THE ISSUE
In 2008, members of Corinthian’s current executive team, along with the owner identified the need to renovate the Fess Parker Doubletree Hotel, a Hilton Resort, due to deterioration, new competition, suppressed RevPAR, declining market share and lack of group and local business.
THE PROCESS
- Collaborate with the owner in developing a strategic initiative for revenue growth and increase market share
- Prepare a development strategy, from initial phases and procurement plans to project completion
- Develop and implement an integrated logistical process for the scope of work to allow the hotel uninterrupted operation through renovation
- Prepare detailed cost plans, including but not limited to value engineering focused on meeting budget targets and expectations
- Implement the actual development schedule and cost controls procedures
- Bring the owner and operator together to plan for prevention of lost revenue through the development process
THE PROGRAM
- Implement the development of a $16 Million budget to renovate the 360 room resort
- Improve spa amenities and increase their functionality
- Refresh guest rooms and bathrooms and enhance rooms with new FF&E and OS&E
- Upgrade and add restaurant opportunities through the addition of Rodney’s Grill and renovation of newly branded Java del Mar, Terraza del Mar Pool BBQ, The Roundhouse, and The Set
- Stabilize Resort’s Revenue in the midst of a crashing economy
- Increase group business to Facility
- Increase the value of the property.
THE RESULTS
- Completed the renovation two months ahead of schedule and 7.5% under budget
- Stabilized RevPAR while competitor RevPAR decreased by 12-14% in the same period
- Increased the resorts ADR by 8.5%
- Generated an estimated 5% growth in Net Operating Income
- Increased the value of the hotel by an estimated $25 Million
- Stabilized occupancy at 76.6% while competitors struggled to achieve occupancies above 60%
- Increased group business mix from 35% to over 50%
Projects are representative of work performed by Corinthian and ADMI employees under Corinthian Development Company or ADMI as well as with prior employers.
