Property Asset Management Report: Singapore Hotel Occupancy Analysis

This report provides an in-depth analysis of property asset management within a commercial organization operating three hotels in central Singapore. The core problem addressed is the company's lower-than-expected occupancy rates. The methodology employed involves the use of Standard Operating Procedures (SOP) to assess the company's market position and identify key issues. The analysis encompasses a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of the company's situation, highlighting its strong brand recognition, employee retention, and central locations, but also its low occupancy rates, impacting its market share. Opportunities include leveraging brand name and providing digital and luxurious services, while threats involve high room rents and competition. The report evaluates these findings and proposes improvements, primarily focusing on implementing service management systems and value-added services to attract customers. These strategies include creating special packages, offering discounts, and enhancing customer service to increase occupancy and improve business growth. The conclusion emphasizes the need for strategic interventions to boost occupancy rates and maintain a competitive market position.

Property Asset Management
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Table of Contents
Introduction.................................................................................................................................................2
Methodology...............................................................................................................................................2
Analysis........................................................................................................................................................2
Strength...................................................................................................................................................2
Weakness................................................................................................................................................3
Opportunity.............................................................................................................................................3
Threat......................................................................................................................................................3
Evaluations..................................................................................................................................................4
Propose Improvement.................................................................................................................................4
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6
Appendices..................................................................................................................................................8
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Introduction
The property asset management defines as a system that maintains and monitors the things of
value to a group or entity. In other words, it is the systematic process of operating, developing,
upgrading, maintain and effectively deposing of assets (Read, 2017). The property asset
management is important for the organization because it helps to manage the property, track the
assets as well as maintain the remuneration rate that is appropriate for the firm. Besides this, it
also provides an overview of the existing uses, current performance and identified the potential
risks that have been occurred in association with the firm. The assessment is based on a
Commercial organization that has 3 commercial buildings present in the Central Area of
Singapore. The company faces a problem in the market because their occupancy rate is much
lower than the market expectation. The assessment is to provide a solution for the improvement
of the occupancy rate of this organization.
Methodology
The method of Standard Operating Procedure (SOP) is used by the firm that analyzes the
situation of the company in the market (Morgan et al., 2015). SOP helps the firm to determine
the issues and also help them to prepare a proper strategy to overcome the problem. SOP is a
procedure or policy or standards that defines the activities required in the marketing, operations
and administrative disciplines of the firm.
Analysis
Strength
The three commercial buildings are present in the Central Area of Singapore, and for this, the
firm is having a high brand recognition among the peoples. One of the primary strength of the
firm is that they have good employee retention and present in Central Singapore for more than
twenty years. The firm always provided the best for their customers and hence these increase
their trust over the firm. In other words, the organization provided various technical innovations
for improving the consumer's experience. Along with this they continuously upgraded their
business procedure to provide their best in the market and also to make customer satisfaction
over their products and services. The three commercial building of the company is present in
central regions of Singapore, and that are Marina East, Newton, and Outram (Huntemann et al.,
2015). All these buildings provide valuable consumers to the resort as well as hotel, and in these
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places, the customer does not face any problem with transport facilities. All the three commercial
buildings provide luxurious services to their consumer, and thus the firm possesses a high value
in the customer's mind.
Weakness
The firm faces a problem in the market because their occupancy rate does not meet the market
expectation. Every hotel of the company has 300 rooms of which they provide only 150 rooms
for family and 150 rooms for couples and for that their occupancy rate within the market is an
average of 55% (Kong, Lee, Shin, and Park, 2016). With this low occupancy rate, the firm is
unable to meet the expectations of the consumer's and hence failed to fulfill their needs. In the
three commercial buildings in central Singapore, the occupancy rate ranges from 54%, 55%, and
56%. Due to such low occupancy rate the firm possess a limited market share although their
brand name has a good recall in the market. The operations of the three commercial buildings are
affected because of the customers of the local areas and also for the other hotels present in that
area. Due to the lower occupancy rate the firm also faces problem with the tourist within the
market.
Opportunity
The firm has a high brand name in the market which attracts most of the customers towards their
hotel. The 3 commercial buildings present in the 3 different central location of Singapore
provides huge benefits to the organization, and it increases their sales within the market to
attracts a huge number of customers. They provide luxurious services to their consumers and
also innovated their customer services with the help of advanced technology. Thus in all the
three commercial buildings, they provide digitation services like Wi-Fi, etc. and also provide a
swimming pool in the hotels (Glassey-Previdoli, Metz, and Fragnière, 2018). The firm also
makes innovate exterior as well as the interior design on their three buildings, and by this, they
attract a huge number of customers to their firm. To develop their business growth, they
introduce a new strategy where they provide rooms for the night stay to the customers and along
with they provide a valuable discount to these consumers to increase their occupancy rate in the
market.
