Any inquiries regarding The Hotel Group should be directed to:

Transcription

1 Corporate Profile

2 Any inquiries regarding The Hotel Group should be directed to: The Hotel Group Douglas Dreher, President & CEO 201 5th Avenue South, Suite 200 Edmonds, WA Telephone: (425) Facsimile: (425)

3 EXECUTIVE SUMMARY The Hotel Group (THG) is a national hotel investment and management company with it s corporate headquarters in Seattle, WA and a regional office in Nashville, TN. Our deep and talented management team includes more than 30 corporate and regional members and 1,500 associates at our nearly 20 properties across 11 states. Formed in 1984, the company s operation experience includes: Management and/or ownership of more than 125 properties in 25 states; Design and development oversight of nearly 50 new hotels; Multimillion dollar renovations of over 50 hotels; Acquisition, ownership and divestment of 22 hotels; Completion of nearly $460 million of asset management assignments for the Resolution Trust Corporation (RTC); and Raising nearly $190 million in Opportunity Funds and Investment LLC s to acquire twelve hotels. Mission Statement Our mission is to Serve our People & Properties; Inspire a culture of Hospitality Greatness; and Deliver maximum investment value for our Partners. Fueled by this mission, THG has consistently demonstrated the unparalleled ability to assess a property not for what it is, but rather, for what it can be. The company has regularly made market leaders out of historically poor performers. THG maximizes return on investments and, along the way, attracts the industry s finest people to its ranks. 1 DoubleTree by Hilton Billings, Montana THG Leadership Advance Seattle, Washington As an investor accountable to my own clients, I have an appreciation for the value, respect and integrity that THG demonstrates. They hold themselves accountable for the decisions that directly affect their investors, commanding the utmost respect of their clients/ employees. - Jeff Flohr, Principal Flohr Asset Management Hilton Suites Brentwood, TN

4 MANAGEMENT PORTFOLIO The strength of THG is found in our team and track record, diversity and depth of experience, highlighted by our successful operation of more than 125 properties ranging from select-service hotels in small communities to full-service hotels in large metropolitan areas. We have triumphed with independent as well as franchised properties, and have established a network of personnel, operational, and technological resources to ensure a level of maximum performance at each property. THG provides a wide range of flexible services geared towards the unique needs of our client partners, including ongoing hotel management, development and renovation oversight, receivership and turnaround of distressed assets, ownership and asset management. We utilize our substantial expertise in operations, marketing, revenue management, finance/accounting, human resources, guest services, and heart-of-the-house disciplines to achieve the objectives of our clients and provide a maximum return on their investment. Delta by Marriott Colonial Helena, Montana Homewood Suites by Hilton Issaquah, Washington The Hotel Group - Corporate Office Seattle, Washington Marriott Kansas City, Missouri 2

5 The properties currently under management by THG are listed below: Hotel Rooms Market Segment Location Crowne Plaza 385 Downtown Upscale Kansas City, MO Marriott 381 Airport Upscale Kansas City, MO DoubleTree by Hilton 379 Downtown Upscale Cleveland, OH DoubleTree by Hilton 289 Downtown Upscale Billings, MT Hilton Garden Inn 254 Downtown Upscale Bellevue, WA Homewood Suites by Hilton** 232 Airport Upscale Honolulu, HI Hilton Suites 203 Suburban Upscale Brentwood, TN Radisson RED*** 180 Downtown Upper Upscale Portland, OR Hilton Garden Inn 179 Suburban Upscale Issaquah, WA Hilton Garden Inn** 177 Suburban Upscale Redmond, WA Hampton Inn & Suites by Hilton 167 Highway Upscale Northgate, WA Delta by Marriott Colonial 150 Downtown Upscale Helena, MT Tapestry by Hilton* 142 Downtown Upper Upscale Seattle, WA Holiday Inn Express Hotel & Suites 130 University Upper Midscale Pullman, WA Homewood Suites by Hilton 123 Suburban Upscale Issaquah, WA Homewood Suites by Hilton 121 Suburban Upscale Salt Lake City, UT Home2Suites by Hilton* 107 Suburban Upscale Yakima, WA Residence Inn by Marriott 92 Suburban Upscale Billings, MT TOTAL ROOMS 3,691 *Under Construction **Under Development ***Asset Management 3 The Sound Hotel, a Tapestry by Hilton Seattle, Washington Radisson RED Portland, Oregon Hilton Garden Inn Bellevue, Washington

