TFG Asset Management – the leading hotel asset management company in Dubai has recently launched two whitepapers that deal with essential problems of hospitality industry in Dubai as well as in global markets.
The first research is titled “Property Asset Management – Handover strategies” and focuses on the main handover challenges and Defect Liability Period (DLP).
The beginning of the new research has been announced by the company earlier in 2016 and the work continued throughout the year. This is the first property management research for the company that published highly acclaimed whitepapers on other industry-important issues in 2015. The research hub outlined the most common issues and studied all possible solutions to tackle every problem individually. The value of this research is especially crucial for investors and hotel owners who don’t have the expertise in this field and the procedure of property handover turns to be a challenge for them. During this procedure an investor is supposed to identify any technical faults affecting a property which requires specific knowledge and relevant experience.
Understanding the situation the research team outlined some of the most critical aspects to be evaluated before signing off. Those aspects include:
- the snagging and de-snagging process
- the commissioning process to ensure everything is functioning perfectly
- ensuring that design is appropriate and more.
After months of research, TFG AM team worked out solutions for each of the aspects that can help investors tackle respective issues. The whitepaper is also highlighting the role of experts in the process.
“This research paper addresses the importance of consulting an expert who can act on behalf of the owners to inspect their units and coordinate with the consultant or the developer to identify any potential flaws.” – commented Deirdre McCarthy-Betzold, Head of Business Development & Operations at TFG Asset Management.
The second whitepaper that was launched almost simultaneously is dedicated to the vital problem of any hotel around the world – hotel staff turnover. The whitepaper titled "The impact of staff turnover on a hotel's Income Statement" was prepared in collaboration with the Emirates Academy of Hospitality Management.
The work on the research began with identifying the benchmark of hotel staff turnover rate around UAE – this was found to be 30%, which means that average staff turnover rate for hotels in UAE is 30%.
At next stage, the researchers collected the necessary data and developed simulation that would provide them with the opportunity to draw conclusions. It was revealed that the existing turnover rate has significant negative monetary impact on a hotel’s Profit & Loss. The real figures include 22% loss in revenue and a 9% decline in the Average Daily Rate, ultimately leading to 37% reduction in Gross Profit.
The whitepaper not only emphasizes on the negative effect of the current staff turnover rate but also provides solutions that can help reducing this figure and tackle the issue in a productive way.
“Staffing is always a problem in the UAE, especially now when we expect new supply in the run-up to EXPO 2020” – commented Mariano Faz, Head of TFG Asset Management – “The market makes it easy for staff to jump from one property to another, staff loyalty is also deteriorates easily. Another problem is that hoteliers seem to overlook this matter, and ignore the need to craft strategies of retaining top talents. Our research aims to evaluate the impact of staff turnover as well as to suggest strategies to solve this problem.”
Both researches are available for downloading at the official site here.
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