Crestline at a Glance 2017
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1. Crestline Overview a. b. c. d. e. f.
Portfolio Overview Portfolio Sample Success Stories Crestline Corporate Structure Leadership Team Management Services
2. Appendices
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Industry Leader in Third-‐Party Hotel Management ◉
Currently, 112 branded and independent hotels under management with over 16,000 rooms in 29 states and the District of Columbia
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For year-‐end 2016, Crestline’s portfolio achieved a RevPAR Index of 105.8% with nearly 1/3 of the portfolio under renovation in the year
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50% of Crestline’s portfolio ranked #1 or #2 in its competitive set
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Consistently ranked as one of the top Third-‐Party Management Companies by industry publications
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Manage for major publicly-‐traded REIT’s such as Host Hotels, RLJ Lodging Trust, Sunstone Hotels, Chesapeake Lodging Trust, etc.
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Employ approximately 5,000 associates, including ~ 125 corporate staff
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Vast Experience In Hospitality Crestline Capital is spun-‐ off from Host Marriott as Host converts to a REIT IPO: $10/share
Crestline Capital taken private @ $34/share under the name Barceló Crestline Corporation
2000
1998
2003
2002
Crestline Capital acquires Durbin Co. and Stormont Trice Hospitality Co. Crestline Hotels & Resorts, Inc. is created as the management company under Crestline Capital
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Playa Hotels & Resorts created as an independent company with $1.2B in assets
BCC creates Playa fund to acquire all-‐inclusive resorts
2007
2006 Highland Hospitality is spun-‐off from BCC IPO: $10/share
2013
2010 HIH sold to JER Partners @$19.50/share
American Realty Capital acquires majority interest in Crestline Hotels & Resorts
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Institutional Foundation HISTORY
Founded from combining two leading hospitality management firms, Crestline has been delivering exceptional results for a variety of hotel owners for over a decade
Respect: We value each other, our business partners and our environment Honesty: We are genuine and open in our communication and business practices Commitment to Quality: We deliver services and products that exceed
VALUES
our guest’s expectations Creativity: We listen, encourage and support different approaches as we continually strive to improve Growth: We invest in personal and professional development Teamwork: We work together towards a shared goal
MISSION crestlinehotels.com
Enhance and grow our reputation as one of the nation’s most respected hospitality management companies
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Highly Recognized By Major Brands Renovation of the Year
2014 Spirit to Serve Award
Renaissance
Marriott International
Renovation of the Year
Guest Focus Award
Courtyard
Renaissance
Partnership Circle Award
Excellence through Partnering Hyatt
Marriott – Seven awards
Revenue Premium Award Marriott – Five awards
Torchbearer Award Holiday Inn
Guest Focus Award Marriott – Five awards
Renovation of the Year IHG -‐ multiple hotels
Best Opening Award Marriott
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Newcomer of the Year IHG
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1. Crestline Overview a. Portfolio Overview b. c. d. e. f.
Portfolio Sample Success Stories Crestline Corporate Structure Leadership Team Management Services
2. Appendices
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Portfolio Mix
Full Service 28%
Product We operate a diversified array of both select service and full service, high quality assets
Select Service 72%
Brand Multiple brands capitalize on varied customer demographics, as well as provide a competitive advantage Sample of Owners ARC Hospitality Trust Host Hotels RLJ Chesapeake Sunstone Armada Hoffler Presidential
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Public REIT Public REIT Public REIT Public REIT Public REIT Private Developer Private Investor
Hyatt 15%
Independent 8% Marriott 42%
Starwood 2% IHG 2% Hilton 31%
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Expanding National Footprint
Currently manage 112 hotels with over 16,000 rooms across all major brands including Marriott, Hilton, Hyatt, Starwood, and IHG
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Complexed management positions across nearby Crestline-‐managed properties
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Diverse and Extensive Portfolio
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1. Crestline Overview a. Portfolio Overview
b. Portfolio Sample c. d. e. f.
