Executive Overview Westin Providence Hotel & Residences 564 Guest Rooms, 103 Luxury Residences

Executive
Overview
Westin Providence Hotel & Residences
564 Guest Rooms, 103 Luxury Residences
Executive Overview
Founded in 1964, The Procaccianti Group (TPG) is a second generation, privately-held real estate investment and
management company boasting a national platform that spans all sectors of real estate with a particular focus on
quality full service hotels. Since 1992 the company has owned or managed over 200 real estate assets including
80 hotels with more than 18,000 guest rooms and throughout its history, TPG has owned or managed over 20
million square feet of real estate totaling nearly $4 billion.
TPG has established an outstanding track record of creating value for lenders, servicers, portfolio owners and
investors by maximizing operating efficiencies and turning around non-performing assets across multiple real
estate sectors including hotels, condominium projects, restaurant and retail outlets, and convention centers. TPG’s
value-add model is achieved through a fully integrated approach, a combination of five separate companies, that
drives deployment of the company’s aggressive operations, sales and revenue management strategies. TPG is
considered among the nation’s elite hotel companies by evidence of its consistent national ranking as a top
hospitality manager and top hospitality construction company. These results have earned TPG preferred status as
an approved operator of all the major hotels brands including Hilton, Hyatt, InterContinental, Marriott, and
Starwood.
TPG’s senior management team has worked side by side for over 20 years throughout several market cycles
under the leadership of James and Elizabeth Procaccianti and has built a professional infrastructure capable of
effectively managing its expanding national portfolio.
Via TPG’s proprietary value optimization process, TPG creates unprecedented value by exploiting a hotel’s
operational inefficiencies via techniques refined through years of hospitality management experience. Having
sustained growth, invested, and operated through several market cycles, the company is able to position
properties to prosper in up cycles and mitigate risk in down cycles through highly skilled hands-on management.
Many of the Company’s top performing properties were once non-performing distressed assets facing foreclosure,
bankruptcy, REO or auction.
It is through TPG’s proven ability to tailor its value-add strategy, either as an owner/operator or third party
hospitality manager, that lenders, servicers, portfolio owners and investors have repeatedly realized above market
performance.
REAL ESTATE
COMPANIES
TPG AFFILIATED
SERVICE COMPANIES
TPG REAL ESTATE
HOLDINGS
$4 Billion in Assets
80 Real Estate assets
Top 5 Hospitality Company
56 Hotels, 15,000 guestrooms
7 Opportunistic Investment Funds
Nearly $1billion invested
SERVICING
Nearly $1 Billion Annual Revenue
TPG Hospitality
TPG Asset Management
TPG Construction
TPG Finance
TPG Development
Renaissance Boca Raton
189 Guest Rooms
TPG at a Glance
• Founded in 1964, TPG is a privately held, second-generation real estate company
• TPG is a full-service, vertically integrated organization comprised of 5 affiliated companies
• TPG is experienced with all real estate sectors, over 20 years focusing on the hospitality sector
• TPG has owned, developed or managed 88 hotels totaling over 20,000 guest rooms
• Today, TPG owns interests in or manages 64 hotels, w/16,813 guest rooms in 23 states with
1 million square feet of meeting space with a market value approaching $3 billion
• TPG is an approved manager of all the industry’s most respected hospitality brands
• TPG currently employs 7,300 people, with 120 people in management/construction/asset mgmt
• Senior management has been together for approximately 20 years
• Equity partners include; CalPERS (Pension), CMS (HNW), RFP (Endowments), InvestCorp (HNW) and others
• Lenders include; Bank of America, Merrill Lynch, Anglo Irish Bank, Wachovia, Bank of Scotland & CSFB
Westin Dallas Forth Worth Airport
506 Guest Rooms
TPG Representative Performance
Hospitality Management Examples
Performance figures below demonstrate the immediate and dramatic impact of TPG’s proprietary value creation process
delivers to bottom line performance. Figures below indicate the hotels’ performance in the first 12 months under TPG
management compared to previous operator.
