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The Alexander Board Meeting 24 September 2013 Review of Richfield operating structure and proposed positioning for Alexander.

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Presentation on theme: "The Alexander Board Meeting 24 September 2013 Review of Richfield operating structure and proposed positioning for Alexander."— Presentation transcript:

1 The Alexander Board Meeting 24 September 2013 Review of Richfield operating structure and proposed positioning for Alexander.

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3 AGENDA 3 About Richfield Hospitality Branding Suggestions for The Alexander Renovation Inspiration for The Alexander Next Steps & Operating Suggestions

4 4 RHI IS AN ESTABLISHED HOTEL MANAGEMENT COMPANY Richfield was founded in 1968 as AIRCOA and since has managed over 600 hotels. Richfield is an approved operator by the following franchise systems: Richfield has over 40 years of experience as an owner & operator.

5 5 RICHFIELD OWNERSHIP STRUCTURE Richfield is a private company and subsidiary of City e-Solutions. CES is the designated vehicle to spearhead new business initiatives in the hospitality industry for its Singapore-based parent company, City Developments Limited (CDL). CES is listed in Hong Kong and its shares are also traded on CLOB International in Singapore Amsterdam Stock Exchange. City Developments Limited, listed on the Stock Exchange of Singapore, is the second largest real estate developer in Southeast Asia with a market capitalization exceeding US $7 billion. CDL is also the parent company of Millennium & Copthorne Hotels plc. Millennium is listed on the London Stock Exchange (LSE: MLC) and owns, asset manages and/or operates 103 hotels in 18 countries. Swan Holdings, Ltd is a wholly owned entity that provides management services and technologies to the hospitality industry. Richfield and Sceptre exclusively serve the hospitality industry Richfield Hospitality provide hotel operations and asset management for a portfolio of 21 properties. Sceptre Hospitality Resources provides reservations connectivity, revenue management, and channel marketing for more than 3,500 hotels.

6 OUR OWNERSHIP STRUCTURE 6 City Developments Limited (CDL) Stock Exchange of Singapore US $7 Billion Market capitalization City Developments Limited (CDL) Stock Exchange of Singapore US $7 Billion Market capitalization City e-Solutions (CES) Listed on the Hong Kong Stock Exchange City e-Solutions (CES) Listed on the Hong Kong Stock Exchange Millennium & Copthorne Hotels plc (M&C) Listed on the London Stock Exchange Millennium & Copthorne Hotels plc (M&C) Listed on the London Stock Exchange Swan Holdings USA Privately Held Entity Denver, CO USA Swan Holdings USA Privately Held Entity Denver, CO USA Richfield Hospitality, Inc (RHI) Privately Held Entity Denver, CO USA Richfield Hospitality, Inc (RHI) Privately Held Entity Denver, CO USA Whiteboard Labs, LLC Privately Held Entity Houston, TX USA Whiteboard Labs, LLC Privately Held Entity Houston, TX USA Sceptre Hospitality Resources llc Privately Held Entity Delaware USA Sceptre Hospitality Resources llc Privately Held Entity Delaware USA Richfield and Sceptre exclusively serve the hospitality industry

7 7 CDL IS ONE OF ASIA’S LARGEST GLOBAL REAL ESTATE PORTFOLIO City Developments Limited has a market capitalization exceeding US $7 billion. JW Marriott Hong Kong Millennium Hilton Bangkok Novotel Singapore W Singapore Millennium Hilton NYC St. Regis Singapore

8 THE ALEXANDER OPERATING OPPORTUNITIES 8 Engage Unit Owners F&B and Catering Transient & Group Sales Branding & Awareness Digital Marketing & Online Presence Optimize Operations Efficiency with Cost Controls Optimal Hotel Performance & Property Valuation 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.

