GHS Property General Managers Recognized for Exemplary Job PerformanceAt Good Hospitality, we believe in every individual we hire, and that is why we could not be more proud of our property General Managers.Their dedication to their property and team is admirable, and their commitment to leadership is exceptional. They teach their teams to be accountable in their jobs, but beyond that, they also teach determination - to serve better and perform better than they did the day before.In hospitality, we know that there is nothing more important than the satisfaction of our guests. The current surplus in raving reviews our properties have received proves that our GM’s hold guest satisfaction as their number one priority.To all of our General Managers - thank you for your unwavering dedication to your property, teams, and guests.
Employee Spotlight: Kiarra IngramKiarra is a housekeeping supervisor and has worked with the Home2 Suites Nashville Airport property for over two years.She started out at the front desk and has now become a room inspector. She balances both a technical knowledge of the front desk and the housekeeping systems, both creating an unmatched work ethic. Kiarra's dedication to the team and the property - helping in any department she can - is what makes her a phenomenal team member.Great work, Kiarra! We appreciate all you do for our Nashville Airport property and team.
Employee Spotlight: Eric SulakEric is a maintenance engineer and has worked with the Hampton Inn Petoskey property for six years.He is responsible for keeping the hotel safe and functioning for the guests and staff. Eric's performance in his own position and his willingness to help in every other facet of the hotel makes him a vital part of our team.Great work, Eric! We appreciate all you do for our Petoskey, Michigan property, and team.
Employee Spotlight: Patrick WoznyPatrick is a breakfast attendant and has worked with the Hampton Inn & Suites Valparaiso property for a couple months. However, one would assume that Patrick has had many years of experience in this position, based on his exceptional performance.Since the day that he joined the property team, he has enhanced the atmosphere of the hotel with his inviting personality alone. He has a way of lifting the mood of the team, and not only that, but he makes our younger guests feel important and welcome, which is a fan-favorite among the parents.Great work Patrick! We appreciate all you do for our Valparaiso, Indiana property, and team.
Employee Spotlight: Chrisytal SextonChrisytal is a laundry attendant and has worked with the Hampton Inn Warsaw property for a couple of months.Her performance in her position has been nothing short of exceptional. She executes her responsibilities with an efficiency that is not often seen, and she is always punctual. You can see the pride she takes in her work.Great work Chrisytal! We appreciate all you do for our Warsaw, Indiana property, and team.
Employee Spotlight: Matthew WilsonMatthew is a front desk associate and has worked with the Home2 Suites Naples property since the hotel's opening.He has been instrumental to our success because he not only helped us open but also trained our audit staff. He is the definition of a team player and will cover any position necessary when asked.Matthew and his wife even went the extra mile and took the time to make masks for our whole team.Great work Matthew! We appreciate all you do for our Naples, Florida property, and team.
Employee Spotlight: Kevin GriggsKevin is a maintenance manager and has been a part of the Marshalltown Hampton Inn & Suites by Hilton team for six years.During the recent derecho that hit Iowa and our Hilton property, he not only kept everyone safe during the storm but also went above and beyond in the days that followed. He stayed on top of all repairs that needed to be made to restore this property to its original condition and had everything completed in a timely manner.This is a direct reflection of Kevin's sensational job performance throughout his career with our Marshalltown property and he deserves to be recognized for his hard work and dedication.Great work Kevin! We appreciate all you do.
Groundbreaking for GHS's new Crown Point Hampton Inn could not have come at a better time
Timing for the start of the construction of the new Hampton Inn hotel couldn't be better, Jeffrey J. Good said.
"Good, who serves as president of Good Hospitality Services based in Valparaiso, spoke Wednesday at a groundbreaking ceremony at the site of where the new $12 million hotel will be built."
"Timing is everything. Timing for the project couldn't be better. We're proud to be part of the community. It will be a beautiful project," Good said.
