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0:04
We're going to analyze
the actual AMP and
evaluate the plan's
strategic recommendation.
This is the case of
the Uptown hotel which
is based on the real
hotel's case study.
Now, let's take a look at AMP.
Consider the Uptown Hotel,
an independent hotel located
on East Coast in the US.
The Uptown hotel is 8 years old
under its 4 years of current
ownership possession.
It is a 220-room hotel
with 10,000 square
feet of meeting space.
The hotel is located in
the suburb area of
a big city in which
they get overflow from
citywide compression
during high peak dates.
The hotel's performance
has been struggling over
the last 3 years
due to the pandemic
with overall performance
trending downward.
The Asset Manager
compiled every data and
information to create the
AMP for the Uptown hotel.
Aware of this
declining performance
the Asset Management
team created
action plans to improve
the hotel's performance.
The team takes
into consideration
a thorough analysis of the
historical asset's performance,
owner's investment goal,
and asset's cycle.
After all, it provides a
recommendation on the asset.
1:18
Now, the executive summary
should elaborate on
the current situation of
the market and hotel
performance and
it includes the
recommendation of
the asset manager based on
the financial projection and
extensive research
analysis that will be
included in the later part
of the reports of the AMP.
So, now in this example,
it describes that although
the Uptown Hotel faces
challenges due to
its location where
the market experiences
diminishing in
demand due to
deflating tech bubble
post-pandemic. Recent
developments and
local tech firms'
headquarters (HQ)
move to adjacent areas
suggest positive momentum
for the next year
and it also describes
what challenges the hotel
face, how market is doing
in terms of macro
level of the economy.
Then, it goes into detail
of their recommendation,
which is to hold the hotel for
a longer period of time and it
gives a reasoning behind that.
It current holding
period is four years.
It is saying to hold until
the ten-year mark to
benefit from the recovery
market demand from the pandemic.
Next, they discuss
what strategy to
implement which is to suggest
the hotel's sales team to
maximize the utilization
of its meeting space from
the expected group demand from
those headquarter
business travelers.
