Island Hospitality Management Named Operator of 114-Room SpringHill Suites Truckee

WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Officials of Island Hospitality Management, the premier third-party management company for select-service and upscale, extended-stay hotels, announced that the company has been named the operator of the 114-room Springhill Suites Truckee. The property is owned by Mission Hill Hospitality, a leading select service and extended stay hotel investor.

“We are extremely excited to add another premier hotel in California, strategically positioned in a region that enjoys the advantages of diverse activities and attractions,” said Gregg Forde, president and COO, Island Hospitality Management. “We are keen to oversee operations at this leading hotel and further enhance its outstanding performance.”

Located at 10640 East Jibboom Street, the hotel is minutes from the area’s top attractions, including Lake Tahoe, historic downtown Truckee and Donner Memorial State Park. Guests visiting Truckee can enjoy skiing, hiking, biking and golfing, all within easy access. SpringHill Suites Truckee offers complimentary breakfast, 24/7 fitness room and complimentary Wi-Fi throughout the hotel.

Island Hospitality Management to manage Hampton Inn

“Our extensive experience in this market and our expertise with this brand makes the Hampton Inn & Suites Newark Harrison Riverwalk an ideal match and a valuable addition to our portfolio,” said Gregg Forde, president/COO, Island Hospitality Management. “Our organization’s efficient processes and streamlined talent recruitment and retention programs enable us to uphold brand compliance while simultaneously boosting revenue and margins.”

The hotel is located near attractions such as MetLife Stadium and Prudential Center. Newark Penn Station is less than one mile from the hotel, providing easy access to New York City which is 12 miles away. Guests can enjoy complimentary breakfast, 24/7 fitness room and complimentary WiFi throughout the hotel. The pet-friendly hotel offers connecting rooms and suites providing extra space and amenities.

How Hoteliers Are Balancing Procurement Challenges

Island Hospitality Management to manage 3 WaterWalk properties

Island Hospitality Management has opened three new properties recently: the 126-room WaterWalk Phoenix North Happy Valley, 126-room WaterWalk Atlanta Perimeter Center and 126-room WaterWalk Boise (Idaho) Meridian.

The properties have both furnished and unfurnished suites with fully equipped kitchens and in-room washer and dryer facilities. Together, the three properties have a total of 380 suites, bolstering Island's presence in new urban markets while attracting a mix of special events, corporate bookings and group business.

"We have eagerly anticipated the launch of these exceptional hotels in thriving markets," Gregg Forde, president and chief operating officer of Island Hospitality Management, said in a statement. "Drawing on our internal expertise, we have assembled an exceptional team of leaders and forged valuable business connections through our trusted network and corporate partnerships, ensuring a swift and successful ramp-up for these properties."

Island Hospitality management operates more than 85 properties under 20 different brands.

Domestic Summer Travel Trends Up, but Some Florida Markets Less Popular Than in Past Years

Summer travel and demand for hotels as a whole in 2023 is trending up year over year, but destination markets such as Miami and Daytona Beach are proving less popular after a successful run of demand growth over the past few years.

Gabriel Perez, regional director of lodging operations for The Indigo Road Hospitality Group, said South Florida in general is experiencing a decline in summer travel, in part due to its success over the past few years. He said Florida’s lax COVID-19 restrictions compared to the rest of the U.S. allowed the market to obtain a steady pace of business just a few months after the pandemic began in March 2020.

There’s a potential for demand growth in the region, he said, as there’s generally a shorter booking window at Indigo Road’s The Alexander Hotel in Miami. On the books right now, though, the market is lagging behind past years.

“As far as pace on the books, this particular hotel is driven by a lot of last-minute weekend reservations. We hope that changes the overall picture for the summer, but as of now, it is fair to say that this year is looking … lower than expected on the books for not only the summer, but the third quarter as well,” he said.

Michele Mainelli, senior vice president of revenue management at Island Hospitality Management, said the company has planned for a decrease in summer room demand at its hotels in Florida.

“I do think we expected it to scale back because it has been so strong the last three years. Now that international travel has ramped up, I think we expected it,” she said. “We didn’t budget as aggressively for the Florida properties as we had in previous years.”

Theresa Hajko, regional director of revenue management at Spire Hospitality, said leisure travel in general is looking comparable to 2022 numbers, but demand is dipping in destination markets, such as at Spire’s The Grove Resort & Water Park in Orlando.

“A year ago at this time, people couldn't quite so easily travel outside the country. Now what people are doing is they’ve saved up their money and now they’re taking those big trips outside the country,” she said.

Demand is up across Hospitality Ventures Management Group’s portfolio this summer, but varies by market, said Melissa Arana, vice president of revenue strategy at HVMG. Leisure demand is down across beach markets such as Daytona Beach and Fort Lauderdale, but group demand is showing signs of year-over-year growth.

“If we're talking specifically about whether pace is up or down for the summer, then — pace is still up for our company. Now, what I would say is, obviously, that depends on the hotel and the market, but as a whole, occupancy has been transient, [and there’s] average rate. We're still quite optimistic from that standpoint,” she said.

Since demand started picking back up after the start of the pandemic, rates have been steadily increasing, in part due to inflation across the U.S. economy. Hoteliers have been hesitant to drop rates.

However, there have been discussions about lowering rates to try to attract more occupancy, Perez said.

“The conversations have been happening for a while. If I start having the conversations for summer in mid-April, we’re in pretty bad shape,” he said.

Perez added he's hoping that international travel picks up some of the drop in domestic demand so the company can hold onto its rates. Travelers from South America, the Caribbean and Europe used to travel to Florida for a week or more, but that demand just isn’t there anymore, he said.

“Due to visa restrictions, visa expenses, competitive markets and the economic situation in some of these countries, it has been a challenge ever since the pandemic to have that steady piece of business that South Florida will traditionally carry,” he said. “A lot of the countries that compete for the same business are not requiring a visa.”

There’s still strong demand for hotel rooms this summer across the U.S. Nashville, Las Vegas and Phoenix are a few cities that have a favorable forecast year over year, said Jacob Bruno, senior forecasting analyst for CoStar’s hospitality analytics firm STR.

Bruno said hotel demand from trade shows and conventions is still ramping up, which could be picking up the slack for destination markets.

“It’s kind of moving away from those destination markets toward the upper-upscale, luxury hotels in the [central business districts] on that group side and for those upper earners,” he said.

Atlanta is projected to be one of HVMG’s top markets this summer, with group demand leading the way, Arana said.

Hajko said the hotels she revenue-manages in Boston and Annapolis, Maryland, are among those booking at the same pace as summer 2022.

Mainelli said hotel markets in the Northeast — specifically Portland, Maine — are set to perform well.

“In the Northeast, we have Portland, which is just on fire. There’s no other explanation. It’s just on fire,” she said. “It’s crazy how much demand there is in that market.”

Most experts project a recession in the U.S. economy is likely to occur in the second half of 2023 as interest rates continue to rise along with inflation. Hotel revenue managers are optimistic that it won’t have a large impact on demand.

“I lean more on the optimistic side of that one, to be honest,” Arana said. “I think that is again because most of our hotels just haven’t fully recovered. If there is a recession, that will probably slow down our recovery, but I do think that we are going to continue to see recovery throughout the rest of the year.”

Hajko said she doesn’t expect it to have a huge impact on demand because consumers still value traveling.

“Travel’s one way where people still treat themselves, especially after a couple of rough years,” she said. “I think that the traveler is most definitely going to be looking for value — that’s not necessarily a discount, but value. I don’t anticipate that it’s going to have a huge effect.”

Bruno said those making $75,000 or more are likely to be unaffected by a potential recession, but there may be some tightening in the $50,000 and under range.

“We’re noticing, especially [with people earning] under $50,000 a year, that the sentiment toward taking leisure travel over the next six to nine months has dropped quite a bit,” he said.

Island Hospitality Management Expands Portfolio with 14 Additional Hotels and Opens Third Toasted Barrel During 2022

Officials of Island Hospitality Management, the premier third-party management company for select-service and upscale extended-stay hotels in the United States, announced today that the company added 14 hotels to its third-party management portfolio, as well as opening its third Toasted Barrel restaurant, during 2022.

“Island Hospitality had another fantastic year in 2022, as we added 14 additional third-party owned hotels to our ever-expanding portfolio,” said Gregg Forde, president and COO, Island Hospitality Management. “These additions strengthen our presence in multiple markets, including California, Texas, Florida, Colorado, Massachusetts and Maryland. We also expanded our relationship with WaterWalk by growing our dedicated management team and helping them grow their unique lodging option that combines the conveniences of a hotel with apartment-style living.”

Island continues to invest heavily in and reap the rewards from its food & beverage programs. The Nolen, located on the rooftop on its Courtyard San Diego Gaslamp and featuring stunning views alongside modern yet timeless cocktails, was voted best rooftop bar in 2022 in San Diego. HQ, the rooftop bar situated atop its Courtyard by Marriott Dallas Downtown, experienced its best year ever with the rebound of the Dallas market. The bar’s rooftop open-air indoor & outdoor lounge offers skyline views of Downtown Dallas while one can enjoy hand crafted cocktails and small bites.

Recently, Island opened Toasted Barrel inside the Residence Inn by Marriott San Diego Downtown/Gaslamp Quarter. Located in the heart of Gaslamp Quarter, this marks the third location of Island Hospitality’s homegrown F&B concept that can be described as an “All-American, bourbon forward” restaurant. The menu features specialty grilled cheese sandwiches, bourbon and craft cocktails with a San Diego flair.