Source: Deborah Laverty, NWI Times
GHS, in partnership with Beacon Hill Development, hosted a groundbreaking ceremony for the new Crown Point Hampton Inn hotel on Wednesday, July 15th. The new Hampton Inn Crown Point will have 95 rooms, free Wi-Fi, complimentary hot breakfast, a fitness center, and an oversized pool and patio. Crown Point Mayor David Uran said Hampton Inn will be a great addition to the city.
Good Hospitality Services announces groundbreaking ceremony for new Crown Point Hampton Inn
Beacon Hill Development, in partnership with Good Hospitality Services (GHS), will host a groundbreaking ceremony for the new Crown Point Hampton Inn hotel on Wednesday, July 15th at 11:00 am CST. The groundbreaking will take place at the site of the new hotel in Crown Point, IN (10850 Delaware Parkway, on the corner of I-65 and 109th Avenue).GHS Executive Vice President, Brian Gilchrist, spoke on the Bureau Veritas’ panel about COVID and the hospitality industry
On May 28, 2020, Good Hospitality Service’s Executive Vice President, Brian Gilchrist, spoke on the Bureau Veritas’ free facilitated webinar panel to discuss how COVID-19 has changed guest behavior and the hospitality experience.
Brian shared his knowledge on how guest experience expectations have and will continue to evolve by highlighting the common theme of transparency. GHS properties have their established processes for best serving guests but guests are now wanting to know more about those processes. He enforces the idea that detailed communication is going to be the key in order to achieve guest satisfaction. This communication will include messaging that is available to guests via brand websites, check-in letters, social media, and any other channels of communication prior to the guests arrival.
On the topic of sanitization - Brian expresses that it all comes down to the previous point of communication. Guests must be told and shown that the steps are being taken and the effort is being made to continue to serve them, while having their safety at the forefront. Guests are looking for consistency across brands and properties, so we must continuously work to provide that level of consistency that guests are now expecting - including simple things like keeping records and completed cleaning logs.
We have to keep up with all municipalities' requirements and the differences among these that a guest may experience in their service. You must stay ahead of the guests and be proactive in informing them, rather than reactive, especially when it comes to accommodation or amenity changes that they can expect to see during this time. Brian also drives home the importance of sustainability when acquiring third party services for sanitization and the importance of strategically investing into these efforts for not just the time being but also thinking towards the future.
The hospitality industry is continuing to see changes and evolutions, so establishing a standardized method of communication with guests is going to be the key to navigating what may come.GHS donated a total of 934 room nights at 13 of their Hilton branded hotels
Good Hospitality is proud to have partnered with Hilton and American Express to donate hotel rooms to medial professionals working on the frontlines of the COVID-19 crisis. This program was the perfect way for Good Hospitality to illustrate creating Good Will in the communities they serve.
“We are very happy to see the number of frontline workers who were able to take advantage of this program. We hoped the gesture could provide them support and rest during such a taxing time, and from the responses we received, it was certainly appreciated,” said Jeff Good, Good Hospitality President.
GHS was able to donate a total of 934 room nights at 13 of their Hilton branded hotels across the country.Good Hospitality Services Announces Home2Suites by Hilton Opening in Naples
HRC Hotels LLC and Good Hospitality Services, Inc. announced earlier this week the opening of a Home2Suites by Hilton in Naples, FL. Developed and managed by Good Hospitality Services (GHS), this newly constructed, pet-friendly, all-suites hotel features amenities for work and play, including in-suite kitchens, free Wi-Fi, and Inspired Table, a free breakfast with over 400 breakfast combinations. Additionally, this property’s environmentally friendly, chemical-free saline outdoor pool and the unique Spin2 Cycle – a combined fitness and laundry facility designed to help guests knock out two jobs at once – are guest favorites.
