Two Atlanta-based management firms have signed new deals to oversee three assets in Texas and Georgia, respectively.
Atlanta-based private hotel investment, ownership and management company Hospitality Ventures Management Group has ramped up its Real Estate Owned management and receivership activity with the addition of two foreclosed IHG-franchised hotels in Killeen, Texas—the Holiday Inn Killeen - Fort Hood and the Candlewood Suites Killeen.
The company expects its role assisting lenders to continue to expand as industry revenue per available room levels remain at roughly half of 2019 performance levels and an ongoing surge in COVID-19 infections continues.
“After some nine months of sharp hospitality industry declines, we are seeing the beginning of the cycle when [commercial mortgage-backed securities] lenders and special servicers, local banks and debt funds seek seasoned, fast-responding operational expertise,” said Robert Cole, president and CEO, HVMG. “These financial entities require turnaround management experts to maximize as much asset value as possible while conserving cash and we see ‘what’s next’ for the industry. From the earliest stages of the pandemic, HVMG reacted quickly and decisively as the travel industry rapidly declined, positioning our hotels to outperform all key industry metrics. Having weathered the economic difficulties over the past cycles, HVMG can provide the professional hotel services necessary to get through this low point and drive as much market share and cost reduction possible.
“We have the organizational bench strength in place to take on troubled assets literally overnight and can develop and implement a flexible and effective business plan. We focus immediately on prudent cost-cutting, re-energizing sales, revenue management and marketing efforts, instituting and ensuring appropriate safety protocols, motivating associates and implementing our ‘Be Excellent” culture,” Cole added.
Meanwhile, Atlanta’s Turnstone Group has selected Sandpiper Hospitality—a Virginia-based hotel management company that specializes in the extended-stay segment—to manage the new WoodSpring Suites Atlanta – Newnan, which is scheduled to open in early February 2021. Located close to the Piedmont Newnan Hospital and Cancer Treatment Centers of America, The Ashley Park shopping center and historic downtown Newnan Square, the hotel will have 125 suites with a full kitchen, along with a fitness center and a laundry room.
This is the first WoodSpring Suites development for the Turnstone Group. “We are excited to partner on our new WoodSpring Suites with Sandpiper Hospitality, a veteran management company within the extended-stay hospitality sector. After interviewing several potential managers, Sandpiper Hospitality was the obvious choice, because of the quality of its professionals, its state-of-the-art systems and its proven results across a variety of markets,” said Turnstone Group CEO Chip Johnson. “Going forward, we expect Sandpiper Hospitality to be an integral member of the team as we expand our extended stay hospitality holdings across the country.”
Sandpiper currently manages three Extended Stay America hotels in Georgia. “We are beyond excited to work with Turnstone to launch this new suburban Atlanta hotel and we look forward to expanding our management presence in Georgia,” said Sandpiper Hospitality President & CEO Jim Darter. “We also look forward to a robust future with Turnstone, a relationship already two years in the making. Our ownership experience allows us to think and act as an owner and our best-in-class management capability allows us to earn better than expected ROI for our clients.”
Earlier this month, Sandpiper announced a third party management contract with Liberty Investment Properties for the new WoodSpring Suites Charlotte – University Research Park opening in North Carolina early next year.