Grand Cayman - Cayman Islands
Hotel Turnaround – Asset Management
HotelAdvice took charge in late 2007 and recommended owner not to renew an expiring Hotel Management Agreement and provided owner with a full Hotel Turnaround plan by de-branding the hotel, run as an independent boutique style all-suite hotel resort and streamline the operations to be more efficient. At the same time the loss making parts of the business reduce or changed over the first 12-24 months, with no redundancies but a controlled approach with only natural leave as many employees had been involved with the local business since commencement 20 years prior.
Initially the revenue reduced due to reduced services or closure of some loss making or not profitable operations, mostly retail, food and beverage, whilst more focus was made on growing the profitable rooms part of the business.
Whilst growth in profits moved to an acceptable level, it should be noted that the business was bound to a couple of historic connected contracts or agreements that in effect cost the business in excess of $1.5mill annually on the bottom line, which meant the real comparative conversion to GOP is projected to around 40% in 2016.