9 INDEPENDNET BRAND AFFILIATIONS INVOLVING RHI 9 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)

10 BRAND AFFILIATION OPPORTUNITIES FOR THE ALEXANDER 10 Affiliate with Millennium & Copthorne Hotels, plc Support infrastructure: Support LevelGlobalRegionalProperty Marketing (branding, PR & eCommerce / digital mktg) Brand direction & commercial plans NA teamRHI with global & regional oversight SalesStrategic outbound sales efforts (NY, LN, HK, SG) NYC Regional team (LA, Boston, Chicago, NY) RHI with global & regional oversight Revenue Management & Distribution services Global partnerships & KPI/OTA* agreements NA oversight and support infrastructure RHI with global & regional oversight Loyalty ProgramM&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 DistributionMarketing FocusDesign 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

11 11 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. Year 1Year 2Year 3Year 4Year 5 Occupancy68.2%72.5%75.0%78.0% Growth6.3%3.4%4.0%0.0% ADR$265.50$281.43$295.50$307.32$319.61 Growth6.0%5.0%4.0% RevPAR$181.07$204.04$221.63 $239.71$249.30 Growth*12.7%8.6%8.2%4.0% *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.

12 12 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

13 SCEPTRE SUITE OF SERVICES 13 Sceptre Hospitality Resources offers customized hospitality solutions to increase distribution, maximize booking conversions, and optimize ROI for hotels.

14 LIFESTYLE HOTELS 14 PROPERTYLOCATION ROOMS The Joule, a Luxury Collection Hotel Richfield Asset Management Dallas, TX161 Casa Moderna Miami Hotel & SpaMiami, FL56 Sterling Hotel Sacramento Richfield Asset Management Sacramento, CA17 St. Regis Deer Valley Richfield Asset Management Salt Lake City, UT194

15 FULL SERVICE HOTELS 15 PROPERTYLOCATIONROOMS DoubleTree by Hilton BloomingtonBloomington, MN564 DoubleTree by Hilton Hotel BurlingtonBurlington, VT161 Sheraton Chapel HillChapel Hill, NC168 Sheraton Pittsburgh Intl AirportCoraopolis, PA204 DoubleTree by Hilton El PasoEl Paso, TX200 Courtyard by Marriott Fairfield Napa Valley AreaFairfield, CA137 Sheraton Fort Worth Hotel & SpaFort Worth, TX430 DoubleTree by Hilton Dallas-DFW Airport NorthIrving, TX282 Maingate Lakeside ResortKissimmee, FL651 Crowne Plaza Melbourne Oceanfront ResortMelbourne, FL270 Radisson on John Deere CommonsMoline, IL163 Four Points by Sheraton Philadelphia NortheastPhiladelphia, PA190 Crowne Plaza SyracuseSyracuse, NY279

16 SELECT SERVICE HOTELS 16 PROPERTYLOCATION ROOMS Comfort Inn Vail/Beaver CreekAvon, CO147 Hyatt Place UC DavisDavis, CA75 Clarion GilletteGillette, WY159

17 RICHFIELD VALUE FOCUS 17 Our purpose is to grow top line revenues and optimize owner returns & asset value. Everything we do we align with our stakeholders. Owners Hotel owners are our clientele Guests The guests we serve enable our business AssociatesOur associates drive our businesses Investors Investors support our initiatives Community As citizens, we give back to our communities

18 OUR VALUES 18 We are loyal managers on our client's behalf; we will strengthen top and bottom-line performance. We will earn the respect and trust of our clients. We are driven competitors who serve to win every guest, every time; we are hospitable and will exceed guest expectations to win their business and loyalty. We will earn the respect and trust of our guests. We are compassionate supporters our fellow associates; we encourage their individual potential and aspirations. We will earn the respect and trust of our associates. We are committed partners to our investors; we will expand our reach and produce favorable returns. We will earn the respect and trust of our investors. We are dedicated citizens serving our communities with charity and hospitality; we give back to the communities in which we serve. We will earn the respect and trust of our communities.

