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DUXBURY, MA-Locally based the Providence Group, LLC is unleashing a Distressed Hotel Management program. Providence is moving to take advantage of a growing opportunity in the market, while repositioning and marketing hotels that encountered some recent problems when the market turned.

“We believe it is the second inning in a nine inning game of distressed properties, specifically hotel properties,” Jed C. Heller, president of the Providence Group tells GlobeSt.com. Financial institutions, in general, do not want to own hotels, he explains, and Providence’s goal is to get the numbers up, show the potential of the asset and assist in terms of selling the property.

Providence will, if necessary, put a general manager in place and Heller will personally supervise the transition and property. Heller sees many of the properties staring down over-leveraging with many now worth 30% to 40% of the value at which they were purchased. Putting in a management company with expertise in hotels brings in an experience element that may be missing from the equation.

Heller looks at “cost containment” as a key to turning an asset around, “We put controls in place immediately, and the other opportunity is yield management. I’d say 50% of the hotel industry doesn’t know ho to optimize occupancy and rate, and we’re very good at it.” The idea being a few cost-cutting measures in addition to optimizing rates will be part of a focused action plan that will attract future buyers, while improving numbers in the short term for these properties.

“We have a very simple formula,” Heller tells GlobeSt.com. “We believe that we take care of the employees, the employees take care of the guests and the guests take care of the owner. So, we give the employees the tools, the information and the feedback to get the job done and the key word in a lot of the situations we to into is ‘accountability.’ There’s been no accountability, so we focus on the quality of product and service and the financial results.”

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