Sign Up To Receive Our Latest

Hospitality Dashboard

Our Quarterly Hospitality Dashboard is an industry-recognized one-stop, one-page tool for incisive and timely hospitality industry data and trends. Please sign up to subscribe.

You will automatically receive the next version published.

Go to top

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