6 PRINCIPALS AND OFFICERS THG s Management Team combines in-depth experience and a broad range of skills to achieve property performance levels consistently higher than the industry average. Edmond Lee, CPA Founder & Chairman As the company s Chairman, Edmond Lee is responsible for the overall investment strategy, with an emphasis on hotel acquisitions and financial structuring. Before co-founding The Hotel Group in 1984, he worked for a national CPA firm as an audit manager and subsequently served as CFO for a national real estate investment company. Douglas Dreher, CHA President & Chief Executive Officer Doug Dreher has held the position of President since 2002 and was promoted to CEO in Mr. Dreher is responsible for all facets of the company, including overseeing the company-wide portfolio, real estate acquisitions and dispositions, investor relations, business development, capital, and strategic planning. Before joining THG in 1989 he worked for Westin Hotels & Resorts in various management positions. Mr. Dreher has supervised approximately 100 hotels in 25 states and Canada, overseen 45 new developments, and gained background experience with the major franchise companies such as Marriott International, Hilton Worldwide, InterContinental Hotels Group, Radisson Hotels and Wyndham Hotels & Resorts. Mr. Dreher holds a Bachelor of Arts Degree from the School of Hospitality Business Management at Washington State University, where he has served as a guest lecturer and received a 75th Anniversary Honoree Recognition Award. Mr. Dreher sits on the Board of Directors and Executive Committee for the American Hotel & Lodging Association; and he is past Chairman for the Washington State Hotel & Lodging Association. He is a current member of the Lodging Industry Investment Council (LIIC), a think tank comprised of leading hotel and real estate executives which disseminates investment trends to the hospitality industry. Randy Meyer, CPA, CHA, CHTP Chief Financial Officer Randy Meyer is responsible for a wide variety of functions within the company, including responsibility for all enterprise accounting functions, compliance, financing, banking and investor relations, and risk management. He has been intimately involved with over 60 acquisitions and dispositions of owned and managed properties and instrumental in the structuring of numerous hotels financing. Prior to joining The Hotel Group (THG), Mr. Meyer was employed as an Asset Manager for Pacific Select Management Incorporated, a specialist in the turnaround of financially distressed properties for institutional investors. Mr. Meyer is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants, Washington Society of Certified Public Accountants, and Hospitality Financial & Technology Professionals. He currently holds positions on client advisory boards for M-3 Accounting and Analytics and Marsh Insurance. He is a founding member of the Washington Lodging Association s Retro Steering Committee. Mr. Meyer holds a Bachelor of Science Degree in Accounting from City University of Seattle, as well as certification from the American Hotel and Lodging Association as a Certified Hotel Administrator and a Certified Hospitality Technical Professional. THG has some of the most capable and qualified professionals in the industry. The trust we have in them gives us the ability to focus our time and efforts on growing other areas of our business. Mike Nielson, West77, President & CEO 4

