HomeMy WebLinkAboutR06-Economic Development Agency
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DEVELOPMENT DEPARTMENT
OF TIlE CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
REOUEST FOR COMMISSION/COUNCIL ACTION
FROM: KENNETHJ. HENDERSON
Executive Director
SUBJECT: RADISSON HOTEL - CONSENT
OF ASSIGNMENT AND
TRANSFER
DAm: September 28, 1994
Svnoosls of Previous Commlssion/Coune1llCommlttee Aetion(s):
None.
Recommended Motion(s):
(Communitv DeveIooment CommissIon)
MOTION A: That the Community Development Commission on behalf of the Redevelopment Agency of the City of
San Bernardino consider and take possible action to adopt resolutions regarding the transfer of real
property interest and rights under Owner Participation Agreement relating to Radisson Hotel property
from Maruko to Foster-Khoury International, Inc.; and from Foster-Khoury International, Inc., due to an
affiliate of Northwest Lodging, Inc.
(Motions continued to next page....)
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KENNETHJ.HENDERSON I
Executive Director
Contact Person(s): Kenneth J. Henderson/John Hoel!er
Phone:
5081
Project Area(s): Central City (CC)
Ward(s):
Onem
Supporting Data Attached: SllIffReoort: Resolutions
FUNDING REQUIREMENTS: Amount: :& N/A
Source:
N/A
Budget Authority: N/A
Commission/Councll Notes:
BJL:lag: I 0-0 1-02.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 10/03/1994
Agenda Item Number: !.;;
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REQUEST FOR COMMIQONlCOUNCIL ACTION
Radisson Hotel - Consent of Assignment and Transfer
September 26, 1994
Page Number -2-
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Recommended Motion(s) Continued:
(Mayor and Common Council)
MOTION B: That the Mayor and Common Council consider and take possible action to adopt
resolutions regarding approve in concept the transfer of real property interest
and rights under Owner Participation Agreement and Convention Center
Sublease and Operating Agreement relating to the Radisson Hotel property from
Maruko to Foster-Khoury International, Inc., and from Foster-Khoury
International, Inc., to an affiliate of Northwest Lodging, Inc.
.-------------------------------------------------------.---------------------------------------------------------
BJL:lag: 1 0-0 1-02.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 10/03/1994
Agenda Item Nnmber: (p
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DEVELOPMENT DEPARTMENT
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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Radisson Hotel- Consent of Assienment and Transfer
Foster-Khoury International, Inc., a California corporation, is proceeding to purchase the
Radisson Hotel and Convention Center at 295 North "E" Street from Maruko, Inc., the current
owners. Under the terms of the Agency's Owner Participation Agreement it is required that
Maruko obtain written approval of both the Agency and the City in order to convey title and
rights, including the benefits of the OPA. As is customary, Foster-Khoury has requested issuance
of estoppel certificates to be delivered in connection with both the OP A and the Sublease.
Further, Foster-Khoury has asked for the City and Agency to consent to a transfer of stock to His
Royal Highness Shaikh Mohamed Bin Su1man AI Khalifa, the younger brother of His Royal
Highness the Amir of Bahrain.
At the same time, the City and the Agency will want Foster-Khoury to assume all ofMaruko's
obligations, without exception, to the provisions of the OP A and the Sublease. Pursuant to this
arrangement Foster-Khoury will become responsible for performance under the agreements
including those previously due but unperformed, ifindeed any such exist. To clarify the current
status of the property, the Agency and City will issue a Certificate of Compliance to indicate
completion of construction under the OP A.
The staffhas been informed that it is the intention of Foster-Khoury to enter into a lease with
Northwest Lodging for operation of the hotel. Several proposed sets of deal points have been put
forward but no agreement is available for review at this time. Northwest operates 12 hotels and
motels on the West Coast and is affiliated with Hawaii based Aston Hotels and Resorts which
manages thirty (30) hotels and resorts. Additional information on Northwest is attached as
Exhibits 1 and 2.
