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Existing Acquisition
Situation
- Brand new 130 room full service hotel open for 18 months
- Could not make debt service
- Very competitive market
- Bank owned
- Rev Par market penetration index 75%
Strategy After Takeover
- Change rate structure
- Implemented new marketing strategy
- Targeted Government Market to increase occupancy
- Reduced overall payroll
- Targeted corporate clients
- Renewed one to one sales contact with existing customers
Results
- Rev Par Index went over 100%
- Employee morale went up
- Increased room sales
- Increased Banquet, food and beverage sales
End ...
New Construction
Situation
- Construction, develop and furnish a new 84 room limited service hotel
- Extraordinary site work involved
- Redevelopment area
- Opening hotel in 2009 (peak of recession in a weak hotel market)
- Competitive set included Hampton Inn, Fairfield Inn, and Hilton Garden Inn
Strategy
- Lead a strong sales team
- Kept cost in line and at a minimum
- Delivered superior service
- Positioned hotel as the best in the area in regards to value
- Implemented amenities to cater to market, such as evening reception for corporate guests and weekend pool events for leisure guests
Results
- Ramped hotel in 6 months
- Achieved 100% Rev Par index despite a tough competitive set
- Returned profits to owners in first year in tough economy
- Revenue increasing annually
End ...
Redevelopment
Situation
- Purchased 2 existing very old and tired hotels with restaurant
- Hotels are over 50 years old
- Needs complete renovation
- Poor employee morale
- Existing land use is not efficient
Strategy
- Gut and renovate both hotels
- Implement new sales strategy
- Improve guest service by empowering staff
- Reduce room count at one hotel to meet market demand
- Develop new hotel on existing site to capture another market segment
Results
- Hotels completely renovated
- Sales improving
- Developing new hotel on site
End ...
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