7 THG LEADERSHIP TEAM Robert Avila, Senior Vice President of Operations Robert Avila works directly with the general managers and teams of our owned and managed properties, focusing on customer service and internal associate satisfaction. His attention on the day-to-day operations as well as working with the sales and revenue teams is to achieve and exceed the property budgeted goals. Robert has been with THG since 2006, and has more than 30 years of industry experience including working for brands such as Hilton, Marriott International and Wyndham Hotels & Resorts. Brian Latture, Senior Vice President of Operations Brian Latture applies his extensive experience operating hotels to the variety of challenges faced in the hotel industry. He provides leadership, guidance, and support to general managers and associates, as well as the necessary efforts to achieve budget results and operating plan goals for the Pacific Northwest and several other properties. Brian has an extensive tenure in the hospitality industry, previously working for Hilton Worldwide and IHG in many regions such as the Pacific Northwest, Alaska, Midwest and East Coast. Jake Fischer, Vice President of Real Estate and Business Development Jake Fischer is responsible for the growth and development of the THG hotel portfolio. He establishes and nurtures relationships with new and existing client partners, pursues new-build development opportunities, identifies acquisition opportunities, and supports the development team with various projects. Jake brings more than 15 years of hotel real estate and appraisal experience through working with companies such as HVS and Marriott International. Eric McCarthy, CHAE Vice President of Hotel Accounting Eric McCarthy oversees THG s hotel accounting operation including day to day oversight of the accounting functions, internal controls, and strategic planning. He works closely with the company s operations, development, and renovation teams providing guidance and support. He brings over two decades of experience in both hotel and corporate roles, having worked for companies such as Starwood Hotels & Resorts, Wyndham and Walt Disney World Resorts. Robin Koetje, CHTP Director of Information and Technology Robin Koetje oversees all corporate and property IT initiatives. His department provides support for THG network servers and computers, and he works directly with IT system vendors for current hotels, as well as the procurement of systems for newly constructed or purchased hotels. Robin joined the corporate team after having worked in the front office for one of THG s Pacific Northwest hotels and boasts over 25 years in the hospitality industry with THG. Sam Johnson, Director of Operations As director of operations for the Pacific Northwest (PNW), Sam Johnson is responsible for overseeing the financial success of THG s managed hotels and ensuring each property maintains brand compliance. An experienced hotel operator, Sam provides our properties with day-to-day support while challenging them to create unique and memorable opportunities to delight our guests. He brings deep knowledge of the PNW market and extensive leadership experience in luxury independent lifestyle hotels. Stephanie Benadof, Corporate Director of Human Resources Bringing over 20 years of experience, Stephanie Benadof guides and manages the overall implementation and execution of our Human Resources policies and programs within THG. These include performance management, recruitment and retention, team member orientation, training and development, employee relations, communications, policy development, charitable giving, and employee health, safety and wellness. I have a history with this company for well over 20 years. Their effective management strategies stand well above other companies in this industry and bolster my trust in their ability to not only manage my investments, but to guide me through these turbulent economic times. Sidney Chan, President, Uniwell Corporation 5