After a formal contractual arrangement has been executed between Foster-Khoury and
Northwest, the necessary Commission and Council resolutions and documentation will be
submitted for consideration and formal approval at a subsequent meeting. It is requested at this
time that both the Commission and Council approve and consider the transfer to Foster-Khoury
with the understanding that this action would still\ require official approval of the final City and
Agency documents iffinal documents have not been received prior to the meeting. In the event,
however, that staff receives and can review all fina1 documents, it may be possible to have
resolutions ready for adoption at the October 3, 1994 meeting.
Ji~cu.<~=-J;k;f^ je,
KENNETH J. HENDERSON, Executive Director
Development Department
BJL:lag: 10-0 l-02.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 10/03/1994
Agenda Item Nmnber: U
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NORTHWEST LODGING INC.
Overview
Northwest Lodging, named for its start in the Pacific Northwest, is a hotel management
company that currently operates twelve hotels and motels with 1,700+ rooms in locations
throughout Washington, Oregon, and California. It currently operates eight Ramada Inns and
Hotels -- four in Washington (Downtown Seattle, Bellingham, Kennewick, and Olympia), three
in Oregon (portland Airport, Beaverton, and Corvallis), and one in California (San Francisco).
It also operates a Howard Johnson Lodge in Tacoma, W A and a Howard Johnson Hotel in San
Francisco, California. Additionally, it operates the WestCoast Everett Pacific Hotel &
Convention Center in Everett, Washington, and the Execulodge Hotel in Salem, Oregon.
Northwest Lodging, Inc. is affiliated with Seattle based, Hotel Food & Beverage Inc, an
operator of hotel based restaurants, meeting and banquet facilities, and catering services. Both
companies are also affiliated with Hawaii based, Aston Hotels and Resorts. Aston manages
more than thirty hotels, condominium resorts, and resort hotels, cumuIatively valued in excess
of $1. 6 billion.
Northwest Lodging, Inc. intends to expand with the addition of three to four new properties per
year over the next 5 years to reach our target of some 20 managed hotels in the Westem u.S.
Each hoteVmotel added, enhances the referral base of the portfolio. Northwest Lodging Inc.
operates AAA-rated "Two Diamond" and "Three Diamond" hotels and motels varying from
"limited service" motels to "full service conference center" hotels.
Growth/Profit Strategy
Northwest Lodging Inc. has achieved superior growth and net revenues for its properties
because of its:
*
Effective Flagging Strategy. As the holder of now ten franchise agreements with
Hospitality Franchise Systems, Inc. (the parent of Ramada, Howard Johnson, and Days
Inn), it has demonstrated its ability to expediently convert hotels to an established brand
in order to add value to the property in the consumer's eyes as well as to add direct
bottom line impact by significantly increasing reservations. The management team has a
proven track record of maximizing the benefits of the franchise affiliation.
*
Western Focus. It is committed to hotel operations in California, Oregon, and
Washington. Its management team is west coast based and can respond to both local
emergencies and regional marketing conditions.
*
Growth Orientation. Northwest Lodging, Inc. is a young company in an active period of
growth. In its first four years of operation, it has moved successfully to operate twelve
hotels valued in excess oUIOO Million.
*
Synergy. With its affiliated companies, Hotel Food & Beverage Inc and ASTON Hotels
and Resorts, the combined portfolio of all properties under management is valued in
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excess oUI. 7 Billion and includes more than 40 hotels, motels, resort properties, and
hotel based restaurants, meetings and banquet facilities, and conference/convention
facilities in four states.
*
ASTON Relationship. Northwest Lodging, Inc. shares operating philosophies and a
commitment to quality operation with ASTON Hotels & Resorts. This 5,000+ room,
Honolulu-based hotel management company is owned by Mr. Andre S. TatIoouet,
Northwest Lodging, Inc.'s Chairman. Operating in the very competitive Hawaiian
market, ASTON Hotels & Resorts has a thirty+ year reputation for generating profits in
operating properties in the AAA-rated "Two Diamond" to AAA-rated "Four Diamond"
luxury resorts range.
