• Competitive Set positioning
• Brand change and comprehensive renovation
• Renegotiation of real estate agreements
• Disposition to maximize sale proceeds

SITUATION

The Doubletree Dallas Lincoln Center was a 500-room  full service asset that was part of the Hilton’s acquisition of Promus Hotels Corporation. The hotel had an excellent location and programming, however, underperformed its competitive set in RevPAR Penetration and market share performance, as well as guest satisfaction and loyalty scores.

PLAN

• Evaluated the asset performance potential relative to the market and competitive set
• Created an asset repositioning plan including a brand change from Doubletree to Hilton
• Created and implemented a comprehensive renovation plan including a complete renovation all guestrooms, public areas and meeting space
• Leverage Hilton brand tools and resources to drive performance following the brand conversion
• Re-negotiated key terms in the Shared Services Agreement with other owners / tenants in the mixed use complex

RESULTS

• RevPAR Index competitive ranking moved up from a historical positioning of 5 of 6 to 2 of 6 within its competitive set
• The property was sold to a publicly traded REIT for a TTM cap rate of 6.2%, delivering an IRR of 28% to the seller