Success Stories Crestline Corporate Structure Leadership Team Management Services
2. Appendices
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Crestline in the Spotlight Professional Football Hall of Fame Hotel and Conference Center ◉
Crestline was engaged to co-‐develop and manage an upper upscale hotel in the Hall of Fame Village mixed-‐use development located in Canton, Ohio
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This 4-‐star hotel and conference center will include approx. 243 guest rooms and suites and up to 30,000 SF of meeting and event space, with a planned opening in the summer of 2018
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The football-‐themed property will be a key anchor to the Hall of Fame Village project, a $500 million development on the Hall of Fame’s campus which broke ground in September 2015
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Bruce Smith, an Inductee to the Hall of Fame in 2009, is Crestline’s partner on this project
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Hyatt Place D.C. Georgetown/ West End ◉
Crestline recently opened the new Hyatt Place Washington DC/Georgetown/West End Hotel in April 2016
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The 168-‐guestroom upscale select service hotel was developed by Washington DC-‐based Renaissance Centro and will be located at 2121 M Street NW
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Located in Washington’s beautiful West End neighborhood, this new hotel is steps from Georgetown’s shopping, dining and nightlife, while easily accessible to the heart of the nation’s capital via the Washington DC Metro subway system
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Hilton A.
Hilton Garden Inn Baltimore, MD Presidential
B.
Hilton Checkers Los Angeles, CA Chesapeake
C.
Hilton Garden Chicago, IL Sunstone
D.
Homewood Suites DC RLJ
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A
B
C
D
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Marriott A.
Courtyard Virginia Beach Apple REIT
B.
Marriott Newport News, VA Presidential
C.
Atlanta Marriott Peachtree Corners Junson
D.
Courtyard Baltimore, MD ARC Hospitality
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A
B
C
D
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Marriott/ Starwood Westin Virginia Beach, VA Joint Venture with Armada Hoffler & ARC Hospitality
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Hyatt A.
Hyatt Place Las Vegas ARC Hospitality
B.
Hyatt Place DC/Georgetown RenCentro
C.
Hyatt House Atlanta/Cobb Galleria ARC Hospitality
D.
Hyatt House Virginia Beach Armada Hoffler
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A
B
C
D
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IHG Crowne Plaza Fairfield, NJ True North
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Independent A.
Emory Hotel & Conference Center, Atlanta, GA Emory University
B.
Phoenix Park Hotel, Washington, DC Independent Owner
C.
Stonewall Jackson Hotel & Conference Center, Staunton, VA Local Owner joint venture with Armada Hoffler
D.
Georgia Tech Hotel & Conference Center, Atlanta, GA Georgia Tech Foundation
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A
B
D
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1. Crestline Overview a. Portfolio Overview b. Portfolio Sample
c. Success Stories d. Crestline Corporate Structure e. Leadership Team f. Management Services
2. Appendices
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Improving Labor Efficiency Crestline excels in driving premium revenues
Occ Index
ADR Index
RevPAR Index
Hilton Singer Island
105.0%
106.1%
111.5%
Hilton Checkers Los Angeles
109.0%
119.0%
129.7%
Table to the right reflects sample properties
Hilton Garden Inn Baltimore
110.0%
123.9%
136.3%
Note: the results above reflect December 2016 YTD
Marriott Newport News
117.6%
124.3%
146.2%
Embassy Suites Orlando International Drive
108.3%
111.6%
120.8%
Courtyard D.C. Dupont Circle
103.6%
107.0%
110.8%
Westin Virginia Beach Town Center
114.9%
119.7%
137.6%
Year-‐End 2016 Companywide RevPAR Index = 105.8 (with nearly 1/3 of the portfolio under renovation in 2016)
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Hotel