“Our pipeline remains full, and we continue to have high expectations for the year,” Forde added. “We look to build on last year’s momentum and are on track to have multiple announcements for new deals in the coming weeks and months. 2023 has the makings of a record year for Island, with expansion into new markets and segments.”

About Island Hospitality

Headquartered in West Palm Beach, Fla., Island Hospitality Management is a leading, national, third-party, independent management company. It operates more than 80 hotels under 15 different brands, primarily premium, select-service hotels; upscale, extended-stay properties; and upscale hotels, in 25 states and the District of Columbia. Additional information is available on the company’s Web site, www.islandhospitality.com.

Island Hospitality Management promotes LoFaso

Third-party management company Island Hospitality Management has promoted Susanne LoFaso to regional director of operations.

In her new role, she oversees the company’s Hilton- and Marriott-branded hotels throughout the New York and Illinois regions, as well as provides acquisition support.

“Since joining us in 2018 as general manager of the Ronkonkoma Homewood Suites by Hilton, Susanne has delivered superior guest satisfaction scores and improved bottom lines,” said John Marques, EVP, Island Hospitality Management. “She quickly was promoted to area general manager over Island’s Ronkonkoma Homewood and Courtyard hotels and has continued to demonstrate her leadership by assisting in task force assignments, special projects and onboarding new leaders through our GM Ambassador program.”

With more than 15 years of hospitality experience, LoFaso has used her skills to improve market share, profitability and asset growth across all of the multi-branded portfolios she has managed, the company reports. As regional director of operations, she will continue to oversee the Hampton Inn Yonkers, Hilton Garden Inn O’Fallon, Courtyard Ronkonkoma, Homewood Suites Ronkonkoma, Hampton Inn Brookhaven and the newly acquired Hilton Garden Inn Dobbs Ferry.

Deals, Packages Help Hoteliers Get 2023 Business on the Books

Guests Prefer Deals Offering Unique Experiences, Added Value.

As the year wraps up, hoteliers are busy getting leisure business on the books for 2023 through special deals and packages.

Over the last several weeks, hotel companies and individual properties have launched special offers, some timed around holiday sales events such as Cyber Monday and Travel Tuesday, tempting potential guests with food and beverage credits, longer stays, gifts and more.

The packages bring in some long-term, repeat customers who are taking advantage of the sales and other special offers to book early in the new year, said Hal Powell, regional vice president of sales and marketing at Benchmark, Pyramid Luxury and Lifestyle.

“The target is to build up the pre-sell of transient reservations going forward and to really introduce some new properties to our past guests,” he said.

Special Offerings

The Skyline Lodge in Highlands, North Carolina, offers a number of packages for 2023, some of which include the restaurant next door, the Oak Steakhouse. John Woods, general manager of both the lodge and the steakhouse, said the timing for these offers works out well because guests already are in the mindset for finding deals.

“Everybody gets all in the shopping mood right before Christmas,” he said. “After Christmas, everybody’s like, ‘What do we do now?’ because they’ve already spent their money. We try to capitalize on that timeframe between Thanksgiving and the end of the year.”

There’s a big push going on for bookings during Highland’s Snowfest in January in particular, he said. For that offer, guests get a two-night stay with a Skyline Lodge Thermos, hot chocolate and a s’mores kit.

The lodge also offers the Dare Devil Package, giving guests a two-night stay and a flying lesson with a nearby flight school, he said. Other deals include stays with a credit for brunch at the steakhouse.

The Hawks Cay Resort in Duck Key, Florida, has offered guests booking for 2023 a package offering a 25% discount plus a $25 daily food and beverage credit. (Hawks Cay Resort)
At Crestline Hotels & Resorts, guests can enjoy a package for a stay at the Dylan Hotel NYC that includes a tin of Marie Belle Hotel Chocolate or a “Baby It’s Cold Outside” package at the Phoenix Park Hotel in Washington, D.C., that includes two complimentary Irish coffees at its Dubliner Bar, said Christina Bresett, vice president of revenue optimization at Crestline, via email.

The company also offers a hot $1 breakfast buffet at the Hilton Garden Inn Houston, Galleria, and a pet-friendly road trip package at the Homewood Suites by Hilton Washington, D.C.

Benchmark, Pyramid Luxury and Lifestyle rolled out a portfolio-wide campaign for a core group of 6,000 past purchasers for a buy-one, get-one deal, Powell said. Guests could buy $50, $200 and $500 e-gift cards for someone and receive a $10, $50 or $150 certificate, respectively, for themselves.

For individual properties, its Hawks Cay Resort in Duck Key, Florida, gave guests 25% off with a $25 per day dining credit as part of a Cyber Monday offer, he said. The Skamania Lodge in Stevenson, Washington, had a special holiday treehouse package for the treehouses on the property. The Margaritaville Lake Resort, Lake Conroe-Houston, in Montgomery, Texas, offers a $100 resort credit plus 20% off watercraft rentals.

“It’s always good when these packages have a value proposition but also features something that differentiates you in the market,” he said.

Package Strategy

When crafting its hotels’ offerings, the Crestline team has found there’s still high demand for leisure travel as guests continue to want experiences, Bresett said. Travelers also want the convenience of booking a package that already includes the elements they want out of a trip.

“Our packages are designed to provide value-added while creating unique experiences,” she said. "We are also seeing the ongoing trend of families including a pet. So we have created pet-friendly packages that are very popular with today’s guests."

Island Hospitality Management’s sales, marketing and revenue-management teams work closely together to determine what turnout a hotel needs or who the ideal customer is, said Kiley Watkins, director of digital marketing and strategy for Island Hospitality Management.

“We don’t just opt into a package just to do a package,” she said.

For example, offering packages for advance stays are about trying to capture base occupancy through people trying to plan travel for 2023, she said. There’s some flexibility for the guest, who is able to cancel days ahead of the stay if necessary, and it creates other revenue opportunities for the hotel.

Skyline Lodge has changed some of its end-of-year packages this year, Woods said. The lodge and restaurant have been open for a year and a half, but they were able to take lessons learned from last year’s package strategies and refine them for this year.

“To get that first year under your belt, you’re still kind of learning what really the curve is that needs to come out there and to figure out our demographics,” he said. “We really truly honed in on that and realized what their wants are.”

Guest Outreach and Response

Crestline’s packages are promoted on the hotel website homepages and booking pages, but the teams are also using social media, specifically Facebook and Instagram, to attract travelers, Bresett said. The instant marketing provided by social media has helped bring in many last-minute bookings through these packages effectively.

Guest response has been positive as guests are looking for value-added stays, she said.

“As we launch our winter packages, we are seeing tremendous interest, especially in the packages that add a unique service or amenity that is specific to that location,” she said, citing a package for seven days of free parking for guests who spend a night at the Four Points by Sheraton San Jose Airport to catch a flight.

Benchmark had a nearly two-week “Cyber Week” sales endeavor, one of the company’s largest campaigns of the year, Powell said. It included a series of email blasts to a database, news releases and social media advertising. On the Benchmark side of Pyramid Global Hospitality, the campaign produced $14 million in revenue, an increase of nearly 50% compared to last year.

Though the deals are designed for stays in 2023, the booking window is still relatively short, he said. Almost all of the sales go into January, and most of the guests are buying for stays in January, February and March.

“Seeing those numbers was a good indicator of our overall transient pace,” he said, adding they’re not seeing any signs of a slowdown yet.

As many of Island Hospitality’s packages and deals come through the hotel brands, the brands do much of the marketing on the management company’s behalf through email campaigns and social media postings, Watkins said. Island Hospitality’s individual properties also do their own social media campaigns through their Facebook pages.

“We’re doing paid social as well as organic posts talking about the special packages,” she said.

On property, the teams know what packages are running, so they’ll talk with guests about the offers as well during the check-in process or during check out for a future stay.

While the booking window remains short, overall pace heading into the first quarter of next year is up about 2% in occupancy compared to this year, Watkins said. The segment driving that is the discount segment, which includes advanced purchases and packages.

“Guests enjoy it, especially if there’s a savings attached,” she said.

Pair of Three-Day Weekends Could Boost Holiday Travel

Hotel Demand Expected To Follow Seasonal Patterns of Past Years

The end-of-year holiday season in the U.S. typically does not drive a lot of business to hotels. Like offices, business travel tends to shut down for the holidays. And families who are traveling often stay with other family.

Demand for hotel rooms this holiday season isn't expected to be significantly more than in past years, but it also shouldn't be markedly down, experts said.

There will be the usual bursts of visitors to iconic holiday destinations as tourists celebrate en masse in places like New York City's Times Square and warm weather spots as northerners and others flee the snow.

But in general, hotel demand is expected to follow seasonal patterns.

Isaac Collazo, vice president of analytics at STR, said the easiest comparison might be the holiday season of 2011, when the dates and holidays on the calendar were identical to this year. Another similarity between 2011 and 2022 is that both are rebuilding years. STR is CoStar's hospitality analytics firm.

In the run-up to the Christmas and New Year's holidays in 2011, occupancy and rates followed a similar trajectory as what has been recorded so far this year, he said.

Hotel demand has gone through similar peaks and dips for all of the holidays, so while weekly performance data indicates a slowdown, for this time of year it's “pretty normal,” he said.

