Business Development Brief: Gateway Hospitality Group

 

Client Summary

Gateway-Hospitality

Gateway Hospitality Group, a 20-hotel portfolio led by founder Bob Voelker and partner Ron Hutcheson, had a long track history of developing and managing high quality hotels throughout the United States. Aggregating to 2,544 rooms, their portfolio included premium select-service properties under top lodging brands including Hilton and Hyatt in addition to two luxury boutique hotels located in five states and the District of Columbia. Their operating strategy combined economies of size with the deployment of regionally-focused operations teams to bring tremendous value to their hotel owners and investors.

Business Problem

Through 2016 and heading into 2017, GHG wanted to sell part if not all of its portfolio. However, because sales were stale they were not getting the offers they believe reflected the true value of their holdings. Most suitors told them that to get to that price they would be looking for sales of 20%-30% more from current and for those sales to be stable and not be based on short term, one time large pieces of business. They wanted to see true incremental growth that was sustainable long term, year to year. To accomplish this goal the management team had to address a variety of systemic issues in their company sales process.

They said they would call me back

20 plus hotels located across 13 states brings a unique set of problems.

  • Every hotel had their own selling system.

  • Hiring top level sales talent was ineffective because there was no blueprint on how to hire and what to look for.

  • Accountability for both production and activity at the local level was never as consistent as it needed to both improve and be successful.

  • Change resistant mentality exists in current team.

  • Management focused solely on historic data and NEVER dug into the predictive data that determines patterns, direction, skill improvement and near term success.

  • Inability of sales/management to see “bigger picture” with regard to business intelligence and metrics.

  • Strength of individual managers varies greatly location to location.

You add in GHG wanted the 20%-30% increase in incremental sales in less than a year to impress potential buyers. They had a mountain to climb on a tight deadline.

 

Sales Development Retreat: Participant Feedback

The Matrix Impact Solution

First let’s cut to the chase… Bob and Ron achieved their goal. We grew sales 37% across the hotels I worked in. We focused on the properties that had the largest sales quotas (Their 5 Northern Indiana properties and 6 Dallas properties) which meant once we did our job it impacted the sales revenue number fastest and to greatest effect.

Then they found their buyer. Interstate Hotels and Resorts heard from their properties about how they were losing business to GHG in these locations and they were curious how this was happening. They did their research and came calling. And by January of 2018, the sale of GHG was complete. Below are the big picture bullet points as to how we did it.

  • Created and Conducted

    Daily Sales Huddles across all of the properties (11 total every day)

    Hotel Sales Team training (weekly and monthly)

    Individual sales person coaching (as needed)

    Daily Ride-along and coaching with individual sales people (monthly and as needed)

    Sales management, both as a management group and individually (monthly and as needed)

    Sales Simulation practice (as needed) see links for video below for actual simulations that were conducted

    Sales Simulation 1

    Sales Simulation 2

    Here is a link to our Initial Project Plan Sample

  • Created, executed and taught Sales Blitz Process in 6 separate locations that resulted in sales opportunities and revenue exceeding $1,500,000 and uncovered over 250 new prospects including Frito Lay/Pepsi, People Capital One, Link Staffing, Lippert Components, Siemens, Oracle, and Top Golf at the Colony, Texas. Below is a video sample of our blitz planning process.

Sales Blitz Preparation

  • Installed Impact Hiring System that simultaneously improved the quality of people being hired while making it easier for management to implement the process pieces.

The Hero They Needed... Matrix Man!

The Villain They Avoided... Dr. Know-It All!