*
Range of Hotels. Northwest Lodging Inc operates hotels that range in size from 66 to
250 rooms and in scope from a "rooms-only" inn in Bellingham to the WestCoast
Everett Pacific Hotel & Convention Center with more than 11,000 sq ft of meetings,
banquet, and conference facilities.
*
Marketing and Sales. Northwest Lodging Inc. has the marketing and sales ability to
generate results. This is due to the organized, well-trained efforts of qualified sales and
marketing people, in addition to the aggressive sales activities of each local property
team Northwest Lodging Inc. directs and monitors sales and marketing programs on an
ongoing basis that guarantee the greatest possible growth opportunities in revenue and
rate.
In addition to the local on-property sales and marketing team, each hotel benefits from
the Northwest Lodging sales and marketing team of more than 20 people on the west
coast, plus the sales and marketing team of more than 30 sales persons selling worldwide
for ASTON and Northwest Lodging managed properties.
*
Preserving and Enhancing Property Values. Northwest Lodging, Inc. applies a rigorous
preventative maintenance program at each hotel to enhance property value, increase
guest safety, and reduce the cost of insurance. During the Due DiligencelTransition
period, a complete "OPPORTUNrfY PLAN" is created for the owner showing
optimum goals and targets under favorable conditions. Following the ASTON tradition,
Northwest Lodging identifies the long term and short term action steps necessary to
maximize the Opportunity Plan. A few of the critical items reviewed include:
A complete Sales and Marketing evaluation,
A property specific training program evaluation,
A risk management audit,
A review of financial and managerial controls,
An asset review of all plant and equipment, and
A franchisor services evaluation.
We manage both the operating business and the physical plant equally as a part of a
holistic strategy to improve the quality of the guest experience and increase the value of
the property.
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Workouts. Northwest Lodging, Inc. has successful experience working as court
appointed Receiver, and working with Courts, Bank REO Departments, Trustees, and
Creditors in situations involving receivership, foreclosure and court-ordered estate-
liquidation. It is flImiHar with the processes required to remove liens, restructure debt
and satisfY the requirements imposed by these proceedings. It has the flexibility,
patience and energy to participate in "work out" situations as a constructive facilitator to
all of the involved stakeholders."
Identifying "Turn Around" Opportunities
Northwest Lodging, Inc. restores "troubled" or "distressed" properties to profitability by
implementing the management strategy discussed in the next section. Before considering
Northwest Lodging, Inc.'s prescription for improvement, it is helpful to consider the underlying
causes of distress that may be found in a "troubled hotel:"
*
Absentee owner. Troubled hotels typically suffer from the ownership or management
company visiting the property only once or twice per year. This inattention may be
caused by an owner with too many distractions, the age or infirmity of the owners, or a
lack of understanding of the active role which nmst be played by the owner or the
management company.
*
Complacency/ Acceptance of the Status Quo. The owners, managers and staff of a
"troubled" hotel will frequently tolerate:
Failure to maximize sales and marketing opportunities,
Ineffective housekeeping,
Out-of-control receivables,
Lack of basic preventative maintenance,
Excessive inventories,
Obvious safety problems,
Poor franchisor/franchisee relations.
*
Out-of-Control Labor Costs. Labor is the most important "controllable" cost of a hotel.
Its control requires a level of management attention which is typically absent in a
"troubled" property.
*
Numerous Insurance Losses. Workers compensation expense is frequently increased by
accidents caused by improper training of the staff and unsafe conditions n the workplace.
Liability and property loss runs are often a reflection of poor physical security, lack of
appropriate guest safety programs, and lack of management ability to appropriately
resolve guest claims.
*
Deferred Maintenance. Essential preventative maintenance has frequently been deferred
on both the hidden mechanical parts of the hotel and on cosmetic areas--painting, wall
viny~ landscaping--which are noticeable by guests.
