information memorandum 2019 · 2019-10-04 · everwest real estate partners innovative strategies...

INFORMATION MEMORANDUM

2019

About Us

o Hotel Management- Full Service & Select Service

o Asset Management

o Acquisitions

o Consulting

o Due Diligence

Contact Information

Quorum was founded in 1987 as a partnership between its senior executives and The Rank

Group Plc and was known as Rank Hotels North America until November 1994. At that time

senior management purchased Rank’s interest and introduced the Quorum name. The

company’s first management engagement - The Brown Palace Hotel - was in Quorum’s

portfolio for 30 years.

OUR MISSION:

Create added value for our clients and partners by making each hotel the best of its kind.

WHAT WE DO:

We are an independent, Dallas-based provider of customized, value-add hospitality

management services. Since 1987, we have specialized in adding value for our clients through

the following service platforms:

Walt Peseski Vice President (972) 778.9625 [email protected]

mailto:[email protected]

Quorum: by the Numbers

185+

350+ Years

Of Collective Hotel Experience

Hotel Assignments

50+

Hotel Repositioning Assignments

s

30+ YEARS Managing Full & Select Service

Hotels, Asset Management, Acquisition, Consulting & Due

Diligence

1,100+

A TOP

Management Company

25

Approved Operator of all major BRAND families.

Hotel & Asset Management

• Position asset based on market forces

• Select from all available brands

• Highly focused management including a dedicated select service platform

• Shorter term agreements

• Terminable-on-sale contracts

• Fees focused on creating value

• Proprietary financial reporting systems, including accounting, HR & payroll

• Approve annual budget/monitor financial performance

• Assure contract compliance by brand

• Benchmark brand performance/ competitive Analysis

• Monitor Insurance & Risk Management Issues

• Capital expenditure planning

• Oversight of all approved capital projects

• Attend brand meetings and manage relationship on behalf of Ownership

We have represented ownership as Asset Manager for hotels operated by Ritz Carlton, Westin, Hyatt, and Marriott.

HOTEL MANAGEMENT | Full-Service and Select-Service Management As the Operator, Quorum will assume direct management of your asset, employ all staff members and be responsible for

all aspects of operating the hotel and its financial performance. In most situations, the selection of an independent operator

such as Quorum offers a number of strategic advantages, such as:

ASSET MANAGEMENT

Quorum can provide ongoing monitoring of your brand manager (Ritz-Carlton, Four Seasons, etc.). In this situation we

“manage the manager” on ownership’s behalf and provide the following services:

ACQUISITION | CONSULTING | DUE DILIGENCE

• Market overview and STR trends analysis

• Operational strengths & weaknesses of target asset(s)

• Investment and optimal hold period analysis based on market dynamics including CapEx estimates

• Re-positioning/ re-refranchising opportunities

• Renovation planning and management including negotiations with brand regarding franchise agreements

and Property Improvement Plans (PIPs)

• Technical & pre-opening services for new build locations including negotiations of franchise agreements

Our years of experience in the lodging industry provide a thorough and objective viewpoint regarding the strengths and

weaknesses of your opportunity. Our team will work closely with your acquisition group, helping to evaluate your potential

hospitality investment opportunity (debt or equity). We provide customized services that can include:

The Quorum Portfolio as of Q3 2019

Quorum Hotels Portfolio – Q3 2019 Hotel Brand Brand Family Location Engagement Managed Aloft Frisco Aloft Marriott Frisco, TX 2015 Aloft Plano Aloft Marriott Plano, TX 2015 Aloft San Antonio Aloft Marriott San Antonio, TX 2015 Aloft Las Colinas Aloft Marriott Irving, TX 2015 DoubleTree by Hilton Hotel Campbell-Pruneyard Plaza DoubleTree Hilton Campbell, CA 2019 Embassy Suites by Hilton Lexington Green Embassy Suites Hilton Lexington, KY 2016 Hilton Phoenix East/Mesa Hilton Hilton Mesa, AZ 1994 Hilton DFW Lakes Executive Conference Center Hilton Hilton Grapevine, TX 2006 Hyatt Place Columbia Downtown/The Vista Hyatt Place Hyatt Columbia, SC 2016 Staybridge Suites Savannah Staybridge IHG Savannah, GA 2019 Asset Managed Ritz-Carlton New Orleans Ritz-Carlton Marriott New Orleans, LA 1999 Courtyard New Orleans French Quarter Iberville Courtyard Marriott New Orleans, LA 1999 Chancellor's House Independent Independent Oxford, MS 2018 New Build Consulting Hyatt Place TCU Hyatt Place Hyatt Fort Worth, TX 2018 Hyatt Place Burbank Hyatt Place Hyatt Burbank, CA 2018 Hyatt House Burbank Hyatt Place Hyatt Burbank, CA 2018 Hampton Inn Fort Worth Hampton Inn Hilton Fort Worth, TX 2018 Home2Suites Home2Suites Hilton Mesa, AZ 2018