From Dec. 18 through Dec. 31, Collazo said he expects U.S. occupancy will drop by about a point compared to 2021 while average daily rate will grow 2%, leaving revenue per available room flat. He expects occupancy to be down by less than a point compared to 2019 levels despite some gains in hotel demand, due to growth in the supply of hotel rooms.

Compared to 2019, ADR is expected to grow by more than 12% and RevPAR by more than 10% — not enough to keep up with high inflation.

With both Christmas and New Year’s Day falling on Sunday, most people will have the Mondays after off, which should help to boost hotel demand into the first week of the year, and that is expected to lead to slight year-over-year gains in occupancy, ADR and RevPAR.

The Sunday holidays create two three-day weekends that allow traveler to stay longer, Collazo said.

Travel’s Resiliency

Over the past year, travel has proven more resilient than ever, said Greg Schulze, senior vice president of strategic travel partners at Expedia Group.

Even in the face of economic uncertainty, travelers are not trading down and continue to prioritize experiences, he said.

“People are using their money to travel, and they are doing that in every way,” he said.

Drive-to holiday destinations have grown significantly in popularity, which has shown up in bookings for Expedia's vacation rental business, Vrbo, Schulze said. The strong U.S. dollar has also incentivized travelers to head to Europe and other parts of the world.

Economic concerns will create headwinds for lower-income travelers, Collazo said. That demographic is generally more affected by inflation and higher interest rates because they don’t have as much in savings. Those who are traveling in this segment are likely to use credit cards to pay for their trips, so if they traveled last year, they may not this year.

Those in the middle, upper-middle and upper income brackets will be less affected by economic headwinds, with the possible exception of anyone recently laid off, particularly from tech companies, he said.

The omicron wave last year put a damper on travel, but this year health concerns aren’t holding people back as much, Schulze said. While COVID-19 is completely in the rearview mirror, people want to travel, and they feel comfortable doing so now.

“Travelers feel very safe traveling these days, so they’re not hesitating to make those bookings,” he said.

A Hotelier’s Perspective

Island Hospitality Management’s business on the books for the second half of December and first week of January is pacing ahead of both 2021 and 2019 levels for occupancy and average daily rate, said Michele Mainelli, senior vice president of revenue management. Occupancy is ahead by a marginal amount while rates are significantly higher, driven by inflationary pressures.

“Even with last year opening up significantly since the pandemic hit, this year it just seems to be people need to travel and see other people,” she said. 

Most of the business coming in over the holidays is from leisure travelers, Mainelli said. Most of the corporate group business on the books is primarily from holiday parties, and some travelers are mixing business and leisure.

Many travelers are headed toward warmer weather, she said. A large portion of Island Hospitality’s portfolio is on the East Coast, Southern California and Florida, and hotels in those destinations fill up as the weather gets colder.

Leisure travelers have been taking advantage of some of the end-of-year discounts, though those are smaller than they were in the past.

“People are taking advantage of that, and I do think they're booking a little sooner than they have for the last few years,” she said. “There's still some people holding out and looking for even further discounts. I think eventually they’re booking because they don't find the discount they're necessarily looking for, but they’re still going.”

Hoteliers in San Francisco Hope for More Reliable Demand in 2023

Lack of International, Business Travel Is Holding the Market Back

The San Francisco market had positive growth in occupancy, average daily rate and revenue per available room in 2022, but still remains significantly behind its peers on the top 25 market list and its pre-pandemic levels from 2019.

According to data from STR, CoStar’s hospitality analytics firm, San Francisco in 2022 — through November — had an occupancy of 64.7%, an ADR of $208.96 and a RevPAR of $138.18, all stark improvements compared to 2021 levels but a sharp decrease from 2019 levels. In 2019, the market had an occupancy of 81.9%, an ADR of $249.30 and a RevPAR of $204.13.

Krishelle Cruz, vice president of national sales for Island Hospitality, said some of the increases can be attributed to inflation, but San Francisco's hotel market still has a ways to go.

“The San Francisco market continued to see its gradual or slow or minimal growth year over year in terms of occupancy, and then you did see decent rise in the average daily rate, naturally due to inflation, but compared to pre-pandemic levels, the market still hasn’t fully recovered,” Cruz said.

Richard Sandoval, vice president of operations for Spire Hospitality, said San Francisco began recovering in September and is in a better spot now than it was a year ago, but compared to other big markets, it’s recovering much more slowly.

“Obviously there are 25 major markets tracked in the U.S., and in 2019, San Francisco was No. 1. Year to date, San Francisco’s No. 25,” he said. “The beginning of the year was very challenging, and you could definitely see the market’s recovery was impacted at every level.”

The market’s slow return to form can be attributed to a multitude of factors, chief among those the lack of international and business travel. And perhaps just as important as the lack of those two segments is that no other segment took a step up in the absence, Sandoval said.

“There’s not one segment that has saved San Francisco at any point in time,” he said.

International Travel

Cruz said that nearly a third of visitors to Island Hospitality’s San Francisco hotels were from international markets in 2019, with more than 50% of those visitors coming from countries in Asia. In 2022, travel from Asian countries represented only 29% of 2019 levels. Even travel from European countries, which Sandoval called “the most positive” thing of the past year, only reached 62% of pre-pandemic levels.

Travel from Asian countries was still hindered by strict COVID-19 policies that barred travel to the United States. Justin Schlageter, senior appraiser at CBRE Group, said South Korea and Japan have lifted a lot of restrictions, which led to some demand in the market this year, however China is still a massive holdout.

“China was really the largest source of international travel pre-pandemic, and that’s, for all intents and purposes, just completely dried up,” he said. “With China lifting their restrictions, I think that’s one of the caveats there that San Francisco is really relying on, that reinstatement of Chinese international travel.”

Sandoval said the impact of international travel goes beyond filling occupancy at hotels. International travelers also spend more in the city compared to the average traveler since they’re trying to make the most of their experience in the states.

“It’s usually important because [international travelers] do have longer lengths of stay. They’re also the ones that are helping the general tourist dollar because they're looking for experiences, they’re doing the activities, they’re in the restaurants, they’re truly of the city and they’re in the space looking for the San Francisco experience,” he said.

Business Travel

Numbers are down on business travel across the U.S., but for a big tech city reliant on it like San Francisco, the implications of missing corporate travel are more significant.

Cruz said travelers flocked to popular leisure destinations such as San Diego and New York as soon as they could travel again, helping those cities inch closer to pre-pandemic levels while San Francisco awaited the return of business.

“We saw a flip of the switch in the leisure destination market,” she said. “When restrictions started to ease, we saw a lot of those domestic travelers eager to get out of their house, just from sheltering in place for so long that those destinations outperformed and recovered a lot quicker than a San Francisco market that is dependent on big tech.”

Office occupancy is in the mid-30% to low 40% range in the San Francisco market due to more flexible work-from-home schedules, Schlageter said. If no one is in-person in the city, then there’s no reason to meet for business there, either.

The market also remains off pace from 2019 for convention center bookings. Sandoval said San Francisco cleared 900,000 rooms booked for conventions in 2019 but fell short of 400,000 in 2022. That number has already grown considerably for 2023, with 650,000 rooms on the books.

“You’re talking about a 300,000-room-night lift from where things are actualizing in 2022. Still not the 900,000 plus that were here in ’19, but that is better recovery,” he said.

Future of the Market

Although 2023 levels aren’t projected to return to 2019 levels, San Francisco is on pace for continued, but slow, growth.

“[There are] reasons to be optimistic — maybe not bullish, but optimistic,” Sandoval said. “Comparatively, you’re not recovered to ’19 levels, but just much more substantial performance [on the books in 2023] than you had in ’22.”

Schlageter said he projects stabilization will come in the market in either 2024 or 2025, when hopefully international travel and convention center activity pick up.

An often-used term coming out of the pandemic was: “This is the new normal.” Cruz said she’s over that saying and adjusted it to be more forward-looking.

“In terms of the Bay Area … I just stopped saying that. I said, ‘It’s going to be the next normal. Whatever comes, that’ll be the new norm. Whatever the next factor is, then that’s going to be the next norm.’ It’s being able to adapt and adjust to what we’re able to do,” she said.

Island Hospitality promotes Kate Bleakley

Island Hospitality Management has promoted Kate Bleakley to VP/operations, WaterWalk division.

“With nearly two decades of hospitality experience, Kate joined our organization four years ago at the Residence Inn Denver Downtown and had an immediate impact on the service culture and profitability of that hotel,” said Drew Allison, EVP, Island Hospitality Management. “In her most recent role at the Hyatt Place Cherry Creek, Kate utilized her background in sales and F&B to make immediate, positive changes for the property and the people with whom she works. She is the ideal candidate to use her wide bandwidth of skills to lead our growing WaterWalk division.”

Prior to joining Island, Bleakley held multiple positions with Millennium Hotels & Resorts, including hotel manager of Millennium Harvest House Boulder, where she managed all aspects of the 16-acre, 269-room property to produce annual revenues of $10 million.

Island Hospitality takes over Yonkers Hampton Inn

Island Hospitality Management is set to operate the 150-room Hampton Inn & Suites Yonkers, N.Y.

The hotel is close to St. John's Riverside Hospital and Elizabeth Seton Children's Center, as well as Optimum, Consumer Reports and the Empire City Casino. It has an indoor pool, a 24/7 fitness room, 920 square feet of flexible meeting space and a full-service business center.