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Driving Premium Revenues Hyatt Place Indianapolis / Keystone Keystone, IN 124 Keys/1,000 SF MtgSpc Date of Transition: 2/28/2015 Upon transition, Crestline accurately repriced at the Rack/BAR rates which allowed the hotel to close out discount and e-‐channel codes
March -‐ December Occupancy ADR RevPAR
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2014
2015
YoY Change (%)
71.8%
76.1%
5.9%
$115.97
$126.62
9.2%
$83.32
$96.38
15.7%
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Improving Labor Efficiency Homewood Suites Orlando Convention Center Orlando, Florida 252 Keys/2,000 SF MtgSpc Date of Transition: 2/28/2015 Complexed management positions across nearby Crestline-‐managed properties
March -‐ December
2014
2015
YoY Change (%)
Rooms Labor Cost POR
13.48
13.25
-1.0%
Department Profit Margin
67.3%
70.6%
4.9%
A&G Labor Cost PAR
$971
$806
-16.9%
A&S Labor Cost PAR
$919
$650
-29.2%
R&M Labor Cost PAR
$740
$610
-17.6%
30.4%
38.5%
26.7%
GOP Margin
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Growing Market Share Hilton Garden Inn Albuquerque Rio Rancho Albuquerque, NM 129 Keys/2,000 SF MtgSpc Date of Transition: 2/28/2015 Upon transition, Crestline placed emphasis on identifying the high occupancy evenings by day of week and placing tighter restrictions, stay patterns, and rate maximization to drive the top line revenues
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March -‐ December
2014
2015
YoY Change (%)
RevPAR
$62.68
$69.58
11.0%
Comp Set RevPAR
$38.76
$39.16
1.0%
RevPAR Index
161.7%
177.7%
9.9%
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1. Crestline Overview a. Portfolio Overview b. Portfolio Sample c. Success Stories
d. Crestline Corporate Structure e. Leadership Team f. Management Services
2. Appendices
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Collaborative Organizational Structure James Carroll President & CEO
Hotel Operations
Pierre Donahue EVP, General Counsel
Vicki Denfeld
Corporate Support
EVP, Sales & Marketing
Terri Ryan
Roy Whitfield
Danny Johnson
Carolee Moore
SVP, Operations
VP, Corporate Accounting
VP, Tax
VP, Revenue Management & eCommerce
Wayne Carney
Jean-‐Paul Lamarre
Will Everett
VP, Hotel Accounting
Director, Financial Reporting & Analysis
Director, Procurement
Scott Hanno Regional Director of Revenue Management
Deanne Johnson-‐Anderson
Ryan Napier
Ruben Ocasio
VP, Human Resources
VP, Facilities
Director, Information Technology
Kevin Coyer Director of Corporate Finance & Development
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Collaborative Organizational Structure Corporate Leadership Staff
Corporate Support ◉
Regional Vice Presidents §
§
Regional Vice Presidents (RVPs)
§
§
Responsible for general oversight and performance of their properties
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Department Vice Presidents – responsible for department performance §
Marketing
Involved in the recruitment of General Managers (GM)
§
IT Systems
§
Human Resources
Oversee GM’s transitions and selection of hotel executive management teams
§
Accounting
§
Operational Audits
Oversee 11 to 14 hotels
§
Ownership Services and Asset Management
§
Food and Beverage
HOTEL & Hotel Staff
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Multi-‐Faceted Support General Manager (GM)
Department Heads
Department Staff
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Supervisory Infrastructure ◉
General Manager (GM) §
Average years of experience for our General Managers is 8 years
§
Responsible for recruitment of Executive Management Team and Department Head Staff for Hotel
§
Responsible for daily operations within the Hotel
§
Access to other CHRI GMs as resources and experts in fields such as F&B, Sales & Marketing and Engineering
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Department Heads §
Include such positions as Director of Food & Beverage, Director of Sales & Marketing, Head Engineer, Head of Human Resources
§
Responsible for the hiring/firing and training of departmental staff and the daily operations within their respective department
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1. Crestline Overview a. b. c. d.
Portfolio Overview Portfolio Sample Success Stories Crestline Corporate Structure
e. Leadership Team f.