As of January 2019, Quorum’s portfolio ranked in the Top 30 of all independent hotel

management organizations based on total hotel revenues. (Source: HOTEL BUSINESS)

m

MAJOR RENOVATION PROJECTS

Quorum has directed the design and development of the following new build projects:

• Dual Brand Burbank Project | Burbank CA – 300 Keys - $127.5M (Hyatt Place & Hyatt House) | Due Q4 2020

• Hyatt Place TCU - 150 Keys – Due 2020

• LA LIVE – 1001 Keys - $500M (JW Marriott & Ritz-Carlton) | Opened April 2010

• Ritz-Carlton Hotel & Spa New Orleans – 452 Keys - $150M | Opened: October 2000 | Rebuilt in 2006

• Courtyard New Orleans – 230 Keys (all suite) - $50M | Opened: February 2001 | Rebuilt 2016 | Converted to Courtyard 2012

• Maison Orleans Hotel New Orleans -75 Keys - $25M | Opened: May 2001| Rebuilt 2006

• Westin St. Louis – 255 Keys - $82M | Opened: March 2002

• Ritz-Carlton New Orleans – responsible for planning, coordination and budgeting process of ±$40M

renovation taking place 2018-2019.

• Doubletree Pruneyard Campbell, CA - ~$6M PIP and improvement plan 2019.

• Hilton Suites Lexington, KY – converted property to an Embassy Suites as part of a ±$5M renovation in 2017.

• Aloft Texas Portfolio – completed PIP related refresh in 2016

• Conversion of Wyndham Tampa to Holiday Inn Tampa Westshore (2015).

• Brown Palace Hotel & Spa, Denver, CO – supervised ±$8M of improvements to hotel for new ownership group, including the upgrading of the majority of Brown Palace rooms and conversion of office space to meeting rooms 2014-2015.

• Conversion of Comfort Inn Denver to Holiday Inn Express. Company was awarded “2015 Renovation of the Year” by IHG for this work.

• Marriott Fremont, CA - $10M – 2011/2012 PIP and expansion – Recipient of 2012 “Renovation of the Year” from Marriott Hotels.

• Ritz-Carlton New Orleans - $12M renovation and conversion of 230-key Iberville Suites to a Courtyard by Marriott, 2011-2012.

NEW BUILDS Quorum has directed the design and development of the following new build projects:

The Quorum Endorsement Highly Experienced Leadership Team The Quorum platform benefits from the experience of over 20 seasoned corporate professionals with an average of more than 20 years of hotel industry experience. The team’s scope of expertise spans every hotel asset management discipline; including property operations, sales and marketing, revenue management, human resources, IT and reporting systems, finance, and renovation and construction.

So

ness Memberships, etc.)

“Quorum has consistently exceeded our expectations over the years, particularly in turbulent markets. Their level of sophistication and professionalism has produced exceptional results for us, and their innovation is leading us through the challenges ahead.” - David Brown, CEO, Somera Capital Management - client Since 2006.

“Quorum has been a valued partner/advisor to AIG for over 20 years; providing a deep understanding of the business across multiple property types, including select, full-service and luxury hotel assets. Quorum has always delivered quality, value-add services and we trust them explicitly with our investments. I would recommend Quorum to any institutional owner of hospitality properties.” - Gustavo Sarago, VP, Head of Hotels, AIG Global Real Estate – client since 1987. “I highly recommend Quorum. The principals are flexible, direct and without hidden agendas. Quorum understands that the basic reason to own and operate a hotel is to make a profit. They have done a great job over the years.” - Robert Rosen, Greyhawke Capital Advisors - client from 1989-2014 - Brown Palace Hotel & Spa, Denver, CO.

OUR JUDGES

“I’ve worked extensively with the Quorum team on numerous challenging hotels over the years and can always count on them to provide an experienced team of professionals with an ownership perspective.” Tom McCahill – Managing Principal – Everwest Real Estate Partners (former Managing Director of MONY Real Estate) – client since 1992.