“The Hampton Inn & Suites Yonkers marks our second Empire State addition within the past month and a half as we see our nationwide third-party management portfolio continue to grow,” Gregg Forde, president and COO of Island Hospitality Management, said in a statement. “As we draw closer to the end of 2022, we look forward to another year of continued growth. We enjoyed tremendous success this past year, expanding our portfolio with several different brands in multiple markets from coast-to-coast and look to continue that momentum moving into 2023.”

Changing Behaviors Give US Hoteliers Optimism About Group Demand Recovery

Hoteliers across the U.S. are looking ahead to the next phase of group travel recovery with optimism, though some questions still remain around certain demand segments.

Executives of publicly traded hotel companies and real estate investment trusts in the second quarter of 2022 predicted bright spots for group travel recovery through the remainder of the year.

And during the recent 2022 Lodging Conference, Chip Ohlsson, executive vice president and chief development officer for Wyndham Hotels & Resorts, said he anticipates a boom in group travel is on the horizon.

With the new year approaching, Hotel News Now checked in with hoteliers on where their optimism stands today, which groups are traveling and projections for the future of the group segment.

Island Hospitality

Mark George, senior vice president of sales and marketing at hotel management company Island Hospitality, said there's plenty of conversation around there being a boom in group demand, and his company is "waist deep in that."

So far this year, Island Hospitality has achieved a more than 100% increase in group production from 2021, he said.

George said that a natural slowdown in group travel will occur as it gets closer to the holidays, but the segment will ramp back up in January.

"There's no reason to believe, in the way we budgeted for next year, all the conversations we're having as far as pricing is concerned, that it doesn't continue into 2023," he said. "In fact, my national sales team, who handles a lot of tour travel, corporate group, weddings [is] inundated. I approve leads six, seven, eight times a day."

George said the top three group demand segments cropping up across his company's portfolio are social, sports and corporate.

"Corporate is the one that we didn't necessarily see as being robust but it's the No. 1 ... [a] 240% increase in production over the prior year," he said.

Within the corporate group travel segment, George is noticing a pickup in company retreats. Employers are also using these retreats as opportunities to come together and talk about lessening the environmental impact and supporting local businesses.

Because of such high demand from group travelers now, he said "the hotel is in great negotiating position."

George is finding that groups are more open to splitting up and booking at two different properties, whereas in the past that was never an option.

"You never would have gotten that out of somebody, it was 'Nope, put them all on the same floor, in the same hotel, same rate,'" he said.

Twenty Four Seven Hotels

Hannah Huse, vice president of sales and marketing at investment, development and management company Twenty Four Seven Hotels, said her company's portfolio of hotels is achieving more consistent demand from social and sports groups in 2022.

"There's still corporate accounts that are being cautious with business transient," she said, adding that looming rate increases by the Federal Reserve are a factor, too. "We'll continue to see gradual improvement in our mix of sales, but not without a proactive approach at educating our customers ... about the why behind our pricing."

In terms of corporate travel, she said most of the major brands had rollover pricing from 2019, and this is the first year her team is having to negotiate and readdress it.

Huse said sports and social blocks this year are increasing over 2019 levels in terms of requests for proposals and pickup.

"What's interesting still, going back to the corporate mix ... in quarter three of this year, 45% of our group business booked came from group corporate. In 2019, it was 53%. We're still down about 8% in corporate but we're seeing the return of training, conferences and project opportunities," she said.

Bookings, however, are still short-term at around 90 days or less, she said. Most of what's added on the books are in the month for the month.

Huse said guests will also need to be reeducated on why they should book room nights in advance.

"Our guests have been accustomed to [thinking] they can get in last minute when they need to ... that's going to change," she said.

Huse said a source of demand that Twenty Four Seven Hotels' collegiate market hotels continue to benefit from is university housing blocks, which weren't seen prior to the COVID-19 pandemic.

"That I thought would be a shorter-term solution. But we continue to get student housing, even into 2023, to accommodate regulations and demand for students on campus without dorms," she added.

For Twenty Four Seven Hotels, Huse said the definition of group travel hasn't changed. The 10-room minimum is still the rule of thumb. For extended-stay group base, it's still five rooms for five or more nights.

"In terms of what we're projecting and how we're budgeting for 2023, we are adding more into our budgets but building in that ramp. So quarter one will be higher than 2022; we'll continue to increase that projected group throughout the year," she said.

Hospitality Ventures Management Group


Kim Brooks-Martin, corporate director of sales strategy and development at Hospitality Ventures Management Group, said hotels in HVMG's portfolio are experiencing a "very healthy recovery" in group business.

By 2024, her team fully expects that hotels in the top 25 markets will be "beyond recovered and into the next phase of what group activity is going to look like for the future," she said.

Wedding bookings, for example, "have gone off the charts," she added. It's now back to the point where wedding groups are booking a year out, which is the more traditional method. In the past few years, these groups were booking "next week, next month, next six months," she said.

This will also be the first year since the onset of the pandemic that group travel around holiday events resumes, she said, and many of HVMG's hotels are focusing on that demand segment this year.

A big question mark, however, remains with the return of association business. While associations are coming back, they are at the mercy of their ability to attract sufficient attendance, Brooks-Martin said.

The sweet spot now in terms of group size ranges from 15 to 50 rooms, she added. Her team is not yet seeing that 100-200 person attendance yet.

Brooks-Martin said it's important for the hotel industry to reach out to small and midsize companies. Previously, those companies might have been put on the back burner.

"Small and midsize companies far greater than the top 100s have been the ones that have really initiated the recovery," she said. "I've certainly urged our field to not only applaud but to develop [those relationships]."

In terms of booking windows around corporate groups, HVMG is not yet booking the next two years' annual events or next fall's events.

"I think it's two-fold. Nobody knows what the future holds, and when you're expected to sign a contract, there's a lot involved," she said. "As long as hotels are further developing the relationship with those planners who are making new commitments, there will be those rebookings."

Island Hospitality to manage New York hotel

Island Hospitality Management has assumed operations of the 143-room Hilton Garden Inn Westchester Dobbs Ferry in New York, bringing Island’s portfolio of third-party operated hotels to 83 nationwide.

Island Hospitality Management has assumed operations of the 143-room Hilton Garden Inn Westchester Dobbs Ferry in New York, bringing Island’s portfolio of third-party operated hotels to 83 nationwide.

“The Hilton Garden Inn Westchester Dobbs Ferry expands our Eastern reach, marking our seventh hotel in New York,” Gregg Forde, Island Hospitality's president and COO said in a statement. “This growing concentration provides us with the ability to more easily share best practices and enact economies of scale with our sister properties in the area. Following the implementation of our proprietary management and marketing systems, we are confident the Hilton Garden Inn will take its rightful place as the market and segment leader.”

Better Visibility into 2023 Helps Normalize Hotel Budgeting Process

The recovery of the U.S. hotel industry from the COVID-19 pandemic has progressed to the point that many hoteliers budgeting for 2023 can see some return to normal.

The recovery of the U.S. hotel industry from the COVID-19 pandemic has progressed to the point that many hoteliers budgeting for 2023 can see some return to normal.

The overall lack of visibility because conditions were changing daily meant hoteliers were less than sure about setting budgets the way they had always done before. As they look ahead to next year, however, they do so with greater clarity, higher levels of demand and strong rate growth.

Changes to the Process

The pandemic changed the way Hospitality Ventures Management Group has approached its budgeting process in recent years, said Richard Jones, senior vice president and chief operating officer. Though the industry is still recovering, this year is different from last year, so the company continues to adapt to the realities of the market as there are different levels of recovery for each hotel.

The biggest change is the degree of visibility and greater confidence in expectations heading into 2023 compared to this time of year in 2020 and 2021, he said.

Though there’s never a guarantee or perfect view of the future, HVMG believes there’s enough visibility now to return to its budgeting process used before the pandemic, Jones said. It will use a bottom-up budget strategy in which general managers and leaders in the field drive the process and tell HVMG and hotel owners their expectations for the full potential of their hotels. During the height of the pandemic, the company used a more top-down strategy.

“We’re going back to build it from the bottom up, build it from the ground where the team on the ground has the best intelligence; they have the best read on what’s going on in the market,” he said. “They’re the best-qualified and positioned to tell you what the potential is.”

While the scheduling hasn’t changed much, Twenty Four Seven Hotels is using different metrics to look at baselines and benchmarks, said Isaac Rodriguez, senior vice president of revenue strategy and distribution. Most of its hotels are establishing new trends or getting back to pre-pandemic patterns, including some hotels where the company is not using 2019 as a benchmark anymore.

“There’s some hotels that have created new trends, and that new baseline is more focused on 2021,” he said.

Island Hospitality’s budget process for 2023 has mostly normalized to how it set up budgets before the pandemic, President and COO Gregg Forde said. At this stage, the company is forecasting 2023 top-line revenue and looking at expenses at the macro level.

The biggest challenge over the last couple of years has been that there were so many what-ifs, he said. Going into this year, the expectations were that things would look a little more like performance before the pandemic, but the omicron variant disrupted that. However, the recovery of 2022 was generally stronger than what was expected at this time of year in 2021.

“The process this year going into ’23 probably looks more like it ever has to that pre-pandemic time because there’s less of the unknowns,” he said. “You’re able to gauge 2023 expectations a little bit better than obviously we could do the last couple of years.”