8 THG LEADERSHIP TEAM Carol Lobaito, Corporate Director of Sales & Marketing With extensive knowledge in the Puget Sound and the Pacific Northwest region, Carol provides total property support of sales, marketing and revenue for our managed hotels. She works closely with owners and developers in the opening process of their hotels, by developing pre-opening budgets, marketing plans, market research and recruiting within the sales department. Carol brings 20 plus years of sales and marketing experience to THG, having worked in markets across the United States. Theresa Benson, Corporate Director of Sales & Marketing Theresa Benson provides overall support of the on-property sales teams in all facets of sales, marketing and revenue generation, and is responsible for the total revenue goals. Besides being the link between the hotel and senior management, she works to ensure hotels develop and implement strategic marketing and sales plans, and maintain consistent branding and our corporate image throughout all promotional materials, events and sales efforts. Ed Ha, Director of Real Estate & Business Development Ed Ha works in all aspects of real estate and business development, including acquisitions for both THG and various capital partners, ground-up developments, management transitions, dispositions and various recapitalization methods. This includes research, analysis and underwriting, as well as staying on top of local and prospective markets. Nicole Ragland, Director of Content Marketing Nicole Ragland ensures the THG properties are utilizing every available tool when it comes to online marketing and content. She works with the teams to ensure their properties are visible, reaching guests in a meaningful way, and adhering to brand standards on social media, their website and other marketing platforms. Neil Taylor, Senior Director of Project Management Neil Taylor provides operational support for hotel systems, including repairs, renovations and capital improvements. He also provides consulting services, with review and feedback to all clients in the process of new hotel development, particularly relating to functionality and brand/operational needs. He coordinates and collaborates with associates to prepare and execute budgets that are meaningful, substantial, trackable and accountable to all parties. Molly Bruder, Executive Assistant to the President and CEO Molly Bruder is the Executive Assistant to Douglas Dreher, THG s President and CEO. In addition to managing several projects for the company, her key responsibilities include scheduling tasks and managing communications to ensure the internal chain of command operates efficiently. Molly is instrumental in coordinating the diverse responsibilities of the corporate office with THG s customers, owners, and employees. Melissa Murphy, Executive Assistant to both THG s Founder and THG s CFO As Executive Assistant for both THG s Founder as well as our CFO, Melissa Murphy oversees the collaboration and final completion of THG s insurance, licensing, investor documents, quarterly reports and tax filings. With a strong eye for details, she manages the record keeping for THG and ensures that all documents routing through accounting, business development and general THG are completed in a timely and proper manner. THG s deep and talented team has shown us time and time again that our asset is in very capable hands. Tom Timmons, Kinetic Capital Real Estate Group, Managing Director 5

9 CASE STUDIES Since inception, THG has developed a sound reputation for its ability to successfully open and operate a variety of hotels and resorts. It also has created an enviable track record for the turnaround of distressed properties. The following case studies are examples of both on-going and completed projects. With THG managing our Holiday Inn Express, it has been the most positive economic success I ve ever had! THG has guided us through all facets of a hotel s life cycle and has given us a beautiful, well managed, profitable and award winning hotel. -Dr. Wenzel Leff, Earthtone Properties, Hotel Owner 379-Room DoubleTree by Hilton, Cleveland, Ohio Acquired May 2007, the property underwent a $17M transformational renovation; Opened as a DoubleTree post conversion during the Great Recession and increased RevPAR by 25% in the first year and an additional 25% in the second year; THG was awarded Developer of the Year by Hilton Hotels Corporation for the DoubleTree brand in 2009; Annual EBITDA increased by more than 2,600,000 from 2008 to Room Kansas City Airport Marriott, Kansas City, Missouri 7 Recently underwent a multi-mullion-dollar transformational renovation that will allow the hotel to attract higher rated corporate and group business, resulting in increased RevPAR; As of March 2018 (Actual/Budget), the property is to finish the year with more than a 600% increase in EBITDA compared to December of 2017 TTM. This increase is do to the transformational renovation completed in 2017; The only hotel on airport grounds, the subject property benefits from its strategic location at the main entrance of the Kansas City International Airport; The Kansas City International Airport is consistently ranked as one of the top five airports in the North American Airport Satisfaction Study by J.D. Power & Associates.

10 203-Room Hilton Suites Brentwood/Nashville, Tennessee Replaced an institutional management company, translating into immediate incremental cash flow; Repositioned as preferred upscale lodging facility following modest renovation; Increased RevPAR by 22% in the first twelve months following acquisition; Property underwent a comprehensive renovation that was completed in May 2017; Property ranked #1 for Hilton Voice of the Customer Award contributed to 35% EBITDA flow-through for the Hilton Garden inn in its first two years of operation. 179-Room Hilton Garden Inn Issaquah/Seattle, Washington Selected to open and operate an upscale Hilton Garden Inn for a prominent Seattle developer s first hotel venture, leading to the development of an adjacent Homewood Suites; Part of an elite team of project consultants - spearheaded franchise analysis, brand selection and franchise relations; Played an integral role in design consultation, purchasing and pre-opening FF&E coordination; Property positioned to take advantage of a leading corporate market, just minutes from Costco World Headquarters, Microsoft and Boeing; Effective yield management and prudent ratio management contributed to 35% EBITDA flow-through for the HGI in its first two years of operation. 130-Room Holiday Inn Express & Suites, Pullman, Washington Renovated in 2008 and again in 2014 where it achieved a RevPAR penetration of 158% in its competitive set; Strategically located less than 1 mile away from Washington State University; The property was awarded a Certificate of Excellence on TripAdvisor and also recorded a near perfect score of 4.5 our of 5; Through 2017, the property achieved an EBITDA of 41% and maintained a RevPAR index of 124%. 8

