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Renovation and rebranding drives improved performance of the Embassy Suites Anaheim/Orange

Ownership of the hotel was seeking a strategic rebranding of the asset with a goal to minimize capital expenses and drive cash flow for a planned disposition.

Plan of Action

  • Based on a deep understanding of the Hilton brand standards, the hotelAVE asset management team helped negotiate the Hilton PIP and obtain brand waivers that resulted in a renovation plan that enhanced the asset in the most cost-effective manner possible
  • Once the renovation was complete the hotelAVE team developed and implemented a plan to improve the hotel’s profitability

Service: Asset Management

hotelAVE Results

Renegotiated Property Improvement Plan (PIP)

  • Reduced Hilton PIP by more than $500,000
  • Reduced project management and professional fees by $200,000

Increase RevPAR performance

  • Improved index by 8% prior to renovation
  • Accelerated RevPAR performance post renovation and rebranding
  • Achieved RevPAR penetration index of 116% in year one, exceeding underwriting pro forma
  • Six months after renovation achieved #1 RevPAR ranking

Improved Profitability

  • As a fully renovated Embassy Suites, grew gross operating profit by more than 25%
  • The owner was able to sell the property at a premium to the market on a per key basis

Key Contact

Kristin Knox-Attar

Senior Vice President