Portfolio Case Study

Taking three icons from subpar to successful.

Resurrecting one legendary resort is a heavy lift. But three?

Enter the KSL Resorts team.

Our in-depth strategic planning and budget process along with intensive monthly financial reviews uncovered hidden potential. By poring over every detail, we were able to generate millions through revenue management, reservations, and ancillary channels like golf, membership, retail, and spa.

KSL Resorts also worked with the ownership group and brand in developing a strategic capital plan. We were subsequently awarded project management overseeing more than $120mm of investment, including the renovation of 2,000 rooms, plus lobbies, clubhouses, restaurants, meeting facilities and more.

Additionally, our engagement with regional and brand headquarters created support and buy-in for new initiatives. Thus, we were granted latitude from the usual brand restrictions.

“Three historic resorts were suffering from a number of factors. Enter the KSL Resorts team. By poring over every detail, we were able to uncover hidden potential.”

Successes were reflected in the numbers.

  • Increased EBITDA over 80% from 2012 to 2017
  • Significant gains in RevPAR index
  • EBITDA margin improvement
  • Substantial savings from labor efficiency initiatives

Beyond the comeback, and even greater than the turnaround, KSL Resorts has now set these three legendary resorts on a course of continued, sustainable success.

SPECIFIC METRICS BY PROPERTY

La Quinta Resort & Club and PGA WEST

  • Generated incremental room rate for Starlight Suites
  • Added incremental revenue through clubhouse renovation
  • Increased ADR by 17%
  • Created substantial annual savings from time and motion study
  • Led member negotiations, protecting multimillion-dollar dues line

Arizona Biltmore

  • Renovated historic cottages, from lowest ADR room type to highest
  • Increased ADR by 32%
  • Increased banquet spend per occupied group room by over 25%
  • Created substantial annual savings from time and motion study

Grand Wailea

  • Several million in annual savings from time and motion study
  • Created significant savings by intervening in collective bargaining negotiations
  • Corrected flawed revenue management practices
  • Converted rooms to suites yielding higher revenue

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