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Declining product. Frequently "troubled hotels" exude a sense of having declined from a
previous higher staudard. Often the strategy to maintain occupaucy in the face of this
"decline" has been to reduce prices relative to the competition.
*
Lowered Market Position. "Troubled hotels" frequently succumb to the temptation to
achieve high occupaucy levels aud a perception of success by reducing rates. Over a
period of time, the hotel finds itself competing for a lower-profit market segment thau it
should given its true quality.
*
Misuse of cash. Frequently, "troubled hotels." even with mauy of the problems noted
above, have significaut cash flows, but have had cash removed to support other ventures
of the owners. This frequently leads to excessive accounts payable, unpaid mortgages
aud late payment of property taxes.
*
Late, or no Finaucial Statements. Usually, "troubled hotels" do not produce accurate
aud/or timely finaucial statements.
*
Over-capitalization. Sometimes hotels have been constructed at a cost per room which
exceeds the ability of the market to generate sufficient business to cover expenses.
Northwest Lodging me.'s Turn-Around Program
Northwest Lodging, Inc. has a mauagement strategy which is designed to rapidly cause a
"distressed" hotel to achieve its highest potential aud then maintain this performauce over the
long run. The key elements of the program are:
*
Empower General mauagers. The Hotel's General Manager is empowered as the local
Chief Executive Officer (CEO). This meaus that the focal point for decisions about the
hotel will be a fully-accountable local mauager aud not some distaut, auonymous
corporate staff
*
Corporate Consultauts. The corporate staff develops goals aud staudards for the
properties rather thau issuing commauds. The Northwest Lodging, Inc. corporate staff
have responsibility for functional areas of the business--sales, safety, quality, physical
assets, finaucial assets, etc. -- aud work on a "consulting" basis with the General
Managers aud their staffs to implement programs. The corporate staff also assists in
developing a "turn around" plan for each property which allows it to reach its highest
achievable performauce level
*
Everyone is part of Sales. Everyone working at Northwest Lodging, Inc. hotels is part
of the Sales team. The General mauager is expected to lead the sales effort assisted by
the Sales Director aud the desk staff But all the other employees of the hotel--
housekeeping, drivers, maintenauce, laundry, etc. -- have a responsibility to make sure
that our friendliness, professional demeauor, aud effective performauce encourage repeat
business.
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c * Safety. Implement risk management programs corporate-wide to include comprehensive
hotel safety programs: Safety audits, property, liability and workers compensation
insurance procurement, centralized claims management, and centralized coordination of
third-party safety inspections.
* Rate Strategies. An annual room rate strategy (rack rates, proposed reduced-rate
programs, etc.) is developed with corporate concurrence, but General Managers have
the authority and responsibility to make day-by-day changes within the strategy. The
Vice President, Sales and Marketing consults daily with General Managers to assure that
these decisions are being made in as optimal a manner as possible.
* Pay levels. Personnel compensation issues including wage levels, benefits and bonus
programs are reviewed personally by the President. Northwest Lodging, Inc. has found
that corporate review of these matters improves the fairness and consistency of
compensation administration. It also eliminates the possibility that hasty personnel
decisions could inadvertently reduce the economic viability of the hotel
* Outside Contracting. General Managers are delegated the authority to contract for any
service which must be performed within 24 hours in order to avoid serious damage to
the hotel or its sales program, but all other contracting requires corporate co-approval
This assures that contracts for security services, landscaping, or other maintenance
services are let in a way that meets all of Northwest Lodging, Inc.'s bidding and conflict-
0 of-interest standards.
* Capital improvements. Decisions about capital improvements are made at the corporate
level based on the recommendation of the General Manager and the corporate staff The
corporate staffis also involved in replacement versus repair decisions on major
equipment--repairing only where the remaining life is longer than 24 months and/or the
total lifetime cost of expected repairs and operation of the old unit is less than the
expected operation, maintenance and financing cost of a new unit.
