Coral Hospitality's track record stands on its own. We specialize in taking over under performing assets and making the needed changes to ensure future success. Below is several of our recent success stories.
Luxury Four Diamond Beachfront Resort - Florida
In 2004 Coral Hospitality was selected from the elite of hospitality management companies to provide management services to this beachfront resort. Having been selected at the very beginning of the project, Coral was involved with every aspect, ranging from concept to design and construction. This allowed the resort to be constructed and planned to maximize efficient and effective operations when this luxury resort opened in late 2007. Coral worked with the developer to ensure that development budgets and goals were achieved along with coordinating all vendors and construction activities.
Upon opening this resort quickly garnered a high reputation for its design and service. In 2009, just 16 months after opening, the resort was recognized as a Top 10 resort in the world by Expedia. This resort became a leader in REVPAR index in the luxury resort segment for the State of Florida, while maintaining guest satisfaction scores in excess of 96%. As a testimony to Coral's commitment to the environment, this resort was awarded the silver LEED certification in 2009, making it the first hotel in the State of Florida to achieve this highly coveted, environmental designation. Coral had successfully developed its culture and vision within the resort which permeates throughout the entire resort and leads directly to exceptional service and programs.
In addition to all of the rewards and recognition received by the resort in the first two years, ownership has enjoyed financial success. Financial results for the first three years have exceeded initial independent projections by 135% with key financial indicators among the best in the industry.
Luxury Beachfront Resort - Florida
In January 2010 a major banking institution selected Coral Hospitality after a comprehensive RFP process which included the world's finest hospitality management companies to manage this mega Resort and Entertainment complex. Coral's experience and expertise in quickly turning around challenged, luxury properties and Coral's leadership position in luxury REVPAR achievement was the basis for the selection of Coral. Within one week of being selected as the management company for this luxury beachfront property, Coral was fully involved in a turnover from prior ownership and management.
Coral successfully managed through an extremely difficult transition and non-cooperation from prior management and ownership, applying all of its resources in a professional, structured manner. Needing to quickly replace distribution channels, websites, information technology and other systems and information, Coral was able to minimize the impact, due to actions taken by prior management and ownership, to the operations and financial results of the property through its experience and expertise in proactively handling difficult challenges.
Within thirty days, Coral had developed and implemented intermediate operational and financial plans which resulted in an immediate improvement in NOI of $352,000 for the first two months of management. In addition, Coral was able to deliver new and innovative marketing techniques which allowed the property to grow REVPAR index versus the luxury comp set by six percent in the second month year over year.
Within sixty days, Coral had analyzed the operations and developed new Sales & Marketing and Financial Plans which allowed for an improvement of eight points in REVPAR index and a two hundred and sixty percent growth in Gross Operating Profit in 2011 ($4,000,000).
Two Resorts with Golf Clubs
In 2004 Coral Hospitality successfully entered into a bid process with these two properties to manage and operate two upscale resorts and golf clubs owned by the State. Competing against a majority of the top 100 management companies, Coral was awarded the contracts for both properties due to its expertise, experience and personal levels of service for the future success of both projects. The State recognized Coral's commitment to the community with these community-owned projects and to Coral's vision alignment for the enhancement of these key economic drivers.
Prior to the award of the contracts, both resorts struggled with market exposure, revenue capture and expense control. Coral immediately implemented a global marketing plan to properly launch these two properties to the leisure and corporate markets. Due to the proximity of the two resorts, Coral established a Regional Sales & Marketing office to effectively sell these two properties to the group market. Significant improvement in service levels and fiscal management soon followed, allowing the properties to exceed the goals and objectives of the State, both in perception and financial results.
Both properties are currently the leader in their respective competitive sets for REVPAR index. Prior to Coral's involvement, neither property ranked higher than fourth within their competitive sets. Guest satisfaction scores have increased by a minimum of twenty percentage points at each resort. Occupancy, average rate and Net Income have increased substantially at both properties as reflected below:
Occupancy Improvement – Resort 1 20.6%
Occupancy Improvement – Resort 2 24.4%
Rate Improvement – Resort 1 $20.15
Rate Improvement – Resort 2 $12.63
Revenue Improvement – Resort 1 $1.6 million
Revenue Improvement – Resort 2 $2.4 million
Net Income Improvement – Resort 1 $1.4 million
Net Income Improvement – Resort 2 $1.5 million
In late 2009 the State renewed its agreements with Coral for an additional five years as testimony to Coral's performance.
Luxury Beachfront Resort - Florida
This resort, a branded property, languished for years in an ever-improving market, prior to acquisition by Coral Hospitality in 2002. The resort was perfectly situated on a pristine beach in a quaint tourist town in Florida. As the center of community pride, residents and business leaders had long wondered why the hotel was not living up to its possibilities. Coral knew that working with community representatives and applying its professional management and proven marketing tools that the resort could be turned around.
