RHI Alexander Presentation Septmeber 2013

Report
The Alexander Board Meeting
24 September 2013
Review of Richfield operating structure and
proposed positioning for Alexander.
2
AGENDA
About Richfield
Hospitality
Branding Suggestions
for The Alexander
Renovation
Inspiration for The
Alexander
Next Steps &
Operating
Suggestions
3
RHI IS AN ESTABLISHED HOTEL MANAGEMENT COMPANY
Richfield has
over 40 years
of experience
as an owner
& operator.
Richfield was founded in 1968 as AIRCOA and since has managed over 600
hotels.
Richfield is an approved operator by the following franchise systems:
4
OUR OWNERSHIP STRUCTURE
Richfield and
Sceptre
exclusively
serve the
hospitality
industry
City Developments Limited (CDL)
Stock Exchange of Singapore
US $7 Billion Market capitalization
City e-Solutions (CES)
Listed on the Hong Kong
Stock Exchange
Millennium & Copthorne
Hotels plc (M&C)
Listed on the London Stock
Exchange
Swan Holdings USA
Privately Held Entity
Denver, CO USA
Whiteboard Labs, LLC
Privately Held Entity
Houston, TX USA
Richfield Hospitality, Inc (RHI)
Privately Held Entity
Denver, CO USA
Sceptre Hospitality Resources llc
Privately Held Entity
Delaware USA
6
CDL IS ONE OF ASIA’S LARGEST GLOBAL REAL ESTATE PORTFOLIO
JW Marriott Hong
Kong
City Developments
Limited has a market
capitalization exceeding
US $7 billion.
Millennium Hilton
Bangkok
Novotel Singapore
W Singapore
Millennium Hilton
NYC
St. Regis Singapore
7
THE ALEXANDER OPERATING OPPORTUNITIES
Opportunity:
The Alexander
hotel would
benefit from
affiliating with
a globally
recognized
brand that
maintains a
collection of
independently
recognized
hotels &
resorts. This
will not only
improve hotel
revenues and
operations,
but also
increase
property value.
Engage Unit
Owners
Optimize
Operations
Efficiency with
Cost Controls
F&B and Catering
Optimal
Hotel
Performance
& Property
Valuation
Digital Marketing
& Online Presence
Transient & Group
Sales
Branding &
Awareness
8
INDEPENDNET BRAND AFFILIATIONS INVOLVING RHI
The Mayfair London
(Millennium)
The Casa Moderna
Miami
The Bailey’s Hotel
(Millennium)
Millennium
Knickerbocker Hotel
Chicago
The Joule, Luxury
Collection
The Millennium
Bostonian Hotel
Millennium Hotel
Paris Opera
The Los Angeles
Biltmore
(Millennium)
9
BRAND AFFILIATION OPPORTUNITIES FOR THE ALEXANDER
Affiliate with Millennium & Copthorne Hotels, plc
Distribution
Marketing Focus
Design Focus
110 properties, 4 & 5 star
rating, global gateway cities &
leisure destinations
International business and
leisure travellers
Functional amenities, timeless
designs (not trendy), locally
indigenous with cultural flair
Support infrastructure:
Support Level
Marketing (branding, PR &
eCommerce / digital mktg)
Sales
Revenue Management &
Distribution services
Loyalty Program
Global
Regional
Property
Brand direction & commercial
plans
NA team
RHI with global & regional
oversight
Strategic outbound sales
efforts (NY, LN, HK, SG)
NYC Regional team (LA,
Boston, Chicago, NY)
RHI with global & regional
oversight
Global partnerships &
KPI/OTA* agreements
NA oversight and support
infrastructure
RHI with global & regional
oversight
M&C loyalty club
(launched 2012, ~1M active members by 2014)
Procurement & Strategic
Sourcing
Centrally directed to manage bid process & commercial terms with regional adaptation to
support hotels
Finance, Legal, Human
Resources & Risk Mngmt
Managed at global and NA regional levels & supported by Richfield Hospitality at property
level
*Third party intermediary/online travel agent
10
THE ALEXANDER PROFORMA BY RICHFIELD HOSPITALITY
Opportunity:
unleash hotel
asset value &
exceed fair
market share.
The Richfield
proforma for
the Alexander
projects
aggressive
growth
potential over
the next 5
years.
Occupancy
Year 1
Year 2
Year 3
Year 4
Year 5
68.2%
72.5%
75.0%
78.0%
78.0%
6.3%
3.4%
4.0%
0.0%
$281.43
$295.50
$307.32
$319.61
6.0%
5.0%
4.0%
4.0%
$204.04
$221.63
$239.71
$249.30
12.7%
8.6%
8.2%
4.0%
Growth
ADR
$265.50
Growth
RevPAR
Growth*
$181.07
*US hotel industry performance for upper upscale hotels according to Smith
Travel Research (trailing 12 month ending July 2013):
• ADR 4.3% growth
• Occupancy 1.4% growth
• RevPAR 5.8% growth
Note: Richfield Hospitality recognizes the importance of unit owner
engagement & support in order to satisfy demand (consumer) as well as
owner expectations. This proforma is predicated on ownership engagement
of which is an operation priority for Richfield to earn the trust & support of
the unit ownership group.
11
POISED FOR GROWTH & FOCUSED ON FULL SERVICE OPERATIONS
Serving over 3,500 Hotels
Manages 20 properties
with over 4,000 rooms
Clients include nearly 3,500
hotels & resorts worldwide
Over 100 properties
in 18 countries
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RICHFIELD IS FINANCIALY CONSERVATIVE
Richfield carries
no debt and has
a solid history
of strong cash
positions.
