Portfolio Strategy, Successful Industry Model

[IMGCAP(1)]DETROIT-Trans Inns Management, a Detroit-based hospitality management firm, was awarded the management contracts by Latitude Management Real Estate Investors in the beginning of 2009. Trans Inns Management assumed the role after LMREI took possession of the eight hotels representing 2,000 rooms and more than 500 jobs. Rather than liquidating the portfolio, with Trans Inns Management’s consultation, LMREI chose to implement a turn-around plan for the portfolio and increase long-term value. LMREI chose Trans Inns based on its track record, hands on management approach and its strong focus on improving operations.

“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.”