• Portfolio Performance Underwriting and Management Company guidance
• Project Management of PIP renovations
• Deployment of Asset Management systems, tools, and resources to raise institutional equity capital

SITUATION

A new private equity firm was seeking asset management expertise to oversee its portfolio of recently acquired select service and limited service hotels located in the Northeast United States and Florida. The portfolio comprised of eight select and limited service hotels franchised under the Hilton Garden Inn, Hampton Inn, Holiday Inn Express, Best Western and Choice Hotels brands.

PLAN

• Determined the reasons for poor revenue performance across each property with a proprietary analysis and quantified magnitude of the upside after implementation of a strategic asset management program
• 360 Capital Advisors conducted a management services RFP process selecting a more appropriate management company with relevant experience
• Aggressively repositioned the portfolio in alignment with the Asset Management Plan to turn around the operating performance of each of the assets
• Managed full renovations for the portfolio (900 guestrooms) including project planning, contract negotiation, project management and turnover
• Underwrote the acquisition of a second set of select service hotels, and assisted the sponsor group in raising institutional equity capital for the acquisition
• Designed and implemented specialized processes, polices and procedures to asset manage a portfolio of select service hotels at an institutional level of quality, predictability and return.

RESULTS

• Portfolio-wide RevPAR Penetration grew 37% points on a cumulative basis compared to pre-acquisition penetration levels
• Portfolio wide NOI grew 34% compared to same-store Trailing Twelve month period pre-acquisition
• Sponsor group was able to refinance targeted assets in the portfolio, resulting in a complete return of equity to investors within eight months of execution of the asset management plan