At the end of 2002 the affiliation with the brand came to an end and Coral Hospitality moved swiftly to replace the brands services and implement programs to ensure the property's future success. Senior executive members were placed into the property with extensive backgrounds in yield management, sales & marketing and distribution channels for independent resorts to complement the extensive independent resort expertise and experience of Coral Hospitality. Ownership had feared the loss of revenues in the transition and the perception of loss of brand. With the successful execution of Coral's transition plan, the property did not realize any of the ownership fears and continued to experience revenue growth through effective independent resort positioning and
marketing. Coral Hospitality was able to hold occupancy rates level from the brand affiliation prior period in year one, while growing average rate significantly. It was quickly seen that the brand affiliation created an average rate ceiling for a property with the amenities and qualities that this resort offered. Taking advantage of the product and services offered by Coral Hospitality, this resort made significant strides in occupancy and rate over the next few years and eventually led to a sale of the property at 200% of purchase price.
Occupancy Improvement – Three Years 4.6%
Average Rate Improvement – Three Years 30.8%
Revenue Improvement – Three Years 34.1%
Net Income Improvement – Three Years 215.2%
Upscale Beachfront Resort - Florida
This resort is located on 500 feet of pristine beach in Florida. The desirable location, along with evident opportunities, led Coral to acquire this property in 2001 with its capital partners (EFO). Coral knew that with professional management, revenue maximization techniques and effective selling strategies the resort would quickly flourish and attain significant financial improvements.
Coral moved quickly to place qualified, experienced management personnel at the property to work in conjunction with Coral's corporate team members. On-site training, sales action plans, revenue management tools and marketing directives were implemented within the first three months. This lead to a 5% increase in occupancy in the first year coupled with a 15% increase in average rate. Service levels were greatly enhanced through Coral's proven, customizable training and operational programs. Repeat guest percentages increased in year one from 25% to 45% and the property began to lead its competitive set. With the increase in revenues, the Coral financial team implemented its financial tools and procedures that allowed the Resort to more than double net operating income within the first year. All of this was accomplished with little marketing expenditure.
Occupancy Improvement – Four Years 20.1%
Average Rate Improvement – Four Years 28.5%
Revenue Improvement – Four Years 75.3%
Net Income Improvement – Four Years 375.2%
Luxury Beachfront Resort - Florida
In 1988, this resort had $750,000 in net operating income and after four successive management companies; Coral partnered up with the owners and in year one, 1989, improved the 126-suite hotel's net operating income to approximately $1.5 million. With great care, Coral repositioned the property and by the early 90's, was consistently running the highest occupancy in town and was second only to a Five Diamond Resort in average daily rate. This was accomplished while assuring maximum guest satisfaction and returning maximum hotel profits. In 1998, the hotel was sold to a Fortune 500 investor for $43 Million or $341,000 per key. Net operating profits percentage was one of the highest worldwide at 42.5% for a luxury hotel. Creating a very special boutique hotel from a Holiday Inn background with significant financial results is the backbone of Coral's expertise.
126-room suite hotel with basis of $20 million sold in 1998 for $43 million:
Revenue Improvement – Year 1 11%
Net Profit Improvement – Year 1 37%
Residential Community Developer
Four Upscale Golf & Country Clubs - Florida
In 2001 this developer was looking for a new total solution provider to assist them in the management of their existing golf amenities in Southwest Florida and to lend expertise and advice in the design, construction and operation of two new golf clubs. They were challenged with operational costs, service deficiencies, revenue generation and the sale of memberships within their clubs.
Coral immediately focused upon developing and marketing a membership program, which would significantly enhance membership sales and create revenue for the clubs. Training and implementation of standard operating procedures created an environment of success amongst the team members leading to greatly enhanced service for the members and their guests. These programs immediately lead to stellar membership sales and increased satisfaction within the clubs.
The financial tools and systems as implemented by Coral, allowed for each club to become a market leader in fiscal management. The highest levels of service and amenities were maintained while providing for cost effective operations. Coral implemented its broad purchasing programs resulting in real cost savings in all areas of the clubs. Key financial indicators lead the market averages by twenty five percent or more in all areas. Member satisfaction was at ninety per cent or higher at each club as determined through club surveys.
In 2005 Coral began to assist the developer with the design, development and opening of two new upscale country clubs. From the very early stages, Coral provided advice and expertise to allow for the developer to save millions of dollars in the construction of the golf course and amenities. Coral also allowed for the efficient and effective operation of the clubs after opening through well thought out decisions during the design and construction phases. This forethought allowed the clubs to open in 2007 with rave reviews from industry professionals and membership market alike, while performing at the highest levels of economic feasibility.
