Turnaround of a Struggling Suburban, Upscale, Focused-Service Hotel

An institutional client engaged MAM to help turnaround an East Coast hotel operated by a large national management company.  At the start of the engagement, the hotel was losing $500,000 per year after debt service.  In one year, the hotel operated profitably.  The first step MAM took was a total evaluation of the hotel, including benchmarking individual line item expenses against similarly sized hotels.  This revealed several anomalies, including an over-staffed sales department that was producing far too little group and corporate account activity.  MAM worked with the operator to right-size the sales team, and within several months, production was tripled with fewer staff.  Several monthly recurring charges were not inline with industry norms, so contracts were renegotiated producing additional substantial savings.  Finally, the debt on the hotel was refinanced.