hotel turnaround case study results
Case Study: Springhill Suites by Marriott - Green Bay, WI - Brand Conversion
OpportunityIn 2007, HP Hotels entered into a contract to provide management services to the Cambria Suites Green Bay hotel. This property ramped to become an award winning hotel, and ranked #2 within the Cambria Suites Brand. Although the hotel performed well in relation to the brand at the time, both HP Hotels and the Owners saw a value creation opportunity by way of conversion to a Marriott flag. HP successfully leveraged their relationship with the Marriott and Choice brands to negotiate a smooth transition.
ActionThrough solid sales and operations support, HP successfully implemented new franchise service standards, brand training and proactive management of the brand's national RFP process. Accelerated ramp-up of top line revenue and market share gains were a direct result of HP's strategic sales strategy, and use of brand resources. A comprehensive rebranding and repositioning plan provided a seamless transition within a short timeframe of under 2 months.
The success of this efficient conversion and rebranding project lead to
- Over $1 million increase in net operating income versus prior year.
- 26% post conversion boost in occupancy.
- 23.3% RevPAR increase over prior year results.
- Ranked #1 in year-over-year Rev Par percent change.
Exceeded ExpectationReviewed February19, 2015
This is an excellent property and fantastic staff. Spring Hills are generally very good but this property is a cut above. Great location and convenient to a number of dining options and entertainment establishments.
Case Study: Hilton Garden Inn - Oklahoma City Midtown, OK - Hotel Turnaround
OpportunityHP Hotels assumed management of the Hilton Garden Inn - Oklahoma Midtown in March 2014. Ownership hired HP Hotels to enhance a vastly underperforming hotel asset located in a highly competitive market. The property was losing market share to the competitive set, had failed 4 consecutive Quality Insurance inspections, failed to collect over $143k in outstanding accounts receivable and was not meeting performance and profitability goals desired by ownership.
ActionHP instilled new leadership and made immediate changes to affect the culture, performance, property service standards and financial results of the hotel with an objective of long-term asset performance and profitability.
Within the first year of operating this asset we have achieved the following results
- Passed ALL Quality Assurance inspections and improved brand rating to an overall "Outstanding"
- Collected over 70k in previously posted bad debt that spanned 2 years. The hotel had $143,270 in outstanding debt in 30+ accounts receivable when HP took over, compared to $0 currently.
- Increased room revenue by $293,500 (year-end 2014) Increased first full calendar year Total Revenue by $378k (+11%), while improving Gross Operating Profit by $364k (+38%)
Case Study: Chancellor Hotel, Fayetteville, AR - Food and Beverage Outlet Transformation
OpportunityIn September 2013 HP management was tasked by Ownership to take over the leased restaurant and Lounge space in the hotel. HP Management and the Hotel Team had 45 days to complete a successful transition and implementation of a new Restaurant and Lounge Concept.
ActionOver the next 45 days HP management provided direction and assistance to the hotel team to interview, hire and train a front of house and back of house management and line level staff. Establish menus for Breakfast, Lunch, Dinner, Room Service, and the Lounge. Implement Par levels for all supplies, food, and beverage. Implement Schedule Templates, staffing models, and service standards. A new name was established, an in depth marketing plan including online and local initiatives, and a budget for the remainder of the year and the year approaching.
The success of implementing our Strategic plan for 64/94 Bistro lead to
- Total Revenue in the first Year of $692k exceeding budgeted Expectations.
- Exceeding previous year Revenues by $489k.
- Exceeding Profit Expectations of $91,711.00 compared to $48,919.00 in lease revenue the previous year.
- Successfully Rolled out Devour Hour with signature menu items including Southern Fried Chicken and the Famous Peanut Butter Bacon Burger.
- 5 STAR Rating Trip Advisor.
Case Study: The Hilton Garden Inn West Little Rock
OpportunityThe Hilton Garden Inn West Little Rock opened in 2014 amidst a comp set that included well-branded full service and select service hotels, under Hilton, Marriott and IHG flags. Within the first 18 months, the Hilton Garden Inn was challenged to compete in a submarket that realized a 24% increase in new supply growth, where each new hotel was fighting for control of the same top accounts and talented employees.
ActionHP Hotels placed an HP trained General Manager, through whom we worked to attract & retain the most talented staff and management team. Supported by a strong service culture, high product quality, and commitment to Brand Standards, the Hilton Garden Inn leadership team was able to build a top performing team. The team built on the Brand's Core Values, and fostered a "You Can Count On Us" culture. This service-oriented foundation enabled the sales team to build on a base of loyal clientele, while targeting new corporate and group accounts.
Smith Travel Results:
The Hilton Garden Inn finished its 2nd year, ranked #1 for RevPAR Growth Index at 136.2% through June 2016 YTD, vs. a highly competitive set, consisting of well-branded full service and select service hotels, under Hilton, Marriott and IHG flags.
The Hilton Garden Inn achieved YTD RevPar %Change of 12.76% from 2015-2016, vs. Arkansas Hospitality Association RevPAR %Change -0.2% for the same period.
Awards & Recognition
- 2015 Hilton Success Award - the Hilton Garden Inn ranked #7 among all Hilton Garden Inns Worldwide
- 2015 Most Outstanding Service Scores - awarded by HP Hotels
- As of mid-2016, the property is ranked #7 in the Hilton Garden Inn TQS (Total Quality Scorecard)
- As of July 2016, the property is ranked #1 of 62 hotels on TripAdvisor for the entire Little Rock metro area
- As of June 2016, the Hilton Garden Inn ranks #1 on the HP Balanced Scorecard for overall performance across key metrics to include Revenue, Profit, Customer Experience, and Team Member Experience.
Case Study: Hilton Nashville Airport-Brand Conversion
OpportunityAsset before purchase was owned by Felcor and managed by IHG. Transform former Holiday Inn to an upscale hotel to better compete with nearby full service national brands. HP Hotels worked with new ownership before purchase creating a transition plan due to the enormous upside through value add.
ActionDe-flag from IHG system immediately and work with Hilton to utilize Hilton Worldwide reservation system during renovation until becoming a Hilton hotel. Comprehensive $10 million dollar renovation that included public space, guest rooms, event space and re-concepting of food and beverage outlets.Right size staffing levels, maintain revenue stream during renovations and provide significant revenue increases after renovation and conversion to Hilton.
- Among the elite few properties to enter the Hilton system as an "Affiliate" while undergoing brand conversion
- Achieved conversion to Hilton affiliate in 7 weeks
- Built interim website and agreements with various channels to supplement room revenue during the conversion to affiliate status
- During affiliate/independent status and room renovation the hotel was able to achieve an increase of $3.25 in ADR over previous year and a franchised hotel and a 1.84% increase in occupancy vs same period previous year.
- Recognized over $300K in A&G savings for T12 since transitioning asset from IHG management.
- Over $120K in Repair and Maintenance savings for T12 transitioning comparative to past performance
- $95K in rooms cost efficiencies recognized in the first 6 months after putting labor standards in place
- Implemented HP national purchasing programs and operational systems & controls reducing departmental expenses
- Switched revenue management to HP's affiliate Revenue Strategy Solutions (RSS) to maximize room revenue prior to
- After the Hilton conversion in November 2017, 3 month RevPar growth +28.9% and ADR growth of +25.8%