Upscale Golf & Country Club - Florida
Prior to Coral's involvement with this country club, they had experienced financial fraud by one of its employees, lacked service levels commensurate with a first class country club and was without focused and effective organizational management. Upon commencing of its relationship with the club, Coral immediately implemented financial controls and procedures that allowed for the property to manage the club to the financial resources available while providing the security to prevent future financial irregularities. These systems allowed for the club to improve upon operating profit in excess of $300,000 in the first year. In addition, Coral successfully completed six months of financial statements that were in arrears and reconciliation for same period, which allowed for Club's managers and Board to have a true picture of where they stood and a road map of where they needed to go.
Coral followed the financial groundwork with evaluation and replacement of certain key managerial personnel with proven and tested individuals. The members quickly realized the quality and professional management that Coral's selected employees brought with them. A new chef presented new and unique food choices that resulted in increased usage of dining facilities by the membership and ever-escalating complimentary reviews by members and their guests. Coral's corporate team then proceeded to conduct training classes with on-site management that fostered exceptional club service accompanying the first class product that was now offered.
Coral and its design team planned, presented and completed a very successful renovation of the clubhouse as an additional benefit to the membership. This included replacement of FF&E, creation of a new grillroom, dining room, lobby, locker rooms and overall improvement of the interior of the facility. Completed over the summer, members arrived back to the Club for season with rave reviews for the renovated areas. The membership made comments ranging from "we had grown accustomed to what we had and did not know how good it could get" to "we now have a club that we can be proud of."
Golf and Country Club - 18-hole private golf facility with expense control concerns prior to Coral management:
Net Operating Profit Improvement – Year I $446,974
Food Cost of Sales Improvement – Year I 5.0 points
Beverage Cost of Sales Improvement – Year I 13.0 points
Merchandise Cost of Sales Improvement – Year I 17.0 points
Arrowhead Golf Club
Coral's goals and mission at Arrowhead were quite different than those at other private Country Clubs as this facility is open to the public. From the time of opening, Arrowhead was challenged by the inability to attract and maintain golfers. Upon commencement of its contract, Coral formulated and implemented a well-thought out marketing plan, which it believed would be successful in the Naples public golf market. This, in conjunction with Coral's continuous improvement program for staff service would lead Arrowhead into the leadership position for public golf in Southwest Florida.
Coral's knowledge and expertise in the hospitality field allowed Arrowhead to effectively market itself to sources of business, ranging from local residents to vacationing individuals. In addition, Coral effectively implemented yield management, so often used in the hotel industry, in order to allow Arrowhead to attain the maximum number of rounds at the optimum dollar value throughout the year. Coral was able to negotiate local business relationships with several entities that included the YMCA and the local civil society that provided Arrowhead with new sources of golfers. Day to day management and analysis of demand allowed for Arrowhead to quickly improve upon decreasing revenues. All of this resulted in an increase in excess of 25% in golf rounds for the first year and 15% in the second year under Coral's management.
In order to ensure that the new patrons coming to Arrowhead would return, Coral provided professional training for all service personnel. This quickly led to positive comments from members and golfers, in addition to providing an extra benefit by increasing our annual membership base from 25 to 150. In addition, Coral completed renovations to the clubhouse facilities, which provided the finishing touches. This allowed for guests to feel the "club feeling" that should be enjoyed when playing golf in Southwest Florida. Coral is very proud of the fact that Arrowhead is now the leader in golf rounds and revenue for it's' market segment in Naples.
Arrowhead Golf Club - 18-hole public golf facility with diminishing golf rounds prior to Coral Beach management:
Revenue Improvement – Year I 10%
Net Operating Income Improvement – Year I 74.7%
Round Improvement – Year I 19%
Net Operating Income Improvement – Under Coral $415,000
Condominium Association Management & Leasing Activities
In 2002 Coral was engaged by a major developer based in Chicago, Illinois to become its association management company in the State of Florida. The developer was in the process of acquiring $2 billion in assets in the State of Florida with plans to convert existing residential and rental properties into high-end residential condominiums. Their vision for the properties, located mainly on the Atlantic Ocean in South Florida, was to create lifestyle communities with the highest amenities and service offered to its residents. During its search for a qualified, property management firm to provide the desired level of services to the associations, the developer concluded that Coral Hospitality delivered the highest levels of hospitality, understanding of association management and fiscal responsibility.
Over the next seven years Coral worked on fourteen condominium projects by this developer. Coral successfully assisted them in condominium document preparation, operations, financial management, lease operations, delivery of high-end services and resident relations. Each of the respective projects was highly successful due to market conditions and the reputation earned by each property of the lifestyle created by Coral Hospitality through its management efforts. Association budgets were well defined and maintained with key contracts and indicators being among the lowest in the industry.
As a testimony to its performance, Coral was retained by each of the associations upon turnover to resident controlled Board of Directors and continued operations management on behalf of the residents.