RevPAR
IMPROVEMENT
GOP
INCREASE
HOUSE PROFIT
MARGIN
INCREASE
VALUE
CREATION
Holiday Inn Select - Orlando
12.7%
141%
117%
$10.5m
DoubleTree Paradise Valley
18.3%
47.5%
26.6%
$22.2m
Hyatt Lexington
18.3%
53.2%
37.8%
$12.7m
Marriott Palm Beach Gardens
11.1%
56.3%
37.2%
$14.7m
Sheraton Suites Kansas City
12.6%
29.1%
16.4%
$11.4m
PROPERTY
(9% cap)
Investment Management Examples
As an owner/operator, TPG’s philosophy of “Buy Right, Brand Right, Renovate Right, and Manage Right”, has proven time
after time to preserve and enhance asset value producing investor returns that far exceed industry benchmarks.
PROPERTY
ALL-IN COST
SALE PRICE
IRR
MULTIPLE
Holiday Inn Providence
$6.5m
$31.0m
171%
30.7x
Marriott Boston Newton
$29.0 m
$77.0m
163%
2.25x
Marriott Palm Beach Gardens
$16.13m
$61.25m
106%
7.48x
Westin Dallas Fort Worth Airport
$69.5m
$101.0m
$64.1%
2.85x
DoubleTree Tulsa
$18.7m
$31.0m
88.3%
4.35x
Westin Tysons Corner
398 Guest Rooms
The TPG Difference
TPG achieves above average results through vertical integration and a collection of companies whose sole
objective is to control costs and speed execution. The Company boasts a proven, third party validated track
record for delivering above benchmark performance and generating maximum NOI without increasing risk by
utilizing it’s proprietary value optimization program. Several key elements are:
Operational Expertise
TPG’s core strength is managing hotels and producing above average gross operating profit through aggressive
hands-on management and cost control. Upon commencement of management, TPG immediately implements a
strategy that focuses on overhead reduction, payroll, expense management, and NOI growth. Additionally, TPG
focuses on aggressive rate management strategies to maximize revenue, which results in greater flow-through
due to improved operating margins.
Asset Management
The Asset Management team at TPG understands the priorities and responsibilities of asset management from
years of experience owning and managing real estate assets ensuring that return objectives, product quality, and
service goals are achieved. During the initial stage, TPG Asset Management will establish a business plan to
exploit value-add opportunities such as; (i) leasing outlets, (ii) reworking operating contracts, (iii) evaluating
revenue generating opportunities, (iv) redevelopment of existing space and/or development of excess land for
compatible uses, (v) filing tax assessment appeals, (vi) investigating insurance cost reduction through inclusion in
TPG’s master insurance policy and (v) refinancing. TPG’s ability to uncover revenue enhancement and cost
containment opportunities during due diligence, through the annual budgeting process, or as part of an ongoing
assessment, historically results in a significant impact to net operating profits translating directly into value.
Asset Recovery Expertise
TPG Advisory Services provides asset recovery services, turnaround consulting, and investment services. TPG
creates customized solutions to non-performing real estate assets in a manner that will maximize returns via
effective planning and efficient execution.
DoubleTree Resort
Paradise Valley
378 Guest Rooms
The TPG Difference
Real Estate Advisory Service
TPG provides a full range of asset recovery services to lenders and developers for stalled multi-family residential
and commercial properties. TPG’s turnaround practice provides consulting services and interim management to
under-performing businesses and advisory services to company creditors.
Skilled Assessment Strategy
Unlike many companies new to the industry, TPG has a unique ability of unlocking untapped potential that
exists in most under-performing hospitality and mixed use assets. Developed over decades of experience, TPG
knows how to drive NOI by identifying the underlying inefficiencies to improve operations, product quality, sales
force, and revenue while dramatically reducing overhead and expenses. TPG’s best results are achieved with
assets that are well located, within growing markets and have multiple stable demand generators, whereby,
through TPG’s expertise, the property or project would become or solidify its position as a market leader.
Proven Renovation Performance
TPG utilizes in-house resources to accelerate the renovation or repositioning process at a lower cost than third
party general contractors or service providers. Renovation costs are considerably lower than those completed
by a non-captive construction manager, which immediately results in value for the property owner. TPG has 20
years experience and has completed over 70 renovations and re-branding projects.