Revenue Expectations
Dan Paola, vice president of operations at Raines Company, said he expects to see a moderate increase in average daily rate and occupancy for the full year, leading to higher revenue per available room. Destination markets, such as Charleston, South Carolina, and Nashville, Tennessee, will likely be able to increase ADR and see some softer occupancy demand. He added he expects the interstate properties will perform similar to how they did this year.

There has been a spike in fall sports and group bookings, and that bodes well for a stronger group segment in 2023 even if the traditional business transient segment isn’t matching 2019 levels yet, he said.

“But man, I’ll say I’ve been out flying around and traveling, and there’s a lot of business travel back,” Paola said. “It’s good to see. It’s exciting to see.”

The best business plan is one that is aggressive yet achievable in which everyone delivers the full potential of their hotel in its market, Jones said. HVMG has put a lot of focus in forecasting the markets and driving market share growth and optimizing market share performance.

The company has a number of hotels and resort destinations that have been far outperforming the industry over the last couple of years, he said. It also has urban, corporate and group hotels that have been lagging.

There will be a gradual return to the long-run average level of performance for resort and leisure destinations, Jones said. While they will continue to outperform, it may not be to the level they did this year and last. The company is confident there will be a gradual return of business travel and continued strengthening in group business recovery.

“Those hotels in those markets that have been lagging the industry recovery over the last couple of years, we’re going to expect them to outperform the average industry number in 2023,” he said. “We’re going to challenge ourselves and challenge our teams to get every ounce of market share that they can as those other segments of demand come back.”

Most of Twenty Four Seven Hotels' properties will find revenue growth opportunities through a mix of sales, Rodriguez said. The company has been hyper-focused on its mix of sales by season and using last year as benchmark to improve that mix. It will also strive for more retail bookings and less on discount channels.

The company anticipates most of its annualized occupancy will be similar to where it is, he said. But there are some hotels in certain markets that still have the opportunity to further recover.

“For the most part, the occupancies are more or less where we’d like it to be from a model perspective,” he said. "We just really want to improve that average daily rate.”

Looking at the forecasts for 2023, there’s no continuing rebound on the occupancy side, so the overall direction for next year is ADR growth, and those expectations are in the double-digit range compared to 2019, Forde said. Any industry forecasts show that range for next year.

“I don’t think there’s anything at this stage that says we don’t look to be within those forecasts as well,” he said.

Spending Priorities
Raines performed a lot of deferred maintenance this year, and there’s still some more capital expenditures it will need to do next year, Paola said. The brands have been pushing property-improvement plans, and some of those will come to term in 2023.

The work will likely be what the hotels wanted to get to this year but couldn’t yet, such as tile and grout or resurfacing pools, he said. Other projects may be work the Raines held off on until the hotels recovered further.

Given the inflationary environment, the increase in ADRs will help to absorb some of the rising costs, Paola said.

Labor will definitely be front and center in accounting for HVMG’s expenses next year, Jones said. The company has been staying close to what’s going on in the market to be competitive with wages and benefits. The goal is to be the preferred employer in every one of its markets.

“That wage inflation is definitely putting the greatest pressure on the [profits and losses report],” he said.

HVMG is doing everything it can to find ways to improve its labor productivity and efficiencies to offset that pressure as much as possible, Jones said. That could be through several avenues, such as technology or consolidating management positions in markets with multiple hotels. It has centralized a number of services to take some pressure off the execution at the hotel level and get economies of scale above property level.

“We’re really doing our best to stay competitive and be able to keep our hotels properly staffed and, at the same time, find efficiencies through operational strategies and technologies as much as possible,” he said.

There’s a renewed interest in automation technology to help deal with staffing shortages, Rodriguez said.

“We definitely want to make sure that we have a new focus on systems and system automation,” he said. “Whether it needs to be in finance, revenue, our sales process and tracking — we’re trying to make a lot more headway in automation.”

Twenty Four Seven Hotels is also having photos taken of its properties to have new pictures put online to go along with their direct booking campaigns, he said. It will also invest more in its food-and-beverage programming as a way to elevate the guest experience and create more revenue opportunities, particularly at properties where there’s not much opportunity to raise rates further.

Island Hospitality Management Assumes Management of Three WaterWalk Properties to Expanding Portfolio

Officials of Island Hospitality Management, the premier third-party management company for select-service and upscale, extended-stay hotels in the United States, announced today that the company has added three WaterWalk properties with two different ownership groups to its ever-growing, nationwide portfolio. The properties are located in Centennial, Colo., and San Antonio and Richardson, Texas.

“WaterWalk, a unique lodging option that combines the conveniences of a hotel with apartment-style living, perfectly complements our extended-stay expertise,” said Gregg Forde, president and COO, Island Hospitality Management. “The brand provides fully-furnished corporate apartments with upscale amenities for a few nights or several months, as well as unfurnished apartments with flexible lease terms, perfect accommodations intended to meet individualized, short- to long-term lodging needs. With the addition of these properties in the Southwest, we currently operate the entire portfolio of WaterWalks throughout the U.S. We look forward to continuing partnering and growing with the brand and its franchisees as they maintain their own, steady expansion paces.”

WaterWalk San Antonio at the Rim

Located at 5423 North Loop 1604 West, the WaterWalk San Antonio at the Rim provides guests with multiple room sizes and layouts. Amenities include a 24/7 fitness center, outdoor pool, outdoor grilling/BBQ area, high speed internet access, grocery/breakfast delivery service and weekly housekeeping. The pet friendly accommodations also maintain a pet walking area. The staffed front desk oversees secure access to the building, as well as 24-hour check-in services.

WaterWalk Denver Tech Center

Situated at 11400 E. Peakview Avenue, the WaterWalk Denver Tech Center offers extended-stay suites, as well as one-, two- and three-bedroom fully furnished apartment layouts with free breakfast and weekly housekeeping. Residents can enjoy free parking, a state-of-the-art fitness center, outdoor grilling/BBQ area, activity programs, grocery delivery service and high-speed internet connectivity. Pets are welcomed at the fully staffed property, which includes 24-hour check-in and concierge services.

WaterWalk Dallas-Richardson

Nestled at 2210 North Glenville Drive, the WaterWalk Dallas-Richardson units feature DirecTV with premium channels, in-suite washer/dryer, 24/7 concierge service, a personalized breakfast experience, granite counters and balconies. The property also provides an outdoor seasonal swimming pool, complimentary Wi-Fi, coffee & tea bar, fitness center, outdoor cooking space and business center. The WaterWalk also offers 24-hour concierge, dry cleaning and grocery delivery services.

About Island Hospitality Management
Headquartered in West Palm Beach, Fla., Island Hospitality Management is a leading, national, third-party, independent management company. It operates more than 75 hotels under 15 different brands, primarily premium, select-service hotels; upscale, extended-stay properties; and upscale hotels, in 25 states and the District of Columbia. Additional information is available on the company's Web site, www.islandhospitality.com.

Island Hospitality Management Assumes Operations of the Hilton Garden Inn Destin Miramar Beach in Florida

Officials of Island Hospitality Management, the premier third-party management company for select-service and upscale, extended-stay hotels in the United States, announced today that the company has taken over operations of the 111-room Hilton Garden Inn Destin Miramar Beach in Fla., on behalf of Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on investing in upscale, extended-stay hotels and premium-branded, select-service hotels.

“We continue to expand our third-party management footprint throughout the Southeast, with the Hilton Garden Inn Destin Miramar Beach marking our seventh hotel in Florida,” said Gregg Forde, COO, Island Hospitality Management. “With our headquarters in West Palm Beach, we have an obvious and special affinity for the Sunshine State and are intimately familiar with the marketplace. Having recently opened in 2020, the hotel retains a ‘like-new’ feel that will serve leisure and business travelers well, and its walking distance from the Gulf of Mexico is sure to entice beachgoers of all stripes.”

Located at 220 Scenic Gulf Drive, the Hilton Garden Inn Destin Miramar Beach is situated just off Highway 98. Within a five-minute drive of Silver Sands Premium Outlets in the Florida Panhandle, the hotel is surrounded by world-class parasailing, golf and fishing. Guest rooms feature a microwave and small refrigerator, 27 of which are enhanced with Gulf-view balconies. Additional hotel amenities include outdoor pool, 24/7 fitness center, state-of-the-art business center and approximately 900 square feet of meeting space. Guests may choose to dine in the Garden Grille & Bar serving a variety of small plates and specialty cocktails or order room service.

About Island Hospitality Management
Headquartered in West Palm Beach, Fla., Island Hospitality Management is a leading, national, third-party, independent management company. It operates more than 75 hotels under 15 different brands, primarily premium, select-service hotels; upscale, extended-stay properties; and upscale hotels, in 25 states and the District of Columbia. Additional information is available on the company's Web site, www.islandhospitality.com.

Mission Hill Hospitality Acquires Dual-Branded Residence Inn and Fairfield Inn & Suites Boston Waltham

Mission Hill Hospitality, a KSL Capital Partners portfolio company focused on transforming select-service and extended-stay hotel investing, announced it has acquired the Residence Inn and Fairfield Inn & Suites Boston Waltham in Massachusetts. Island Hospitality, the premier third-party management company for select-service and upscale, extended-stay hotels in the United States, will operate the hotels on behalf of Mission Hill Hospitality. These are the 17th and 18th hotels added to the Mission Hill Hospitality portfolio since the company was launched 12 months ago. Terms of the deal are undisclosed.