* Key Vendor Programs. Each hotel is expected to utilize certain key vendors--such as
for linens or cleaning supplies--where a corporate-wide buying program has been
initiated in order to maintain quality control and/or reduce costs.
* Centralized Accounting. Accounting and financial services are highly centralized.
Having delegated a high degree of autonomy to the local property, financial reporting
and control systems are vigorously monitored for indications of business problems or
financial malfeasance. Aspects of these programs include daily review of sales reports,
daily monitoring of bank deposits and disbursements, unannounced field audits, monthly
on-site financial reviews, and daily review of detailed "night audit" reports and
documents.
* Timely Financial Reporting. Monthly "Flash" financial reports are issued before the
C tenth of each month so Northwest Lodging, Inc. management can react to developments
and report to owners on a timely basis. Final financial packets with the appropriate
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variance analysis and related action steps are distnlluted to owners by the twentieth or
each month. This includes an overview of each critical area such as:
Operations,
Marketing and Sales,
Finance and Accounting,
Capital Projects and Renovations,
Maintenance, and
Employee/Human Resources.
· Preventative Maintenance. An exhaustive preventative maintenance program is
implemented at each hotel and administered by the maintenance personneL The purpose
of the program is to assure that all mechanical and safety equipment is performing
satisfactorily and all repairs and adjustments are made as required. Northwest Lodging,
Inc. explicitly tries to avoid "emergency" repairs which disrupt the work schedule of the
hotel staft; frequently inconvenience or endanger the guests, and often require
extraordinary expense for outside professionals due to overtime or expedited shipment
of parts.
.
Training. Training and the opportunity for advancement by all its employees is an
essential part of the Northwest Lodging, Inc. strategy. It supports the "CHA" (Certified
Hotel Administrator) Program of the American Hotel & Motel Association, other
AHMA programs, and University hotel education programs by reimbursing staff tuition
payments. It emphasizes exchanges of information at the peer level-- General Manager
meetings, Head Housekeeper meetings and Maintenance Manager meetings. It also
takes maximum advantage of the wide range of training programs offered by its
franchise companies for individual and group training.
.
Inside versus Outside Maintenance. Outside contractors are utilized for non-routine
maintenance and repairs such as major plumbing or electrical repairs, large-scale rug
cleaning, construction projects, etc. The goal is to keep the hotel staff focused on guest
services and to secure the payment terms, warranties, permitting, liability insurance,
professional skills, and self-management provided by outside vendors.
.
Community Participation. Participation in local comm1lnity groups (such as the local
Chamber of Commerce and Visitors bureau) by Northwest Lodging, Inc. General
Managers is supported as a way to develop customers, financing sources and
information about local economic conditions.
.
Inspect what you Expect. Finally, Northwest Lodging, Inc. audits the performance of
each hotel in all areas to measure progress and assist in setting goals. Inspections, that
occur at least monthly, include its Corporate Officer Inspection Program, franchise
company inspections, inspections by insurance underwriters and a stringent safety
inspection program. The goal is to identify the areas of complacency and under-
achievement so that its hotels achieve superior results for quality, safety and sales.
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HOTELS OPERATED BY NORTHWEST LODGING, INC.
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RAMADA INN DOWNTOWN SEATTLE, WASIDNGTON
120 guest rooms in the heart of downtown Seattle, along the Monorail, wa1king distance to Westlake Mall,
Seattle Center and the Space Needle, Pike Place Market and many additional tourist attractions. We offer spacious
guest rooms, remote control T. V., cozy restanrant and lounge, meeting and reception rooms. (206) 441-9785
.
RAMADA INN GOVERNOR HOUSE, OLYMPIA, WASIDNGTON
125 deluxe guest rooms, rated "Olympia's finest hotel" by Best Places in Western Washington, Executive floor,
heated pool, spa, outstanding restanrant and lounge, conference, meeting and banquet facilities for up to 700.
Complete fitness center, cable T. V., kitchenettes available, only four blocks from the Capitol Campus.
