Services

Hotel Management

As a third-party management company, Driftwood’s approach is a personalized and respectful one. The individual needs of each property in Driftwood’s management portfolio are taken into careful consideration and are critical in creating an effective partnership.

Driftwood’s flexibility is a company staple, prevalent across all segments of the business, but nowhere more significant than in the area of property management. While Driftwood provides centralized management services, the company fosters an entrepreneurial spirit, empowering hotel associates to take initiative and actively contribute to their success. Our objective is to maximize services and minimize expenses, using a unique approach to monitor performance and providing in-depth reports in all areas of operations, including:

  • Hotel Operations
  • Internet Strategy and Online Distribution
  • Sales and Marketing
  • Food and Beverage
  • Accounting
  • Brand Management and Quality Assurance
  • Human Resources
  • Legal Support

Case Study

Full-Service Hotel in Houston, TX 

  • Background: Driftwood Hospitality acquired 420-key full-service top brand hotel located in the primary market of Houston, TX, minutes away from the airport. 
  • Action: Our revenue management and sales team took an innovative approach to optimize business segmentation, targeting business with higher rates to drive business to channels with lowest fees. The team also developed an e-commerce presence, used unique grassroots sales tactics to develop relationships with nearby demand generators, and used OTA optimization to fill room nights with highest possible capture rate. 
  • Results: In just the first three years under Driftwood’s management, the hotel increased revenue from 64.1% (2013) to 75.1% (2014) to 80.8% (2015), increased ADR from $98.47 (2013) to $115.12 (2014) to $127.94 (2015) and grew NOI by 295%. Overall, we outpaced our competitive set’s RevPAR growth by more than 27%, increased NOI margin by 17%, and increased RevPAR by 18.8%. 
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Development

In addition to renovating and rebranding existing properties, Driftwood has extensive expertise in the

areas of new-builds and new developments. The company has built hotels in all segments of the hotel industry, managing all aspects of the building process from buying the land, supervising design and construction, equipping the hotel with the right resources, hiring and training the staff.  When partnering with Driftwood to develop a new property, owners can expect the following support from experts in the field:

  • Underwriting
  • Brand Negotiations and Correspondence
  • Securing Financing
  • Pre-Opening Services
  • Ownership Consultations
  • Project Management Assistance
  • Procurement
  • Design Recommendations

Case Study

Extended Stay Hotel in Miami, FL

  • Background: In 2013, Driftwood partnered with an investment company to open a well-known extended stay brand hotel in the corporate sector in Miami, FL. The hotel broke ground on December 2014 and was fully open by January 2016.
  • Action: We successfully opened a ground-up, new-build, 175-room premium select service brand hotel that serves as the flagship lodgings in primary markets. The company launched the property on time and on budget, and achieved a strong market presence from the start, exceeding all first-year financial expectations.
  • Results: In the first two years the hotel exceeded the net operating income (NOI) projections by 16.82%, achieved GOP over 50%, exceeded first year ADR projections by 5% and exceeded  second year occupancy by 6%.
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Acquisitions

Driftwood Hospitality Management’s acquisition team will work alongside owners throughout the due diligence and transition process to ensure seamless operational analysis and takeover. The company’s primary philosophy is to maximize Net Operating Income for each asset by balancing customer service, integrity, employee relations and careful, in-depth reviews of each individual market to create effective operating and capital strategies. Our underwriting metrics are carefully fine-tuned during this process to ensure maximum accuracy.

As industry leaders, we’ve forged strong partnerships across every vertical in hospitality, providing direct access to the best hotel acquisition opportunities in the U.S. Our robust team analyzes over 200 opportunities annually and produces data that includes:

  • Investment Analysis
  • Feasibility Studies
  • Brand Recommendations
  • Joint Venture Partnerships

Driftwood Hospitality Management’s acquisition team will work alongside owners throughout the due diligence and transition process to ensure seamless operational analysis and takeover. The company’s primary philosophy is to maximize

  • Agility
  • Track Record
  • Balance Sheet Backing
  • Brand Relationships
  • Financing Relationships
  • Affiliated Management Company Expertise

Case Study

Full-Service Hotel in Austin, FL

  • Background: Driftwood partnered with a top-tier institutional private equity company to acquire and reposition a 196-key asset located in Austin, TX.
  • Action: We immediately renovated and rebranded the property to generate higher rates, business and demand. We completed a $8.5 million renovation on time and on budget, by inserting our management team and procedures.
  • Results: In the first year of acquiring the properties, we increased ADR by 18%, occupancy by 9%, NOI by 79%, F&B revenue by 82% and RevPAR by 33%.
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Receiverships

As a receiver, Driftwood Hospitality Management is cognizant of the lender’s priorities to gain control of the asset, minimize liability and stabilize operations. This awareness is an intuition that comes with experience and helps Driftwood transcend barriers as it relates to receivership.

To maximize an asset’s true value, it is imperative to quickly ensure a positive brand affiliation. Just as important is a concentration on internal and supplier relations, support current talent and filling voids that may exist. With experience in acquisitions and the rebranding process, as well as an understanding of court reporting and bonding requirements, Driftwood seamlessly facilitates the overall transition of distressed properties.

As a third-party operator, Driftwood understands the complexities of these assignments and efficiently conduct a takeover of operations upon appointment.  Specifically, the company focuses on the following areas:

  • Accounting Controls and Court Reporting
  • Revenue Enhancement
  • Franchiser Relations
  • Capital Repair
  • Cost Containment
  • Permits & Licenses
  • Employee Training and Benefits Review
  • Disposition Services

Case Study

Limited Service Hotel in Orlando, FL

  • Background: In February 2010, Driftwood took over management of the 135-room select-service Hawthorn Suites. Our team was challenged with a deteriorated product, stagnant sales and a failed revenue management strategy.
  • Action: In 2012, we completed a $3 million renovation, conversion and the implementation of cost controls to a Staybridge Suites.
  • Results: Through the renovation, conversion, and the implementation of operating cost controls, we created an increase of NOI from $523,000 in TTM December 2011 to $1,281,109 in TTM April 2016.  From year-end 2011 to 2015, RevPAR improved from $49.57 to $80.44 and ADR grew from $76.52 to $90.90.  The hotel was even awarded InterContinental Group’s “Best Renovation” in 2012.
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