“We are very pleased to acquire recently built hotels of such high caliber, affiliated with industry-leading Marriott brands. The Boston-area biosciences and technology sectors are rapidly growing, and we are excited to expand our portfolio with an investment in this area,” said Mark Fraioli, Managing Director, Mission Hill Hospitality.

Located about 10 miles west of Boston, Waltham is a top corporate market for bioscience and technology, featuring more than 23 million square feet of office and lab space, with vacancy rates below 10 percent. The Waltham market also benefits from to the presence of Brandeis and Bentley Universities, which have a combined enrollment of more than 10,000 graduate and undergraduate students.

The five-story, 192-key Residence Inn and Fairfield Inn & Suites Boston Waltham was built in 2018 as a single-building, dual-branded hotel featuring enhanced lobby and lobby bar space, an indoor swimming pool and the newest extended-stay guestrooms in the market. Residence Inn features king studios with kitchens and modern workspaces; Fairfield Inn & Suites offers guests king or queen rooms and one-bedroom suites.

“With our specialization in operating extended-stay hotels and our deep experience in the New England market, we are uniquely prepared to quickly hit the ground running to continue driving improvements to the profitability of the Residence Inn and Fairfield Inn & Suites Boston Waltham,” said Gregg Forde, COO, Island Hospitality Management. “With these new additions, we currently manage five sister properties in Massachusetts and nine throughout New England. Our local expertise and ability to share knowledge and other intangibles will benefit the hotels as the hospitality industry continues to recover from the pandemic.”

The hotels are located at 250 Second Avenue, highly visible from I-95/Rt 128 and close to plentiful dining and entertainment options. Featuring a walkable, historic downtown core, Waltham offers travelers choices of 125 restaurants, bars and pubs. The hotels are also near multiple leisure attractions, including the Charles River Museum of Industry and Innovation, the National Archives at Boston, the Robert Treat Paine Estate and the Leonard Bernstein Festival of the Creative Arts at Brandeis University.

About Island Hospitality

Headquartered in West Palm Beach, Fla., Island Hospitality Management is a leading, national, third-party, independent management company. It operates more than 75 hotels under 15 different brands, primarily premium, select-service hotels; upscale, extended-stay properties; and upscale hotels, in 25 states and the District of Columbia. Additional information is available on the company’s Web site, www.islandhospitality.com.

About Mission Hill Hospitality
Mission Hill Hospitality is a company created to invest in the select service and extended stay hotel sector. The Denver-based firm focuses on value-add and development projects that present significant opportunity given market and economic conditions.

Mission Hill Hospitality brings together a dedicated team of investment professionals with decades of extensive experience in lodging across product types and provides a wide range of expertise across functions including operations, asset management, acquisitions, development, and capital markets. For more information visit http://missionhillhospitality.com.

Wheelock Street Capital Announces Acquisition of Two Premium Limited Service Hotels in San Diego, California

Wheelock Street Capital announced it has acquired two premium limited service assets in San Diego’s Gaslamp Quarter, the Courtyard by Marriott San Diego Gaslamp located at 453 Sixth Ave., and the Moxy San Diego Downtown/Gaslamp Quarter, located at 831 Sixth Ave. from San Diego based J Street.

Purpose built and well located in San Diego’s Gaslamp Quarter, the 90-room Courtyard and 126-room Moxy are a short walk from the San Diego Convention Center, Petco Park, and over 3 million square feet of commercial development in planning or currently under construction Downtown. The Courtyard features a popular rooftop bar and event space, the Nolen, which offers panoramic views of the San Diego skyline.

In addition to a longstanding reputation as a vibrant urban center known for its activities and tourism, San Diego has experienced appreciable residential and commercial growth over the last several years, solidifying the city’s place as a national hub for the life science industry and a major West Coast convention destination. On the heels of strong leisure-driven lodging demand during the second half of 2021, convention activity resumed in early 2022, and a robust forward-looking calendar of events supports Wheelock’s positive outlook on the market.

Island Hospitality, one of the leading hospitality managers in the U.S. with an existing portfolio of over 75 hotels and a significant existing presence in California will assume management responsibilities under Wheelock’s ownership.

The acquisition marks Wheelock’s return to the San Diego hospitality market, having previously owned the Courtyard San Diego Downtown, Marriott Mission Valley and Hilton Del Mar. “The properties are an excellent fit for our current acquisition criteria given their institutional quality, A+ locations within the Gaslamp Quarter, and strong positioning within a market exhibiting a rapid recovery fueled by multiple demand generators,” stated Chris Mejia, Principal at Wheelock Street Capital. “The market and properties continue to outperform our expectations and we look forward to working together with Island Hospitality to further enhance the properties’ positioning as first choices among convention, business, and leisure travelers visiting San Diego.”

CBRE Group, Inc. (“CBRE”) arranged the sale of both hotels.

About Wheelock Street Capital:

Wheelock Street Capital was formed in 2008 by Rick Kleeman and Jonathan Paul, two veteran real estate private equity investors, each with over 30 years of broad real estate transaction experience across all major asset classes. Wheelock has raised over $5 billion in capital commitments from well-known institutional investors and focuses on real estate investment opportunities throughout the United States, in both public and private markets. Wheelock is currently deploying its seventh fund in its value-added series, Wheelock Street Real Estate Fund VII and its first perpetual life fund, Wheelock Street Long Term Value Fund. The Firm may invest directly or with high quality joint venture partners through a variety of capital structures and transaction types, including acquisitions, restructurings, and recapitalizations. Wheelock’s investment team benefits from extensive experience from top-tier institutional investment firms and highly regarded real estate operating companies and has produced a 14-year track record of demonstrated and consistent outperformance over industry benchmarks.

About Island Hospitality Management

Headquartered in West Palm Beach, Florida, Island Hospitality Management is a leading, national, third-party, independent management company. It operates more than 75 hotels under 15 different brands, primarily premium, select-service hotels; upscale, extended-stay properties; and upscale hotels, in 25 states and the District of Columbia

Gregg Forde Promoted to President & COO of Island Hospitality Management

Officials of Island Hospitality Management, the premier third-party management company for select-service and upscale, extended-stay hotels in the United States, announced today that the company has promoted Gregg Forde to president. In his new role, he will oversee the company’s day-to-day operations and overall strategic vision.

"Gregg has spent nearly two decades with Island, helping to grow and shape the company into the leading third-party management we are today,” said Jeffrey H. Fisher, founder and principal, Island Hospitality Management. “From area director to chief operating officer, Gregg has been with us virtually every step of the way. Under his tutelage, Island has elevated its overall performance in all respects, from our human capital and training to the growth of our propriety information systems and programs. His focus on ownership and their priorities has helped drive the industry leading results we achieve. Gregg is directly responsible for so much of our growth to-date and in his new role will lead us to reach even greater heights."

Forde began his hospitality career on the front desk and in housekeeping with Marriott International with ascending roles over the following years. He joined Island Hospitality in 2003 as an area director of the company’s Silicon Valley hotels. He has held a series of increasingly important roles within the organization, including regional vice president, senior vice president of operations and executive vice-president/chief operating officer before this promotion. He received his Bachelor of Arts with a dual major in Political Science and Philosophy from Edith Cowen University.

"Having dedicated the vast majority of my career to Island, I am humbled to be named president of this thriving organization,” Forde said. “My goal is to make Island one of the most highly sought after places to work in the hospitality industry for team members while simultaneously being known as a true partner to owners, and I look forward to working with this fantastic group of professionals to meet and exceed those targets."


About Island Hospitality Management
Headquartered in West Palm Beach, Fla., Island Hospitality Management is a leading, national, third-party, independent management company. It operates more than 75 hotels under 15 different brands, primarily premium, select-service hotels; upscale, extended-stay properties; and upscale hotels, in 25 states and the District of Columbia. Additional information is available on the company’s Web site, www.islandhospitality.com.

Island Hospitality Management Adds 11 Hotels During 2021

Officials of Island Hospitality Management, the premier third-party management company for select-service and upscale extended-stay hotels in the United States, announced today that the company added 11 hotels to its third-party management portfolio during 2021. 

“While 2021 had more than its fair share of ups and downs, Island was able to achieve stronger-than-industry RevPAR as we simultaneously grew our portfolio by almost 20 percent,” said Gregg Forde, COO and EVP, Island Hospitality Management. “This allowed us to expand our reach into six different states from coast-to-coast as we added 1,417 rooms. We entered five new markets, including Ashburn, Va., Jacksonville, Fla., Lansdale, Pa., Woodland Hills, Calif., and Linthicum Heights, Md., as well as enlarged our footprint in Austin, Texas, and Charlotte, N.C., with a mixture of Hilton- and Marriot-branded hotels. This brought three Homewood Suites, two Residence Inns, one Embassy Suites, one Courtyard, one Hilton Garden Inn, one TownePlace Suites, one Home2 and one Aloft to our growing portfolio of primarily premium, select-service hotels; upscale, extended-stay properties; and upscale hotels.

“While we expanded our relationships with existing owners within our portfolio, we also began working with new owners who are keen to capitalize on our proven ability to maximize profitability,” Forde noted. “To achieve our overall growth goals, we will continue to pursue this multi-track approach. Not only are our longtime partners asking us to grow with them, but new groups have seen our results and want us to do the same for their hotels, which we believe demonstrates the value proposition we bring to the table every time.