(206) 352 7700
RAMADA INN AND CONFERENCE CENTER PORTLAND AIRPORT, PORTLAND, OREGON
202 deluxe guest rooms with 98 mini snites. Only five minutes from the airline terminals, with free shuttle
service, microwaves and wet bars, free movie and sports channels, heated pool, fitness room, jacuzzi, conference
meeting, and banquet facilities for up to 1200. (503) 255-6511
.
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RAMADA INN BELLINGHAM, WASIDNGTON
66 spacious guest rooms, Whatcom County's most convenient and centrally located hotel, between Bellis Fair
Mall, Western Washington University and the Alaskan Ferry Terminal, heated pool, free cable T. V., free
continental breakfast, small meeting facilities. (206) 734-8830
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RAMADA INN BEA VERTON, OREGON
143 spacious guest rooms in the heart of Beaverton just off Hwy. 217 and featuring heated swimming pool, free
continental breakfast, free movie and sports channels; kitchenettes avai1able, Executive floor, fitness, meeting and
hospitality room. (503) 643-9100
.
HOWARD JOHNSON LODGE TACOMA, WASIDNGTON
144 comfortable, newly renovated guest rooms, conveniently located just off Interstate 5, free movie and sports
channels, heated pool, "kids fun zone"; only minutes from Fort Lewis and McCord Airforce Base. (206) 535-3100
.
RAMADA INN AND CONFERENCE CENTER CORVALLIS, OREGON
120 spacious guest rooms next to Oregon State University. Full service hotel offering O'Callahans Restaurant
and Lounge. Heated pool, kitchenettes available, banquet, conference, and meeting facilities for 1,000. All
visiting sport teams stay at hotel. (503) 753-9151
.
EXECULODGE SALEM, OREGON
114 rooms located in the heart of Salem's downtown area with shopping, theaters and historical sights within
walking distance, Black Angus restaurant on premise, free continental breakfast, jacuzzi and sauna, VCR and
movie rental. (503) 363-4123
.
RAMADA INN AT UNION SQUARE SAN FRANCISCO, CALIFORNIA
120 deluxe rooms in the heart of Union Square. Within walking distance of shopping, cable cars, Chinatown and
the fabulous sights of Fisherman's Wharf. Relax in anyone of our deluxe accommodations, the Huckleberry Finn
Restaurant or the Tom Sawyer Bar. (415) 673-2332
.
HOWARD JOHNSON PICKWICK HOTEL SAN FRANCISCO, CALIFORNIA
189 refurbished guest rooms located downtown with outside city views. Rooms are complete with in room coffee
makers, personal safe, color t.v., pay movies and personal voice mail. Meeting rooms and banquet facilities
available. (415) 421-7500
.
WESTCOAST EVERETT PACIFIC HOTEL & CONVENTION CENTER EVERETT, W A
250 deluxe guest rooms and suites just 20 minutes north of Seattle, Everett's premier hotel features indoor pool,
fitness center, whirl pool and sauna; dining and entertainment in the Everett Roaster & Ale House, and more than
11,000 square feet of meeting, convention, and banquet facilities. (206) 339-3333
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REFERENCES
ANDRE S. TATIBOUET
Mr. Richard A Coons
Managing Partner
Deloitte & Touche
Suite 1700
1132 Bishop Street
Honolulu, HI 96813
(808) 543-0700
Mr. Lawrence M. Johnson
President and COO
BancoII' Hawaii Inc.
130 Merchant Street
Honolulu, HI 96813
(808) 537-8220
Mr. Roy Doumani
President and CEO
World Trade BankcoIp
9944 Santa Monica Blvd.
Beverly Hills, CA 90212-1691
(213) 551-0100
Jerrold M. Michae~ Ph.D.
Dean
School of Public Health
University of Hawaii
1960 East-West Road
Biomedical Sciences Bldg. Room D-209
Honolulu, HI 96822
(808) 956-8491
o
Mr. Malcolm Tom
Partner
KPMG Peat Marwick
Pauahi Tower, Suite 2100
P.O. Box 4150
Honolulu, HI 96812-4150
(808) 531-7286
Mr. Robert G. Reed ill
Chairman and CEO
Pacific Resources Inc.
