State of Tennessee Real Estate Asset Management (STREAM) and Tennessee Department of Environmental Conservation (TDEC)
Scope: Asset Management, Financial and Operations Management and Oversight
Services: Lodging, Food and Beverage, Retail, Special Events
Issue: STREAM/TDEC did not possess the in-house hospitality operations and asset management expertise required to stabilize operations and prepare the field teams for the impending renovation. TDEC’s objectives were to stabilize operations, yield income just before and during renovations, and develop new standard operating procedures and training.
Process/Outcome: The State of Tennessee retained CHM Government Services (CHMGS) as asset managers for both of the subject lodges to manage lodging and related operating department performance for the period prior to and during the beginning of property renovations (FY2018 and FY2019). We developed a comprehensive financial reporting platform that integrates output from four disparate financial systems into one report consistent with the Uniform System of Accounts for the Lodging Industry. We also scheduled, hosted, and facilitated in monthly asset management meetings to review the prior month’s operating performance, discuss revenue and cost containment strategies, tour the property, and best prepare for the impending renovations. Further, we engaged in the development and revision of ongoing strategic initiatives and developed and issued monthly reports to the Deputy Commissioner of TDEC. We also engaged in several other related projects to establish a hospitality division within TDEC that is reflective of industry. Related projects completed included, but were not limited to the following:
State Park hospitality office benchmarking analysis
Lodge job description development (35+ positions)
Compensation benchmarking and analysis (35+ positions)
Rate yielding strategies and implementation
Advertising and sales analysis, structure, and reporting
Proforma development
Marketing and brand development
CHMGS’s organized, disciplined process instilled credibility amongst the operations teams, rebuilding morale, focus, and excitement. We also were able to reduce the volume of employee absences by bringing back a renewed sense of involvement and empowerment to the teams. Cost containment measures allowed the team to drive net income in FY2019.
CHMGS increased year-over-year ADR at both properties by 5.0 percent, and RevPAR at Montgomery Bell by more than 14.0 percent.
