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Success Stories

Inn At Morro Bay

Property Type: Hotel

Location: Morro Bay, California

# of Units: 198

BACKGROUND

  • Trigild took over management of this 198 unit boutique independent full service oceanfront hotel and spa specializing in leisure retreat vacations, weddings, banquets, and wine tastings. When Trigild assumed management, it was experiencing a number of challenges:
  • The asset was part of The Boutique Hotel Group of eight assets. This property was cross sold by the other members of BHG and relied on overflow contribution from higher quality assets within the group.
  • Hotel was also priced to a disadvantage to fill other hotels and was utilized as a last to fill asset.
  • Deferred maintenance and poor quality FFE which led to poor guest reviews and the threat against repeat and new business
  • Lack of leadership and disinterested overstaffing which resulted in dispirited associates and employee theft

APPROACH

  • As manager, Trigild terminated all management and retrained all supervisory personnel — verifying employability, establishing wage equity, establish proper accounting controls and set standards of expectations.
  • Trigild implemented revenue management systems and placed inventory on the internet in appropriate distribution channels.
  • Utilized a new sales and marketing approach increased banquets and weddings
  • Employee theft in several departments was identified and controlled through appropriate accounting and supervisory control.
  • Vendor pricing was renegotiated which generated considerable cost savings (i.e. credit card fees dropped from 3% to 2%.)
  • Negotiated land lease issues for considerably less than what could have been required.

PERFOMANCE SUMMARY

  • Staffing review and implementation of industry standard practice labor standards resulted in the attrition/elimination of 30 positions (annualized savings over $600K.)
  • Productivity – housekeeper minutes per room were managed down from 56 MPOR to 30 MPOR (industry standard) while improving quality.
  • Beverage inventory was reduced by 25% (carrying cost) and beverage cost dropped from 33% to 26%.
  • Food inventory was reduced by 25% (carrying cost) and food cost dropped from 54.5% to 32.5%.
  • Monthly average internet room night contribution increased by 261% while revenue rose 250% (combination of revenue management and internet channel management.
  • GOP has improved from 20% to 40%.