11 THG s MOST RECENT AWARDS THG often wins awards for innovation, renovation and promotion. They are a clear and welcome confirmation that the company is doing something outstanding in the market place and is being recognized for a job well done Marriott Renovation Excellence Award The Kansas City Airport Marriott was recognized with a Renovation Excellence Award Owned by THG s Opportunity Funds, the Kansas City Airport Marriott, was recognized with the Marriott Renovation Excellence Award at the 2018 MINA & Full Service Owners Conference in Washington DC. Awarded annually to a renovated hotel highlighting the industry s most innovative design and impressive renovation, the Kansas City Airport Marriott features a complete upgrade in modern style for business and leisure travelers Hilton Connie Pride Award The Homewood Suites by Hilton Seattle/Issaquah recognized with the Connie Pride Award from Hilton For the second year in a row, the Homewood Suites by Hilton Seattle-Issaquah, managed by The Hotel Group, was recognized with the 2017 Homewood Suites by Hilton Connie Pride Merit Award. The Hilton Award is given to the top 5% of properties within the brand who have excelled in all brand requirements. The award demonstrates the highest commitment to brand standards, guest satisfaction, and loyalty Radisson President s Award The Radisson Colonial Hotel in Helena recognized with Radisson s President s Award The Radisson Colonial Hotel Helena, a property managed by The Hotel Group, was named as a proud recipient of the 2017 President s Award from Radisson. This Radisson award is given to hotels who receive top scores in guest satisfaction for quality and outstanding service IHG s Torchbearer Award Holiday Inn Express & Suites Pullman was again recognized with the Torchbearer Award The Holiday Inn Express & Suites Pullman, managed by The Hotel Group, was recognized for the 10th year in a row for their exemplary quality service. The Torchbearer Award is IHG s highest award for quality service and has an annually awarded prize to this well established, university hotel Loved By Your Guests Award Homewood Suites by Hilton Draper named the Loved by Your Guests Award Winner The Homewood Suites by Hilton Draper/Salt Lake City, managed by The Hotel Group, recently was awarded with Hotels.com s Loved by Guests award. This award is distributed to hotels who displace exceptional levels of guest services. 9

12 EMPLOYEE INITIATIVES / COMMUNITY SERVICE THG is committed to providing personal and professional growth opportunities for all of its employees. Throughout the year, THG presents Hospitality Greatness awards to exemplary individuals and top performing properties for their exceptional hospitality culture via Inspired Hospitality Greatness. These winners are recognized for going the extra mile to build the THG team spirit and extending superior friendliness and a warm welcome to our guests during their stay. The Edmonds Corporate Office in Edmonds, WA In 2006, THG established the Good Neighbor Program to formalize its long standing commitment to partner with non-profit organizations in communities where we operate hotels. Examples of this support include: Hotel employees volunteer their time to help local community non-profit organizations. THG donates funds from our renovation and salvage sales. THG donates excess furniture, fixtures, televisions, etc. from hotels during renovations and upgrades. THG hotels collect and donate partially used amenities to local shelters and other organizations. 10

13 Any inquiries regarding The Hotel Group should be directed to: The Hotel Group Douglas Dreher, President & CEO 201 5th Avenue South, Suite 200 Edmonds, WA Telephone: (425) Facsimile: (425)