Asset Management Case Study

• Click here to read about the Grubarges Portfolio Disposition
• Click here to read about the Hilton Head Beach and Golf Resort

Grubarges Portfolio Disposition
2004

Engagement
Grubarges Inversión Hotelera, S.L., a Madrid-based joint venture and BBVA, Spain's second largest bank were engaged to sell their portfolio of 18 U.S. hotels, representing their entire U.S. portfolio of Barceló hotels.  Pyramid Hotel Group was retained as asset manager of the hotels during the interim period, until all the properties were sold.

Process
Pyramid Hotel Group assumed the asset management role, a role previously fulfilled by Barceló/Crestline. Pyramid was involved in capital and budget approvals and other decisions where the owner's participation is needed.

Outcome
In the first six months of the engagement, Pyramid accomplished a number of initiatives as asset manager:

• Review of the Grubarges portfolio budget, amounting to savings of $800,000;
• The development of individual expenditure controls throughout the portfolio, with savings achieved on various capital purchases;
• Review of real estate taxes amounting to savings over $1 million;
• Change from current insurance policies for the portfolio to more cost-effective policies;
• Participation in the resolution of a legal settlement in which Pyramid Hotel Group discovered important costing errors;
• Development of various required hotel reports at favorable prices, using Pyramid Hotel Group leverage with engineering and marketing firms; and
• Participation in issues relating to fire recovery efforts and environmental policies, benefiting buyer perception and streamlining existing procedures.

Key Capabilities

• Skilled and experienced asset managers with ability to audit hotel financial controls.
• Utilization of Pyramid Hotel Group leverage with outside contractors
• Knowledge of complex legal issues relating to hotel transactions
• Ability to function during a portfolio disposition process with minimal disruption to guests, employees and owners.

back to top >

Engagement
The Hilton Head Marriott Beach and Golf Resort is owned by the General Electric Pension Fund. Pyramid Project Management completed a $22 million renovation and repositioning for this resort. Pyramid Asset Management assisted GE in negotiating an amicable termination of the Hyatt brand and assisted owners in the negotiation of a franchise license agreement for the Marriott brand.

Process

• Review and analysis of property operations, including: review and analysis of financial results with GM and Owner
• Quarterly review in person with Owner to discuss financial results, variances and opportunities
• Overall analysis of:
• Financial reports
• Guest scorecards
• Employee comments
• Operational challenges

Outcome
A thorough and detailed analysis of the property led to improved maintenance of the physical asset, improved financial performance and a repositioning of the hotel for the sale process,

For more information about our asset management capabilities, please click here

Key Capabilities

• Integrated work groups among the Project Management teams, sales and marketing and financial services.

back to top >