Transcript BHG_Presentation - Boutique Hotel Group

Boutique Hotel Group
Intimate hotels, uniquely designed,
dedicated to details, and providing
warm, highly personalized service
Collectively, the Boutique Hotel
Group Management Team
represents over
150
years
of professional hospitality and
real estate experience.
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Organizational Chart
Chairman
Bill Howell
E.V.P. General Counsel
Michael Murphy
Dir. Construction & Design
Tom Poitevent
V.P. Operations
David Lee
V.P. Development
K.C. Patel
Controller
Steve DiMaria
Senior VP / Asset Management
Stephen Hanover
Sales & Marketing
Lourdes Del Valle
Marketing Mng.
Meri Rassnick
Dir. of HR
Camille Davis
Rev & Yield Mngt
Rani Carr
Corporate Controller
Ghazal Lalwani
Consultants:
Japan:
Public Relations
Marideth Post
V.P. / Bus Development
Kelly Miyashita
Quality Assurance
Jim Coyle
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Scope of Services Provided
Operations
Centralized Accounting
Sales and Marketing
Public Relations
Revenue Management
Information Technology
Graphic Design
Engineering
Construction and Design
Development
Pre-Opening, Development and Technical Services
Financing Services
Acquisition and Disposition Services
Legal
Housekeeping
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Biographies of Key Executives
William Howell
Chairman
Bill Howell has focused on real estate development, acquisitions, dispositions, hotel management, and the asset management of
institutional grade investment property for his entire career. From 1986 through 1992, Howell served as Director of Acquisitions for
Mitsui Fudosan in New York. Responsible for property acquisitions and dispositions totaling over $2 billion in value, he also directed all
asset management functions of a multi-billion dollar global real estate portfolio. Prior to joining Mitsui Fudosan, Howell was a Director of
the Saudi Arabian Investment Corporation, where he was involved in the acquisition and development of over $1 billion in investment
grade United States properties on behalf of clients from Europe, the Middle East, and the Pacific Rim. In 1992, Howell established his
own firm to provide hospitality real estate management and consulting services. He has 25 years of experience in the New York market.
Howell earned a Bachelor of Science Degree from Southwestern University and a Masters in Environmental Engineering from the
University of Oklahoma.
Michael Murphy
Executive Vice President, General Counsel
Michael Murphy has 20 years of real estate transaction experience as a principal, consultant, and legal advisor. Murphy has been
involved in real estate development, the acquisition and disposition of real property and secured debt, the ownership and management
of hotels, and the asset management and strategic restructuring of institutional grade investment assets. As co-head of acquisitions for
Patriot American Hospitality and Boykin Lodging Company, he was directly involved in negotiating and closing more than $1 billion of
resort, hotel, and hotel management company acquisitions. Prior to joining Patriot, Murphy was the Chief Executive Officer of The
Stonebridge Group in New York where he structured capital markets financing transactions and acted as both an advisor and principal in
the area of commercial mortgage-backed securities. Murphy began his career as an attorney in New York representing institutional and
corporate clients in real estate transactions. Murphy earned a Bachelor of Arts Degree from Williams College and a Juris Doctor from
Fordham University Law School. He currently is a member of the AH&LA General Counsels Committee.
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Steve Hanover
Senior Vice President, Asset Management
Steve Hanover is a seasoned professional with over 25 years experience in the commercial mortgage, asset management, real estate
consulting, brokerage, design, and development fields. Starting his career as an architect designing major commercial and residential
projects in the U.S. and abroad, he managed a planning and development consulting office for a 5,000 acre new town development in
Doha, Qatar. Investment sales with Cushman and Wakefield followed with a term at a multi family housing development company
selling apartment assets and originating take out loans. Steve spent eight years with Sun America Investments, Inc. as Vice President in
charge of mortgage and real estate asset management for a $3.5 billion commercial mortgage portfolio responsible for workouts,
foreclosures, bankruptcies, mortgage related litigation, property management, loan and property dispositions, servicing, and mortgage
portfolio acquisitions. Steve was also responsible for underwriting, due diligence and closing of a $900 million loan portfolio from John
Alden Life Insurance Company. Steve is a graduate of the University of Southern California, and has extensive experience in all phases
of real estate as well as being a California licensed architect and real estate broker.
