Sè San Diego
While best known for its work with distressed properties, Prism Hotels & Resorts is looking to expand its number of long-term management agreements.
”Prism clearly is a company where we have built a strong business in the receiver-distressed management and REO markets and we are an industry leader in the segment,” says Jeffrey Farina, Prism’s new senior vice president of business development. ”What a lot of folks don’t really know about us is that more than half of our revenues come from traditional long-term third-party management contracts.”
Prism currently manages about 50 hotels and is acting as receiver for about 30 distressed properties. ”In the last two years, we have made a very conscious decision to expand the base of our business into a focus on the long-term third-party management aspect of our business,” says Farina. ”We have staffed accordingly and tremendously expanded the home office team in order to accomplish that goal from an operations standpoint. We will add 20 to 30 properties to our managed long-term portfolio in the next five years, everything from joint ventures to wholly-owned properties and third-party management, of course.”
”Our sweet spot is largely in what I’ll call mid-sized properties in primary and significant secondary markets,” he says. ”We are looking at both branded and independent properties in those classes in the two- to three-hundred key range, frequently with meeting space.”
Farina believes Prism’s experience with distressed properties is a major boon in a recovering economy. ”We think the opportunity is now largely because there is so much disruption in the overall economics of many of these hotel properties,” says Farina. ”Our background drawing from the distressed side applies to the long-term side. We ramp up very quickly based on our experience and we have the opportunity to hit the ground running because we have the kind of team trained to do exactly that. I know what it takes to operate these properties successfully, and I understand the strength of Prism and where it can be applied.”