Marshall Hotels & Resorts President and CEO Mike Marshall said the company had a slow start to the year, but with five new hotels opening in the next six months, he’s expecting the rest of 2017 to go well.
NASHVILLE, Tennessee—The start to 2017 has been a bit slow for Marshall Hotels & Resorts, but company President and CEO Mike Marshall expects an avalanche of business in the months to come.
“(At the end of 2016), we took on 12 new projects, I think a lot of it had to do with the election, and at the beginning of this year, people were collecting their breath, so to speak,” he said in an interview with Hotel News Now at the 2017 Hotel Data Conference. “So there haven’t been as many transactions as we’re used to, but for the rest of the year, I see an avalanching type of thing again.”
He added that Marshall’s pipeline has always been strong, and the company is getting ready to open five new hotels in the next six months.
On the “Beers with the bosses” panel during the conference, Marshall mentioned a big part of his job is to increase the asset value of a property, which is achieved through a combination of top-line sales and bottom-line sales.
A hotel’s bottom-line number can be anywhere from 6% to 10%, or even 12%, depending on the asset, Marshall said.
“By generating a better bottom line, it increases the value of the hotel itself, so it increases the value of the real estate,” he said. “People hire third-party management, it’s not to make them money every year, it’s to have a long-term play or a long-term hold on the real estate itself.”