Thomas Poitevent
Director of Construction and Design
Tom Poitevent has over 20 years of experience in the construction industry. Prior to joining Boutique Hotel Group, he completed the
multi-million dollar renovation of the prestigious Mansion on Turtle Creek in Dallas and the construction of The Forrestal Hotel &
Conference Center, a $10 million project in Princeton, New Jersey. As the Director of Construction, he led the project management team
during the expansion of the Shoreham Hotel from 84 to 176 guestrooms and completed the guestroom and public space renovation of the
Hotel Wales, both located in Manhattan. He has five years experience in the New York market. Poitevent earned a Bachelor of Science
Degree in Business from North Texas State University.
K.C. Patel
Vice President, Development
K.C. Patel has supported a range of corporate finance-related assignments, including financial modeling, market research and
identification, customer segmentation analysis, development of acquisition criteria and execution support for target acquisitions. Prior to
joining Boutique Hotel Group, Mr. Patel worked with Novantas – a financial-services consulting firm. He was responsible for identifying
inefficient practices for clients through an investigative process, information gathering, data collecting and hypothesis building, developing
findings and conclusions and recommendations of solutions, and report writing and presenting. Before Novantas, he worked at the
hospitality real estate brokerage firm, Insignia/ESG Hotel Partners. At Insignia/ESG Hotel Partners, K.C. performed investment analysis
and deal structuring for both buyer and seller engagements. In addition, he has been engaged on several underwriting projects with
Credit Suisse First Boston. Patel earned his Bachelor of Science in Business Administration from Cornell University's School of
Hospitality Management in Ithaca, New York.
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David C. Lee
Vice President, Operations
David has over 15 years of experience in commercial real estate transactions, management and hospitality operations. David joined
Boutique Hotel Management Group in November, 2002 from ORIX Capital Markets where he was responsible for all aspects of ORIX’s
hospitality REO portfolio including monitoring receivership and foreclosure processes, overseeing third-party management operations,
capital improvements, brand management, and dispositions. Prior to joining ORIX, David held development management positions with
Remington Hotel Corporation in Dallas where he led their Acquisitions team, and Wyndham International where he co-managed the
disposition of their non-proprietary branded portfolio and managed their individual asset and corporate financing efforts. David holds a
Bachelor of Economics Degree from the University of Michigan and a Masters Degree from Cornell University’s School of Hotel
Administration.
Kelly Miyashita
Vice President, Business Development (Japan)
For the past 15 years, Kelly Miyashita has worked with numerous multinational financial institutions and large owners in all aspects of real
estate transactions. From 1987 though 1990 Kelly served as Manager of Consulting Services and Tenant Representation at Cushman
Realty Corporation, where he was responsible for providing market and financial analysis to an array corporate clients. Following his
experience at Cushman, Kelly served five years at Mitsui Fudosan in Los Angeles, where he served as Asset / Leasing Manager. Kelly
was directly involved with the oversight of 3.5 million square feet of commercial space in San Francisco, Los Angeles, and San Diego.
Subsequent to his experience at Mitsui, Kelly spent three years at The Archon Group, where he managed a diverse portfolio of properties
with an excess of $100 Million over three states. Kelly has also served as Senior Asset Manger of Goldman Sachs Realty and Managing
Director of Sanno Capital – both in Tokyo, Japan. Kelly earned his Bachelor of Science Degree from California State Polytechnic
University in Real Estate Finance & Law.
Steve DiMaria
Controller
Mr. DiMaria has 14 years of experience in the accounting industry and was Assistant Controller for Boutique Hotel Group for 5 years prior
to his promotion to Controller. Mr. DiMaria currently overseas all aspects of financial controls, accounting and budgeting for BHG and is
responsible for managing the company’s banking relationships. Prior to working at BHG, Mr. DiMaria held senior financial positions with
Gotham Hospitality Group, Tishman Hotel Corporation, and ITT. He graduated from Manhattan College with a Bachelor of Science
Degree in Accounting.
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Meri Rassnick
Marketing Manager
Meri Rassnick brings 10 years of marketing communications experience to her post as Communications Manager for Boutique Hotel
Group. In this role, Rassnick is responsible for graphic design, all printed collateral, advertisement creation and direct mail for the
company and individual properties. She came to Boutique Hotel Group from Choice Hotels International, where she was a Sales Manager
at the Comfort Inn, Long Island, for five years. Prior, she was an Account Executive for Gail Becker Associates of Great Neck, New York,
where she represented clients the likes of Cumberland Packaging Corporation. She has 10 years of experience in the New York Metro
Area. Rassnick earned a Bachelor of Arts Degree in Public Relations from Long Island University, CW Post Campus.
Rani Carr
Director of Revenue and Yield Management
Ms. Carr oversees yield management for the Boutique Hotel Group and ensures daily pricing and quality control through training and
ongoing evaluations. She implements and oversees management of all discount internet channels and the GDS to maximize RevPAR.
