Ashford Hospitality Trust has implemented several revenue-focused initiatives as part of the broader "GRO AHT" plan. As announced in December, "GRO AHT" is a strategic initiative designed to drive $50 million in earnings before interest, taxes, depreciation and amortization growth and improve shareholder value.
In recent months, many of the company's hotel property managers have already implemented the following, with each initiative aimed at driving ancillary revenue growth and improved profitability across the portfolio, according to the company.
- Comprehensive menu engineering analysis: Optimizing food and beverage offerings to increase profitability while enhancing guest satisfaction.
- Parking agreement modifications and maximization: Streamlining parking operations and leveraging dynamic offerings to drive additional revenue.
- Gift shop and corner store refreshes: Revamping product selections and pricing to align with guest preferences and improve profitability.
- Historic preservation fee implementations and adjustments: Strategically introducing or adjusting fees in applicable markets to capture untapped revenue opportunities.
In total, these initiatives are expected to deliver more than $3 million in incremental hotel EBITDA annually, with several others underway.
"We are encouraged by early results and are excited to see how these initiatives further materialize in the coming months," Stephen Zsigray, Ashford Trust's president and CEO, said in a statement. "While just one component of our overall 'GRO AHT' plan, these steps to maximize ancillary revenue demonstrate the commitment that our advisor, Ashford Inc. and our property managers have made to seeking out every dollar of performance improvement for our portfolio. As these initiatives rolled out in the fourth quarter, we saw a strong, immediate impact in our December results. While RevPAR for the month increased by more than 4% versus prior year, total revenue growth was nearly double, reflecting the importance and effectiveness of these ancillary revenue initiatives. Combined with the efforts underway to grow market share and reduce expenses across the company, we're excited about the progress that we've made on the execution of our strategic plan and will continue to provide updates."