DENVER, CO - April 16, 1998 - Destination Hotels Resorts and Lowe Enterprises, Inc. today completed the sale of the Doubletree Hotel Denver Southeast. Doubletree Hotels Corp. and Felcor Suite Hotels purchased the hotel for $24,250,000, marking a 77 percent increase in the asset value of the hotel over nine years, illustrating Destination Hotels Resorts' management expertise and ability to improve the financial performance of a property. Destination Hotels Resorts (DHR), the hospitality subsidiary of Lowe Enterprises and manager of 22 distinctive hotels and resorts nationwide, managed the Denver Doubletree since acquiring the property in 1989. Demonstrating its emphasis on quality and performance, DHR implemented a unique employee incentive program and management philosophy during the sale of the Doubletree. Under the incentive program, employees who remained on the payroll through the day of ownership transfer earned substantial bonuses upon completion of the sale of the hotel.
This innovative new program was designed to ensure a smooth transition during the sale and make the hotel more attractive to prospective buyers. The incentive plan also shows how employees can add to the value of a property.
"When we deliver a hotel to new management, we want the buyer to have a property that is fully staffed and running at peak performance," said Dennis Fischer, senior vice president of Destination Hotels Resorts. "We have accomplished this at the Denver Doubletree by achieving exceptionally low turnover both in top management and throughout the staff."
DHR implemented this incentive strategy for the first time during its sale of the Houston Doubletree Hotel in September 1996. In Houston, the incentive program held employee turnover at 6 percent, down from the industry standard of about 10 percent, while keeping 100 percent of its top management team intact.
At the Denver Doubletree, the incentive program reduced employee turnover by 50 percent, keeping it much lower than the current industry standard. Because of a successful closing and positive operating performance levels through the closing date, 100 percent of employees will receive the maximum 15 percent bonus, a total payout of approximately $200,000. Destination Hotels Resorts will issue bonus checks within the next week.
"This kind of investment in our employees benefits everyone," said Fischer. "The employees benefit financially, the hotel is more attractive to buyers, we maintain a consistent revenue stream for our investors, and the buyer takes over a stable, quality operation."
Lowe Enterprises is a national real estate investment, management and development firm. Over the past twenty-six years, Lowe has acquired, developed or served as asset manager for more than $4.25 billion of real estate assets nationwide. The firm maintains regional offices in Austin, Denver, Indianapolis, Orange County, Phoenix, San Francisco, Seattle and the Washington, D.C. area.
Destination Hotels Resorts, the hospitality subsidiary of Lowe Enterprises, manages 22 distinctive hotels, resorts and condominiums in 10 states, including Arizona, California, Colorado, Florida, Hawaii, Illinois, North Carolina, Oregon, South Carolina and Washington. Colorado properties include the Inverness Hotel Golf Club in Denver, the Vail Cascade Hotel Club, and The Gant in Aspen. The most recent addition to Destination Hotels Resorts' portfolio is the Eden Roc Resort Spa in Miami Beach. For more information, please visit our Web site at www.destinationtravel.com or contact us at [email protected]
NOTE: Secured Capital Corp. of Los Angeles was the financial advisor
on the sale.