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Case Study 1

Opportunity

First Call Hospitality assumed management of a 189-room full-service hotel located in a top 25 market. The hotel had recently rebranded when the hotel traded, and initial revenues and profits were not as expected. To improve ROI, Ownership decided to transition away from the existing management and hire First Call Hospitality.


Targeted Actions

During transition, FCH deployed a support team including Human Resources, Operations, Sales and Marketing, and Accounting to meet with hotel staff and leadership to create successful processes for the associates. By analyzing the business intelligence and market conditions the team was able to identify areas of improvement to reach profitability goals. The team also worked to engage associates and offer tools for them to be more effective in their jobs all while controlling expenses.


A focused opportunity was to increase top-line revenues and therefore a deployment with a sales team dedicated to specific market segments was put into place by recognizing talent and promoting from within. By offering specific sales skills training, setting clear expectations and through ongoing support, sales productivity (revenues) increased.


Results

The strategic changes put in place by FCH improved financial performance of the hotel and increased returns for investors.


Within Year One (1) of management, the hotel saw the following gains:


  • Increase in Revenues of 22%
  • Increase in RevPAR of 26.3%
  • Increase in GOP Revenues of $780,132 or 71%
  • Increase in NOI of $1,042,672 or 143%
  • Increase in Guest Satisfaction by 8%

Year Two (2), despite an increase in Supply of 2.7% and General Management change, the hotel saw additional gains.


  • Increase in Revenues of 10%
  • Increase in RevPAR of 10.8%
  • Increase in GOP Revenues of $258,214 or 14%
  • Increase in NOI of $188,753 or 11%
  • Increase in Guest Satisfaction by 4%

Year Three (3) the Company managed the hotel through the balance of the guest room remodel all the while maintaining an above average Overall Guest Satisfaction Score.


  • Increase in Revenues of 13%
  • Increase in RevPAR of 10.7%
  • Increase in GOP Revenues of $845,597 or 39%
  • Increase in NOI of $455,160 or 23%
  • Increase in Guest Satisfaction by 15% to an overall Guest Satisfaction score of 94.

FCH continues to manage this hotel today achieving GOP and NOI expectations for a new ownership group who recognized the opportunity to own a legacy branded hotel. Guest satisfaction is above brand average even though a Property Improvement Plan is in process. Employee tenure at the hourly and managerial level is above industry averages.