733 Bishop Street
Honolulu, HI 97813
(808) 547-3111
Mr. Don Homer
President
First Hawaiian Credit COIl'.
Senior Vice President
First Hawaiian Bank
(808) 525-6161
Mr. Kent M. Keith
President
Chaminade University of Honolulu
3140 Waialae Avenue
Honolulu, HI 96816-1578
(808) 735-4741
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LAWRENCE P. HORWITZ
Mr. Martin A Steele
Vice President & Manager
Seafirst Bank
Columbia Center
701 Fifth Avenue, Floor 47
Seattle, WA 98111-3085
(206) 358-3144
John V. Rindlaub
Chairman
Seafirst Bank
Columbia Center
701 Fifth Avenue, Floor 56
Seattle, WA 98104
(206) 358-3100
Mr. Rick Tuttle
Controller, City of Los Angeles
Room 220
City Hall
Los Angeles, CA 90012
(213) 485-5066
Ms. Susan K Swartz
Partner
KPMG Peat Marwick
3100 Two Union Square
601 Union Street
Seattle, WA 98101
(206) 292-4212
Richard E. Keefe
Managing Partner
Foster Pepper & Shefelman
1111 Third Avenue
Seattle, WA 98101
(206) 447-4400
Henry Silverman
Chairman & Chief Executive Officer
Hospitality Franchise Systems, Inc.
339 Jefferson Road
Parsippany, NJ 07054-0278
(206) 428-9700
John Ueberroth
Principal
The Contrarian Group
P.O. Box 7322
Newport Beach, CA 92658
(714) 720-9646
Randy Garfield
Executive Vice President
Walt Disney World Attractions
PresidentlWalt Disney Travel
P.O. Box 10000
Lake Buena Vista, FL 32830
(407) 828-4640
Jim Marsh
Director of Community Relations
Seattle SuperSonics
190 Queen Anne Avenue N
Seattle, W A 98109
(206) 281-5815
Mr. Larry L. Linenschmidt
Vice President
Wells Fargo Real Estate Group
12222 Merit Drive
Dallas, TX 75251
(214) 661-8980
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LAWRENCE P. HORWITZ
2200 Fifth Avenue, Suite 301
Seattle, WA 98121
(206) 389-9860 (office) (206) 282-2622 (residence)
Svnonsis
A dynamic, highly experienced executive with proven success in management, sales, marketing,
administration, finance, team building and motivation. Especially skillful in:
· Maintaining disciplined control and developing financial safeguards while building and
expanding established bases ofbusiness.
· Exercising entrepreneurial talents in start-up and tum-arolUld situations.
· Strategically planning for growth and repositioning businesses for higher and better
use of existing resources
· Creating and managing divisional and departmental organizations, establishing goal-
oriented personnel standards and tracking systems.
Professional Accomnlishments
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Growth and ExDansion
As co-folUlder and President/CEO, directed the acquisition and repositioning of a $100 million
portfolio of hotel and motel properties over a four year period, successfully turning arolUld more
than fourteen businesses which had been operating as Bank OREO, lUlder receivership or
reorganization, or lUlder the supervision of bank special credits departments. Directed financing
activities, recruited and assembled a team of seasoned professionals to allow for continued growth
and expansion. Created second company to focus on operating food and beverage businesses
within hotels. Combined sales of both companies will exceed $40 million during fifth year of
operations.
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As Senior Vice President/Sales and Marketing, directed all sales, marketing and reservations
activities for 39 hotels and resorts in Hawaii, San Francisco and Mexico. Established international
sales offices, field sales network, public relations program and marketing research function.
