Hospitality Management Solutions

Founded in 1964, The Procaccianti Group (TPG) is a second generation, privately-held real estate investment and management company boasting a nation platform that spans all sectors of real estate with a particular focus on quality full service hotels. Since 1992 the company has owned or managed over 100 real estate assets including 80 hotels with more than 18,000 guest rooms and throughout its history, TPG has owned or managed over 20 million square feet of real estate totaling nearly $6 billion.

TPG has established an outstanding track record of creating value for lenders, servicers, portfolio owners and investors by maximizing operating efficiencies and turning around non-performing assets across multiple real estate sectors including hotels, condominium projects, restaurant and retail outlets, and convention centers. TPG’s value-add model is achieved through a fully integrated approach, a combination of five separate companies, that drives deployment of the company’s aggressive operations, sales and revenue management strategies. TPG is considered among the nation’s elite hotel companies by evidence of its consistent national ranking as a top hospitality manager and top hospitality construction company. These results have earned TPG preferred status as an approved operator of all the major hotels brands including Hilton, Hyatt, InterContinental, Marriott, and Starwood.

TPG’s senior management team has worked side by side for over 20 years throughout several market cycles under the leadership of James and Elizabeth Procaccianti and has built a professional infrastructure capable of effectively managing its expanding national portfolio.

Via TPG’s proprietary value optimization process, TPG creates unprecedented value by exploiting a hotel’s operational inefficiencies via techniques refined through years of hospitality management experience. Having sustained growth, invested, and operated through several market cycles, the company is able to position properties to prosper in up cycles and mitigate risk in down cycles through highly skilled hands-on management. Many of the Company’s top performing properties were once non-performing distressed assets facing foreclosure, bankruptcy, REO or auction.

It is through TPG’s proven ability to tailor its value-add strategy, either as an owner/operator or third party hospitality manager, that lenders, servicers, portfolio owners and investors have repeatedly realized above market performance.

Hospitality Management Examples
Performance figures below demonstrate the immediate and dramatic impact of TPG’s proprietary value creation process delivers to bottom line performance. Figures below indicate the hotels’ performance in the first 12 months under TPG management compared to previous operator.

PROPERTY RevPAR
IMPROVE-MENT
GOP
INCREASE
HOUSE PROFIT MARGIN INCREASE VALUE
CREATION
(9% cap)
Holiday Inn Select - Orlando 12.7% 141% 117% $10.5m
DoubleTree Paradise Valley 18.3% 47.5% 26.6% $22.2m
Hyatt Lexington 18.3% 53.2% 37.8% $12.7m
Marriott Palm Beach Gardens 11.1% 56.3% 37.2% $14.7m
Sheraton Suites Kansas City 12.6% 29.1% 16.4% $11.4m

 

Investment Management Examples
As an owner/operator, TPG’s philosophy of “Buy Right, Brand Right, Renovate Right, and Manage Right”, has proven time after time to preserve and enhance asset value producing investor returns that far exceed industry benchmarks.

PROPERTY ALL-IN COST SALE PRICE IRR MULTIPLE
Holiday Inn Providence $6.5m $31.0m 171% 30.7x
Radisson Mt. Laurel $9.0 m $23.8m 168% 6.12x
Marriott Palm Beach Gardens $16.13m $61.25m 106% 7.48x
Westin Dallas Fort Worth Airport $69.5m $101.0m 64.1% 2.85x
DoubleTree Tulsa $18.7m $31.0m 88.3% 4.35x

 

The Procaccianti Group, under the leadership of James Procaccianti, focuses in asset management solutions, hospitality management services, commercial property development, real estate investment management, construction management services, and real estate design. © 2009 The Procaccianti Group. All Rights Reserved. For Associates.