BOSTON—The hotel industry needs more young, talented asset managers, but the relatively short life of the field makes it difficult to draw in new blood, sources said.
Speaking at the recent Hotel Asset Managers Association Spring 2016 meeting in Boston, some of the leaders in the asset-management field stressed that a focused effort is needed to grow the profession, which isn’t on the radar for many young people looking to get into hospitality.
“This is a profession that’s going to continue to grow, and we’re going to need to develop talent,” said Joe Bello, SVP of asset management for Xenia Hotels & Resorts.
The need for asset managers
Today, only a handful of college programs exist that specifically focus on asset management within hospitality. That, coupled with the fact that the career field has only existed for roughly two decades, has left the hospitality industry with fewer asset managers than it truly needs, sources said.
“It’s still relatively new, so there’s not a lot of teaching it at the university level,” said Chad Sorensen, principal at CHMWarnick.
Larry Trabulsi, SVP of CHMWarnick*, said his company looks to hire two new asset managers a year, and he believes it’s incredibly important they manage to find new people for the world of hotel asset management.
“I’m always impressed from a technology perspective when new blood comes in,” Trabulsi said. “It’s tough for us to get new hires right out of school. Our target is two years out so they have a little bit of experience. But their knowledge of technology from an operating level is just great.”
Bello said that bringing talent into the asset-management field is becoming increasingly important in the industry as branding companies shift their focus away from owning assets, putting more responsibility on owners.
“The strategy of the major brands has been to go asset light,” Bello said. “The Hiltons and Marriotts of the world are selling off their real estate. So really, asset management becomes more important. (Real estate investment trusts) and different ownership groups own most of the real estate now, and asset-management professionals are the ones that are involved with the management companies representing the ownership.”
Dan Kurz, partner at Integrated Capital, said the field is even less established overseas, but the need for asset managers is no less important across the globe. He said several offer asset-management internships.
“A lot of young people get out of school expecting to be a GM or a CEO,” Kurz said. “It’s important to remember there is no business if you can’t bring revenue in the door.”
*Correction, 26 April 2016: An earlier version of this story identified Larry Trabulsi by an incorrect title and company affiliation.