THE ISSUE
In 1988 key members of Corinthian Development Company’s current executive team were engaged to make a strategic decision to enter the “economy” hotel market throughout the United States. The five executives, all now members of Corinthian’s management team, were put in place to analyze the “economy” market and create a design concept and roll out program to make Fairfield Inn the premier economy product in the industry.
THE PROCESS
- Establish the brand
- Analysis of competition
- Focus group testing
- Evaluation and contracting with all consultants
- Conceptual design, exterior, interior, landscape and graphics
- Establishment of roll out program and schedule
- Analysis of operating program
- Creation of Fairfield’s Score Card system for guest evaluation
- Systemization of site evaluations and site planning
- Creation of sample rooms
- Budget and schedule analysis and tracking
- Fee analysis
- Design and Construction management
THE PROGRAM
- Establish annual budget and roll-out schedule
- Build 25 Fairfield Inns per year
- Establish changes required by geographic region
- Lower costs on a per project basis through establishment of standards, consistent consultants, repetitive drawings, construction techniques and bulk purchasing
- Evaluate completed properties to accumulate data for the next design generation
- Establish Fairfield Inn & Suites Brand marketing program
- Creation of Fairfield Inn & Suites Franchisee program
THE RESULTS
- Created the most consistent economy, ”select service” hotel
- Grew the brand to the largest in the new wave of the select service segment to 700 properties
- Created the benchmark to be emulated by all other economy brands
- Attracted the best, most experienced franchisees to develop properties
- Generated strong net income and enhanced the presence of the Brand
- Completed over 62,000 hotel rooms
- RevPAR CAGR of 4.3% from 2004 – 2012, highest among Marriott focus service brands
- ADR CAGR of 4.2% from 2004 – 2012, highest among Marriott focus service brands
- Created an brand with operating margins in excess of 35%
Projects are representative of work performed by Corinthian and ADMI employees under Corinthian Development Company or ADMI as well as with prior employers.
