ANNAPOLIS, MD.—Thayer Lodging Group, an Annapolis, Maryland-based private equity real estate investment firm with a portfolio of 14 hotels, announced they will double their inventory of PURE Allergy Friendly rooms from 280 to 560 this year. Thayer has Pure Allergy Rooms in each of its hotels. Based on Thayer’s 2008 financial report, the group reported 171 percent cash on cash return for the PURE room investment.
“These are remarkable figures, especially during tough economic times,” says Frederic V. Malek, co-chairman, Thayer Lodging Group. “In 2008, we generated incremental cash flow of $438,000, which increased the value of our hotels by millions of dollars.”
After assessing the ROI and tracking customer data at each hotel, Thayer investors realized there was a strong consumer demand for PURE which resulted in a significant increase in profits for all parties involved. The investors were so compelled by the innovation and returns that they agreed to invest an additional $500,000 for additional PURE room inventory.
Commitment to Healthier Environments
PURE Solutions, winner of the 2008 Innovator Award from the Cornell University School of Hotel Administration, is committed to provide healthier environments through improved indoor air quality for the hospitality industry. PURE Solutions has innovated a system that produces PURE rooms, an allergy-friendly room which results in indoor environments that have been treated to remove up to 98 percent of bacteria, molds and fungus. The PURE room concept utilizes special purification techniques whereby each room is treated comprehensively to remove allergens and irritants from all surfaces, fabrics and air flow.
“With a premium of just $20 per night, our guests report a better, more comfortable sleep that results in more productive days,” according to Michael McMahon, general manager of the DoubleTree Hotel & Conference Center, Bethesda. “We’ve had many repeat guests asking for a PURE room each time they stay at our hotel.”
Thayer seeks to drive operating results through a combination of repositioning assets, rebranding, strengthening management, and making capital improvements in owned hotels. “This is a top line initiative that targets a tough operating environment,” says Tom Kammerer, managing director, Thayer Lodging and member of the Fund’s Investment Committee. We will continue to push higher utilization for these PURE rooms from customer awareness and increased distribution by expanding our room inventory. Our firm is pleased with the 2008 financial results and we anticipate continuous growth as we increase the number of PURE rooms at each hotel.”
Go to Thayer Lodging and Pure, Inc.