Richfield Hospitality, Inc. is positioned for rapid growth and development
via acquisitions, joint ventures and takeovers of distressed hotel assets.
CONSOLIDATED BALANCE SHEET
CASH AND INVESTMENTS
(MILLIONS OF DOLLARS)
$35.0
$34.0
$33.0
$33.0
$32.0
$31.0
$30.0
$29.0
$29.0
$28.0
$27.0
$27.0
$26.0
$25.0
2007
2009
2011
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HR BENEFITS & PAYROLL
Richfield
centrally
administers
all benefits
programs and
payroll
support.
Employee Benefits and
Payroll
Insurance Placement
Portfolio Program
Safety & Risk
Management Program
Custom designed
benefits package
tailored to recruitment
and retention needs
Group pricing
advantage
Turn Key Program –
training, risk
management,
compliance
Proactive approach
through timekeeping
system to control
expense
Spread of Risk
All administrative
burden by Corporate
Safety Logic Tracking
System
Centralized Claims
Management
Remove administrative
burden from property
Strive for individualized,
exceptional service
Our risk management and safety programs are structured to ensure
compliance and minimize exposure.
26
REAL-TIME FINANCIAL REPORTING
The RHI financial suite is a software application that allows us to remotely
oversee and monitor all finances on an above-store basis without added
labor at the property. All financial reporting is automated through seamless
interfaces.
RHI provides
complete
financial
transparency
with real-time
benchmarks.
CapEx
The RHI CapEx philosophy is incorporated within the operating agreements &
managed through ongoing budgeting, forecasting and procurements
processes in accordance to brand standards, as well as hotel real estate best
asset management practices.
27
CORPORATE COMMUNICATIONS & TECHNOLOGY SUPPORT
Communication System
Properties & Principals
Chatter
Mobile Application
RICHNET
Quarterly Newsletter
aboutme
Serve
Scheduled Meetings & Conference Calls
Scheduled Events
Primary Purpose
Corporate Customer Relationship
Management (CRM) – utilizing custom
configured Salesforce.com
Internal social network system
Smart phone and web-enabled statistics
Corporate intranet (Filing System)
HTML & Print format
Associate benefits & Programs
Organize corporate giving programs
Operational Oversight & Collaboration
Group Learning & Knowledge Sharing
RICHNET
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NEW METRICS = REPUTATION + PRICE + MARKETABILITY
Consumer
Local Guest satisfaction index
Marketplace and brand standards
Metrics compliance
New Reputation
Marketplace Management
Metrics
Pricing
Smith Travel Report’s
market penetration
indices
Market
Smith Travel Report’s
competitive set
Pricing strategies and
rate integrity
Geo-Marketplace
competitive ranking
Other Stakeholder Indices:
Brand GSS and MPSI
Owner sentiment and ROI
Associate Satisfaction Index
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CASE STUDY
Richfield enhances services and implements a new rate strategy to raise
occupancy rates at a once-underperforming hotel.
The Joule
Dallas, a Luxury
Collection
Strategy
Results
Replaced lower ADR accounts
with accounts that had higher
rate and service expectations.
Increased RevPAR index 23.4%
within 1 year.
Adjusted sales efforts and pricing
strategies.
Jumped into TripAdvisor’s top 4
our of 187 hotels in Dallas market,
up from #28 in June 2010.
Devised new employee incentive
plans that rewarded guest
satisfaction, brand quality,
competitive rank, overall market
share and financial performance.
Charlie Palmer restaurant rose to
#3 on TripAdvisor among Dallas
restaurants, up from #80 in June
2010.
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EXISTING DESIGN
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MODERN CUBAN
This style tends to
be more casual
and playful than
the other two
concepts. Moder
n, strong lines
create the mood
with hints of a
nostalgic
background
peeking through
with ornate,
vintage
accents. The
majority of the
palette remains
natural and light
with lots of
artistic pops of
color creating a
fun, young
attitude.
32
REFINED COASTAL
The Refined
Coastal concept
lightly plays off
the geographical
aspects of the
local sand and
shore. Leaning
towards a colonial
feel without
becoming too
themed, it is a
comfortable
atmosphere
elevated with
quality finishes
and quiet
delicacy. It tends
to be expected
and craved by out
of state guest
looking for a true
seaside
experience.
33
TRADITIONAL LUXURY
A concept that
truly accentuates
the existing
millwork and
stone work in the
grand lobby
would be
Traditional
Luxury. More
formal and
glamorous, adding
a touch of sparkle
and regency to
the already
traditional setting;
the concept raises
the experience to
a higher standard.
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DESIGN SCHEDULE
9/20/2013
Activity
Duration Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
April
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Preconstruction
Design & Presentation
Brand/Owner Approval
Specifications, Finish Schedules, Matrix & Drawings (incl. Budget VE)
Procurement/ PO's
FFE Manufacturing/ Delivery
14 wks
5 wks
8 wks
2 wks
16 wks
Installation/Construction
Lobby/Front Desk
Meeting Rooms, Ballroom & Prefunction
Fitness Center/Recreational/Pool Area
Exterior F&B
Close Out
8 wks
8 wks
4 wks
12 wks
2 wks
Exterior and Infrastructure
Building Exterior
6 wks
Key Code
Organizational/Strategy/Specifications
FFE Procurement Process
Installation/Construction
Close-out
35
THANK YOU
Next Steps:
Brand Affiliation
Operations Shadow Management & Transition Plan
Operations Task Force and Associate Onboarding
Sales, Marketing and Revenue Management Stabilization
Ongoing Owner Communications
36

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