“We, as asset managers, focus on the return for the investor, which is driven by the amount of operating profit that is being generated and by the amount of fees that the operator legitimately is taking for that — we always want to keep an eye for that.”
He continues: “The fees that are clear in these big management agreements only cover about half of the actual expenses of the management company and the brand — because, in particular through loyalty programmes, a lot of the additional charges are brought.”
SOCIAL RESPONSIBILITY
Hartzuiker is confident about Ròya’s future (he estimates the asset management portfolio will have doubled in the next two to three years), and pays tribute to the firm’s founder Ahmed Ramdan for his commitment to the development of Emiratis in the industry. And Hartzuiker himself has been appointed to the board of governors of the Honourable Order of International Hotel General Managers (see page 48-49).
“Why do we do these things? Apart from the fact that I was a general manager myself — I more than anyone recognise in our asset management role, the power of the general manager on the outcome of the business. In that sense, the hotel general managers’ roles are not always recognised enough in terms of the impact they have on the business.”
I ask whether through the group’s business operations and social activities, the team has the power to effect the changes he’s discussed.
“Absolutely,” asserts Hartzuiler. “We can have a lot of influence but the ability to execute is often constrained by the global organisations these people have to perform within. They have recognised it, but to organise a change in a global format is a complex, costly and complicated thing.”
He concludes: “But there are lots of green sprouts coming up all over the place and we are the ones constantly watering those to get them to bloom.”
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