Date: Fri, 19 Dec 1997 02:59:05 GMT Server: Microsoft-Internet-Information-Server/1.0 Content-Type: text/html Last-Modified: Mon, 24 Nov 1997 02:54:57 GMT Content-Length: 4804
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Overview CapStar operates hotels from an owner's perspective. The company owns about half the properties it manages and brings that experience to each hotel. CapStar believes that skilled management of hotel operations is the most critical element in maximizing profitability and value in full-service hotels. Ranked by Hotel Business magazine as the nation's 12th largest management company in 1996, CapStar considers management contracts an important avenue of growth. The company manages for institutional owners, individuals, partnerships and forms strategic alliances with other ownership entities to manage multiple properties. CapStar seeks to partner with other hotel investors and companies to enhance both its ownership and management portfolios. In April, CapStar acquired a portfolio of six upscale, full-service hotels from Highgate Hotels, Inc., of Dallas, and announced their partnership. The agreement places a senior executive of Highgate on CapStar's board of directors, a move expected to benefit CapStar's acquisition and management contract efforts, as the partners plan to work together on future acquisitions. In July, CapStar formed an alliance with Boykin Lodging Company (NYSE: BOY), a hotel real estate investment trust, to acquire upscale, full-service resorts and hotels that CapStar will lease and manage. Later in the month, the startegic partnership acquired their first hotel: the 196-room Holiday Inn-Minneapolis West in St. Louis Park, Minn. These alliances expand exponentially the number of sources of potential acquisitions and management contracts for CapStar. Custom Solutions The company has built its management success on its strategy of treating each hotel as a unique entity. Historically, CapStar has generated consistently higher revenue per available room (RevPAR) and increased net operating income by creating and executing business plans that are specifically tailored to each individual hotel and local market. Based on its analysis, CapStar creates a management plan and marketing program designed to properly position a hotel within its local market in order to maximize profitability. Management Depth CapStar's senior management team has successfully managed hotels in all segments of the lodging industry, with particular emphasis on upscale, full-service hotels. CapStar has implemented its proprietary management programs and used its corporate infrastructure to produce above-average hotel revenue growth and profitability. In 1996, "same store" RevPAR at CapStar-managed properties increased an average of 12.3 percent. |
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