AHDP brings together a management team with extensive experience in the hotel industry. The management team has collective experience of over 75 years in the hotel market, including experience in identifying, building and managing hotels.
Take a look at our management team members
The management team has extensive relationships in real estate development, primarily with land developers and real-estate brokers. These relationships have referred over 30 sites in 2006 that the management team has evaluated to date. The management team has significant experience in identifying and evaluating sites for extended-stay suitability based on its unique understanding of extended stay demand drivers.
AHDP intends to leverage its industry relationships to create early access to deal flow and potential transactions. Dr. Giannini has extensive relationships with investors and with other land developers. Mr. Harris through his career with Westin, Hilton, and IHG, Mr. Harris has developed deep relationships with Franchise Sales Representatives of the major hotel brands. He has personally worked with all 16 Franchise Sales Representatives that manage the extendedstay segment for IHG. In addition, based on his long career with IHG, Mr. Harris has developed relationships with the worldwide sales organization of IHG and regional sales managers, who are responsible for executing IHG’s pipeline expansion targets.
The development phase takes approximately nine months. The General Partner intends to enter into maximum-price construction contracts that limit its exposure to construction cost increases. During the first three months, site development is completed in addition to installing the plumbing, foundations and slabs. The following six months are focused on vertical construction. Construction costs are estimated to be between $5.5-6.5 million, and account for approximately 65% of all hotel start-up costs, excluding land.
During months three through nine of construction, AHDP company shall begin to focus on operational aspects of the hotel. The General Manager and the Director of Sales shall be hired. The hotel systems, including phones, property management and reservations, and the furniture and fixtures will be selected and purchased. Landscaping shall be completed, signs shall be purchased and installed, and the hotel shall be stocked with supplies.
The management team has coordinated the development of over 300 hotels over a period of 50 years. This experience enables the team to guide a project from vacant land to finished product and involves identifying and evaluating sites, raising capital, negotiating and supervising construction and coordinating regulatory bodies. This experience enables the team to project realistic construction costs, which is increasingly important in a rising-cost environment.
Gerry Rembowski, AHDP’s Architect, and his consultants will serve as construction administrators to assist AHDP in managing the construction process. He has over 40 years of broad-based experience in the hotel industry.
The development phase takes approximately nine months. AHDP intends to enter into maximum-price construction contracts that limit its exposure to construction cost increases. During the first three months, site development is completed in addition to installing the plumbing, foundations and slabs. The following six months are focused on vertical construction.
Once construction is completed, each hotel shall begin operations and shall be fully supported and managed by Harris Hotels Management Co. LLC, a wholly-owned subsidiary of AHDP. Mr. Clyde Harris’s background includes, Director of Development for all IHG company-owned and managed hotels, responsible for overseeing the corporate-managed hotel portfolio and administering current and future management contracts. Mr. Harris serves as the President and COO of AHDP. Mr. Harris has overseen the industry’s third largest managed portfolio, consisting of over 300 hotels. Mr. Harris helped IHG launch the Crowne Plaza brand in 1994 and the Staybridge Suites brand in 1998, and he worked on the acquisition of the Candlewood brand in 2004. Within his portfolio of company-managed hotels, Mr. Harris has managed approximately 130 extended-stay hotels for IHG, of which 76 are Candlewood Hotels. With the Staybridge brand, Mr. Harris achieved an 8% RevPAR premium from company managed hotels vs. franchised hotels in 2005. Mr. Harris also has previous management and marketing experience with Westin Hotels and Hilton Hotels.
The management team has overseen the management of over 120 IHG extended-stay hotels. This experience includes managing through several industry cycles and has led to strong relationships with hotel franchise sales representatives, hotel management personnel and key corporate and military clients. The management team believes that its relationships and experience shall allow it to better negotiate franchise agreements, procure FF&E, hire hotel staff and management team and prepare for hotel openings and operations. The management team also has experience selling operational hotels.