TPG simply “thinks like an owner”, fostering better decisions which drive long-term value and sustainability.
National Hospitality Portfolio
National Footprint & Brand Affiliations
TPG Owner Operator TPG 3rd Party Manager
• 64 Hotels
• 16,813 Rooms
• 23 States
Brand Affiliations
InterContinental Kansas City at The Plaza
366 Guest Rooms
Awards & Recognition
CURRENT RANKINGS
RECENT AWARDS
TPG Ranked #4
2010 Best Conversion Hilton Manhattan East
TPG Ranked #3
2008 Best Renovation
Marriott Ft Lauderdale
TPG Ranked #4
2007 Developer of the Year
TPG Ranked #13
2007 Renovation of the Year
Holiday Inn S. Kingstown
*
* Among private companies
Hilton Manhattan East
New York City
300 Guest Rooms
Executive Leadership
JAMES A. PROCACCIANTI
PRESIDENT, CEO
Mr. Procaccianti is responsible for
overall
strategic
planning,
organizational development, new
business development, investor
relations, franchise relations and
acquisitions.
ELIZABETH PROCACCIANTI
CHIEF OPERATING
OFFICER
Ms. Procaccianti is responsible for
the overall management and
performance of TPG’s national
hospitality portfolio.
MARK BACON
CHIEF CONSTRUCTION
OFFICER
GREGORY VICKOWSKI
CHIEF FINANCIAL
OFFICER
Mr. Bacon is responsible for the
implementation
of
all
construction, renovation and
capital expenditure projects
Mr. Vickowski is responsible for
debt and equity placement, joint
ventures, asset management,
information technology, and all
financial reporting and planning.
ROBERT LEVEN
CHIEF INVESTMENT
OFFICER
Mr. Leven is responsible for
strategic planning and business
development
as
well
as
evaluation,
analysis
and
processing of all new acquisition
opportunities.
RICHARD MacADAMS
CHIEF LEGAL COUNSEL
Mr. MacAdams is responsible for
the administration and oversight
of all legal matters relating to the
business of TPG and its
subsidiaries.
Hilton Suites Chicago
Magnificent Mile
345 Guest Rooms
Lenders and Investors/Partners
Lenders
• Anglo Irish Bank Corporation
• GMAC
• Bank of America
• Merrill Lynch Investment Banking
• Credit Suisse First Boston
• Bank North Group
• Column Financial
• MetLife Real Estate
• KeyBank Real Estate Capital
• Stillwater National Bank & Trust Company
• Danvers Savings Bank
• Nomura Asset Capital Corp.-Servicer
c/o Amresco Services, LP
• Lennar Funding Corp.
• Newport Federal Savings Bank
• Ocean Bank
• Starwood Hotels & Resorts International
• Bear Stearns
• Wachovia Bank, N.A.
• Sovereign Bank
• Protective Life
• Capmark
• Bank of Scotland
Institutional Investors / Partners
• Realty Financial Partners
• California Public Employees
Retirement System (CalPERS)
• CMS
• InvestCorp
• Rockpoint Group
• Charles River Realty Investors
• Atlas Capital
Regal Sun Resort at
Downtown Disney
626 Guest Rooms
Key Contacts
James Procaccianti
jprocaccianti@tpgcompanies.com
President / Chief Executive Officer
Elizabeth Procaccianti
eprocaccianti@tpgcompanies.com
Chief Operations Officer
Gregory Vickowski
gvickowski@tpgcompanies.com
Chief Financial Officer
Mark Bacon
mbacon@tpgcompanies.com
Chief Construction Officer
Robert Leven
rleven@tpgcompanies.com
Chief Investment Officer
Richard MacAdams
rmacadams@tpgcompanies.com
Chief Legal Counsel
Corporate Headquarters
1140 Reservoir Avenue
Cranston, Rhode Island 02920-6032
Phone: (401) 946-4600
www.tpgcompanies.com
South East Office
6000 Lake Forest Drive NW
Suite 455
Atlanta, Georgia 30328
Phone: (678) 349-5000
West Coast Office
1707 4th Street
Santa Monica, California 90401
Phone:
(310) 899-1372
Facsimile: (310) 452-7399