“We are excited to welcome Home2Suites by Hilton Naples and its team to the Good Hospitality Family. General manager, Dominick Soricelli has assembled a fantastic team, and this all-suites hotel is poised for greatness,” said Tim Herzog, VP of Operations at GHS. “Our entire team worked tirelessly to get the hotel completed, and with all of its unique amenities, we are sure this property is going to be a guest favorite. We couldn’t be prouder.”
Jeff Good, President of GHS added, “We are excited about the continued growth of Good Hospitality, and the new Home2Suites by Hilton marks another great property in our portfolio. We are anticipating great things for this hotel as its prime location near golf courses, Gulf Coast beaches, and Naples shopping make it the perfect getaway destination.”
The Naples location is only one of two new Home2Suites by Hilton being developed and managed in Southwest Florida by GHS. The anticipated, 118-room Home2Suites by Hilton Fort Myers is scheduled to open in the fourth quarter.Dr.Evans takes part in GHS partnership with Hilton and American Express to give free rooms to medical professionals
Good Hospitality has partnered with Hilton and American Express to aid medical professionals during the COVID-19 crisis with free rooms.
For the month of April, a total of 192 room nights were used by medical personnel as a part of this partnership. One of our guests, Dr.Matthew Evans - CRNA and DNP of Midwest Anesthesia Associates, expressed his gratitude for the free rooms as he travels between Ft.Wayne and Warsaw, IN to help with patients on ventilators and making sure there are adequate supplies for patients in need.
Thank you Dr.Evans for your hard work and dedication to caring for patients during this time. We appreciate all that you do and have enjoyed having you as a guest!Home2Suites Naples welcomes first guest!
Our Home2Suites Naples property is officially open for business!
The first guest to the property received a warm welcome and a swag bag, as thanks for being our first guest to serve.
The Naples team is looking forward to making your stay the best that hospitality has to offer.Welcome to the Good Hospitality Family Home2Suites Naples!We are excited to welcome Home2Suites Naples and its team to the Good Hospitality Family! General manager, Dominick Soricelli, has assembled a fantastic team and this all-suite hotel is poised for greatness.“We are so grateful to the entire team for the hard work and long hours they invested in getting this hotel completed. It’s another job done extremely well by the team here at Good HSI. We couldn’t be prouder.” - Tim Herzog, VP of Operations at GHSGood Hospitality partners with Hilton and American Express to aid medical professionals during COVID-19 crisis
Good Hospitality is proud to be partnering with Hilton and American Express to donate hotel rooms to medical professionals working on the frontlines of the COVID-19 crisis. “We are happy to show Good-level hospitality to the amazing healthcare heroes on the frontlines of the COVID crisis by offering them a great place for reprieve and rest,” said Jeff Good, Good Hospitality President. “We hope that this small gesture can lend some support in these trying times.”
One of Good Hospitality’s core values is looking for opportunities to create Good Will in the communities they serve. This program is a perfect fit.HRC Hotels LLC and Good Hospitality Services Inc. proudly announced their recent $8 million renovation of the Indianapolis Downtown Homewood Suites by Hilton
As a historic adaptive reuse, they were able to maintain the historical integrity of the building while doing a complete rehab to the interior.
The result? The beautiful and historical Homewood Suites Downtown Indianapolis.
All 92 suites of the hotel were refurbished to include new case goods, soft goods and additional guest bathrooms with showers. The renovation also included a new Business Center, Billiards/Game Room, Breakfast Area, Front Desk and Suite Shop.COVID-19 Precaution Update from GHS President - Jeff Good
"As COVID-19 spreads across Indiana, I wanted to personally reach out to you to let you know what Good Hospitality is doing to address this ever-evolving situation.
The health and wellbeing of our clients and employees is our number one priority, and we are hyper-aware of the high risk associated with having our team members work in close proximity to each other and to our clients.
We have thoroughly reviewed the guidelines set by the WHO, CDC, and local health agencies. After thoughtful consideration, we have decided to take appropriate and proactive action regarding any activities that may expose clients or employees to any activity that is considered high-risk. Therefore, we will be enacting the following COVID-19 policy until Tuesday, April 7th:
- Effective immediately, all Good Hospitality employees will be working remotely. To our customers, this should be completely seamless to you. You can expect the same great service you have grown to expect from Good Hospitality.