Established marketing standards for hotels, sales forecast and deviation tracking program for sales
and marketing employees, incentive and tracking program for sales managers, and marketing
training program for non-marketing employees. Developed cooperative marketing/advertising
programs with national partners contributing in excess of $1 million. Created marketing alliance
programs with non-competing hotel chains and with nationally branded consumer products
companies. Implemented centralized negotiations and purchasing for collateral production,
printing and advertising. Established chain-wide image campaign and budgeting/accounting
systems for sales division and individual hotels to monitor advertising and marketing program
costs.
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Lawrence P Horwitz
Page 2
Turn-Around Situation
Became President of 85-year-old travel company when it was acquired by $2 billion parent
organization. Added new products and services to expand into luxury and incentive travel marlrets.
Directed relocation of company to corporate headquarters, including hiring and training of 52 new
employees. Increased sales from $16 million to $28 million (75%) in two years, reversing seven
year slide that led to company sale.
Start-UP Situation
As Vice President and General Manager of a new division of a major retail travel company,
organized the sales, marketing, product development, reservations and operations systems.
Directed development of new products to Europe, Hawaii, Reno, Mexico, China and ski areas.
Created commercial travel products to offer corporate accounts. Led sales and marketing team as
division grew from zero to $135 million in three years.
Straterric Planninf!
o
As Vice President/Corporate Planning, developed strategic plan for corporate travel services and
leisure travel opportunities, identified new services and operating systems, and implemented a long-
term corporate marketing program for $400 million company. Directed commercial services
automation project and directed product development and marketing for special travel agency
programs.
Administration
As Vice President Marketing - Leisure Travel for a $2+ billion travel and hospitality corporation,
developed parent company marketing division to consolidate negotiations for overrides, wholesale
contracts and marketing programs. Created and implemented cooperative marketing programs
with domestic and international tourist boards, visitor associations and hotel chains. Reorganized
and directed national sales team, resulting in increased sales of nearly $80 million.
Chronolol!ical Exoerience
1990 - Present
Northwest Lodging Inc., Seattle, Washington
President/CEO
Hotel Food & Beverage, Inc., Seattle, Washington
President/CEO (founded 1994)
1987 - 1990
Aston Hotels & Resorts, Honolulu, Hawaii
Senior Vice President - SaleslMarketing (1987 - 1990)
Vice President - Marketing Services (1987)
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Lawrence P Horwitz
Page 3
1981 - 1987
Carlson Companies, Carlson Travel Group, Minneapolis, Minnesota
Vice PresidentlMarketing, Leisure Travel (1986-1987)
President, Cartan Travel (1984 - 1986)
Vice President/Sales & Marketing, Firstours (1982 -1984)
Vice President/Corporate Planning, First Travel (1981 - 1982)
1980 - 1981
Coopers & Lybrand, Los Angeles, California
Consultant - Finance, Management & AccoWlting Group
1978 - 1980
First Travel Corporation, Los Angeles, California
Manager, Special Projects
Community Service
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· Supporter ofWoodIand Park Zoological Society, Pacific Science Center, March of Dimes,
Juvenile Diabetes FOWldation, ARC of Benton COWlty, YMCA of Greater Seattle, Queen
Arme Helpline, Poncho, Seattle Repertory Theatre, Boys and Girls Clubs, Jewish Federation of
Greater Seattle
· Board member, Anti-Defamation League, Pacific Northwest Region
· Member, Board of Trustees, The Evergreen School
. Member, Seattle Chamber of Commerce
. UCLA Chancellor's Associates
· UCLA Graduate School of Management Jacoby Associates
Education
University of California, Los Angeles
MBA, Finance and AccoWlting (1980)
BA, Political Science (1976)
Awards
State of Hawaii Senate Citation for "exceptional contributions. . . to the state of Hawaii"
State of Hawaii House of Representatives Citation for "exceptional job to promote the state"
UCLA Chancellor's Citation for "extraordinary achievement and outstanding contribution"
Interests
Active adventure traveler - have visited more than 50 coWltries and all continents, including
Antarctica, the North Pole and the Himalayas.
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