Business Case Study

Creating Opportunity Through Rebranding and Renovation

See how we reimagine Rebranding + Renovations to deliver strong results for investors, developers and owners.

1. Delta Hotel By Marriott Basking Ridge - New Jersey, USA

The right hotel brand for the market drove revenue, RGI and rate growth.

We saw an opportunity to take an independent property and select the right brand for the popular business market to attract the business transient traveler, groups, and leisure guests — leveraging the Marriott flag to gain instant recognition, credibility, and bookings. Less than a mile from I-78, this modern business hotel set on wooded grounds is 4 miles from the Sri Venkateswara Temple and Leonard J. Buck Garden.

Total Revenue

+57%

-$680

2019 vs. 2018

RGI Growth

+52.7

+$5M

2019 vs. 2018

AOR Growth

+$14.35

-$680

2019 vs. 2018

+$6M

Capex Deployed

2. AC Hotel By Marriott - Manchester Salford Quays, UK & AC Hotel By Marriott - Birmingham, UK

Best fit brand selection rocketed growth in RevPAR, RGI and NOI.

In July 2015, Valor advised owners on the acquisition of two hotels, the Ramada Birmingham City Centre (90 rooms) and the Ramada Manchester Salford Quays (142 rooms). The hotels were constructed in 2001 and 2007 with excellent micro-locations. Under previous ownership, the hotels experienced disappointing performance due to a substantial lack of investment in the assets. After Valor completed an extensive brand selection process, owners entered into new franchise agreements on favourable terms with AC Hotels by Marriott. These would be the first two AC hotels in the UK and continue to be market leaders.

£1.1M

-$680

NOI Uplift

+£6.4M

+$5M

Capex Deployed

+£51.4

REvPar Growth

+120

rgi Growth

Learn More About How We Can Deliver Business-Changing Results with Rebranding and Renovation

3. Crowne plaza and Holiday Inn Hotels - UK

An attractive portfolio acquisition and rebranding led to a dramatic uplift in RevPAR and NOI.

In 2014, Valor advised owners on the acquisition of the Queens Moat House (QMH) portfolio – a collection of 7 Holiday Inn hotels, 3 Crowne Plaza hotels and one Best Western Plus hotel. Valor negotiated a new portfolio-wide franchise agreement with IHG on considerably improved economic terms – generating multi-million GBP savings in franchise fees over a five-year period payable to IHG. In addition, IHG provided millions in key money towards capital projects. Valor also advised and assisted ownership to sell three non-core hotels between 2016 and 2017 at a premium, over acquisition price. Post acquisition, Valor made significant management changes and identified a compelling rebranding opportunity to convert four of the Holiday Inn hotels into Crowne Plaza hotels.

RevPar Growth

+22%

2018 vs. 2015

Capex Deployed

+£20M

NOI Uplift

+£4.2M

2018 vs. 2015

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Creating Opportunity Through Rebranding and Renovation

Learn More About How We Can Deliver Business-Changing Results with Rebranding and Renovation

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with Valor

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