“Quorum is an exceptional hotel manager, asset manager and advisor. The principals embrace each assignment with an owner's mentality and employ innovative strategies that allow them to take advantage of market opportunities. They provide a dedicated and experienced team of professionals who consistently exceed performance expectations through all phases of economic cycles.” - Keith Honig, Head of Commercial Mortgage Origination, Pacific Life Insurance Company – Client from 1987-2016

SERVICE ROI ADDED VALUE

MEDIA AWARDS

• Lodging Hospitality Magazine o Top 50 Hotel Companies 2010-2017 o Top Management Companies 2006-2009 o Top of the Top Award 2008 o Top Owners & Operations 2010

• Hotel Management Magazine o Top US Hotel Companies 2009-2019 o Top 105 Independent 3rd Party Management Company 2005 o Top Hotel Companies 2007-2019 o Top Independent 3rd Party Management Companies 2004 & 2006

• Hotel Business Magazine o Top Management Companies 2017, 2018, 2019 o Top 100 Management Companies 2005-2016

Talent Sheets Tony Farris | CEO | Principal Mr. Farris is responsible for the overall direction of the company. In 1987

he formed a partnership with the Rank Group Plc, which resulted in the creation of Rank Hotels North America. The company was renamed Quorum Hotels & Resorts in November 1994. Farris previously has held positions as Chairman of the Board of Trustees for the American Hotel & Motel Association (AH&MA) Educational Institute and the AH&LA Educational Foundation, chairman of the board of the American Hotel Foundation, co-chairman of the AH&MA's selection committee of financial management and the audit committee of the AH&MA. A graduate of the University of Texas system and is a Certified Hotel Administrator as well as a CPA.

Ted Mosley | President/COO | Principal Mr. Mosley serves as President and Chief Operating Officer of

the company. He is a founding member and is primarily responsible for the day-to-day operations of the company’s hotels and supervision of the Corporate Operations Group. A Certified Hotel Administrator, Mosley is an active member of the American Hotel & Motel Association and the Dallas Chamber of Commerce. He also serves on the advisory board of the Florida State University School of Hotel & Restaurant Management. Mosley graduated from Florida State University with a double major in Hotel & Restaurant Management and Marketing Management.

Drew McCarney | EVP Acquisitions & Development | Principal Mr. McCarney is a founding member

of the company and is responsible for overseeing acquisition activities, joint venture formation, project development and business development. During his career, McCarney has held key executive positions with Amfac Hotels and the Hyatt Hotels Corporation. He has served on the Board of Directors of the Council of Hawaii Hotels and the advisory committee in the School of Administration at Golden Gate University in San Francisco. McCarney is a graduate of Bellarmine University in Louisville, KY.

Rob Drawbridge | EVP Asset Management | Principal Mr. Drawbridge is a founding member of

Quorum and currently serves as Executive Vice President of Asset Management. He is primarily responsible for the day-to-day oversight of Quorum's asset management division. From 1991 to 1997, Drawbridge served as Vice President of Resort Operations of the company’s Kingston Plantation Resort in Myrtle Beach, SC; and from 1987 to 1991, he directed the company’s food and beverage operations. Drawbridge is an alumnus of Vanderbilt University, where he received his BBA in Economics.

Jean Hungerford |Senior VP Operations Ms. Hungerford joined Quorum in 1987 with an extensive

background in rooms division and revenue management. She is responsible for the oversight and leadership of Quorum’s Select Service Platform including supervision of central services staff and hotel general managers. Before joining Quorum, Hungerford was General Manager at the Embassy Suites in Austin, Texas and Tampa, Florida. She began her management career as the Reservations Manager of the Hyatt Regency Kansas City, Missouri.

Rex Stewart | CFO Mr. Stewart assumed his duties as Quorum’s Chief Financial Officer in February 2006.

Prior to this he served as an investor and Chief Financial Officer of Sonny Bryan’s, a Dallas-based, 14-unit chain restaurant company. His previous industry experience includes serving as EVP and Chief Financial Officer of Patriot American Hospitality (PAH) from 1995 to 1998. During his tenure, Stewart helped establish and expand PAH’s accounting and financial reporting systems as the company rapidly grew from its IPO stage to comprise over 200 owned and managed hotels before being acquired through merger of Wyndham Hotel Company. A Certified Public Accountant (CPA), Stewart received an MBA in Finance from the University of Southern California, and a BBA from Texas A&M University.