“2022 already is off to a strong start,” Forde added. “Our pipeline remains full, and we expect to maintain our healthy expansion focus.”

About Island Hospitality
Headquartered in West Palm Beach, Fla., Island Hospitality Management is a leading, national, third-party, independent management company. It operates more than 75 hotels under 15 different brands, primarily premium, select-service hotels; upscale, extended-stay properties; and upscale hotels, in 25 states and the District of Columbia. Additional information is available on the company’s Web site, www.islandhospitality.com.

Island Hospitality Management Takes Over Management of 170-Suite Home2 Suites by Hilton Woodland Hills Los Angeles

Officials of Island Hospitality Management, the premier third-party management company for select-service and upscale extended-stay hotels in the United States, announced today that it has taken over management of the 170-suite Home2 Suites by Hilton Woodland Hills Los Angeles.

“We continue to specialize in quality assets in markets with high barriers to new entry with multiple demand generators that are better able to weather market fluctuations,” said Gregg Forde, COO and EVP, Island Hospitality Management. “The Home2 Suites by Hilton Woodland Hills Los Angeles marks our third Home2 and our 30^th Hilton-branded property in a state where we’ve operated successfully for many years. Our familiarity with the brand and the area will allow us to ramp up the hotel more expeditiously as we are able to share best practices and economies of scale. This will allow us to better serve the business and leisure guests who seek the additional space and amenities provided by an extended-stay product like the Home2.”

Located in Woodland Hills at 21110 West Oxnard Street, the hotel is situated in the heart of Warner Center, with 10 million square feet (SF) of office space with approximately 50,000 employees, almost 8 million SF of retail space and is home to more than 20,000 residents. The seven-story hotel is also a short drive from Topanga State Park, Universal Studios Hollywood and the beaches in Malibu. Hotel amenities include a heated indoor pool, state-of-the-art business center, 24/7 fitness center, complimentary, hot breakfast, free Wi-Fi and 342 square feet of event space. Guest rooms contain separate living, sleeping and dining areas, complete with a fully stocked kitchen, oversized workspace and plush beds. The hotel benefits from tenured personnel produced by Island’s Pathways Program, with a combined total of over 20 years’ experience at Island Hospitality Management between the general manager, director of sales and director of rooms.

Guests may dine at the hotel’s newly opened “Toasted Barrel,” the second outpost of Island Hospitality’s homegrown F&B concept that can be described as an all-American bourbon forward restaurant. The 1,200 square foot, 20-seat bourbon bar serves locally sourced beers and wines, as well small plate meals. The F&B outlet specializes in grilled cheese sandwiches, ranging from brisket grilled cheese to kimchi grilled cheese to a version layered with smoked bacon, gouda and maple syrup. With more than 60 bourbons from which to choose, the bar’s signature drink, the Smoky Deal, is crafted with bacon-infused bourbon, maple syrup and bitters.

About Island Hospitality

Headquartered in West Palm Beach, Fla., Island Hospitality Management is a leading, national, third-party, independent management company. It operates more than 75 hotels under 15 different brands, primarily premium select-service hotels, upscale, extended-stay properties and upscale hotels, in 25 states and the District of Columbia. Additional information is available on the company’s Web site, www.islandhospitality.com.

Island Hospitality active in its 35th year

Island Hospitality’s 35th year has been a busy one—from a new management relationship with WaterWalk to adding new properties and working to retain its employees during the labor crunch.

Island Hospitality’s 35th year has been a busy one—from a new management relationship with WaterWalk to adding new properties and working to retain its employees during the labor crunch.

Earlier this year, Island Hospitality Management entered into a partnership with WaterWalk, a flexible accommodations hotel brand designed to offer customized guest experiences with apartment-style suites. The company serves as the manager for six of the brand’s properties across six different markets including Wichita and Overland Park, KS; Dallas; Raleigh, NC; Charlotte; and Minneapolis.

In addition to managing some of WaterWalk’s properties, Island Hospitality is consulting with the company as it begins its next growth cycle. “They’re essentially a new innovation in the hotel space,” said Gregg Forde, EVP/COO, Island Hospitality. “When they were in their early stages and looking for a partner from the management side so that they could bring this new innovative brand to fruition, they reached out to us. Our core business is upscale select-service, and specifically extended-stay. They’re on the cusp of really growing their portfolio and their brand. We feel really privileged to be an early partner in that and their growth will likely lead to growth for us as well.

The apartment-style hotel has the same amenities one might find in a traditional extended-stay property, but with a few differences, including both furnished and unfurnished one-bedroom, two-bedroom and three-bedroom spaces. “They’ve really created amazing flexibility around the product offering,” he said. “Combined with that, you have the amenities of a hotel, where you have a fitness center, beer and wine on tap in the lobby space and other amenities. They continue to innovate and grow a unique brand concept as they go.”

New additions

Island Hospitality also added several other hotels to its portfolio, and now serves as the third-party management company for two Austin-based properties located at The Domain, a mixed-use complex where Amazon, Meta (formerly Facebook) and IBM have offices. The hotels, acquired by Chatham Lodging Trust in August 2021, include the 132-key Residence Inn Austin Northwest/The Domain Area, which opened in July 2016, and the 137-key TownePlace Suites Austin Northwest/The Domain Area, which opened in June 2021.

Forde also noted that the company moved into new markets after taking over management of three properties in Landsdale, PA, and Ashburn, VA, totaling 414 guestrooms and 12,500 sq. ft. of meetings space. The additions to the company’s portfolio include the 170-room Homewood Suites by Hilton Landsdale, the 90-room Homewood Suites by Hilton Dulles-North/Loudoun and the 154-room Embassy Suites by Hilton Dulles North Loudoun.

Retaining employees

While many companies lost employees during the pandemic, Forde said Island was able to retain many on the managerial level because of its focus on training and development. “We’ve been very fortunate about going through a pandemic—where there have been many challenges around the labor environment,” he said. “Our backbone is training and development. Our Pathways program proved to be a real benefit to our organization with some amazing retention at the managerial levels, and helped us as an organization work through that.”

The Pathways program, which has been in place for more than 15 years, is the company’s training and mentorship program focused on fostering internal growth and development, and creating a path for employees that leads to management both at a property and corporate level, according to Forde, who added, “Over the past five years, Pathways has demonstrated 90% employee retention rates that have guided Island Hospitality’s short- and long-term goals of building a balanced, educated and empathetic team of hospitality professionals.”

He continued, “Our industry is by nature a highly transient one. If you look at anything about employee satisfaction, employee retention always goes to how you provide growth, how you provide opportunities and how you make people feel great about where they work.”

The company has made investing in the development of employees a cornerstone of its business. “It is a leading principle for us,” said Forde. “That shows in a couple of different places, whether that’s retention at the managerial level, or just by the number of managers, middle management and upper-management who started in the hotels the company has owned and operated. They continue to work with the company for five, 10, 15 years. That has a positive impact on the company from a culture standpoint and on a results basis.”

New developments

While Forde said he is excited about several of the company’s latest developments, he is particularly interested in the new Home2 Suites by Hilton Woodland Hills Los Angeles set to open this month in Los Angeles’ Warner Center neighborhood. “It is a fantastic location, fantastic looking property,” he said. “I think it’s amazing.”

The seven-story, 170-room hotel will include contemporary design, with amenities including a fitness center, saltwater swimming pool, meeting spaces and city views from all public spaces.

What is also exciting for Forde is that the property will include the second outpost of Island Hospitality’s homegrown F&B concept Toasted Barrel, described as “an all-American, bourbon-forward” restaurant designed to infuse local flavors and influences.

The Toasted Barrel concept was launched in 2018 at its SpringHill Suites by Marriott Savannah Downtown hotel by transforming an underutilized event space into a contemporary 36-seat bourbon bar. The bar was so successful in its first year, delivering a 24% ROI and drawing a local Savannah crowd, that Forde said the company began to look at other underperforming spaces within its hotels that could similarly enhance existing branded hotel outlets and create locally driven F&B experiences reflective of the destination.

Island plans to bring more locations of Toasted Barrel to its properties in the coming year. “Transitioning these underutilized spaces within these hotels is anticipated to increase individual property revenue and add value to the overall guest experience at select-service and extended-stay properties that traditionally haven’t been known as destinations for food & beverage,” he said.

While the year has been a challenge, Forde said he is ready for what the future holds for the company, adding, “With our 35th year being the most challenging to date, I am so proud of our team to be able to manage through adversity, meet the many new challenges in our industry and perform at a high level as we look forward to continue building on the first 35 years of the company.”

Island Hospitality Management Announces New Developments Ahead of 2022

Island Hospitality Management, the premier third-party management company for select service and upscale extended stay hotels in the United States, is commemorating 35 years with the announcement of new property additions to its portfolio of more than 70 North American hotels.

“Although the hotel industry has seen many changes over the last 35 years since we opened our first Hampton Inn, our focus has always remained the same – be innovative and maximize top and bottom-line performance, while at the same time develop our associates from within and promote a company culture that benefits all our constituents,” says Jeffrey H. Fisher, Founder and Principal of Island Hospitality Management. “As we look forward, we continue to see new and exciting growth opportunities to expand our footprint within the industry and continue to put relationships with our associates and owners at the forefront of all we do.”