- We will be rescheduling any engagements previously scheduled between March 23rd and April 6th that require in-person interaction.
- In all possible cases, we will be conducting any previously scheduled onsite meetings via video or phone conference. If that is not possible for any reason, we will reschedule the onsite meeting for a date after April 7th.
At this time, the Good Hospitality office is closed. However, we are maintaining regular business hours even as we work remotely.
Thank you for being a valued Good Hospitality customer and for your support in helping us keep everyone safe and healthy. We will continue to keep you updated as this COVID-19 situation evolves."
Jeff GoodCOVID-19 Precautions
As news of COVID-19 (coronavirus) continues to spread, we wanted to reach out to stakeholders like you to let you know what we, at Good Hospitality, are doing to address this ever-evolving situation.
The health and well-being of our guests and employees is our number one priority. To help prevent the spread of COVID-19, Good HSI has increased our precautionary measures. The daily cleaning routines at each of our properties have been altered and increased based on the guidelines set by the WHO, the CDC, and local health agencies. Throughout the day we are sanitizing high-touch areas such as elevator buttons, reception counters, workout rooms, breakfast areas, and conference/meeting rooms. We have also increased the cleaning and sanitizing of our guest rooms.
Each of our staff have been briefed on the guidelines provided by local health authorities, and we are reinforcing sanitary best practices with all our employees (like hand washing for at least 20 seconds). Staff and guests who show any symptoms of fever, flu or respiratory problems are asked to consult a doctor immediately. And, everyone is asked to practice safe, social distancing.
As the COVID-19 situation evolves, we will continue to keep you updated. At this time, all of our properties remain open. Should that change, we will send out an additional update.
Thank you for being a valued part of the Good Hospitality family.Homewood Suites by Hilton Indianapolis Downtown Completes Renovation of Guest Rooms, Meeting Rooms, and Public Space
HRC Hotels LLC and Good Hospitality Services Inc., today announced the 92 suite, Homewood Suites by Hilton Downtown Indianapolis located at 211 S Meridian in Indianapolis has completed their renovation of this well-known adaptive re-use building.
“Our renovation of this historic building reflects our continual commitment to deliver guests the highest quality accommodations, service and convenience they have come to expect from staying at Homewood Suites by Hilton Indianapolis Downtown,” said, Jeff Good, President of Good Hospitality Services Inc.
Read more here.TownePlace Suites Fort Wayne North General Manager Achieves Certification
Dana Wilson, General Manager at TownePlace Suites Fort Wayne North, has achieved certification as a Marriott Access Edge Coach. Marriott Access Edge training is required for all Marriott general managers to complete, however, Dana took this a step further by becoming a Marriott Certified Coach. She will now be training other general managers and sales leaders on this course that they need to complete in their first year with the company. This is a significant achievement and we are very proud to have Dana as a member of our team.GHS Indianapolis property teams joined forces this holiday season to volunteer at Toys for Tots
The mission of Toys for Tots is to assist the U.S. Marine Corps in providing a tangible sign of hope to economically disadvantaged children at Christmas.
The Indy property teams helped bring the joy of Christmas to less fortunate children this season, and we could not be more proud of their work.The Fort Myers team celebrated the holidays by spreading cheer and lending a hand at the Harry Chapin Food Bank
The Harry Chapin Food Bank feeds 28,000 children, families, seniors and veterans each week. Their mission is to lead their community in the fight to end hunger and the Fort Myers team couldn't think of a better cause to lend a hand to this holiday season. We are proud to have property teams who are always looking to give back to their communities.Fort Wayne TownePlace Suites raises money this holiday season to make blankets for Charis House shelter
By selling cookies, the Fort Wayne team raised money throughout November in order to buy supplies to make tie blankets for the Chairs House this holiday season. Charis House is an emergency shelter for women and women with children who are experiencing homelessness. The restorative programs that they offer equip women to find jobs and housing, navigate life’s challenges, and experience emotional stability.
