Hotel and Restaurant Repositioning and Rebranding model
Client tasked with the complete renovation and repositioning of a neglected 168 room limited service property offering free breakfast and competing in the lowest limited service tier. Upon completion of a full property, market and financial evaluation; the following recommendations were accepted and completed resulting in dramatic changes in consumer acceptance and profitability.
- Property received a complete upgrade and property improvement plan (PIP) including all
common areas, guest rooms, guest bathrooms, FFE and air conditioning.
- Exterior was painted in a contemporary scheme and modernized.
- New dramatic exterior signage on the building and on property was designed and installed
- Landscaping, curb appeal and parking lot refreshed
- Added additional exterior building lights to “wash” the building at night
- Complete redesign of guest entry, lobby and common restrooms
- Changed the roofline for more contemporary look and to facilitate new signage
Major Strategic decisions
- Upgraded brand from a limited service property providing free breakfast to an upper tier select service model with paid breakfast and dinner options.
- Added additional 20 suites by reclaiming underutilized meeting and banquet space
- Acquired a liquor license and created small bar area with seating options for dinner in house
- Repositioned banquet and meeting space.
- Added contemporary and quality fitness room.
- Upgraded Pool area FFE
- Created a full service, 3 meal, restaurant and gastro pub.
- Created an enhanced “Market” off the lobby for 24-hour sales
- Upgraded elevators landings on each floor to enhance the sense of arrival on each floor
- Installed hard surface ceilings and moldings in all common hallways for upscale presentation
- Use as much infrastructure, elevators, laundry and MEPS as possible.
- Added Sales Manager to sell the property in group and SMERF focus
- Property achieved a 38% gain in annual revenue.
- Annual ADR topped $ 101 dollars and beat several full-service hotels ADR in the competitive set
- Restaurant created $ 1.4 mm gain with a NOI of $135,000. More important to note that with conversion and “Paid Breakfast” model, the addition of a restaurant not only generated
- additional income but “offset” the cost to provide free breakfast to each room (at $ 7 dollars per room sold) saving over $ 336,000 dollars per year and increasing GOP.
- Market generated additional net profit of over $ 80,000 annually
- More direct and repeat bookings generating higher quality income vs dependence on OTA’s
- Lowered energy costs with more efficient in room AC and smart controls
2950 West 12th Street Erie, PA 16505 2970 Epic Place Grand Prairie, Tx 75052