A Star is Born: Hilton – Pikesville, Maryland*

Nestled in the middle of the Northwest Baltimore business district, the Hilton-Pikesville had all the signs of a challenged property: high staff turnover, numerous union/hotel conflicts, operational dysfunction, worker safety risks, and physical decline. Welcome to the Hilton-Pikesville. Under renovation. Mismanaged. In financial distress.

In less than 12 months, our turnaround success formula restored this 171-room franchised hotel to profitability. The strategy – perform a comprehensive operational analysis followed by a multi-phased turnaround implementation plan:

• Establish and employ best business practices
• Restore employee confidence through respect, collaboration, and immediate improvements
• Quickly complete clean up and renovations
• Revamp the transient room rate structure
• Launch and sustain new revenue-generating programs
• Refocus sales and marketing efforts

Working closely with hotel ownership and staff, operational rules and guidelines were established in virtually every front and back-of-the-house area. Physical work hazards were removed and order restored to streamline work processes. By addressing financial and marketing processes, performance levels were raised. Differentiating services and marketing new programs to targeted audiences bumped revenues.  In total, a methodical, planned turnaround approach:

• Improved financial performance to 4 year record high
• Improved guest satisfaction scores by more than 40%
• Increased STR Report property performance more than 20 points in ALL areas
• 125+ position ranking jump in Hilton CRM rankings
• Moved Hilton-Pikesville to become a market leader

*Now the Doubletree by Hilton-Baltimore

 

 

 

Restoring Balance: Adam’s Mark – Dallas, Texas

At 1,852 rooms, the Adam’s Mark-Dallas was a convention planner’s delight. Open for a little more than two years it was the tallest and largest hotel in Texas, attractively situated in the downtown City Center District. Sporting 260,000 sq. ft. of meeting space, this hotel was within easy walking distance of theaters, fine restaurants, and museums, as well as the famed Dallas Convention Center.  And yet, the Adam’s Mark-Dallas also had its problems.

With a 35 percent occupancy rate, the hotel was barely achieving 40 percent of its previous year’s budget. Its poor performance affected virtually every other hotel revenue center. In fact, its disastrous financial standing affected the entire Adam’s Mark hotel chain.

An operational analysis can often reveal some highly unusual things. Our findings included:

• Unusual sales success reports
• Excessive annual bonuses
• Disproportionate staffing and ongoing personnel issues
• Lack of understanding and disregard of staff work needs and safety

Within in six months, we achieved significant revenue growth in all areas by:

• Restoring sales and marketing balance
• Imposing ‘best practices’ staffing guidelines and procedures
• Establishing a culture of respect, recognition, open communication, safety and teamwork

 

 

Change Management: Adam’s Mark – Houston, Texas

It had the classic signs of underperformance – a lack of proper maintenance, excessive insurance premiums, a disorganized back-of-the-house, and complacent management. At age 10, the Adam’s Mark-Houston once had maintained a sterling reputation with solid group bookings for three years running. Now, its financial records had slid to record lows. Mismanagement can quickly destroy an outstanding investment.

Scrutinizing financials often is viewed as the first step in distressed property turnaround. However, our approach concentrated on core issues to restore the hotel’s profitability:

• Generating higher occupancy
• Achieving more significant bookings
• Hiring a competent management which contributed to staff turnover reduction
• Re-establishing itself with key corporate customers and key market segments

Concentrating on day-to-day business operations was critical and included:

• Staff replacement – hiring affordable specialists in sales and marketing, food and beverage and housekeeping.
• Demonstrating a ‘lead by example’ management work ethic
• Improving working conditions and staff recognition programs
• Restoring equipment and mechanical systems to their original condition

In less than six months, the Adam’s Mark-Houston regained its 60/40 group orientation, returned its once-successful night club to star standing, transformed its culture, and restored its reputation.  It also proved to be the training ground for the Adam’s Mark hotels most successful managers.