Acquiring & Transforming Hotels
Acquiring and Transforming Hotels: The Story of Laredo Staybridge Suites
Gyani Capital's acquisition and transformation of the Laredo Staybridge Suites is a shining example of how a strategic approach to hotel acquisition and transformation can improve the performance of a property. In this article, we'll take a closer look at the challenges, strategies, and lessons learned from Gyani Capital's success with the Laredo Staybridge Suites.
The Challenge
Acquiring and transforming a hotel property can be a complex and challenging process, requiring a strategic approach to identify suitable properties, navigate the acquisition process, and execute a successful transformation strategy. Gyani Capital faced this challenge head-on with the acquisition and transformation of the Laredo Staybridge Suites, which required careful planning, execution, and investment.
The Acquisition
Gyani Capital's acquisition of the Laredo Staybridge Suites involved identifying a suitable property, evaluating its potential, and securing financing for the acquisition. They partnered with an experienced hotel partner to leverage their expertise in the industry and ensure a successful acquisition process. By carefully evaluating the property and securing favorable financing terms, Gyani Capital was able to acquire the Laredo Staybridge Suites in August 2021 for $10.6 million.
The Transformation
Gyani Capital's transformation strategy for the Laredo Staybridge Suites involved making strategic investments in the property to improve its performance. This included overhauling the management team to improve labor scheduling and staff training, investing in ENERGY STAR appliances to reduce operating costs, and encouraging guests to reuse towels to reduce water and energy consumption. These investments were carefully planned and executed to minimize disruption to guests and improve the overall guest experience.
The Results
The transformation of the Laredo Staybridge Suites had a significant impact on the property's performance, with improvements in occupancy rates and revenue per available room (RevPAR). The property is currently achieving an occupancy rate in the low to mid-90s compared to the competitive set, which is in the mid-80s. The Staybridge Suites is also commanding a RevPAR that is ten dollars higher than comparable properties, at $126 per night compared to $116 per night.
Lessons Learned
Gyani Capital's experience acquiring and transforming the Laredo Staybridge Suites taught them several valuable lessons about hotel acquisition and transformation. One key takeaway is the importance of working with experienced partners to leverage their expertise and ensure a successful acquisition process. They also learned the importance of investing in strategic improvements that improve the guest experience and reduce operating costs.
Best Practices
To help other hotel operators learn from their success, Gyani Capital recommends several best practices for hotel acquisition and transformation, including working with experienced partners, leveraging technology to improve operations, and investing in sustainable practices to reduce operating costs.
Conclusion
Gyani Capital's acquisition and transformation of the Laredo Staybridge Suites is a testament to the power of a strategic approach to hotel acquisition and transformation. By carefully evaluating the property, investing in strategic improvements, and working with experienced partners, they were able to improve the property's performance and achieve impressive results. We encourage other hotel operators to learn from Gyani Capital's success and take steps to improve the performance of their own properties.
