Marshall Hotels & Resorts has added 10 management contracts in 2009, including six previously unannounced properties in the fourth quarter, and that it has prepared its first contract in 2010. The properties include branded and independent, upper-upscale and limited-service hotels and resorts.
The company’s first 2010 contract is for the 118-room Cavalier Inn on the University of Virginia campus in Charlottesville. In addition to managing, Marshall will oversee an extensive renovation and upgrade to the property.
Marshall Hotels & Resorts, president and CEO, Michael Marshall said: “We expect that 2010 will be a year of transition as lenders finally stop extending and start foreclosing on properties, which in turn will increase transaction flow and change of ownership and management. We have noticed that a large number of lenders are ramping up their REO departments.”
Marshall added that the 2010 first half will continue to be a challenge for operators. “We think that occupancy is bottoming out, and we intend to raise rates aggressively as demand outpaces supply growth. We continue to focus on operating efficiencies and more targeted sales and marketing efforts. There are still a great number of hotels that don’t know how to operate in this environment, which gives us a strong competitive advantage.”
Two hotels in the company’s management portfolio were sold in 2009. “While we hate to see properties leave, we were gratified that they were sold at substantially higher prices than the value when we took over management.”
