Olympus Real Estate of Dallas Spends
$1 Million Buying the Rockresort
|March 2000 - Olympus Real Estate of Dallas just spent $1
million to buy the Rockresort brand name. The brand owned no properties,
held no management contracts it was just a name. As we suspected, there
was a great hotel story that needed telling. The Global Hospitality Advisor
recently spoke with L.K. Eric Prevette, President of Olympus Hospitality
Group, to get that story.
Global Hospitality Advisor: Your newly formed Olympus Hospitality Group is making hold moves to crystallize two newly acquired brands: Rockresorts and Unique Hotels. What makes NOW the right time?
Eric Prevette: The consumer is looking for new adventures in travel, and we provide that experience. Today's consumers are not as concerned about choosing a "brand" as looking to explore individualism and enjoy their time off. Whether a Rockresort in pristine environments or a Unique property in urban business destinations, we cater to that. We want our guests to feel like members of a club where they are comfortable exploring other interesting people or enjoying solitude.
Global Hospitality Advisor: Your parent company, Olympus Real Estate, has aligned some powerful resources to seize opportunities. What made it click for the capital infusion from the parent, for you and other leaders to bet on this success?
Eric Prevette: While Olympus has been in the resort business since its inception in 1994, the new alliance combines the Rockresorts brand and an aligned management team, enabling all of us to focus on aggressively pursuing both real estate opportunities and management contracts. We all agree that "now" is the best time in recent history to be focusing all these forces.
Global Hospitality Advisor: Some industry analysts would say that the high-end of the market is already crowded with well known brands. Why is this market segment the RIGHT one for you and how will you provide a different experience?
Eric Prevette: Although many of the brands have luxury mega-resort components, none of the others are targeting the niche resorts that we are. Our resorts focus on activities for guests with a great diversity of interests, whether whale watching in the San Juan Islands or the opera in Santa Fe. With more consumers attracted to this niche, we're confident that we will capture more than our fair share of the upper end leisure market. There may be consolidations down the road, but for now we feel at ease with the current dynamics and how our skill set will enable us to succeed.
Global Hospitality Advisor:
Why did you acquire the Rockresorts name, without properties?
Global Hospitality Advisor: Tell us mote about aggressively supporting "the brand" and how that pervades your management and ownership objectives.
Eric Prevette: We have been extremely successful at attracting very talented people it seems that everyone believes in our new vision, and they want to be a part of out growth and success. I cannot overemphasize the importance of having that committed team in place. And with support from Olympus in Dallas, particularly on the real estate acquisition front (They're now raising their third equity fund, and the last totaled more than $800 million!), we are ready and prepared for the growth we've outlined.
Global Hospitality Advisor: And yet you want to pursue third-party management contracts as well. How do you make those two very consuming activities succeed without short-changing either?
Eric Prevette: Well, not only is our team in place, but we continue to generate and receive interest from owners in joining our organization. But the opportunities to manage for others are being pursued very carefully. We will not accept assignments solely for the growth of our fees; the properties have to be consistent with our brand objectives.
Global Hospitality Advisor: Last question: you've been in this business a long time and have seen a lot of cycles, what's the key to your success?
Eric Prevette: Consistent with my earlier comments, the growth of the resort arena, particularly those small, personalized experiences, will continue to attract today's guests. We think the sources of capital for these kinds of investments will continue to tighten in the short term but will rebound nicely once investors see that the small resorts, with the right operator, can be a great investment. With that market understanding, we believe that now is the perfect time for this initiative. On top of that, the old -fashioned partnership of Olympus's considerable capital and our experience bodes well for a powerful success.
Visit Jeffer, Mangels, Butler & Marmaro LLP’s
web site: http://www.jmbm.com
Email Jim Butler at email@example.com
Jim Butler at the Firm
Jeffer, Mangels, Butler & Marmaro LLP
2121 Avenue of the Stars
Los Angeles, CA 90067
|Also See:||Outlook 2000 - A Roundtable Discussion / Also: '90s Trends That Didn't Make It - JMBM|
|A “Free Lunch?” / Jeffer, Mangels, Butler & Marmaro LLP / Nov 1999|
|Thunder over Woodley Road / A first jury verdict focusing on the consequences for a hotel operator failing to meet its “fiduciary” duties to the hotel’s owner / February 2000|
|Special Reports / Jeffer, Mangels, Butler & Marmaro LLP|