Ms. Carr’s experience encompasses all facets of the reservations area from Reservations Agent, Front Office Manager, to Reservations
Director of a large Central Reservations Office. Ms. Carr came to Boutique Hotel Group from Holiday Inn and Hospitality Franchise
System where she built her hospitality career. She graduated from The University of Tennessee.
Lourdes Del Valle
Vice President, Sales and Marketing
Lourdes Del Valle has more than 15 years of experience in New York City sales and marketing, with particular focus on the Fortune 500
corporate transient market. Prior to joining Boutique Hotel Group, she was director of sales and marketing at the Empire Hotel in New
York City, a Schrager hotel, and directed sales at the Soho Grand Hotel and the Tribecca Grand Hotel in New York. She also has held
senior sales positions with the Sheraton Park Avenue, Wyndham Hotels & Resorts and the New York Helmsley Hotel. Del Valle also is
fluent in Spanish.
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Marideth Post
Public Relations, Consultant
Marideth Post brings 11 years of hotel and restaurant public relations experience to her role. As Corporate Director of Public Relations,
Post is responsible for media relations, strategy, imaging, brand management and promotions for the company and individual properties.
She comes to Boutique Hotel Group from Noble House Hotels and Resorts, Kirkland/Seattle, Wash., where she was Vice President of
Public Relations, founding the first internal corporate public relations program. Prior, she was the Director of Media Relations for Kimpton
Hotel & Restaurant Group, Inc., San Francisco, for eight years, specializing in hotel and restaurant openings, media relations, restaurant
promotion, and celebrity suites. She started her hospitality career as the Public Relations Coordinator at the Sheraton Hotel at
Fisherman’s Wharf, San Francisco. Post earned a Bachelor of Arts Degree in Journalism, option in Public Relations, from California
State University, Chico.
Jim Coyle
Director, Hotel Web Site Marketing and Quality Assurance, Consultant
Jim has over 15 years of extensive experience in hospitality quality assurance and performance expertise. Jim has provided advice and
oversight for quality assurance and audits to hotels and restaurants in the U.S. and Europe for Ian Schrager, Le Cirque, Daniel Boulud,
as well as Boutique Hotel Group. Jim also has extensive food and beverage background experience to balance his overall hospitality
expertise. Jim’s website marketing ability has proven extremely value and cost-effective for the hotel industry. Jim has a B.S. degree
from the Cornell University School of Hotel Administration.
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Our Approach
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We attempt to leverage the existing appeal, equity and history of an asset whenever possible adding value through a
fresh approach and style.
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Updating and enhancing the decor and physical plant when needed, developing the service culture, and increasing
efficiencies -- to make the hotel more appealing to new business sources, without a massive capital infusion.
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Creating new awareness and appeal through innovative guest programs, activities, services and amenities and public relations.
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Capturing new business and leisure guests, willing to pay higher rates, without alienating current customer base.
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The end result is a revitalized, invigorated product that makes people feel gratified, comfortable and enriched by
a true boutique experience.
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Benefits of BHG Sales and Revenue
Management Team to the Hotel
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Room night crossover from contracted accounts; cross-selling with NYC travelers.
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Enhancement of revenue management practices, techniques, and technology.
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NYC based sales team casting a wider net will uncover additional opportunities and penetrate accounts more effectively.
Our network of sales and marketing covers the globe.
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Economics of scale i.e. payroll, tradeshows, travel, advertising, public relations, customer events, entertaining, etc.
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Marketing Positioning Overview
Current Positioning in the Marketplace
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Weak name recognition in the marketplace for such a landmark asset.
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Weak sales presence created by inexperienced sales team and improper deployment.
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No national sales representation in key domestic and international feeder cities.
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Lack of base corporate accounts due to inadequate rate management and difficult product causing hotel to predominantly
rely on discount business channels to drive occupancy.
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Hotel’s market mix is predominantly leisure oriented and needs to drive corporate business.
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High repeat business, however customer base is narrow.
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Overall product in need of capital investment, to also include addition of necessary business amenities to properly
compete in the corporate transient and group markets.
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Desired Positioning in the Marketplace
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Appealing product which will include a more effective bedding configuration, required FFE replacement, functional work stations, soft
goods renovation, minibars, bathroom upgrade and BHG amenities.
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Solidify position among a wider population of business professional and more upscale leisure travelers who would not have
considered hotel under past product conditions.
