Hotel Management

RJPHMG’s Hotel Management Approach

As a third-party management company, RJPHMG’s approach is a personalized and respectful one. The individual needs of each property in our management portfolio are taken into careful consideration and are critical in creating an effective partnership. 

RJPHM’s flexibility is a company staple, prevalent across all segments of the business, but nowhere more significant than in the area of property management.

While RJPHM provides centralized management services, the company fosters an entrepreneurial spirit, empowering hotel associates to take initiative and actively contribute to their success. Our objective is to maximize services and minimize expenses, using a unique approach to monitor performance and providing in-depth reports in all areas of operations, including: 

• Hotel Operations 

• Internet Strategy and Online Distribution 

• Sales and Marketing 

• Food and Beverage 

• Accounting 

• Brand Management and Quality Assurance 

• Human Resources 

• Legal Support 

Case Study- Full-Service Hotel in Houston, TX  

• Background: RJPHMG acquired 420-key full-service top brand hotel located in the primary market of Houston, TX, minutes away from the airport.  

• Action: Our revenue management and sales team took an innovative approach to optimize business segmentation, targeting business with higher rates to drive business to channels with lowest fees. The team also developed an e-commerce presence, used unique grassroots sales tactics to develop relationships with nearby demand generators, and used OTA optimization to fill room nights with highest possible capture rate.  

• Results: In just the first three years under RJPHM’s management, the hotel increased revenue from 64.1% (2013) to 75.1% (2014) to 80.8% (2015), increased ADR from $98.47 (2013) to $115.12 (2014) to $127.94 (2015) and grew NOI by 295%. Overall, we outpaced our competitive sets RevPAR growth by more than 27%, increased NOI margin by 17%, and increased RevPAR by 18.8%. 

Development 

In addition to renovating and rebranding existing properties, RJPHMG has extensive expertise in the areas of new buildings and new developments. The company has built hotels in all segments of the hotel industry, managing all aspects of the building process from buying the land, supervising design and construction, equipping the hotel with the right resources, hiring and training the staff.  When partnering with RJPHM to develop a new property, owners can expect the following support from experts in the field: 

• Underwriting 

• Brand Negotiations and Correspondence 

• Securing Financing 

• Pre-Opening Services 

• Ownership Consultations 

• Project Management Assistance 

• Procurement 

• Design Recommendations 

Case Study-Extended Stay Hotel in Miami, FL 

• Background: In 2013, RJPHMG partnered with an investment company to open a well-known extended stay brand hotel in the corporate sector in Miami, FL. The hotel broke ground in December 2014 and was fully open by January 2016. 

• Action: We successfully opened a ground-up, newly built, 175-room premium select service brand hotel that serves as the flagship lodgings in primary markets. The company launched the property on time and on budget, and achieved a strong market presence from the start, exceeding all first-year financial expectations. 

• Results: In the first two years the hotel exceeded the net operating income (NOI) projections by 16.82%, achieved GOP over 50%, exceeded first year ADR projections by 5% and exceeded second year occupancy by 6%. 

Acquisitions

RJPHMG’s acquisition team will work alongside owners throughout the due diligence and transition process to ensure seamless operational analysis and takeover. The company’s primary philosophy is to maximize Net Operating Income for each asset by balancing customer service, integrity, employee relations and careful, in-depth reviews of each individual market to create effective operating and capital strategies. Our underwriting metrics are carefully fine-tuned during this process to ensure maximum accuracy.

As industry leaders, we’ve forged strong partnerships across every vertical in hospitality, providing direct access to the best hotel acquisition opportunities in the U.S. Our robust team analyzes over 200 opportunities annually and produces data that includes:

• Investment Analysis

• Feasibility Studies

• Brand Recommendations

• Joint Venture Partnerships

• Agility

• Track Record

• Balance Sheet Backing

• Brand Relationships

• Financing Relationships

• Affiliated Management Company Expertise

Case Study-Full-Service Hotel in Austin, FL

• Background: RJPHMG partnered with a top-tier institutional private equity company to acquire and reposition a 196-key asset located in Austin, TX.

• Action: We immediately renovated and rebranded the property to generate higher rates, business and demand. We completed a $8.5 million renovation on time and on budget, by inserting our management team and procedures.

• Results: In the first year of acquiring the properties, we increased ADR by 18%, occupancy by 9%, NOI by 79%, F&B revenue by 82% and RevPAR by 33%.

Receiverships

As a receiver, RJPHMG is cognizant of the lender’s priorities to gain control of the asset, minimize liability and stabilize operations. This awareness is an intuition that comes with experience and helps us transcend barriers as it relates to receivership.

