The difference between a hotel and a luxury hotel is amenities and service. Pivotal has mastered hotel restoration. Pivotal has renovated and repositioned some of the most pristine hotels in the western United States, and have the reputation as a successful hotel development group. Many hotels only need a few changes to make them successful, and Pivotal’s experience in the real estate market allows them to pinpoint problems and turn hotels profitable. The Ritz-Carlton in Phoenix, Arizona is successful now after Pivotal redesigned the asset management system. Improving the finances of this hotel allowed Pivotal to make renovations to the physical plant of the building. The Ritz-Carlton is located in the metropolitan area of downtown Phoenix, and now offers customers the five-star experience.
Hotel investing requires research and planning in order to restore a luxury hotel. Innovation is the key in capturing the attractiveness that makes visitors want to stay at a specific hotel. In 1999 Pivotal acquired the Century Plaza and Tower. Instead of simply restoring the buildings, Pivotal decided to turn this complex into two luxury hotels. This allowed Pivotal to take advantage of two different branding opportunities, and allowed them to take two different approaches in the restoration process. This innovation led to the development of the Century Plaza Hotel and Spa and the St. Regis Los Angeles. Pivotal decided to completely renovate the Century Plaza and restored the rooms. In order to elevate itself from the competition, Pivotal added a luxury spa inside the hotel. These renovations allow the hotel to keep its legendary status in Beverly Hills. Pivotal took a different direction when they redesigned the tower portion into a luxury contemporary hotel. Pivotal repositioned the hotel under the prestigious St. Regis name. Pivotal redesigned the building altering room placement and adding a spa and ballrooms. Adding a first class restaurant and the legendary St. Regis Bar improved the amenities of the hotel, and enabled customers to enjoy the first class Los Angeles experience without leaving the hotel. Located next to the Century Plaza Hotel and Spa, these two hotels offer visitors two different experiences with the same luxury. This type of innovation allows development companies the opportunity to attract two different target markets enabling the investment group have high returns on their investment.
Finding successful resorts is a difficult task for any investment company. Restoration and redesigning entire facilities is a major expense in the hotel industry. Adding amenities adds to the overall value of the hotel at a fractional cost. Pivotal acquired Red Mountain Resort in St. George, Utah in 1998. The Red Mountain Spa was already a successful resort and Pivotal added a luxury spa and fitness facilities. These changes only added to the success of the Red Mountain Resort. This type investment is capitalizing on marginal returns. Pivotal is trying to generate marginal returns on their added expenses. This type of investing requires experience in hotel investing because balancing expected returns with expenses and trying to gain fractional profits requires market knowledge and research.
For more information about this hotel investment company as well as what it takes to be a successful hotel development company, please visit PivotalGroup.com.
Tags: hotel development company, hotel investment