Asset Management Assignment of a 286-Room Hotel
Ramsfield was hired in November 2008 by an institutional hotel owner to oversee a 300-room, full service hotel in Hilo, Hawaii that was coming off a record year of performance, however, entering into an economically challenging environment. Our client requested that we attempt to maintain the bottom-line performance of the hotel even though an economic tsunami was on the horizon. After careful underwriting, Ramsfield accepted the challenge and was able to increase the monthly NOI margin by 15% even though monthly revenues had decreased by 17.5%.
Ramsfield saw many opportunities to operate the property more efficiently and by working hand-in-hand with the operator as well as by purchasing property management technologies and renovating key areas of the hotel, we were able to achieve such goals as reducing staffing by 20%, increasing staffing efficiency by 30%, lowering utilities costs by 17%. In addition, we implemented other cost saving and revenue producing programs which to date, have not only made the hotel more profitable, but increased customer satisfaction.