FST STORY

MANAGEMENT BIOGRAPHIES

CONTACT US

WHAT DOES FST DO?
We represent the owner's best interest in the management process of their lodging assets. Significant lodging assets are, more often than not, institutionally owned and hotel management company operated. We, as asset managers, serve as the eyes and the ears of the owner to ensure their assets are properly protected and value maximized through proper management. Frankly, there are times when the interest of the management company and the interest of an owner come into conflict. The role of the asset manager is to ensure the owners' interest are served first and best.

Specifically, we subscribe to the definition of a true asset manager as one whose focus, responsibility, and involvement are directly aligned with hotel ownership interests. As such, the overriding responsibility of an asset manager is one of property value preservation and enhancement - in line with the ownership's best interest.

As asset managers, our five primary responsibilities are:

1. Maximize operating performance to obtain a greater return on investment.
    
2. Facilitate implementation of ownership goals by hotel management.
    
3. Monitor brand priorities and fit of the flag with the property.
    
4. Provide guidance in decision-making on cost effectiveness of renovations.
    
5. Translate hospitality trends into competitive advantage.

HOW DOES FST DO IT?
We conduct regular property visits and meetings with representatives from both the onsite management team and senior representatives of the management company. We review all financials on a monthly basis and challenge all significant variances to budgeted and prior year performance. We focus on Sales and Marketing productivity, effectiveness of strategies and tactics, and we analyze the booking pace of all group and individual market segments, recommending alternative strategies and tactics, if appropriate. We analyze guest satisfaction data and focus the management company's attention on the gaps in that area. We review all aspects of compliance, with particular attention to proper procedures, policies, and practices in the Human Resources area. We analyze all accounting practices, procedures, and policies to ensure appropriateness and reliability of the numbers being generated. We inspect the property in question thoroughly, and direct maintenance and cleanliness improvements as necessary. We oversee and monitor capital expenditure budgets for timely, quality, and efficient completion. We provide expertise and assistance in the area of project management, and in the event of development projects, we provide leadership and direction to the management company in the areas of pre-opening budgeting and opening execution.

We see ourselves as "Jacks of all trades" and tailor our services to the specific needs of the owner.  "One size does not fit all" and we customize the visitation schedule and frequency, areas of focus, and reporting to our clients' needs.

In summary, we hold the management entity's feet to the fire, directly and respectfully, to insure they are putting forth their best efforts at the property in question. We do this cooperatively, freely sharing our experience and expertise, with the mindset that it is our mission to help them succeed, to the benefit of the owner.

WHAT ARE FST'S TYPICAL BUSINESS TERMS?

• Three-year term, with a second three-year term renewable by mutual consent.
• An asset management fee based on the greater of a percentage of gross operating revenue or a flat fee annually, plus travel and reasonable reimbursable expenses associated with servicing the agreement. An incentive fee can also be considered as part of the overall package.
• We bill monthly on the calendar year.
• We offer a buy-out provision for early termination, in the event of a sale.

WHY CONTRACT FOR ASSET MANAGEMENT?
The short answer is for "peace of mind". The longer answer is for expert oversight and representation of lodging assets, 100% aligned with objectives and goals of ownership, resulting in maximum financial performance, and therefore asset value, well in excess of the cost for this service.

WHY FST?
Because collectively we have close to 120 years of experience and success in the industry, and believe we are very good at what we do. We are able to provide traditional asset management with a unique overlay of technical services and luxury operational guidance. Despite our company's young life, we have a track record that supports this belief. We offer all our clients as our references.