Embassy Suites — Columbus, OH
Embassy Suites is the newest Tier III prototype of the Embassy Suites brand, located in Columbus. The property consists of 198 rooms and 8,500 square feet of flexible meeting-room space, an on-site restaurant, a fitness center, a pool and a lounge.
Schulte Hospitality took over management of Embassy Suites in October 2014, when then-ownership decided it wanted a new management company. At the time of transition, top-line revenue was down, the hotel was not achieving it’s fair share of the market demand, profitability was not meeting ownership expectations and all but one of the key management staff positions were recruited to join the previous management company, leaving a large staffing void.
After the transition, Schulte utilized its corporate resources to improve profitability through implementation of standardized controls and leveraging its size to renegotiate contracts in order to flow existing top-line dollars to the bottom line. Schulte grew top-line revenue substantially in the first 12 months of its tenure by implementing aggressive revenue-management strategies and implementing a grass-roots sales culture. Schulte recruited a top-flight management team within its first three months of tenure to fill the staffing voids and create a new culture at the hotel.
Through a combination of the right corporate leadership, corporate support from the sales, operations and revenue management disciplines and property-level staff being in sync, the team was able to deliver eye-popping results for the ownership group by exceeding benchmark goals at the three-, six-, nine- and 12-month targets. Results started to show just three months into the project. That was all accomplished while maintaining a Top 10% ranking in SALT scores within the Embassy Suites brand nationwide.
By implementing Schulte’s programmatic support systems, the hotel was able to achieve best-in-class results for the ownership group in all key metrics: top-line revenue, RevPAR Index, SALT/GSS scores and, most important, profitability, providing wins for ownership, lender and guests.
Since Schulte took over management of the asset in October 2014, NOI increased by 44.25%, resulting in an additional $732,000 to the bottom line creating over $10 million in value to the asset.
Schulte was also able to raise top-line revenue through its professional revenue management team, resulting in an increase to RevPAR of 7.5% over the one-year period in which it has managed the asset.
Hotel Duval — Tallahassee, FL
The Hotel Duval is a boutique hotel under the Marriott Autograph Collection brand, located in Tallahassee. In addition to 117 rooms, the hotel features high-volume food-and-beverage outlets, including a Shula’s 347 Grill and a rooftop bar, Level 8 Lounge.
Schulte Hospitality took over management of the Hotel Duval in October 2013, when it was purchased by new owners. At the time of transition, focus by previous management was on food-and-beverage revenues, with little attention on room revenues and bottom line.
After the transition, Schulte utilized its corporate resources to improve profitability through the implementation of standardized controls and processes, establishing action plans and goals to improve guest service, increase revenues though dedicated revenue management and set higher expectations for the entire team.
Schulte’s approach was to first improve employee engagement through the development of a focused leadership team. New top-level management was recruited, with experience and an affinity toward service, food-and-beverage delivery and understanding of a boutique hotel. Internally, individuals who displayed leadership skills and potential were given the tools to succeed.
By implementing Schulte’s recipe for well-rounded focus on service and profitability, the hotel continues with improved performance, both financially and in guest satisfaction.
Since Schulte took over management of the asset in 2013, NOI has increased by 34.3%, resulting in an additional $655,000 to the bottom line and adding over $8 million in value to the asset.
Schulte was also able to raise top-line revenue through its professional revenue management team, with an increase to RevPAR of 4% over the two-year hold period