Threat
The firm faces a massive problem on the occupancy rate and also on the room rent within the
market. Hence it causes biggest threat to the firm to run their business in the Central region of
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Singapore. As the room rent is high and the occupancy rate is low, so the company faces lower
business growth within the market (Deelman et al., 2015). Besides this, the local customers and
the local hotels present in the location causes a problem in their business and hence the firm is
unable to meet the market need.
Evaluations
The SWOT analysis of this firm suggested that there is a scope for improving their occupancy
rate in the market. The three commercial building of the firm is present in the central regions of
Singapore, and this is the most valuable things for the company to attract the consumers. The
firm has the opportunity to use various strategies and techniques for increasing their occupancy
rate within the market (Williamson, Fearon, and Kelly, 2014). For increasing the competition
rate, the firm should reduce the room rent and provide extra services for the couples and also for
the children and give them a valuable discount. It is seen that the firm has a low market share and
it creates a huge impact on their business. From the analysis, it is seen that the business needs be
improved for the benefits of the organization as well as for attracting the customers and by all
these strategies they will maintain their position in the market.
Propose Improvement
The firm can increase their occupancy rate as well as their business growth in the market with
the help of the service management system and value-added services. ISO/IEC 20000-1:2011 is
the service management system that provides services to implement, establish, operate, review,
monitor, plan, improve and maintain the procedures related to these hotels and resorts company
(Olya, Altinay, and De Vita, 2018). This service management system will help the firm to deliver
their best to the consumers. With this technology, the firm can easily improve their occupancy
rate within the market. In other words, the creation of special packages with a valuable offer can
attract huge numbers of customers as well as guests to their hotels. Hence this strategy will
increase their occupancy rate within the market. Apart from this value-added services that
provide premium features also attract customers towards their firm. The usage of various
discounts on their rooms for the couples, children's and sometimes on the families will also
enable them to increase their occupancy rate within the market. Besides this, they also provide
discounts on frequent customers and also on the newly married couple, and this strategy will
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increase the customers trust over their firm which enables them to stay in this hotel whenever
they come in central Singapore.
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Conclusion
Hence it is concluded that the firm faces problem due to their lower occupancy rate and thus
suitable strategy are required to diminish this issue. Due to this lower occupancy rate their
market share also decreases. The paper concludes that the best way for improving the occupancy
rate is to use service management system and value-added services and implementing these
strategies will attract the customers towards this firm.
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References
Deelman, E., Vahi, K., Juve, G., Rynge, M., Callaghan, S., Maechling, P.J., Mayani, R., Chen,
W., da Silva, R.F., Livny, M. and Wenger, K., (2015). Pegasus, a workflow management system
for science automation. Future Generation Computer Systems, 46, pp.17-35.
Glassey-Previdoli, D., Metz, J.C. and Fragnière, E., (2018), March. An" à la Ansoff weak signal"
feedforward control for pharmaceutical distribution: A pilot study on standard operating
procedure for managing customer complaints. In Industrial Technology and Management
(ICITM), 2018 7th International Conference on (pp. 130-135). IEEE.
Huntemann, M., Ivanova, N.N., Mavromatis, K., Tripp, H.J., Paez-Espino, D., Palaniappan, K.,
Szeto, E., Pillay, M., Chen, I.M.A., Pati, A. and Nielsen, T., (2015). The standard operating
procedure of the DOE-JGI microbial genome annotation pipeline (MGAP v. 4). Standards in
genomic sciences, 10(1), p.86.
Kong, M., Lee, H., Shin, H. and Park, M., (2016). Study on Standardization and Construction of
Inventory Database for Asset Management in Water Supply System. International Journal of
Database Theory and Application, 9(9), pp.11-24.
Morgan, L., New, S., Robertson, E., Collins, G., Rivero-Arias, O., Catchpole, K., Pickering, S.P.,
Hadi, M., Griffin, D. and McCulloch, P., (2015). Effectiveness of facilitated introduction of a
standard operating procedure into routine processes in the operating theatre: a controlled
interrupted time series. BMJ Qual Saf, 24(2), pp.120-127.
Olya, H., Altinay, L. and De Vita, G., (2018). An exploratory study of value added services.
Journal of Services Marketing, 32(3), pp.334-345.
Read, D., (2017). So you want to be an asset manager? IREM's Real Estate Asset Management
initiative explores the points of connectivity between the property management and the asset
management professions, as well as ways to help individuals working in both fields collaborate
more effectively. This exploration draws upon ongoing contributions from practitioners
representing real estate investment and service firms in the United States. Journal of Property
Management, 82(4), pp.38-42.
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Williamson, C., Fearon, D. and Kelly, K., 2014. 12 Property asset management. Real Estate
Concepts: A Handbook, p.281.
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Appendices
Figure 1: One of the hotels of this firm in Marina East, Central Singapore
Figure 2: Second Hotel in Newton, Central Singapore
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Figure 3: Third Hotel of this firm in Outram, Central Singapore
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