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who we are
We are a family-owned hotel investment and management company based in Palm Springs, California. Drawing on 50 years of hotel operating experience and 30 years of investment management and marketing, our dynamic, hands-on team delivers an operating model that has proven to be resilient over the long term, underscored by remarkable guest loyalty, limited turnover, robust operating performance, and the revitalization of distressed & underperforming properties to highly profitable market-leading assets.
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what we’ve done
Founded in 1991 with the acquisition of the Las Brisas Hotel in downtown Palm Springs, we have grown the initial equity position from $650 thousand to $25 million, while maintaining attractive annual cash distributions. We received the Developer of the Year Award from Starwood Hotels & Resorts for their Select Service Brands and are a Preferred Management company of Marriott International, Hilton Worldwide, Intercontinental Hotel Group, and Best Western International as a result of our exemplary management and award-winning guest service. Check out our success one property at a time.
We repositioned the 90-room Las Brisas Hotel from an independent midscale hotel in foreclosure to one of the top performing hotels in downtown Palm Springs, now operating under the Best Western Plus flag.
By redeveloping the public areas, expanding and enhancing the food & beverage experience, and adding lush landscaping, we created an intimate, full-service resort setting that is uniquely positioned between the limited service and four diamond properties. Our dedicated staff of 27 employees is cross-trained in all areas of the hotel providing an extremely efficient and profitable operation.
During the past 25 years, we have created a sense of community for our associates as well as our guests, leading to incredible employee satisfaction with an average retention of 16 years and a repeat customer base of 75%. Our exceptional guest loyalty enables us to retain our position as the occupancy leader in the downtown market largely through word-of-mouth with a minimal marketing budget.
We assumed management of the 760-room Airport Marina Hotel while in receivership and implemented an aggregative $6.5 million renovation
and turnaround program that transitioned the negative cash flow operation to $3+ million profit within 18-months
Our team smartly secured a valuable long-term contract with a local university for three dedicated guest room floors – a solid demand base for the operation to build upon. By offering unique attributes such as a customized guest room renovation program & a dedicated 24-hour executive lounge serving a continental breakfast, evening refreshments, and an honor bar, we created a niche with which the local market could not compete.
We also repositioned and expanded the food & beverage experience and hired a new executive team to successful implement our operating plan. The property re-traded a few years later at an incremental price of $14 million that was largely attributed to our repositioning of the asset.
We repositioned the 80-room Big Bear Chateau from a distressed and negative cash-flowing asset to one of the premier mountain resorts in Southern California.
The repositioning program involved adding the Best Western flag, implementing all new IT systems, recruiting, and training a new executive team, and a $2 million renovation of the hotel’s guest rooms and public areas without suspending operations. We furthermore enhanced the food and beverage experience to include programmed nightly entertainment for our guests and the local community and created the highest-rated restaurant and bar in the market. The property was in a strong cash flow position within our second year of operation. In 2005, we sold the property at a substantial price premium and utilized the sales proceeds to acquire the Hampton Inn Tucson Airport in a 1031 Exchange.
Our team increased the Net Operating Income by over 50% within our first year of ownership. Since then, the property has sustainably occupied a leading position within the airport market.
During our ownership, we have invested and provided project management oversight for $3.5 million in capital improvements, that include a full renovation of the guest rooms and public areas as well as a recladding of the hotel’s façade. We furthermore added a 15-year term to our Hampton Inn franchise and continue to maintain an “Outstanding” rating in quality assurance, ranking our property amongst the best operated hotels in the Hampton Inn system.
Our team acquired the closed & deflagged 150-room midscale hotel & implemented a $3 million phased renovation to reposition the property to an upscale
full service Four Points by Sheraton, which is now established as one of the major competitors in the airport market.
Our repositioning program was targeted at attracting the corporate and group market and involved reconfiguring the public areas to add a boardroom, fitness center, and a new restaurant and bar – an amenity that sets the property apart from its competitors. We received the Developer of the Year award from Starwood Hotels & Resorts for their Select Service Brands and were rated as the top restaurant in the Four Points North American portfolio. Given the strength of the Tucson market and the hotel’s operating performance under Marriott, the partnership strategically decided to take the hotel to market in 2019 and a sale was completed at strong value in January 2020, resulting in favorable investor returns.
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what’s next
We are expanding our operating portfolio in California through new investment opportunities with attractive risk-adjusted returns and upside potential with the implementation of our proven business model. Our investment criteria includes independent or branded hotels that range from midscale to luxury with 50 to 150 keys. Our dynamic organization leverages its expertise to develop and underwrite creative and tailored business plans for prospective deals that have proven to unlock value for investors.
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our model
Our business model produces market leading assets with exceptional guest loyalty. We strive to deliver everything our guests want and nothing they don’t, providing exceptional service while remaining efficient and profit-driven.
Investment
We are personally invested in each of the hotels we operate. As co-investors, our interests are aligned with our partners. Performance is bottom line focused over the long term and our invested capital is ROI-driven.
Positioning
Through smart programming and branding, our properties are distinguished from the competition.Our properties are thoughtfully positioned within their respective markets and are constantly evolving amidst ever-changing market dynamics to ensure resiliency and success across various market cycles. Through extensive feasibility analysis, we understand our guest demographic, their wants and needs, and our point of difference.
Food & Beverage
Through curated food & beverage we create emotional connections that drive guest loyalty. Food & beverage is not only a brand enhancer but a core marketing vehicle. Our menus are designed to deliver quality food & beverage that is tailored to the wants and needs of our guests with streamlined services to control costs and yield strong margins.
