHMWarnick

Derek Olsen, is a Senior Vice President of CHMWarnick, the leading hotel asset management and owner advisory services firm. Mr. Olsen brings more than 20 years' hospitality advisory and asset management experience and a master's degree in real estate to CHMWarnick. Olsen brings expertise in the areas of hotel/portfolio valuation, cash flow analyses, market and industry trends and special projects focused on increasing profitability. Mr. Olsen is an integral member of CHMWarnick's asset management and transaction team, and has personally underwritten more than 300 hotel acquisition deals, many representing complex transactions with significant development and reprogramming elements. Mr. Olsen has extensive financial modeling and valuation experience, and has identified significant value enhancement opportunities through operational initiatives, lease negotiations and redevelopment strategies. His experience spans a broad range of land uses including hotels and resorts, luxury condominiums, condo-hotels, fractional, time-share, whole-ownership residences and golf courses. He has a Bachelor of Science in Hospitality Management from Cornell University, and a Master of Science in Real Estate from Massachusetts Institute of Technology.

Please visit https://www.CHMWarnick.com for more information.

Mr. Olsen can be contacted at 978-522-7000 or dolsen@chmwarnick.com

Coming up in October 2020...

Revenue Management: Maximizing Profit

Hotel Revenue Management continues to evolve at a blistering pace. Driven by technological innovation and new distribution channels, there are some dynamic opportunities for expansion in this fast-growing field. The technology is primarily designed to help revenue managers further refine their operations and pricing models to maximize hotel profit. For example, hotels can't be all things to all people, so a key strategy is to precisely identify their target audience. By employing geo-targeting techniques and analyzing behavior such as previous bookings, on-property purchases and online shopping practices, there is an increased capability to define guest demographics. By segmenting customers in more specific ways, hotels are able to create more personalized experiences which, in turn, allow managers to optimize their room rates. It is also an effective way to fulfill the unique needs and preferences of the individual. Another methodology is to consistently monitor the competition's pricing strategies. There are software tools that analyze a competitor's current rates, and then allow a hotel to make its own pricing adjustments. It is also a useful means to conduct forecasting models. Other technologies that are being integrated into a revenue manager's toolkit include Artificial Intelligence in the form of automated algorithms, and Voice Recognition (VR) for data inquiries, rate changes, and booking behavior. Predictive and analytic software programs are also being leveraged to provide more forward-looking data, instead of the usual reliance on historical performance. These metrics allow managers to be more proactive - rather than reactive - with their revenue strategy. The October issue of the Hotel Business Review will examine these developments and report on how some leading hotels are executing their revenue management strategies.