Third Party Management

Fisher Property Group’s affiliation with Island Hospitality Management Inc. provides a significant competitive advantage over similar companies by providing direct property and asset management services. Consequently, by not having to rely on third-party hotel management or franchisors, Fisher Property Group works to ensure that the interests of the executive management team and its investors are closely aligned.

Given its independence from any specific brand affiliation or public ownership, Island Hospitality can maximize the value of every asset in its portfolio without ever encountering a conflict of interest that might otherwise arise when there are multiple objectives or priorities. Island Hospitality’s focus is to achieve premium market share and investment returns throughout all market cycles while providing the highest possible satisfaction for its guests and employees. Hotels under management have consistently achieved significant RevPAR premiums in varying market situations, enhancing the management company’s standing as an industry leader in creating long-term sustainable value.

Prior to its sale, the majority of the Innkeepers portfolio was managed by Innkeepers Hospitality, an affiliate of the REIT that was formed in 1985 by Mr. Fisher, who served as its Chief Executive Officer and Founder. After Innkeepers’ sale, Mr. Fisher formed Island Hospitality Management, which currently manages 78 third party hotels, including 72 of 73 hotels in the original Innkeepers portfolio.

Island Hospitality will provide an integral role in maximizing returns by providing the following services:

Comprehensive Sales & Marketing Programs

Island Hospitality develops and implements strategic direct sales & marketing programs that provide the following competitive advantages:

Identifying local demand drivers that impact long-term RevPAR performance, including business activity (regional headquarters and offices), leisure/resort activity (tourist and entertainment attractions and special events such as concerts or festivals), education/universities, and governmental offices
Understanding the competitive positioning of each hotel through the market analysis of hotel intelligence reports and Smith Travel Research reports
Working with regional directors and on-site general managers to identify new revenue opportunities by maximizing sales opportunities with existing customers and the identification of new, high volume accounts that have significant long-term revenue potential
Providing prospective sales leads throughout the portfolio of managed hotels through the identification of cross-selling opportunities
Securing guest feedback to measure and improve overall guest satisfaction

Long-Term Capital Planning & Preventive Maintenance

Island Hospitality is committed to the development of long-term capital planning to help prioritize and manage the allocation of capital expenditures. In addition, ongoing preventative maintenance maximizes the life expectancy of furniture, fixtures, and equipment to avoid out of service rooms and increase RevPAR performance.

Comprehensive Procurement Services

Island Hospitality provides comprehensive, turnkey procurement services at all of the hotels under management, which provides reduced rates on commodities supplies and products, which helps generate significant economies of scale associated with the management of a 78 property hotel portfolio and overall cost savings that improve bottom line performance.

The management company has over 3,000 employees, including 55 corporate employees and six regional directors.

Hiring, Developing, and Retaining Leading Hotel Management Professionals

With currently more than 3,000 employees, Island Hospitality is committed to recruiting, developing and retaining top management and property-level talent with the goal of providing them with the training and resources that are essential to maximize the value of every hotel under management. Positive results will be rewarded with above market, incentive-driven compensation packages and instilling an entrepreneurial spirit will help preserve the company’s standing and reputation as the 13th largest hotel management company globally (Hotel Business, April 2007).

Strengthening Relationships Premium Brands & Flags

Island Hospitality will continue to strengthen its carefully selected partner relationships with leading brand affiliations, including Marriott, Hilton, and Starwood, with the goal of being recognized as a top performer within each of the brands, in terms of maximizing long-term RevPAR performance for Island Hospitality and the owners of the hotels it manages.

State-of-the-Art Information Technology Systems and Resources

Given the financial strength and the overall depth of the organization, Island Hospitality provides the following information technology systems and resources:

Yield management strategies to monitor pricing, positioning and optimizing revenue to maximize profitability
Integrated back office capabilities and detailed accounting and financial reporting systems that generate and maintain in-depth reports on all areas of the hotels’ operations including purchasing, utilities, vendor relationships, insurance, salaries, and contracts/leases, which enables personnel to make informed decision-making
Providing financial and operational statistics and analysis, which enables employees to make objective and informed decisions to identify positive or negative trends early in the process, which helps drive RevPAR performance, and overall guest satisfaction.

The management company believes that the vital property-level data generated by its information technology systems help guide positive decision-making and help maximize the value of every hotel under management.