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Develop business mix that is representative of targeted corporate accounts and business segments such as banking, financial,
medical, pharmaceutical, accounting, entertainment, advertising, legal and fashion.
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All public areas and food and beverage venues have received adequate makeover and repositioning to drive a revived interest from a
new customer base.
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Track a new competitive set.
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Position as “the boutique hotel in the market offering a different experience for guests.”
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Stronger affiliations with the locally based corporations, universities, and city governments
to make the Hotel the choice for the market.
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BHG Sales Advantages
Sales Advantages
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Years of “City” sales experience provided by BHG sales and marketing team.
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Utilize deep BHG National and International customer relationships for solicitation and negotiation of qualified corporate and
travel agency accounts capturing annual room night commitments thru ongoing RFP process. Primary focus on the banking,
financial, medical, pharmaceutical, entertainment, legal, advertising and fashion markets.
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Review all consortia and mega agency agreements for preferred status positioning as supported by key BHG relationships.
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The meeting and catering opportunities provided by The Hotel allows sales to target corporate meetings and secondary
incentive events.
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Representation in all selected BHG tradeshows and customer events, nationally and internationally.
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Participation in BHG on-property and alliance cross-sell referral program.
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Reinforce The Hotel’s position with discount internet providers, such as HRN, Priceline, Expedia, Quikbook, etc. via strong
sales relationships.
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BHG Marketing Advantages
Marketing Advantages
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Inclusion in the BHG corporate website www.boutiquehg.com providing enhanced visual and informational content.
Opportunities also include search engine positioning, database capturing, user analysis and on-line seamless reservation
availability.
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Exposure to all BHG marketing partnerships, including jetBlue Airways alliance, providing access to 1 million person database
and primary positioning on corporate website.
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Participation in all BHG advertising initiatives including brand and an Overnight Sensation leisure program.
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Exposure to GDS advertising, travel agency fax shots and email blast campaigns.
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Participation in popular BHG brand signature amenities program including welcome drink, complimentary cappuccino and
espresso bar, Belgian bed linens and frette robes, upgraded bath products, in-room CD players and VCRs, etc.
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Advantages in database and advanced Reservation/PMS reporting features supported by newest marketing technology.
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In-house graphics and marketing support to manage brand and individual property creative consistencies and cost control. All
advertising, direct mail, photo support, web site design, collateral development and printing is controlled thru this department.
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BHG Revenue Management Advantages
Revenue and Yield Management Advantages
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Corporate Director of Revenue and Yield Management fulfills the following functions:
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Management of and positioning within the GDS.
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Oversees daily yield management and ensures sales quality control and effective cross-sell practices through ongoing
training and evaluations.
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Sets individual hotel rate strategies as required, with emphasis on management of various discount internet channels
and GDS to maximize RevPAR during low and high demand selling periods.
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Implements and monitors all BHG standard operating procedures for newly acquired hotel acquisitions.
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Continually identifies new revenue analysis opportunities and available revenue tools and resources to make smart
business decisions.
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Align the Hotel with various discount channels such as Hotel Reservations Network (HRN), Priceline, Expedia, Quikbook,
Hotwire, etc. and utilize relationships to drive business as needed through strategic pricing and effective marketing positioning.
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BHG Revenue Management Advantages
Revenue Management Advantages continued…
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Utilization of the following reports to set individual hotel rate strategies against competitive set hotels and local market, in
addition to identifying new business opportunities:
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Star Report: monthly report indicating business share percentage based on occupancy, ADR and RevPAR vs.
competitive set.
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HotelRevMax: providing similar reporting information as Star, however reporting on daily, weekly, weekend and monthly
basis allowing BHG hotels to react immediately to market changes and competitive strategies.
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Check-Rate.com: Another report feature provided by HotelRevMax which shops your competition’s daily rates available
over the internet for a four week period from date of report.
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Phaser: Provided by TravelClick, this report is distributed weekly and provides a snapshot of your available daily rates
against your competitive set thru the Sabre GDS system.
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Hotelligence: Also supplied by TravelClick, this monthly report indicates the top 30 travel agency and top 30 corporate
accounts that are booking your hotel thru the GDS, while also telling you the same information for your collective
competitive set. This report is ideal for for targeted sales solicitation to drive new business into our properties, while also
seeing what share of the business we are getting or losing from our key accounts. In addition, this report acts very
similar to a star report indicating your share of business thru the GDS, as well as your top global geographic markets.
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Public Relations Overview
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The Hotel
Instill the appropriate updated image and reputation of The Hotel in the minds of the media and consumers to result in editorial coverage
and business development.
