2011 – 2012
When CHMW was engaged to asset manage The Grove Park Inn Resort & Spa, the operation reflected years of steadily declining revenues and profitability, with limited exposure to industry best practices and revenue management techniques. The property was in need of significant capital investment and material changes to the operating model were needed to improve overall profitability. CHMW developed a strategic plan for the asset and presented two critical options for ownership; (1) reinvest significant capital to reposition the asset and establish a sustainable operating model for the long-term, or (2) position the asset for sale by addressing critical operational deficiencies having immediate impact and focusing on revenue-generation and sustainable cost-containment efforts to maximize net operating income. Ownership had no appetite for reinvestment as Grove Park Inn was their only hotel asset and hospitality was not part of their overall business strategy. As a result, CHMW’s primary goal was to significantly improve the operating model and performance of the asset to maximize sale value in the short-term.
Generated more than $3 million of incremental profit within 10 months of asset managing resort, representing a 32% increase in NOI.
Operational Asset Management
- Restructured management team and eliminated redundant positions, generating annual savings of more than $1 million.
- Re-aligned key management positions and added a Director of Revenue Management, to focus on revenue generation and pricing.
- Identified operational savings of more than $400k through internal inventory audit.
- Successfully implemented a new hotel website and booking engine, improving online revenue generation by more than 100%.
- Developed strategic asset plan to significantly improve performance and maximize value at exit.
- Participated in the development, negotiation, and execution of a Purchase & Sale Agreement and facilitated the sale of the hotel with a 45-day due diligence period at a favorable return to ownership.