This article takes a deep dive into Hotel Asset Management (HAM): what it is, when and where it began, and how it has evolved over the years. Drawing on 22 in-depth interviews with industry professionals, we analyze its intricacies and growing popularity.
The Role and Evolution of Hotel Asset Management
Since the late 19th century, hotel operators typically owned the properties they managed, building or purchasing them to grow their business—an asset-heavy approach. From the 1970s onward, however, lodging companies began divesting real estate to concentrate on operations and brand management. Institutional investors, REITs, and pension funds stepped in as owners, creating a split between ownership and operations. This asset-light model, while financially sound, introduced complexity as two entities had to collaborate with sometimes diverging priorities. Hotel asset managers emerged to bridge this gap, safeguarding long-term value and aligning management with ownership goals. In the U.S., the model has dominated for decades, driven by a uniform legal framework, the desire of hotel chains to expand without heavy capital commitments, and strong investor appetite for hotel real estate.
Asset-light strategies long remained uncommon in Europe, hindered by fragmented legal systems, family-owned properties, and fixed-lease models, especially in the DACH region. Hotel asset managers were not considered essential. Around twenty years ago, however, groups like Accor, NH, and Meliá began shifting to asset-light models. The global financial and euro crises accelerated this move, pushing companies to divest real estate and rely more on management contracts and franchises. Over time, HAM became a structural necessity, institutionalized through HAMA Europe and specialized training programs. Yet Europe’s diverse legal, tax, and labor frameworks, along with linguistic differences, fostered the rise of white-label operators: smaller, agile firms managing hotels under chosen brands. For owners, especially those with large portfolios, this complexity makes asset managers indispensable, combining business expertise with deep local knowledge.
The Rising Strategic Relevance of Hotel Asset Management in Europe
To gain insight into the future of HAM in Europe, we interviewed 11 third-party asset managers, 6 hotel operators, and 5 property owners. A clear consensus emerged: HAM in Europe is set to continue to gain traction in the years ahead. Its growing relevance was reported by 100% of property owners, 90% of third-party asset managers, and 83% of operators. Key drivers include: an increasingly competitive market in which every euro of revenue per square meter counts; the shift of major hotel brands toward franchise income rather than operational revenue; the rapid growth of white-label operators across the continent; and the gradual, though steady, move away from traditional lease models toward management contracts in the DACH region. The influx of international investors, many of whom are accustomed to working with hotel asset managers, further reinforces this shift, thus driving demand for a more structured and professionalized HAM function across Europe.
Five Key Trends Shaping the Future of Hotel Asset Management in Europe
The growing significance of HAM is reflected in the main trends identified:
1. AI and digitalization
Artificial intelligence (AI) and digitalization are emerging as the most influential trends in HAM. While adoption is still in its early stages, AI is already transforming operations through automation of pricing, cost control, and guest service processes. These technologies promise efficiency gains and free asset managers for more strategic tasks, but they also raise concerns. Routine analytical tasks have historically provided a crucial training ground for young professionals. One interviewee cited a case in which a junior staff member’s lack of understanding of basic revenue calculations was only exposed when the daily software malfunctioned. Such incidents highlight the risk of knowledge erosion and the need for new skill sets. Successful implementation will require careful planning, targeted training, and strong strategic oversight.
2. Increased operational engagement
Hotel asset managers are expected to take a more hands-on role in operations, leveraging financial expertise and market insight to unlock value and optimize liquidity. Cash management, which became critical during the Covid-19 pandemic, is now a core responsibility within HAM, with weekly cash flow forecasting and granular budget negotiations emerging as industry standards. The pandemic also elevated loan negotiations to a more sophisticated, operationally informed level. As a result, the asset manager’s role is increasingly evolving into that of an ROI-driven project leader, enhancing performance through continuous oversight, cross-functional collaboration, and targeted strategic intervention.
3. Real estate focus
HAM is increasingly integrated into broader real estate strategy. Historically, traditional lease structures limited asset managers’ ability to drive value creation, but shifting ownership models and more international investor profiles are fuelling demand for managers who actively enhance asset value rather than simply oversee operator contracts. Their role now extends beyond traditional hotels into mixed-use and service-oriented developments, requiring expertise in alternative uses, flexible design, and innovative valuation. As real estate and hospitality thinking converge, the hotel is increasingly viewed as a dynamic real estate product, where space is managed as a service rather than simply rented.
4. ESG importance
Although mentioned less frequently, ESG considerations (18%) are gaining strategic relevance in HAM. Sustainability is increasingly considered to form an integral part of asset value, particularly during disposition or refinancing. Interviewees highlighted evolving guest expectations and regulatory shifts as catalysts for this trend.
5. Interpersonal relations
Effective asset management increasingly relies on strong stakeholder communication and trust-building, as asset managers act as critical mediators between owners and operators. The critical role of interpersonal skills and their interaction with technical expertise is reflected in the recent creation of EHL Hospitality Business School MiHM Master’s specialization in human-centered digitalization.
Is Hotel Asset Management Entering its Golden Age in Europe?
HAM is undergoing a profound transformation. Once focused on financial monitoring, asset managers are now multi-dimensional strategists who combine operational expertise with real estate insight and leverage synergies across mixed-use developments. Technology is accelerating this shift, positioning asset managers as agents of change guiding owners and operators through digital and organizational transformation. Their future value will hinge on aligning stakeholder interests and driving sustainable growth, as Europe seeks balance between performance and purpose: “doing well by doing good.” As one participant concluded, “The more international the investor landscape becomes, the more important hotel asset management will be.”
References
Hodari, D., & Sturman, M. C. (2014). Who’s in charge now? The decision autonomy of hotel general managers. Cornell Hospitality Quarterly, 55(4), 433-447.
Lussi, S., Masset, P., Weisskopf, J. P., & Blal, I. (2023). Cross-dimensional measures of asset lightness and fee orientation in lodging groups. International journal of hospitality management, 109, 103391.
Change is hard because people overestimate the value of what they have and underestimate the value of what they may gain.
-
James Belasco & Ralph Stayer
Written by
