US Mid-West Independent Management Company

CHALLENGE:

A Midwest independent management company with 15 hotels was concerned about its Net Income Operating margin. The company wanted to strengthen the operating platform, improve internal consistency and prepare for future growth.

SOLUTION:

Jon Peck worked with the board of directors, key staff members and the “field” team to develop a clear vision, mission and strategy. The need for internal consistency was identified and emphasized as a key driver.  This required the development of a balanced scorecard, complete alignment of job descriptions, and a more focused and disciplined approach to the annual review process. Simple changes to the corporate management structure reduced overhead cost and improved efficiency.

RESULTS:

The management company N.O.I. margin improved to 35% from 22% in the first year. Additionally, the percentage of under-performing assets improved, and two critical properties moved out of “red zone”.