Increased Occupancy & ADR

An independent hotel in California had been operated by a regional hotel management company with moderate success for many years. Ownership elected to convert to a Hilton branded property and transfer management to Hilton Management Services.  We generated a property improvement document (PIP), requiring improvements to the property in order to conform to brand standards for appearance and operation.

After the PIP was complete, the property was accepted into the Hilton portfolio, and HMS assumed management oversight. HMS surveyed the property and established systems and processes for the successful transition to management –– including budgeting, critical path generation, IT planning, employee recruitment and brand training. We worked closely with owners for financial approval, time frames, license and permit transfers, and signage requirements, as well as sales and marketing strategies, sourcing staff and more.

Over a 2-year period:

• GOP increased by 58.5%
• Total costs decreased (sales, payroll and benefits, and other department expenses) by 25.1%
• Average Daily Rate increased 33.8%
• Hotel occupancy increased 20% over previous occupancy levels
• RevPar increased 59.8% above previous levels