Silverdale Success Story
November 30, 2006
Since 1922, the Diamond family of Seattle, WA has built Diamond Parking into the oldest and largest private parking company in the world. In addition to their parking company, they have a large portfolio of commercial real estate to manage. As a result, they do not have much patience for underperforming assets.
When the family turned their 150 room waterfront full service hotel over to a leading national brand for full brand service and management, profitability was important. But equally as important was the need to serve a high-security client base, as the nearby Bangor Sub Base manages the third largest collection of nuclear weapons in the country, with 1,700 Trident missiles and eight Trident submarines which still roam the seas on secret missions.
Unfortunately, the hotel went downhill-from a 4 diamond to a 2 diamond AAA. Revenues dropped, and expenses soared, with a disproportionate share going to pay for management fees and franchise brand support.
When a decision was made to take the hotel independent, Magnuson Hotels provided owners with a complete step by step Independence transition plan.The hotel was immediately placed on Magnuson Hotels’ complete independent hotel operating system, powered by the world’s largest full service GDS and Internet reservation system. Magnuson brought in national branding specialists Range NW, and relaunched the hotel as the Silverdale Beach Hotel and Conference Center. Since their switch to Magnuson Hotels in January 2006, the Silverdale Beach Hotel has already received 22% of its gross room revenue through Magnuson’s worldwide reservations system, with an online average daily rate of nearly $90.00 year to date. And, the hotel has already regained a 3 Diamond AAA rating.
“Magnuson did what they said they were going to do,” stated Joel Diamond, Diamond Parking Chairman and CEO. “In only a few months, Magnuson Hotels has helped us turn this hotel around, and create a new operating structure without high management fees and franchise brand costs. Instead, we pay Magnuson based upon performance and we are running our own show. Now we are the first to get paid, instead of the last.”
Visit them at: www.silverdalebeachhotel.com
About Magnuson Hotels, the fastest growing hotel chain in history.
In only seven years, Magnuson Hotels headquartered in Spokane, WA has become the world’s largest independent hotel group, representing nearly 1500 hotels and a combined affiliate base with assets in excess of $5.5 Billion. One of the top 10 global hotel chains, Magnuson Hotels was the #1 Hotel Company of Inc. Magazine’s 2009 annual ranking of the 5,000 fastest growing privately owned U.S. companies. With a four year reservation sales growth of 595%, Magnuson Hotels is listed in the top 100 U.S. business services companies.
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