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THE BEST VALUE FOR ECONOMY AND MIDSCALE GUESTS
Boardwalk Suites recognized an opportunity in the hospitality market where guests struggled to find an affordable hotel that offered great accommodations. Most hotels that had prices between $50-$100 per night, struggled with the guest experience and had very low review scores. Most of the hotels we visited had low quality furniture, uncomfortable beds, and cheap televisions. In order to get higher quality furniture, guests had to look to the midscale market and the rates doubled and tripled in many cases. This is when we noticed a gap in the market and we started working on Boardwalk Suites, a brand that would bridge that gap.
We studied the market and identified the primary customer needs and created a system to meet those needs without spending the typical costs associated with traditional franchises. We found great deals on economy hotels, we found ways to source higher furniture quality for less, we built our own reservation call center to increase direct bookings, and we added a few things to the property like 50+ Smart TVs. The results were beyond our expectations and we quickly became the highest rated economy hotel on Google in both Baton Rouge and Lafayette, Louisiana.
Boardwalk Suites Baton Rouge
This 109 room hotel was purchased for $2.47M in November 2023. We sourced furniture from the Bellagio in Las Vegas and the Embassy Suites in Chicago. We updated the TVs to 55" Smart TVs, painted the exterior, and added a host of outdoor activities for guests.
Boardwalk Suites Lafayette
This 160 room hotel was purchased for $2.3M, January of 2024. We sourced furniture from the Embassy Suites in Chicago. We updated the TVs to 55" Smart TVs, painted the exterior, and added a host of outdoor activities for guests.
#1 Rated Economy Hotel In Baton Rouge
#1 Economy Hotel In Lafayette
EXPERTS AT REBRANDING ECONOMY HOTELS
Our founder has been rebranding economy hotels since 2018. He started in Las Vegas and then moved to the Louisiana market in 2023. The process of rebranding a hotel from a traditional franchise to an independent hotel can be challenging which is why we have so many franchise hotels across the U.S. Unfortunately, with rising inflation, higher interest rates, and revenue on the decline for many hotels, the high costs associated with franchises are unsustainable for most operators and we are seeing a massive wave of bankruptcies and foreclosures throughout the industry. The high booking costs, which can exceed 20%, that are charged by the online travel agencies are also causing issues for many operators. There has to be change within the industry in order for the hotel operators to survive.
Deal Sourcing
We search for hotels with a total acquisition cost under $30,000 per unit. This should cover the purchase price and the renovations. We buy concrete structure buildings, typically built in the 80s and 90s. Our starting basis per room is typically 50-70% lower than our competition.
FF&E Sourcing
We work with luxury hotel operators to source high quality furniture for $.10 on the dollar. Furniture from luxury hotels is typically high quality and it is made from real wood. The mattresses are also new and higher quality then what you find at economy and midscale hotels. We have streamlined the logistics and continue to leverage our buying power as we grow.
No Franchise Fees
We saved an estimated 15% on franchise fees with the creation of our own brand. We also avoided the strict rules that would not allow us to utilize some of our strategies that lower costs and improve our bottom line.
Customer Sourcing
We made a commitment to booking 90% of our guests through our website and reservation center and we have succeeded. We are also averaging 9 nights per stay which is well above the average stays from sites like Expedia and Booking.com.
Low Cost Debt
We have negotiated fixed rate terms that beat the banks on 5 deals in a row by utilizing seller financing and assuming existing debt. This strategy reduces the costly fees and high interest rates that are charged by banks.