Management Services
2. Appendices
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Extensive Industry Experience
James Carroll President and Chief Executive Officer ◉
Joined Crestline in 2004 from Dell where he held several management and financial positions
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Prior to Dell, he served as a Naval Aviator and Lieutenant Commander in the United States Navy
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Graduated with Merit from the United States Naval Academy with a Bachelor of Science degree in Systems Engineering and received an MBA from the Harvard Business School
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Pierre Donahue EVP and General Counsel ◉
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Worked at Marriott International for 10 years, rising from Corporate Counsel to Vice President and Assistant General Counsel Worked for Hogan & Hartson in the antitrust department, and then as a litigation attorney Holds law degree from UCLA with an undergraduate degree magna cum laude from Boston College
Deanne Johnson-‐Anderson Vice President of Human Resources ◉
Area Director of HR for Starwood Hotels & Resorts
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Property Director of HR for the Wyndham Bristol and Omni Shoreham Hotels.
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Holds a Bachelor of Science degree from Cornell University, School of Hotel Administration; and Masters in Business Administration degree in Organizational Behavior & Development from George Washington University
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Extensive Industry Experience
Terri Ryan Senior Vice President of Operations ◉
Corporate oversight for a portfolio of full and select service hotels
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Over 25 years in the hotel industry including 13 years as a GM at various hotels in Washington D.C.
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Prior to joining Crestline, served as the GM of the Loews Annapolis Hotel and the regional F&B Director for Loews Hotels
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Graduate of The Catholic University of America
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Former Vice-‐Chair of the Board of Directors for the Hotel Association of Washington DC and a graduate of Leadership Washington
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Vicki Denfeld Executive Vice President of Sales & Marketing ◉
Director of National Sales and Marketing for KSL Resorts, an owner/manager of luxury golf resorts
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Prior to KSL, she held a similar position at the Miraval Resort in Tucson, Arizona
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Associate Director of Sales at The Ritz-‐Carlton, Boston, and Director of Sales & Marketing at The Ritz-‐ Carlton, Washington DC, and Ritz-‐ Carlton in Tysons Corner, Virginia.
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Holds a Bachelor of Arts degree from Furman University
Wayne Carney Vice President of Hotel Accounting and Finance ◉
Vice President of Financial Services for Hersha Hospitality
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Prior to Hersha, he served as the Vice President of Property Finance for Dolce Hotels and Resorts
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Worked at Marriott International for over 12 years in various roles in the Washington, D.C. area
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Holds a Bachelor of Science degree in Accounting from Duquesne University, as well as a Master of Business Administration from Loyola University Maryland
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1. Crestline Overview a. b. c. d. e.
Portfolio Overview Portfolio Sample Success Stories Crestline Corporate Structure Leadership Team
f. Management Services
2. Appendices
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Regional and Corporate Support Regional Services
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Daily supervision over property-‐level management and property performance
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Active communication with owner
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Review of periodic and annual financial reporting and budgets, approval over annual marketing and maintenance plans
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Recruitment and training of property-‐level management, supervision over hotel executive committee
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Reviews capital expenditures and spending budgets for the property
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Central Corporate Services
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Audit of property-‐level financial reporting and oversight of company’s internal audit program
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Recruitment and training of regional staff
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Standardized IT infrastructures which allow for quick access to information to assist management teams in decision process and afford them the capability to benchmark off of existing comparable properties
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Property Management Services ◉
Operations: day-‐to-‐day management of the hotel including reservations, food/catering services, generating new business through sales and marketing efforts, guest relations and owner relations
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Financial: Monthly and annual financial reporting, preparation of owner-‐approved budget and business plan, financial forecasting as well as other property-‐level accounting services
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Human Resources: Oversight of talent acquisition, training, benefits administration, employee relations and all other employee-‐related activities
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Purchasing Services: Cost savings with Avendra, the largest procurement service company in the U.S. as purchasing agent, as well as Crestline’s Director of Procurement
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Repairs and Maintenance: Housekeeping, daily and periodic maintenance for property upkeep, administration of capital expenditures and capital reserves
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Information Technology: Record retention, business intelligence software, cyber security management, and comprehensive system maintenance
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Legal: Contract review and negotiations, liquor licensing, collections/litigations support, and on-‐call paralegal assistance
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Sales, Marketing, and Revenue Management Sales & Marketing
Revenue Management
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Driving premium revenue – Top line revenue focus and strategic planning
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Aggressively pursuing new and unique strategies to drive premium revenues
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Action based objectives by market for transient and group sales