Pam MacRae | VP Human Resources Ms. MacRae joined the company upon its formation in 1987 and

is currently responsible for the oversight of its human resources division including: recruitment, labor relations, legal compliance, benefit management and training. MacRae began her tenure with Quorum as Manager of Administrative Services aiding in the original development of the company’s human resources function. She later served as Director of Human Resources at Quorum’s Pan American Ocean Resort, successfully establishing the HR function for that hotel. MacRae previously served as Director of Human Resources for Stonebridge Ranch, a 6,000-acre, Mobil Land Development community with 300 employees in McKinney, Texas.

Walt Peseski | VP Development Mr. Peseski joined the company in September 2012 and since May

2014 has been responsible for assisting in all facets of the company’s acquisition and business development activities. Prior to this he served as Senior Real Estate Analyst, responsible for the financial analysis and reporting related to existing investments and proposed acquisitions/joint ventures. Prior to Quorum, Mr. Peseski worked with Virgin Hotels’ senior team to establish brand standards in anticipation of future expansion. He has also held management positions for companies including The Walt Disney Company, Hilton Worldwide, and Interstate Hotels & Resorts. A native of New Jersey, he holds a Masters Degree in Hotel Finance from New York University and BBA from Wilkes University.

Melissa Stillwell | VP Revenue Management Ms. Stillwell joined Quorum in 1999 from the Parkway

Plaza Hotel in Casper Wyoming. Her extensive background in front office operations enabled her to design and develop a comprehensive revenue management practice for the company. She is responsible for all revenue management programs for Quorum including: day to day revenue decisions, rate management, training of all Revenue Directors and staff, Reservations oversight, and the analysis of all Smith Travel Research & Hotelligence data.

Roger Patrick | VP Accounting Mr. Patrick joined the company in August 2006 and since 2018 has been

responsible for leading the day to day activities of the company’s accounting teams. Prior to this role he served as Director of Finance at the Hilton DFW Executive Conference Center. He joined Quorum with 15 years of hospitality accounting experience having served as Director of Finance for the Kalahari Resort in Wisconsin and as Regional Controller for Highgate Holdings. Mr. Patrick is a graduate of the University of Texas with a B.A. in Accounting and is a U.S. Army Veteran.

Lindsey Holder | Regional Director of Operations | Select Service Division Ms. Holder joined

Quorum in 2015 bringing over a decade of experience in hotel operations. Since 2017 she has served as Regional Director of Operations with multi-unit oversight of select service assets. She is responsible for the overall operations, revenue and profitability of her teams. Previously she held the position of General Manager at multiple Quorum properties. Ms. Holder started her career as a Guest Service Representative and has had a wealth of experience over the years working with top hospitality management companies prior to joining Quorum. Ms. Holder is a Magna Cum Laude graduate of Texas Tech University where she studied Organizational Leadership, Human Resource Management, and Financial Planning.

Debbi Piner | Corporate Director Business Travel Sales Ms. Piner joined the company in 2005 as

Director, Corporate Business Travel Sales. Prior to Quorum, she worked as a Member of the Hilton Cluster Sales Team representing several owned and managed Hotels in the Dallas-Fort Worth Market. She also served as the Business Travel Sales Manager at the Hilton Arlington. Ms. Piner graduated from Texas Tech University with a degree in Marketing.

Michelle Squires | Corporate Accounting Manager Ms. Squires brought over 12 years of hotel

accounting experience including audit, tax, task force training, financial reporting and hotel management when she joined Quorum in 2016 in our select service portfolio. She plays a lead role in the preparation of audited financial statements, tax returns and financial related reports and schedules. Prior to Quorum, she served for 10 years as a corporate controller & accounting task force lead for Crestline Hotels & Resorts, where she supervised monthly closing statements and various Financial/Tax reports for four portfolios, including quarterly and annual financial statements.

Peter Kulaas | Manager of Accounting & Special Projects Mr. Kulaas began his career with quorum

in 2005 at the Brown Palace Hotel & Spa as Food & Beverage Controller and was promoted over the course of nine years to Director of Finance in 2014. In July 2016 he relocated to Dallas to begin his current role with our select service division hotel accounting and information systems. He started his hospitality career in 1989 as a multi-unit food and beverage buyer for seasonal resorts. He has implemented various applications including purchasing systems, POS Systems, PMS Systems, back office accounting and shared information applications over the course of his career.

Contact Information

Walt Peseski Vice President (972) 778.9625 [email protected]

www.quorumhotels.com

mailto:[email protected]

http://www.quorumhotels.com/

information memorandum 2019 · 2019-10-04 · everwest real estate partners innovative strategies...

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