Doug Barrow, President & CEO, HP HospitalityDoug Barrow, President & CEO
The small lodging sector can be an undervalued and overlooked resource in the hospitality community, with the larger hotel management companies focusing on big-box brands and franchises. HP Hospitality takes a different approach than other management and investment companies by driving and developing capital for investors to purchase small lodgings. In addition, the company offers third-party management for small lodging owners seeking maximum return on their investment.

Small lodging properties, or hotels with between 7 and 50 rooms, have a unique place in high-travel destinations like the Florida Keys. The problem, however, is that smaller hotels often miss out on the benefits of scale in their operations seen by big brands and franchises. A single small lodging property of around 20 to 25 rooms does not have access to the latest technology across the board, teams that focus on sales and marketing, or effective recruitment.

HP Hospitality’s third-party management services deliver a big brand experience and equivalent resources to small lodging properties, providing in-house expertise and asset oversight that allows these properties to immediately compete with larger competitors.

“For instance, we have an in-house area director of sales that focuses on group sales. We also have an area director of revenue management,” says Doug Barrow, president and CEO. “We have dedicated accounting teams and administrative processes to augment small lodging property management. We bring comprehensive resources to the table, and in turn, those resources turn knowledge into revenue dollars.”

Since HP Hospitality is a full-service hotel management company, investors and owners can be completely hands-off. Management covers everything from revenue, sales, day-to-day operations, accounting, human resources, logistics, purchasing, and marketing to branding.
HP Hospitality understands that creating a strong brand identity is vital for the success of small lodging properties, so it makes sure that is successfully delivered under its management umbrella.

The company has also spent five years acquiring some of the best accounting, operating, point-of-sale (POS), and maintenance softwares into a platform it can immediately implement with small lodging clients. This instantly delivers a better vision and an aptitude for success with a technology stack that competes with the likes of Hyatt and Marriott.

“We expose small lodging properties to new sales channels. They are often only listed on single OTA and don’t take advantage of a multi-channel exposure. We help them adapt from legacy software or technology and give them the resources to grow faster,” says Barrow.

The results HP Hospitality brings to its clients are significant. It measures success by top-line and bottom-line figures. Clients see revenue growth of 50 to 70 percent year-on-year in the first year of using its third-party management services. One client made more in net income in their first year with HP Hospitality than they generated in gross sales for the prior three years after HP stabilized the business’s operational aspects.

We help them evolve from legacy software or technology that has been used for some time and give them the resources to grow faster

Hotel management is just part of HP Hospitality’s proposition; it also handles small lodging investments for interested owners who can then choose to engage in hotel management services. Its hospitality investment side sees the same expert attention to detail and involvement, as HP Hospitality prides itself on building collaborative relationships with investors to ensure the right fit and mindset, and then identifying the right investment property. HP Hospitality’s strict investment criteria differentiate it from other management companies who often rush to keep a ‘churn cycle’ going with five or six deals in the pipeline and properties on the shelf that they must make appealing to investors.

This pragmatic approach to fostering well-thought-out partnerships and finding the right property for investors means HP Hospitality is always capable of delivering on expectations and exceeding returns and results. The company is unique in the market for its focus on small lodging. HP welcomes its reputation of having a ‘scrappy’ hard-working, go-getting approach, and embraces being the ‘little guy,’ helping small lodging owners penetrate a market dominated by big brands.