Growth Driven by Significantly Outperforming the Industry in All Key Metrics
ATLANTA–(BUSINESS WIRE)–Hospitality Ventures Management Group (HVMG), an Atlanta-based third-party hotel operator and investor, today announced that the company added 15 new hotels in 2023 to its portfolio of select-service, full-service and resort properties. Most of these additions are Marriott, Hilton, and Hyatt brands. HVMG also continues to add significant resources to its platform as it executes its growth strategy.
“Despite the significant drop off in the number of industry acquisitions and transactions in 2023, HVMG had one of the best years in our history as owners continue to seek proven operators and consolidate the number of managers they have in their portfolio. Much of this growth has been driven by our portfolio-wide market share performance growth and significantly better-than-industry-average flow through and operating margins,” said Robert Cole, CEO, HVMG. “For the year, HVMG’s achieved a company-wide 112% market share and same-store, year-over-year RevPAR Index growth of 4.8%. This marks the seventh year in the last eight where we grew same-store market share. This share growth performance led to an increase in same-store RevPAR of 12% over 2022 compared to 4.9% for the industry per the January 18th CoStar press release.”
In addition, HVMG achieved a flow-through of 39% of its increase in total revenue to the GOP line, compared to the industry average of 20%, according to CBRE’s November 2023 survey of U.S. hotel operating statements. Despite the slow-down in the transaction market, the company’s pipeline remains very active, primarily with owners who are in the process of making or evaluating a change in operators.
“With these new hotels, HVMG extended its geographic reach and opened up significant career and promotion opportunities for our nearly 3,000 associates,” Cole added. “We look forward to building upon this momentum as we head in to 2024. Despite some of the macro-economic headwinds we are facing as an industry, numerous internal data points, particularly our portfolio-wide group pace, point to another positive year. We are currently forecasting to double the latest projected industry wide RevPAR growth in 2024.”
About Hospitality Ventures Management Group
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. HVMG currently operates 56 hotels and one convention center in 18 states totaling more than 9,300 guest rooms. HVMG operates independent and boutique hotels and resorts, as well as full-service, select-service and extended-stay hotels under the Marriott, Hilton, Hyatt, Hard Rock, and IHG brands. Visit www.hvmg.com for more information.
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