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Distressed Hotel Management
HVMG has a long proven track record of successfully turning around underperforming hotels in financial trouble. Our goal is to quickly diagnose issues with operations, marketing, and structure and identify unrealized value for ownership. We bring decades of experience and effective systems and processes to professional hotel management. We take broken hotels and turn them into low-risk assets for lenders and investment/ownership groups.
We're clear about the goal - improve revenue without adding significant expense. Our approach is systematic and analytical. We create swift strategies to make an immediate positive impact on hotel performance. HVMG is experienced assisting banks with the management of foreclosed upon hotel assets and also acting as the receiver. We are approved to manage all major brands and hotel types. Additionally, we have extensive experience in dispositions and determine the best course of action, and timing, to maximize value.
Our Hotel Receivership and Asset Management Services Include:
- Turn-around hotel and food & beverage management services
- Cash management and financial reporting
- Selection, contract negotiation and implementation of a hotel brand
- Asset redevelopment, renovations, FF&E purchasing/installation and repositioning
- Operational reviews and analysis
- Negotiation of favorable contract terms with 3rd party service providers
- Creation and implementation of Business Plans for underperforming hotel assets
- Capital Budgeting and Annual Operational Budgeting
- Market Positioning and Revenue Maximization
- Maximizing the Value of the Asset
- Experience with both full-service, resorts, independent and boutique, and limited service properties
- Portfolios and single assets
- All brands - Marriott, Hilton, Hyatt, IHG
The Shores Resort & Spa
Given the deteriorating performance of the Hotel HVMG was brought on board by Rockbridge in 2009 to manage the 212-room beachfront Shores Resort & Spa. Prior to HVMG, the hotel was distressed, hemorrhaging -$1.4MM NOI. Following implementation of HVMG and a successful turnaround, the Owners sold the Hotel in September of 2016.
- NOI prior to takeover $1.3M; HVMG TTM NOI - $4.95M, a 281% increase since takeover
- Guest Satisfaction scores maintained while achieving operational savings of $1.95M compared to previous manager
- RevPAR Index up 70%
- F&B Revenue up 27% and total revenue up $7.4M or 79%
- HP Margin 40.8%; up 96.2% since takeover