The Fort Wayne team made a total of 13 blankets to give to the children of Charis House. The team then celebrated their work with a holiday party.Petoskey Hampton Inn & Suites Celebrates the Holidays with Office Party & Visit to Local Nursing Home
Our Petoskey team celebrated the holidays with a terrific party! There were games, prizes, and even a secret Santa. They then wrapped up the party with a night of bowling. Our property teams work so hard throughout the year to provide exceptional customer experience that we love to see when they get to spend time team-building and enjoying time together.
The General Manager also decided to give back and spread holiday cheer by making Christmas cookies not only for their hotel guests but also for a local senior living center. They decorated over 200 cookies and took them to the nursing home - distributing them while visiting with the residents.Warsaw Hampton Inn Team Spreads Holiday Cheer to Local Nursing Home
Our warsaw team got into the holiday spirit by creating homemade cards and baked cookies to deliver to a local nursing home. Collectively as a team, they feel blessed to be able to go out and celebrate the holiday season with family and friends, so they wanted to bring some holiday cheer to the local residents.
The residents gladly welcomed the Warsaw team and enjoyed their company. It's safe to say that everyone's season was made a little brighter!GHS supports Our Greater Good this holiday season
At the Good Hospitality Services annual holiday party, Our Greater Good was presented with a donation that will help them continue to provide services to those in need in Valparaiso.
As an active member of the Valparaiso community and government, President of GHS, Jeff Good, wanted to do something meaningful - something that would make a difference in the lives of people here in Valparaiso. The mission statement of Our Greater Good is one that stood out, and he wanted GHS to be a part of that. "Our children are the future, and these programs have made a positive impact on so many families," said Jeff.
There is a day-to-day struggle many communities in our country face, including affordable housing, substance abuse, and single-parent households struggling to make ends meet. Fortunately, in our community here in Porter County, these issues do not go unnoticed.
Pastor Garner Tullis, along with his partners Joe Ubben and Natalie Wilson, took the initiative to create Our Greater Good, a nonprofit organization based in Northwest Indiana. Their enterprises are focused on strengthening families and doing whatever it takes to see that every child in the area has great opportunities and advocates to help them reach their full potential. With this mission in mind, Our Greater Good has developed programs to work alongside schools and families, to accomplish these goals. To learn more about Our Greater Good, visit: https://www.ourgreatergood.com/
This holiday season, GHS wants to thank Our Greater Good for all that they do in continuing to support and improve our community!GHS Enhances Its Development Services
The development services division of Good Hospitality Services is specialized in working with you, the hotel owner, to ensure a timely and cost-effective hotel project. Due to delays and unforeseen costs with new hotel construction, property refreshes, and conversion projects, owners are often surprised and disheartened to see the final costs for such work, as opposed to what may have been forecasted. We serve as a liaison between the owner and all parties involved in the project to ensure timeliness of the project, the expected and specified standards are delivered, and all aspects of the project are executed within the contracted cost.
GHS has a proven and successful track record over the last 30 years serving as this liaison and plans to continue to deliver with exacting consistency for any and all future projects. As the demand for development increases and costs continue to be of concern, owners find it even more imperative to have someone representing them through the process.
Good Hospitality Services promises to continue creating an efficient and effective process for owners, and by bringing us on board at the beginning of your project, you will be set on the right course to having a successful and profitable property.
For more information on GHS Development Services: https://www.goodhsi.com/services/developmentHomewood Suites Downtown Indianapolis - renovations and teamwork combine!
Homewood Suites Downtown Indianapolis is going through renovations and they needed to go through their entire inventory.
