The Story Behind Hospitality Ventures Management Group's Impressive GOPPAR
The company credits its GM-centric culture and on the grounds leadership teams for its impressive results. From June 2020 through March 2021, HVMG’s consolidated portfolio produced a GOPPAR of $15.13 and a GOP margin of 27.3%.
Local operational teams are the best-equipped to make the on-the-fly decisions needed in many situations, says HVMG.
Hospitality Ventures Management Group (HVMG), an Atlanta-based, private hotel management and investment company, continues to generate industry-leading Gross Operating Profit Per Available Room (GOPPAR) and Gross Operating Profit (GOP) margins as measured by STR data.
Way Above Average
From June 2020 through March 2021, HVMG’s consolidated portfolio produced a GOPPAR of $15.13 and a GOP margin of 27.3%, compared to industry averages of $7.62 and 11.8%, respectively, for the same period. In the upper upscale segment, the results were even more dramatic as HVMG’s GOP margin for the ten month period was 27.2% versus the industry average of 3.2%.
In March, HVMG’s portfolio-wide GOP margin was 42.6% compared to the industry total of 30.9%. In the upper upscale segment, HVMG achieved a GOP margin of 42.7% versus the industry total of 24.1% and a $108.30 Total Revenue Per Available Room compared to the industry average of $72.12.
“HVMG has been able to produce industry-leading results from the very beginning of the pandemic and through the initial stages of recovery by achieving both revenue premiums and lower operating expenses compared to the rest of the industry in all segments, by combining a very strategic and programmatic approach,” said Robert Cole, president & CEO, HVMG. “At the same time, we have emphasized our ‘general-manger-centric’ culture at all our hotels, certainly not an easy balance to achieve. We empower the ‘on-the-ground’ leadership teams to act as ‘CEOs’ to make real-time decisions on a day-to-day and week-to-week basis. We know that our local operational teams are the best-equipped to make the on-the-fly decisions needed in many situations when it comes to revenue, as well as staffing and other decisions that impact operating expenses...
“Our executive team’s extensive hospitality experience positioned us better than most hotel operators to handle the hardships of the COVID-19 pandemic,” Cole added.
Hospitality Ventures Management Group is a privately owned, fully integrated hotel investment and management group that specializes in turning around and repositioning underperforming hotels, as well as maximizing the performance of stabilized hotels. It currently operates 44 hotels and convention centers in 17 states totaling 6,995 guest rooms. HVMG operates independent and boutique hotels and resorts, as well as full-service, select-service and extended-stay hotels under the Hard Rock, Hilton, Hyatt, Marriott and IHG brands.