Are Your Hotel Assets Optimizing Company Value?
Hotel Asset Management: A stakeholder take
By S. Lakshmi Narasimhan Founder, Ignite Insight LLC | July 28, 2013
One of the most confusing terms used in the business world and more so in the hospitality industry is Asset Management. Boardroom meetings reverberate to the sound of this and related buzzwords. Do you have an effective asset management strategy goes the refrain. Many times, the person asking the question is as puzzled as the person being addressed. This confusion is born out of the fact that traditionally an asset is considered the domain of the bean counters or accountants - how to account for them, how to physically verify them, how to charge depreciation on them and so forth. But asset management as a strategy is far removed from the mere act of accounting for the purchase and use of an asset. In fact, so much hinges on how the word "asset" and the term "asset management" are understood to realize its worth and value.
What is an Asset?
While the layperson's understanding of an asset is: "any item of value," a more technical definition would be: "items on a balance sheet showing the book value of property owned."
Narrowing the technical definition and simplifying it, assets refer to the tangible, intangible, short and long term property and investments owned by a business.
Primary Role of an Asset
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