NEW HOTELS TO THE COLLECTION

This year, Island Hospitality added new hotels to its portfolio, now serving as the third-party management company for two Austin-based properties located at The Domain, a mixed-use complex where Amazon, Meta (formerly Facebook), and IBM have offices. The hotels, acquired by Chatham Lodging in August 2021, include the 132-room Residence Inn Austin Northwest/The Domain Area, which opened in July 2016, and the 137-room TownePlace Suites Austin Northwest/The Domain Area, which opened in June 2021.

Additionally, Island Hospitality is emerging in new markets as it has been selected to manage three properties in Landsdale, PA and Ashburn, VA, totaling 414 guestrooms and 12,500-square-feet of meetings space. Hotel additions to the company’s portfolio include the 170-room Homewood Suites by Hilton Landsdale, minutes from Valley Forge National Historical Park, featuring spacious suites with in-suite kitchens and complimentary breakfast seven days a week. As Island Hospitality takes the reigns, the hotel will enter a new chapter in 2022 with plans for a total property renovation. Additional hotels include the 90-room Homewood Suites by Hilton Dulles-North/Loudoun and the 154-room Embassy Suites by Hilton Dulles North Loudoun, which offers 10,000-square-feet of meeting space. 

NEW DEVELOPMENTS

This January, Island Hospitality will open the new Home2 Suites by Hilton Woodland Hills Los Angeles in Los Angeles’ Warner Center neighborhood. The seven-story, 170ac-room hotel will feature contemporary design, with amenities including a state-of-the-art fitness center, saltwater swimming pool, dynamic meeting spaces, and city views from all public spaces. Upon opening, the first 100 guests to check-in will receive 5,000 Hilton Honors points and can expect all the perks the Home2Suites brand has become known for, such as complimentary breakfast and Wi-Fi, pet-friendly rooms and digital key.

The new Home2Suites by Hilton will feature the second outpost of Island Hospitality’s homegrown concept Toasted Barrel, an all-American, bourbon-forward restaurant offering an expansive outdoor patio, shareable plates, and locally influenced craft cocktails. The restaurant, intentionally designed to infuse local flavors and influences, is set to open in January.

“For the past 35 years, our passionate and results-driven team members have come together to build our reputation, expansive portfolio and strong industry relationships,” says Gregg Forde, Chief Operating Officer & Executive Vice President of Island Hospitality Management. “Collaboratively, we look forward to expanding our reach in new markets as we look ahead to travel’s return in 2022 and beyond.”

Island Hospitality Management Names John Abou-Ghannam Senior Vice President of Corporate IT Ops & Business Intelligence

Island Hospitality Management, the premier third-party management company for select service and upscale extended stay hotels in the United States, has named John Abou-Ghannam as Senior Vice President of Corporate IT Ops & Business Intelligence.

John joined Island Hospitality Management in 2004 as a Financial Analyst, where he made a sweeping rollout of newly designed operational budget models for all hotels within his first year, which promoted accuracy and efficiency to the entire budget process. Since then, John has worked his way up the ranks to become a recognized visionary leader, successfully implementing initiatives that further Island Hospitality’s business goals. Additional accomplishments include developing an Enterprise Windows application to streamline complex processes related to hotels and corporate operations and spearheading the cloud migration of the company’s IT infrastructures and technology platforms.

As Senior Vice President of Corporate IT Ops & Business Intelligence, John is responsible for building a responsive business intelligence team that consistently delivers results through aligning technology initiatives with business goals, with substantial improvement to solutions delivery, standardization, business, and processes performance.

“We are thrilled to recognize and celebrate John’s many achievements during his tenure at Island Hospitality and are honored to have him as a critical member of our leadership team,” said Gregg Forde, Chief Operating Officer & Executive Vice President, Island Hospitality Management. “He’s an incredible asset to our team with his extensive experience, hands-on approach, mentorship and ability to develop innovative solutions that surpass business goals.”

Michelle Marlowe Named Senior Vice President of Accounting At Island Hospitality Management LLC in West Palm Beach

Island Hospitality Management, the premier third-party management company for select service and upscale extended stay hotels in the United States, has named Michelle Marlowe as Senior Vice President of Accounting.

Bringing more than three decades of experience to her new role, Marlowe will oversee all day-to-day operational accounting functions for Island Hospitality, including financial reporting, cash management, accounts payable, taxes, audit and internal controls.

Prior to joining Island Hospitality, Marlowe served 10 years as Controller of Chatham Lodging Trust, a NYSE-listed hotel REIT; she was promoted to Vice President of Chatham Lodging Trust in 2016. Marlowe holds a B.A. of Business Administration in Accounting from Upper Iowa University and is an Iowa Certified Public Accountant.

Tonya Moore Named Senior Vice President of Human Resources At Island Hospitality Management LLC in West Palm Beach

Island Hospitality Management, the premier third-party management company for select service and upscale extended stay hotels in the United States, has announced the appointment of Tonya Moore as Senior Vice President of Human Resources.

In this role, Moore brings more than 20 years of industry experience to oversee Island Hospitality Management's strategy for talent recruiting, team member compensation and benefits, and the development and implementation of internal training, leadership and mentorship programs.

In her most recent role as Vice President, Associate General Counsel - Compensation, Benefits and Mandated Leaves at Darden Restaurants, Moore served as lead attorney for the employee benefits and compensation practice group where she counseled business partners and provided business-oriented solutions to legal issues while maintaining legal and fiduciary compliance, among other responsibilities. Prior to Darden Restaurants, Moore worked for AON Hewitt and Orbitz Worldwide, where she managed and advised on all aspects of human resources law and policies relating to employment and benefits. Her career also includes several years at McDermott Will & Emery, LLP as a Senior Associate where she advised clients of new changing laws, regulations, policies and benefit plans.

Moore will also serve on Island Hospitality's Diversity and Inclusion Council, which for the past five years has focused on training and mentorship from within, strategic recruitment and hiring, company alliances, education and other initiatives to work towards a more diverse and inclusive hospitality workforce at the executive level.

Moore graduated from DePaul University with a B.A. in Political Science and English. Additionally, she holds a Masters of Laws degree in Employee Benefits from John Marshall School of Law and a Juris Doctorate from the University of Wisconsin School of Law.

Gregg Forde Appointed Executive VP and COO At Island Hospitality Management LLC in West Palm Beach

Gregg Forde joined Island Hospitality Management's predecessor in 2003 after beginning his hospitality career with Marriott International in 1998.

He has risen steadily through the ranks, serving as general manager, area manager, portfolio manager, regional manager, regional vice president, senior vice president of operations, executive vice president and now also as chief operating officer. In this new role, Forde will be responsible for all hotel operations, revenue management, talent acquisition, sales & marketing and development & service organizations.He earned his Bachelor of Arts with a double major from Edith Cowan University in Western Australia, Australia.

Island Hospitality Management Celebrates Island Week of Sales

Island Week of Sales is a week of reconnecting with past clients to create new leads and sales. Island Hospitality Management holds two Island Week of Sales events a year. 

This week’s theme was Follow Up. Employees were encouraged to follow-up with past clients through appointments, prospecting calls, and key account engagement. Throughout this past week, our employees connected with and visited over 1,000 of our corporate business partners.

Island Hospitality Management Announces Promotions

Island Hospitality Management, one of the nation’s largest hotel management companies, announced today that it has promoted Gregg Forde to executive vice president and chief operating officer and Roger Pollak to executive vice president and chief financial officer.

“With a combined 47 years of hospitality experience, including 42 years with Island Hospitality Management and its predecessor companies, I cannot think of two more deserving people than Gregg and Roger to take on these expanded roles within the company,” said Jeffrey H. Fisher, Island Hospitality Management. “These promotions prepare our platform for what we hope to be a very active 2020. Our current portfolio includes 172 hotels, and our goal is to continue to develop new relationships around the country and expand our platform in 2020 and beyond. We are confident that Gregg and Roger will continue to provide the same exemplary leadership and direction they always have as we pursue our aggressive growth goals.”

Gregg Forde joined Island Hospitality Management’s predecessor in 2003 after beginning his hospitality career with Marriott International in 1998. He has risen steadily through the ranks, serving as general manager, area manager, portfolio manager, regional manager, regional vice president, senior vice president of operations, executive vice president and now also as chief operating officer. In this new role, Forde will be responsible for all hotel operations, revenue management, talent acquisition, sales & marketing, and development & service organizations. He earned his Bachelor of Arts with a double major from Edith Cowan University in Western Australia, Australia.

Roger Pollak joined Island Hospitality Management’s predecessor as a controller in 1995 and has held progressive positions within the company, including director of financial reporting and controller, as well as senior vice president-accounting. In addition to being responsible for all financial functions of the company, he also has administrative oversight duties, including corporate administration and risk management functions, as well as the company’s IT and business intelligence departments. Pollak has been critical to spearheading Island’s growth in third-party management contracts. Prior to joining Island, Pollak held similar positions with various companies, including a large real estate developer and property management firm. Pollak received his Bachelor of Science in accounting from the University of Florida.

Embassy Suites Springfield One of Few Hotels to Win 2019 Hilton Award of Excellence

Embassy Suites Springfield was recently awarded the 2019 Hilton Award of Excellence at the Hilton All-Suites Leadership Conference. The 2019 Hilton Award of Excellence is awarded to only a few hotels every year and recognizes those who achieve impressive performance results and stand out above the rest.

Each award is determined by criteria that include outstanding performance and commitment to ongoing excellence. Island Hospitality Management is very proud of this team’s hard work and dedication to the hospitality industry.