Al Houda team provides full cycle of asset management starting from operational support to contract negotiation, to finance reviews and bench marking as well as renovation and F.F. & E approval process.
This proposal outlines the scope of work that will cover our engagement in the Pre-opening activity and asset management of the hotel after the opening. We are pleased to have the opportunity to provide you with a proposal to undertake this assignment on your behalf.

• Initial meeting with Operator to determine their requirement and share the project timeline with them.
• Establish a timeline communication between all stakeholders, Operator, contractors, project managers and Owner.
• Negotiate and agree on the commercial terms with Operator.
• Prepare a Letter of Intent to be signed by the Owner.
• Negotiate the management contract and technical services contract legal terms with Operator and specialized legal counselor.
• Sign management contract.
• Negotiate and approve the pre-opening budget for the Operator and agree on a specific time of hiring the management team and the staff, establish all the systems and get involve in the system training and make sure all the systems installed and purchase are tested, tried and with the best deal.
• Get involve in the procurement of operating supplies, purchases and all Owner’s equipment, and make sure adequate equipment will be purchased with the best price in the market.
• This is in addition to many other functions that will involve the future success of the hotel such as approving the sample rooms, the F&B concepts and many others.

In the capacity of hotel Asset Manager, Al Houda role is to minimize operational and Owner related exposure by contributing industry know-how to the Owner, while performing a constructive and challenging dialogue with the Operator to ensure they perform to their maximum potential and every effort is being applied to capitalize on the Owner’s overall return on investment.
Al Houda function as the Owner’s insurance, conscience, and when needed an adversary, to achieve optimum performance in line with prevailing market trends. This is applied by working closely with the various stakeholders to capture the asset’s potential.

• The Owner’s strategic direction and priorities.
• The preferred channel of communication for reporting.
• The point of contact for coordination for the Owner and the Asset Manager.
• Reporting structure deliverables and timeframes.

• Introduce the Asset Management team members.
• Determine the point of contact for coordination from the Operator and the Asset Manager.
• Agree on the formats and dates on when information will be shared and monthly meetings held.
• Gather information to gain an understanding of the project and its current status.

• Review and approve
  • Annual operating budget
  • Capital Expenditure plan
• Conduct monthly Profit and Loss (P&L) departmental performance reviews versus budget, prevailing market trends and historical data (if applicable). Key emphasis will be given to:
  • Overall operating revenue
  • Owner’s Return/Net Income
  • Rolling forecasts
• General Ledger Maintenance
• Room Revenue/Front Office
• Food & Beverage Revenue
• Conference & Banqueting
• Concessions & Other Revenue
• Revenue Audit
• Supervisory Controls
• General Cashier Procedures Cash Floats
• Petty Cash/Other
• Bank Reconciliations
• Guest Ledger Maintenance
• City/Sales Ledger Maintenance
• Credit Policy & Doubtful Debts
• Current Account and Inter-hotel Accounts
• Purchasing
• Receiving
• Creditor Posting/Processing
• Payments
• Inventory Control
• Supervisory/Other Controls
  • Masterfile Controls
  • Payroll Processing Controls
  • Payroll Supervisory Controls
  • Executive Remuneration, Expense Claims & Employee Loans

• Review, approve and monitor the annual Sales & Marketing plan presented by the Hotel Operator and provide recommendations on appropriateness of:
  • Market segmentation/business mix
  • Competitor set
  • Promotional activities for key revenue generation departments such as Food & Beverage/Spa etc.
  • Overall marketing expenditure versus budget
• Visit the competitor set annually to verify appropriateness of the set identified by the Hotel Operator.
• Monitor the Operator’s efforts in support of the Sales & Marketing plan throughout the year.
• Review on an on-going basis the yielding strategy (Average Daily Rate, Occupancy, Revenue Per Available Room and Market Segmentation/Business Mix).

• Perform on-going analysis of restaurant/dining concepts, providing food and beverage know-how.
• Perform periodic operational inspection checks to verify service quality standards, reporting on any material deviations.
• Share best practices with Al Houda hotels.
• Perform operational assessments on problem areas identified through various analysis, providing recommendations to overcome shortfalls.
• Provide recommendations to enhance product positioning. Examples may include but are not limited to:
  • New Food & Beverage concept development
  • Outsourced services (Laundry, Security, Valet etc.)
  • Space utilization (Retail)
• Comment on employee ratios per department versus budget and comparable properties of a similar size.
• Comment on employee turnover and nationality mix versus industry norms and compliance with statutory directives.

• The commencement of the Services shall be subject to this Agreement having been signed by both Parties and the Mobilization Fee having been received by Al Houda in full.
• This agreement is valid for a period of three years, renewable with the consent of both Parties.

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