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Expertise and proven success with utilizing all of the brand tools and technologies
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Marketing, social media, and PR expertise for major brands
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Value Assessment analysis tools to assist in capitalizing on opportunities
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E-‐Commerce training, development, and oversight
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Profitability Assessments and Displacement Analyses
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Recruiting and bench strength with direct sales talent
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Website auditing and ongoing management, Search Engine Optimization and Pay Per Click services
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Dedicated regional revenue managers per 1,000 rooms
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Asset Management -‐ Maintaining the Asset ◉
Represent the Owner -‐ Align Manager with the Owner’s Objectives f or the Asset
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Plan and Project Cash Flow
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Manage and Approve Capital Spending to Maintain Asset
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Identify and Mitigate Risks
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Identify Highest and Best use of hotel spaces or changes to the physical asset to improve the ROI
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Recognize Management for outstanding performance, Challenge Management on under-‐performing assets, and Assist Management through sharing of best practices and ideas
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Thank  You
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2. Appendices Sample of Crestline Corporate Support Provided to Hotels
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Human Resources Turnover continues to decline and remains well below industry average
Services Provided
Associate Engagement Scores in the mid-‐ to upper-‐80s
Management recruiting efforts § 37% of positions filled internally § 10% of positions filled by rehires § College recruiting relationships
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Focused investment in recruiting efforts
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Recruit top talent quicker
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Improved HR productivity and better employee engagement
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2014
HOURLY
21.63%
iCIMS Talent Platform
2013
31.18%
Fair and competitive wages and benefits
44.71%
◉
46.87%
Labor and employee relations
57.11%
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2012 75%
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Targeted and customized training and development § Crestline University § Management In Training (MIT) program
TURNOVER %
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GM turnover of 13.33% well below industry average of 25-‐30%
MGMT
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Hotel Accounting Financial Reporting Provided
Financial Reporting Systems
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Operational critique
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M3 – Budgeting & Forecasting
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Balance sheet
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M3 – Accounting
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Income statement and supporting schedules
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M3 Link – Business Intelligence
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M3 – Document Retention
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Updated year-‐end forecasts on a semi-‐ monthly basis with focus on the next 90 days
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ADP Timesaver and Comprehensive Outsourcing Services – Payroll
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Cash flow forecast upon request
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Assistance with external audits and lender-‐specific reporting requirements
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Experience with SEC and Sarbanes Oaxley compliance
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Information Technology Comprehensive Oversight
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On-‐site Property IT Assessments
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Strong presence with all hotel brands and every major vendor of hotel IT systems
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Centralized computer and software procurement to ensure best value
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Assistance during renovations and construction
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24/7 Direct Support For All Systems
M3 Business Intelligence
M3 Document Storage and Retrieval
Member of brand technology committees to positively influence upcoming standards and insure owner’s concerns are presented POS/PMS
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M3 Accounting
M3 Budget & Forecasting
Internet Email Telecom
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Legal In-‐House Legal Support Provided
◉
Paralegal phone support
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Group sales and vendor contract negotiations
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Provision and updating of manuals/forms/best practices
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Legal support for Human Resource issues
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Review of Purchase and Sales Agreement
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Paralegal review of hotel contracts that may need to be assumed
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Paralegal review of property matters and loan-‐related issues
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Liquor and other licensing matters
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Collection support
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Insurance claims/litigation support
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IT contracts
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Expert legal advice at a fraction of the cost of an outside law firm
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Tax Services Provided
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Real estate tax appeals
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Managing personal property tax compliance and audits
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Sales tax compliance and audits
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Income tax compliance and planning
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Trusted network of national consultants and local advisors to assist owners in getting the optimal representation for their property tax needs
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