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Hotel Management Case Studies
Oakbrook Ownership & Management Transition
Pre-management Transition (December 2004)
- 427 rooms
- 30,530 sf of meeting space
- 2 F&B outlets, 1 Lounge
- Acquisition price of 20.5MM($48K/key)
- Brand – Hyatt Regency
- Manger at Transition – Hyatt Hotels Corp
Post-Management Transition (June 2007)
- Transitioned to Pyramid Hotel Management
- $13.3MM renovation ($31K/key) conducted by Pyramid Project Management
- Re-flagged to Doubletree (February 2005)
- Introduced CARE Program in order to increase employee and guest satisfaction
- Capitalized on Hilton brand and HHonors preferred guest program
Outcome
(Change, % change, CAGR calculated from YE ’05 through YE’07 unless otherwise noted)
- RevPAR:
- Increased $25 or 50.0%
- CAGR 22.5%
- RevPAR Penetration Index:
- Increased 12 points or 16%
- CAGR 7.7%
- Total Revenue:
- Increased $5.8MM or 45.3%
- CAGR 20.5%
- NOI:
- Increased $1.8MM or 601.1%
- CAGR 245.2%
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Houston Westchase
Ownership & Management Transition
Pre-management Transition (May 2003)
- 600 rooms
- 40,000 sf of meeting space
- 3 F&B outlets; 1 Lounge
- Acquisition price of $64MM ($107K/key)
- Brand - Adam’s Mark
- Manager at Transition – Adam’s Mark Hotels
Post-Management Transition (June 2007)
- Transitioned to Pyramid Hotel Management
- $19MM ($32K/key) renovation conducted by Pyramid Project Management
- Re-flagged to Marriott (May 2004)
- Increased sales leads through coordination with Marriott National Sales Team
- Yield Management: moved business mix from 50% to 75% transient to take advantage of higher-rated leisure travelers
- Enhanced relationship with community; i.e., housed Hurricane Katrina victims
Outcome
(Change, % change, CAGR calculated from YE ’05 through YE’07 unless otherwise noted)
- RevPAR:
- Increased $44 or 100.0%
- CAGR 26.0%
- RevPAR Penetration Index:
- Increased 28.9 points or 54.9%
- CAGR 15.7%
- Total Revenue:
- Increased $14.0MM or 86.3%
- CAGR 23.0%
- NOI:
- Increased $6.0MM or 462.4%
- CAGR 77.8%
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