To maximize an asset’s true value, it is imperative to quickly ensure a positive brand affiliation. Just as important is a concentration on internal and supplier relations, support current talent and filling voids that may exist. With experience in acquisitions and the rebranding process, as well as an understanding of court reporting and bonding requirements, RJPHMG seamlessly facilitates the overall transition of distressed properties.

As a third-party operator, RJPHMG understands the complexities of these assignments and efficiently conduct a takeover of operations upon appointment.  Specifically, the company focuses on the following areas:

• Accounting Controls and Court Reporting

• Revenue Enhancement

• Franchiser Relations

• Capital Repair

• Cost Containment

• Permits & Licenses

• Employee Training and Benefits Review

• Disposition Services

Case Study-Limited Service Hotel in Orlando, FL

• Background: In February 2010, RJPHMG took over management of the 135-room select-service Hawthorn Suites. Our team was challenged with a deteriorated product, stagnant sales and a failed revenue management strategy.

• Action: In 2012, we completed a $3 million renovation, conversion and the implementation of cost controls to a Staybridge Suites.

• Results: Through the renovation, conversion, and the implementation of operating cost controls, we created an increase of NOI from $523,000 in TTM December 2011 to $1,281,109 in TTM April 2016.  From year-end 2011 to 2015, RevPAR improved from $49.57 to $80.44 and ADR grew from $76.52 to $90.90.  The hotel was even awarded InterContinental Group’s “Best Renovation” in 2012.

2022 Case Study: Reviving a Struggling 550-Room Hotel Property by RJP Hospitality Management Group

Introduction:

In this case study, we will explore how RJP Hospitality Management Group successfully revitalized a 550-room hotel property that was underperforming in 2022. The property faced numerous challenges, from low occupancy rates and customer dissatisfaction to outdated facilities. Through a strategic approach and a year of dedicated efforts, RJP Hospitality Management Group managed to turn the property around, achieving impressive results.

Client Profile:

RJP Hospitality Management Group, a renowned player in the hospitality industry known for its expertise in managing upscale hotels, took over a 550-room hotel property located in a popular tourist destination in 2022. The property had been struggling with declining revenues, a poor reputation, and outdated amenities.

Challenges:

The hotel faced several significant challenges before RJP Hospitality Management Group's intervention:

1. Low Occupancy Rates: The property was experiencing consistently low occupancy rates, often falling below 50%.

2. Customer Dissatisfaction: The hotel had a high number of negative reviews, primarily due to poor service quality, maintenance issues, and outdated rooms.

3. Outdated Facilities: The property had not undergone significant renovations for several years, leading to a decline in overall guest experience.

4. Competitive Market: The destination was highly competitive, with numerous other hotels vying for the same target market.

Strategies and Solutions:

To address these challenges, RJP Hospitality Management Group implemented a comprehensive strategy:

1. Renovations and Upgrades: The property underwent a significant renovation, focusing on guest rooms, common areas, and amenities. This included modernizing room interiors, updating technology, and improving common spaces.

2. Service Excellence: The hotel hired experienced staff and implemented extensive training programs to enhance the level of service. This included a strong focus on customer satisfaction, quick issue resolution, and personalized services.

3. Digital Marketing: RJP Hospitality Management Group leveraged digital marketing techniques to boost the property's online presence. This included optimizing the property's website, improving social media engagement, and running targeted advertising campaigns.

4. Pricing and Revenue Management: The company implemented a dynamic pricing strategy to maximize revenues, including adjusting pricing based on demand and seasonal factors.

5. Guest Experience: They introduced new guest experiences, such as themed evenings, entertainment events, and wellness programs to attract and retain guests.

Results within One Year (2022):

After implementing these strategies, the hotel property showed remarkable improvements within one year in 2022:

1. Increased Occupancy Rates: Occupancy rates increased from under 50% to an average of 80% throughout the year.

2. Revenue Growth: The hotel's revenue significantly increased by 40% compared to the previous year, thanks to higher occupancy rates and improved pricing strategies.

3. Improved Online Reputation: The hotel's online reputation improved significantly, with an average guest rating rising from 3.5 to 4.5 on popular review platforms.

4. Enhanced Guest Satisfaction: Through continuous feedback and improvements, guest satisfaction scores saw a substantial increase, contributing to repeat bookings and positive word-of-mouth referrals.

5. Sustainable Growth: RJP Hospitality Management Group established a solid foundation for the property's growth, which is expected to continue in the years ahead.

Conclusion:

The successful transformation of this struggling 550-room hotel property by RJP Hospitality Management Group in 2022 illustrates the effectiveness of a strategic approach, including renovations, service excellence, digital marketing, and revenue management. By dedicating one year to these efforts, RJP Hospitality Management Group achieved remarkable results, turning the property into a competitive and thriving establishment. This case study showcases the potential for a well-executed turnaround in the hospitality industry, demonstrating that even the most challenging properties can find success with the right management and vision.