Management
We deliver dynamic operating plans and foster a culture of service excellence and community. Our leadership team is immersed in the daily operation of our hotels, providing ongoing support in developing the operating plans, staffing, finance, revenue management, and sales & marketing. Through an established system of SOPs and ongoing training initiatives, we maintain continuity for our distinct operating style as well as encourage process improvement and innovation, while creating a fun, family-like atmosphere for our associates and guests to enjoy.
Accountability
We implement a robust system of financial accountability to improve margins. Our operating platform is designed to provide transparency and oversight. We establish realistic operating plans with measurable KPIs and utilize sophisticated reporting, centralized accounting, and auditing systems to track performance.
Capital
Through strategic capital planning our properties remain fresh and ROI-driven. We stay attuned to our markets, guests, and industry trends to smartly invest in our properties with a long-term focus on growing market share and investor returns. We have the in-house expertise to manage complex capital projects from planning through completion all the while providing rigorous oversight to ensure best practices and cost controls.
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leadership
We are a family-owned hotel group that leverages synergies and expertise from within and outside of the hotel sector to deliver
a distinctive platform based on industry leading practices and innovations.
A seasoned hotelier and entrepreneur, Raymond Johnston is the visionary and founding partner of Las Brisas Hotel Group. His distinguished 50-year career began at the property-level with advancing leadership positions throughout the US, Mexico, and the Caribbean, which led to executive positions including President of Yellowstone National Park, President of Campbell Soup’s Restaurant Division, and Chairman of Best Western International Worldwide. Raymond’s success is evidenced through his storied career highlighted by significant development, turnarounds, and the restructuring of financially distressed hotels and companies.
During an extended period abroad, Raymond spent ten years pioneering the major international resort destinations throughout Mexico and Aruba, while opening the first luxury hotels in Puerto Vallarta, Cabo San Lucas, Mazatlan, Ixtapa Zihuatanejo, and Aruba N.A. Over the course of his career, Raymond has operated select and full-service hotels with 80 to 800 keys in city center and resort destinations, casinos, and free standing restaurants. The operating model of Las Brisas Hotel Group is the culmination of best practices and a unique operating style that Raymond honed through his diverse operating background. Raymond is a graduate from Michigan State University with a BA in Hotel, Restaurant, and Institutional Management, as well as a BS in Business Administration from Oregon State University.
Michelle is involved in all aspects of the organization and plays a significant role in the expansion of Las Brisas Hotel Group. Michelle offers a 13-year proven track record within three leading global hospitality corporations (Marriott International, Starwood Hotels & Resorts, and Hilton Worldwide), and has guided the real estate strategy for a diverse portfolio ranging from select service to luxury hotels, including $1.5 billion in real estate transactions. Michelle is a strategist and marketer with an entrepreneurial mindset to innovate and optimize performance.
During her 10 years with Starwood Hotels & Resorts, Michelle had oversight over a $1 billion global portfolio, working with property-level and corporate cross functional teams to direct real estate transactions, drive operating performance, address real estate matters, and guide capital planning and development initiatives, including the planning and design for new-build and redevelopment projects. With Marriott International, Michelle led dispositions, guided the real estate strategy, and managed partner relationships for joint venture hotels in Latin America. Michelle has a BS from Boston University and a MS from New York University in Hospitality Industries Studies with a concentration in Hotel Investment.
Michael is actively involved with all development and investment activities for Las Brisas Hotel Group and leads our innovation strategy. Michael is helping change the way people work, live and travel as Chief Executive Officer and Co-Owner of DIT, a premier collaborative workspace and event space business in Europe. Michael is also a Senior Advisor and first round investor in June Homes, a home sharing company which recently closed its Series A at a $93 mln valuation led by Softbank Ventures.
Prior to his entrepreneurial endeavors, Michael was CEO for Regional Hotel Chain, a leading investment and development company in Russia that he expanded from 3 to 9 hotels and ultimately sold at a 22x EBITDA valuation. As Head of Private Equity and Director of Global Strategy for KPMG and Deloitte, Michael consulted leading global private equity firms on M&A, CDD, PMI, change management, and operational improvements. Michael was also an Investor Director at SigmaBleyzer, a top 5 PE firm in the CIS with over $500 million in committed capital and served on the board of the Four Seasons Lion Palace. Michael has an MBA from Thunderbird, School of Global Management and received a B.S. from the University of Southern California. After USC, Michael volunteered for Peace Corps which began his 15 year career abroad.
Mark is an Executive Producer with over 20 years of production and creative development experience working with prominent brands in technology, lodging, and retail. Having worked with the likes of Apple, Amazon, Airbnb, American Express, Adidas, The North Face, and Bacardi, Mark brings to Las Brisas innovative methods for concept development, promotion, and branding.
Mark honed his production expertise during his 10 years with TBWA\Chiat\Day in Los Angeles, and has since been working as a creative producer and documentary filmmaker in New York City and San Francisco, achieving acclaim for numerous cutting-edge advertising campaigns and an award-winning film. Mark’s core expertise spans across all facets of production including financing, talent negotiation, physical production, post production, distribution, and developing brand identities for Fortune 500 companies. Mark earned his BA from University of Southern California School of Cinematic Arts.
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our hotels
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For investors looking to partner with a reputable co-investor and hotel operator with a 30 year history of creating market leading assets, let’s connect to discuss new opportunities for growth.
Our investment criteria includes independent or branded hotels that range from midscale to luxury with 50 to 150 keys. We are predominantly focused on leisure destinations in California and our dynamic organization develops creative business that have proven to unlock value for investors.
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let’s connect
Reach out regarding investment opportunities, management inquiries, or open positions.
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