We had some amazing volunteers step up from not only the downtown property but all of our Indianapolis area hotels including Northwest, Home2, Fishers, Plainfield and even Bloomington! They were able to finish the project in one day.
Our large portfolio of properties allows us to pull team members together to accomplish projects of any size. A wonderful display of dedication and teamwork from our GHS teams.Isidra Rojas Vital Recieves Her Mentorship Certificate
Isidra Rojas Vital at Home2 Indy getting her mentorship certificate & acceptance into the program. Congratulations!Our Hampton team in Warsaw, IN had a great time visiting a new nursing home
They visited a new nursing home called the Mason Rehabilitation Center. This teams tries to get out 2-3 times a year to a different home to play BINGO with prizes and homemade treats. We know they make the residents’ day a little brighter!
We are always proud of our team members who go above and beyond not only in their jobs but also in reaching out to the community.Our Hampton Inn team from Marshalltown, IA is always doing something to help around their community!This time they chose to visit the Iowa River Hospital and volunteer to deep clean the outside of the building and the grounds – work that often falls by the wayside.They did a great job cleaning and it was very much appreciated by the hospital staff.We are always proud of our team members who go above and beyond not only in their jobs but also in helping the community.Our Downtown Homewood Suites and Home2 Suites joined together to represent GHS at the Team Smile event
The smile event takes places at the Lucas Oil Stadium and allows kids who don’t have the opportunity for oral health care to get checked out and receive treatments.
Not only do volunteers help keep everything organized but they also get to play games with the kids while they wait. They even dress up as mascots to get them excited!
It’s such a great experience and so worthwhile. When exceptional people come together, exceptional things happen!Downtown Indianapolis Homewood Suites participated in an event for Gleaners Food Bank.
The event was called “Make it to Break it” and the goal was to create over 3,000 sandwiches in one sitting to break the world record.
While they didn’t quite make their goal all of the sandwiches they did make were immediately donated to those in need right in their own community!Housekeeping Appreciation
Housekeeping Appreciation is all about recognizing the hardworking and loyal employees that comprise the housekeeping teams. Our team members share our passion to provide the best experience to every guest and proudly portray our CORE values. At Good Hospitality, we could not be more proud of our teams and how integral they are to a hotel properties’ success.
There have been a lot of celebrations at GHS properties during Housekeeping Appreciation. Many of those have included yummy food spreads, fun team building games, and thoughtful gifts to show the housekeeping teams how much they are appreciated. Congrats to our outstanding housekeeping teams and thank you for your hard work. We appreciate each and every one of you!Bloomington Indiana Homewood Suites by Hilton receives award
Bloomington Indiana Homewood Suites by Hilton received an “Outstanding” rating in August 2019 on their most recent Brand Quality Audit.Northwest Indianapolis Homewood Suites by Hilton receives award
Northwest Indianapolis Homewood Suites by Hilton received an “Outstanding” rating in August 2019 on their most recent Brand Quality Audit.GHS has started construction on a new property in Fort Myers, Florida
This property is owned by HRC and developed & managed by GHS.
This location will have an anticipated 118 rooms and will be opening late 3rd quarter of 2020.
4333 Ford Street Fort Myers, Florida 33916GHS has started construction on a new property in Naples, Florida
This property is owned by HRC and developed & managed by GHS.
This location will have an anticipated 99 rooms and will be opening early 2nd quarter of 2020.
685 Kramer Drive Naples Fl 34109Hampton Inn & Suites Marshalltown, Iowa team participates in another Adopt-A-Highway program day
Hampton Inn & Suites Marshalltown, Iowa team takes great pride in participating in the Adopt-A-Highway program.
Several times per year they go out and clean the ditches on their segment of Highway 330. The weather finally allowed them to get out there and clean up towards the end of June.
