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Hilton Brooklyn Hotel exceeds underwriting projections and achieves #1 RevPAR ranking within 15 months

hotelAVE assumed asset management upon opening for the 200-room full-service Hilton Hotel in Brooklyn, NY. Ownership’s goal was to quickly achieve targeted RevPAR ranking, optimize the Food & Beverage operating model, and achieve NOI targets. Additionally, ownership’s objective was to refinance the existing debt within 3 years.

Plan of Action

  • hotelAVE created a roadmap to achieve the #1 RevPAR ranking within the competitive set, including strategic analysis of optimal mix, segmentation penetration, and channel opportunities
  • Evaluated and implemented changes to the F&B operating model
  • Rightsized and repositioned the food & beverage concept and transitioned the lease arrangement to hotel operations

Service: Asset Management

hotelAVE Results

Improved Financial Performance

  • Achieved #1 RevPAR ranking within the first 15 months of opening
  • Achieved top ten guest ranking in Trip Advisor within seven months of opening
  • Exceeded underwriting generating sufficient cash flow to pay debt service without using loan reserve funds
  • Achieved high 40s gross operating profit margin which is above average for a full-service hotel

Exceeded Owner’s Objectives

  • Refinanced 14 months ahead of schedule and exceeded owner’s return expectation

Received Hilton’s Best Commercial Hotel of the Year Award 2018 for the Americas.

Key Contacts

John Paulsen

Vice President