ATLANTA—Hospitality Ventures Management Group (HVMG) has announced it is in the midst of a record-breaking year, having completed a strategic expansion of its traditional business model. Over the past six months, the company has entered into 10 new management contracts. Additionally, HVMG has entered into seven new hotel development agreements for projects currently under construction or renovation.
Retaining the skills and competencies required to turnaround under-performing hotels, particularly full-service and upscale select-service hotels, the company began evolving and expanding its business model in 2013 to take advantage of the changing market dynamics and trends. As a result, the 2015 portfolio comprises eight independent properties, including two Four Diamond boutique beachfront resorts currently under development, creating a growing operational niche in the independent luxury segment.
“We have strategically and purposefully positioned ourselves to take full advantage of the ever-changing conditions in the hospitality marketplace,” says Robert S. Cole, HVMG president and chief executive officer. “Consistent with our business plan and growth strategy, we strive to be recognized as an expert operator and maximizer of upscale and full-service hotels by delivering excellence in revenue generation, the guest experience and profitability.”
Since the fourth quarter of 2014, HVMG added six new key senior positions in areas such as revenue, finance, design & construction, and business development.
“Despite the growth in our corporate resources and support, we understand the importance of remaining nimble and agile in order to transact quickly and customize every hotel business plan and operating model around the specific ownership objectives,” Cole says.
Developing and growing through joint ventures, acquisitions, and management of premium branded, upscale, and independent/boutique properties is core to HVMG’s strategy. To that end, nearly 90 percent of HVMG’s portfolio currently consists of Hilton, Marriott, Hyatt, or independent and boutique hotels.
During the first half of 2015, HVMG was selected lead developer and manager of the 140 room SpringHill Suites Orange Beach, Ala. , currently in final stages of pre-development. It was also chosen to manage two Four Diamond independent luxury resorts, a more than $100 million project currently in pre-development in Lauderdale-By-The-Sea, Fla.
This year, HVMG signed five new hotels under development, including the Hotel Indigo in downtown Atlanta and the Hotel Indigo in downtown Denver, in addition to aquiring a joint venture interest in the 261-room Embassy Suites Atlanta – Galleria. HVMG manages the hotel and is overseeing a $12 million renovation.
During the first half of this year, HVMG also completed the acquisition of the 299-room Marriott Greensboro-High Point Airport Hotel and assumed management while overseeing an $11 million renovation.
“While we are hotel operators in terms of experience and skill set, we believe our true business model revolves around performance, talent and relationships,” Cole concludes.