We are very proud of our Iowa team!GHS chosen as hotel development consultant for Fairfield Inn and Suites Fair Oaks Farms
Good Hospitality Services has been named the Hotel Development Consultant for the Fairfield Inn and Suites by Marriott at Fair Oaks Farms, the nation’s largest agritourism destination. The hotel contains 31 suites, 8 of which are Silo Suites with 505 square feet for families and bridal parties. The hotel will connect to conference space and the Farmhouse Restaurant. The 99-room upscale barn-shaped hotel is scheduled to open in January 2019.Interview with President Jeff Good, Company culture a priority at GHS
Jeff Good, president of Good Hospitality Services, talks about the importance of having and promoting a positive company culture, which is a key to success behind his company that has built over 60 hotels in the last 20 years. Jeff was asked to speak at the Hotel Data Conference in Nashville, TN in August 2018. In his interview with Hotel News Now, Jeff discusses some exciting new projects that Good Hospitality Services is working on and the change in the hospitality industry over the last 25 years. Watch Jeff’s full interview below with Hotel News Now:
https://youtu.be/9Otl35oHIf4Home2 Suites by Hilton Coming to Naples, Florida in 2020
Good Hospitality Services is developing a new Home2 Suites by Hilton in Naples, Florida. The exciting new property is set to open in 2020. More details to come soon!SpringHill Suites Hotel coming to Munster
There is a brand new Springhill Suites hotel coming to Munster, IN. To get a GOOD read, click the link below.The Man Behind the Success
Get to know the owner of Good Hospitality Services, Jeff Good.
NWI Times | Deborah Laverty
"It's hard for Jeffrey J. Good to remember a time in his life when he wasn't working.
Good, the 55-year-old president of Good Hospitality Services Inc., was in sixth grade when he began shoveling sand at his family's Morgan Township business, Good and Sons Construction."Centennial Village Construction Kicks Off in Munster
Good Hospitality President, Jeff Good, discusses the SpringHill Suites by Marriott hotel development at the groundbreaking.
Good Hospitality has begun the process of adding a new hotel to the portfolio. The new Springhill Suites broke ground at its site in Centennial Village in Munster, IN. "Located at the corner of Calumet Avenue and Superior Street, the new 62,000-square-foot hotel will feature 99 hotel rooms, a pool, patio and sun deck, exercise room and cafe" said Core Construction manager Scott Olthoff. The Springhill Suites is set to open in Summer 2017.
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NWI TimesPresident of Good Hospitality Weighs in on Future Hotel Market
Buy or Build?
When it comes to running any business, especially a hotel business, this is one of the key questions any Owner has to make. There are caveats that come along with both sides. Jeff Good, President of Good Hospitality Services, recently was part of an owner's roundtable that dove into this very question.
When it comes to buying or building, the two main factors to consider are Market & Location. Do you build in a city, like Chicago, with the hundreds of already established hotels? Or do you build in suburan area where you might have to spend extra money to develop the land around it?
In 2014, STR Analytics based a study on what the average cost of building verses buying came out to.
To Buy a hotel in 2014, it would cost, on average, $219,000 a key.
To Build a hotel in 2014, it would cost $186,000 a key.
So the easy bet would be to build a new hotel. However, this is where Jeff and other owners have done their homework and found the answer isn't so straight forward. Impact Fees have changed the nature of just building a new hotel. These fees, usually government or city related, have inflated the rate at which you can build a new hotel. As you go through the process, they just seem to add on, add on, add on. So when you're sitting here looking at your development budgets, it's, You didn't have that figured out. You didn't have that figured out. It becomes a bit more cumbersome. He also added, I think that's the way of the future. I think you're going to see more and more of that.
One other big factor on whether to build or buy, is do you want to pay a premium to buy? Most people don't ever want to pay more then what something is worth, but there is a factor most people forget. If you pony up a little bit extra right now and buy the hotel for a premium, you start making money back on it tomorrow, compared to waiting 2 or 3 years while constructing a new hotel.
Needless to say, the answer is not a definitive one, but with owners like Jeff Good and others constantly out on the forefront, the question may one day be answered.