"The strategy for this portfolio has the potential for being a successful industry model," explains Daniel Vosotas, president and CEO for Trans Inns Management. "By taking a long-term view on preserving the assets' value, the lender will recognize a higher profit by holding and repositioning the assets until the markets recover. In the meantime, the lender is generating revenue."
[IMGCAP(2)]Mike Damitio, vice president of acquisitions and development for Trans Inns Management, continues that "In 10 months, we have kept the doors open on all eight hotels by cutting expenses by 25% across the board, improving guest satisfaction scores, and embracing the more than 500 employees who were on staff at these properties." He explains that the steps taken by Trans Inns "will enable the hotels to operate through what is likely to be a difficult hospitality market in 2010."
Craig Oram, a principal from Latitude Management Real Estate Investors, based in Los Angeles, notes that Trans Inns Management's "swift re-organization of the labor structure for the 500 hotel employees has provided job security, increased employee morale and significantly improved the operating performance of the portfolio. ...Productivity and guest satisfaction scores are both up, a great improvement from when we took the keys back."
Vosotas says that this is just the beginning. "We've consolidated the marketing plan and continue to recognize operating efficiencies. Our next phase is repositioning the assets with extensive renovations, which will create additional value for the lender."
The eight properties include: Crowne Plaza Hotel in Omaha; Holiday Inn in Knoxville, TN; Comfort Suites in Minneapolis; Holiday Inn in Columbus, GA; Holiday Inn Select-Perimeter in Atlanta; Holiday Inn in Kansas City, MO; and Ramada-Atlanta Airport in Atlanta; and the 180-room Holiday Inn Jonesboro, GA, which has sold and is now a Clarion.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