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Distinctive, Consistent Theme and Style
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An established, true designated destination boutique landmark hotel…
A hotel with a proud, rich and storied history that is evolving…
Revitalized by a physical plant, services and amenities enhancement…
Highlight new amenities; advantages for business travelers…
Consistently invigorated by a consistent set of innovative and purposeful guest programs, promotions and activities tailored
to business and leisure travelers…
The Hotel: A blend of classic and contemporary themes and style.
Re-Launch and On-going Promotional Vehicles
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Re-Launch and On-going Promotional Vehicles
Establish fresh set of unique services, amenities and promotions
Special Re-launch Event(s)
Special Re-launch Media Event
Develop Set of Unique Value-Added and Seasonal Packages
Create Signature Event
Establish Charity of Record
Increase Local Involvement / Establish Mutually-Beneficial Partnerships
Cultivate On-Property Creative Committee
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Relations Materials
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Media Relations
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Media kit
Individual Media Releases
Pitch Letters
Photography / Images
Boutique Hotel Group Media Kit / Materials Integration
Media Calls / Hotel Tours
Media Entertainments
Individual Media Visits
Hotel Press Trip
Target Media
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National and local travel trade media -- Travel Weekly, Travel Agent.
Cleveland hospitality media -- Crain’s Business.
National and local newspaper travel editors -- New York Times, Plain Dealer.
National and local consumer travel magazines and outlets -- Travel Holiday, Conde Nast Traveler.
Historic travel niche media -- HistoricTraveler.com
National and local travel and lifestyle freelance journalists.
Select broadcast and online media outlets -- cnn.com, concierge.com
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Result
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The end result is a revitalized, invigorated product that makes leisure and business guests feel gratified, comfortable and
enriched by a unique experience.
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A program and an image that will endure and scale well beyond the re-launch period.
Today and Everyday -- Boutique Hotel Group Public Relations
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Simply, Boutique Hotel Group has a straightforward, aggressive, creative, media-centric approach to the practice of public
relations. It combines long-range planning, (to accommodate media lead time), originality, integrity, and flexibility with
operational sensibility and consistent media interaction.
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Reinventing
The Art of Hospitality Culture. Service. Style.
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How we keep guests returning and referring is at the heart of the boutique hotel objective
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Core Values
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Redefine Customer Service as an Art and a Privilege
Getting to “WOW” through Personalized and Attentive Service – Heart of Boutique Experience
Not a mission of what to do, but a declaration of who we are
…every guest feeling as if he/she were visiting the home of an old friend
Turning Guests and Employees into Disciples and Raving Fans - BHG University
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To get to Zero Defect: training is important – but creating self sustaining culture is key.
Leadership Training
Moments of Truth
Enneagram
Miracle Makers Program
Mission Possible
Focus Groups
Employee Opinion Survey
GM Hotline
Guest Expert
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Eliminate the impossible
Each guest interaction is the wow opportunity
Promoting management communication/workability
Exceeding Expectations/Rewarding Excellence
Guest history/retention/development
Troubleshooting
Guest/Manager/Employee development
Guest/GM opportunity
Manage productivity/guest trends
Other Enhancements and Opportunities
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We have professionals create the following:
• Reservation Shoppers Survey
• Sales Shopper’s Surveys
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Marketing and Reservation Transition
Reservation Transition
Voice
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Replace existing number with BHG toll free number on all marketing materials and promotions (BHG toll free number currently
generates 25% of the volume to our existing Portfolio and will be utilized to mitigate the loss of call volume through promotions, fax
blasts, GDS marketing, and direct mail campaign to existing transient guests, travel agencies, and corporate accounts).
Inventory, rates, and availability would be maintained on property and at BHG. Reservations will be faxed or emailed to the hotel,
while the requirements for a two way interface are evaluated.
BHG reservation agents will receive training, an on-property presentation, and an overnight stay at the Hotel.
GDS
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The Hotel room inventory and rates will be loaded into the SynXis Reservation System.
A GDS electronic marketing campaign will be implemented to promote The Hotel and direct travel agents to its new placement.
Internet
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BHG would enhance the the Hotel’s website and interface it to BHG’s Internet booking engine that allows for real time bookings
from the inventory maintained at the BHG CRO.
Marketing Collateral
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Rack brochure and other property marketing materials and collateral would be modified to include the BHG toll free reservations
number and enhanced to present a more attractive presentation.
Logo/Signage
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BHG does not mandate BHG signage, flags, or plaques on hotels – we prefer to use hotel logo.
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Boutique Hotel Group
INTEGRITY
SERVICE
VALUE
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