A branded full service, first class hotel located near major transient, group and leisure demand generators. The property opened in 1988 and contained a full complement of facilities and amenities however it had not been renovated in many years. The property was in financial distress.
DHC immediately instituted its Planning Committee and commenced its cost control systems and "Predator Program". DHC started a $16 million renovation within 3 months of takeover and completed it in one year.
- Reduced rooms payroll from 20% to 16%.
- Increased F&B profitability through reduced F&B costs and overall expense reduction.
- Eliminated corp. charges and payroll reduction, decreased UDOE’s by $958,000.
- Created new food and beverage concept, which will continue to drive future top line revenues.
- Increased NOI within 3 years by $4.4 million.
An independent first-class resort hotel and spa located in a market containing a major university, commercial and leisure demand generators. The property was in financial distress at the time of sale and was managed by a regional operator.
DHC immediately instituted its Planning Committee and commenced its cost control systems and “Predator Program”. DHC started a $6 million renovation in Year 1, which was completed first quarter of Year 2.
- Eliminated $1.3 million in annual payroll.
- Eliminated $850,000 in corporate expenses and unnecessary spending.
- Added a recognized reservations system to the hotel.
- Re-concepted the food and beverage outlets and implemented extensive training.
- Increased NOI from prior management by $2.8 million and increased revenues by 30%
- DHC and its partner purchased the hotel for $13.9 million, with a total investment of $21.1 million, including CapEx and closing costs.
- After holding this asset for three years, the older sold the property for $33.5 million - resulting in an estimated +/- 40.00% total project equity IRR.
A first class, full service hotel located in an upscale suburb of a secondary city. The hotel was owned and operated by a large management company. This was the only asset the company owned in the Pacific Northwest, and as a result the manager was not focused on proper marketing efforts and cost controls.
DHC immediately instituted its Planning Committee, commenced its cost control systems, and completed renovation of the restaurant, lounge, lobby and meeting space. After securing a Director of Sales from a top competitor, DHC was able to significantly increase group and catering revenue including hosting the largest Mother’s Day and Easter brunches.
- DHC’s own Planning Committee refocused cost controls and sales and marketing efforts.
- During its ownership, DHC more than doubled the NOI and dramatically increased overall revenues.
- In Year 11, the hotel was sold and resulted in a 20.60% IRR for ownership.
A troubled 270-room full-service Hilton hotel located in a major midwestern city that was being managed by one of the nation’s largest hotel management companies. The hotel was in need of focused management and had significant deferred renovations.
DHC immediately commenced its cost control systems, added a strong General Manager focused on service scores with a history of controlling expenses, and added this hotel to our Regional Revenue Manager’s portfolio due to their familiarity with the brand and local market. Within two years, DHC completed a $5 million renovation including execution of a new restaurant/bar concept. DHC led marketing and PR efforts also had a significant impact on increasing revenues.
- Increased rooms profit by 25.7%
- Increased F&B profitability by 8.6% through reduced F&B costs and overall expense reduction
- Increased NOI by $1.7 million
- Enabled a sale within 2 ½ years for a $20 million profit, generating a 31% IRR to the partnership.
A brand-managed, full service, first class well know all-suites concept hotel located in close proximity to major transient and group demand generators. The hotel’s profitability was below ownership’s expectations.
Since the hotel was brand-managed and had little corporate oversight, DHC was able to make immediate impact on the hotel NOI by implementing cost controls including reducing payroll, cutting down the cost of complimentary F&B services, and eliminating unnecessary corporate charges. Additionally, there was a great effort to ramp up marketing of the property to the nearby transient and group demand generators and strategically remix the business to capture higher rated and more profitable segments.
- Eliminated corporate charges—decreased UDOE’s by $110K.
- Eliminated $580,000 in payroll costs (roughly 20 positions), while increasing guest scores.
- Reduced cost of complimentary food and beverage services by $150,000.
- Renegotiated local and national corporate contracts for an immediate savings of $80,000.
- Implemented a digital marketing program.
- Implemented a focused group strategy.
- Increased NOI from in four years by $2.6 million.