19 OUR COMPETITIVE ADVANTAGE 19 Growth Opportunity – Richfield is a stable and well capitalized hotel company that is actively seeking to take advantage of the current economic market conditions to acquire and invest in strategic hotel assets and portfolios. Market Depth – Richfield's current access to over 3500 hotels, as well as our ability to invest capital and align our interests with our owners, will provide substantial benefit of strong market knowledge in addition to brand management advantages including contract negotiations leveraging and experienced human capital. The Richfield Hallmarks:

20 RICHFIELD IS FINANCIALY CONSERVATIVE 20 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) Richfield carries no debt and has a solid history of strong cash positions.

21 THE RICHFIELD OPERATING PLATFORM 21 Richfield leads hotels to new profitability heights in a dynamically changing economic environment. We adjust our game plan for each property and competitive situation. Richfield employs exceptional talent and resources that share a passion to profitably operate hotels. Field Support Services Regional Sales | Marketing & Online Presence | IT & Business Intelligence| Centralized & On-Property Accounting Revenue Management Human Resources | Risk Management | Procurement | Project Management | Legal | Tax Richfield is structured to maximize individual hotel performance with field support services.


23 HUMAN RESOURCES 23 Richfield’s human resources operations aims to maximize productivity for each hotel focusing on core HR Verticals. StandardsTrainingRecruitmentEmployee Relations Tailored to each property’s positioning Meet franchise requirements and enhance with Richfield programs Proactive recruitment process to identify needs and measure staffing effectiveness Personal approach utilizing templates customized to each hotel with a dedicated service line

24 ROLE & CULTURE OF RHI HUMAN RESOURCES 24 Richfield streamlines human resources to support operations, benefits, payroll and risk management. Create Partnership Support Operations Maximize Productivity Customize Program Benefits & Associate Interests Recruitment & Professional Sourcing Professional Developme nt Associate Recognition & Incentives Corporate Social Responsibili ty

25 25 RICHFIELD COMMUNITY OUTREACH PROGRAM Corporate Responsibility Initiative Rolled out to all corporate & hotel associates Joined Feeding America to Outnumber Hunger Richfield is committed to CSR & its associates Richfield Hospitality AboutME program encompasses all employee interests. (ie. health & wellness, comp programs, continuing education and other support services)

26 HR BENEFITS & PAYROLL 26 Employee Benefits and Payroll Insurance Placement Portfolio Program Safety & Risk Management Program Custom designed benefits package tailored to recruitment and retention needs Proactive approach through timekeeping system to control expense Remove administrative burden from property Strive for individualized, exceptional service Group pricing advantage Spread of Risk All administrative burden by Corporate Turn Key Program – training, risk management, compliance Safety Logic Tracking System Centralized Claims Management Our risk management and safety programs are structured to ensure compliance and minimize exposure. Richfield centrally administers all benefits programs and payroll support.

27 27 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. 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. CapEx


29 NEW METRICS = REPUTATION + PRICE + MARKETABILITY 29 ConsumerPricingMarket Local Marketplace Metrics Guest satisfaction index and brand standards compliance Smith Travel Report’s market penetration indices Smith Travel Report’s competitive set New Marketplace Metrics Reputation Management Pricing strategies and rate integrity Geo-Marketplace competitive ranking Other Stakeholder Indices: Brand GSS and MPSI Owner sentiment and ROI Associate Satisfaction Index

30 CASE STUDY 30 Richfield enhances services and implements a new rate strategy to raise occupancy rates at a once-underperforming hotel. StrategyResults 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. The Joule Dallas, a Luxury Collection


32 MODERN CUBAN 32 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.

33 REFINED COASTAL 33 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.

34 TRADITIONAL LUXURY 34 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.


36 THANK YOU 36 Next Steps: Brand Affiliation Operations Shadow Management & Transition Plan Operations Task Force and Associate Onboarding Sales, Marketing and Revenue Management Stabilization Ongoing Owner Communications

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