Island Hospitality’s 35th year has been a busy one—from a new management relationship with WaterWalk to adding new properties and working to retain its employees during the labor crunch.
Earlier this year, Island Hospitality Management entered into a partnership with WaterWalk, a flexible accommodations hotel brand designed to offer customized guest experiences with apartment-style suites. The company serves as the manager for six of the brand’s properties across six different markets including Wichita and Overland Park, KS; Dallas; Raleigh, NC; Charlotte; and Minneapolis.
Island Hospitality partnered with flexible accommodations hotel brand Waterwalk to manage some of its properties, including this one in Overland Park, KS, and consult on its next phase of growth.
In addition to managing some of WaterWalk’s properties, Island Hospitality is consulting with the company as it begins its next growth cycle. “They’re essentially a new innovation in the hotel space,” said Gregg Forde, EVP/COO, Island Hospitality. “When they were in their early stages and looking for a partner from the management side so that they could bring this new innovative brand to fruition, they reached out to us. Our core business is upscale select-service, and specifically extended-stay. They’re on the cusp of really growing their portfolio and their brand. We feel really privileged to be an early partner in that and their growth will likely lead to growth for us as well.”
The apartment-style hotel has the same amenities one might find in a traditional extended-stay property, but with a few differences, including both furnished and unfurnished one-bedroom, two-bedroom and three-bedroom spaces. “They’ve really created amazing flexibility around the product offering,” he said. “Combined with that, you have the amenities of a hotel, where you have a fitness center, beer and wine on tap in the lobby space and other amenities. They continue to innovate and grow a unique brand concept as they go.”
New additions
Island Hospitality also added several other hotels to its portfolio, and now serves as the third-party management company for two Austin-based properties located at The Domain, a mixed-use complex where Amazon, Meta (formerly Facebook) and IBM have offices. The hotels, acquired by Chatham Lodging Trust in August 2021, include the 132-key Residence Inn Austin Northwest/The Domain Area, which opened in July 2016, and the 137-key TownePlace Suites Austin Northwest/The Domain Area, which opened in June 2021.
Gregg Forde Island Hospitality
Forde also noted that the company moved into new markets after taking over management of three properties in Landsdale, PA, and Ashburn, VA, totaling 414 guestrooms and 12,500 sq. ft. of meetings space. The additions to the company’s portfolio include the 170-room Homewood Suites by Hilton Landsdale, the 90-room Homewood Suites by Hilton Dulles-North/Loudoun and the 154-room Embassy Suites by Hilton Dulles North Loudoun.
Retaining employees
While many companies lost employees during the pandemic, Forde said Island was able to retain many on the managerial level because of its focus on training and development. “We’ve been very fortunate about going through a pandemic—where there have been many challenges around the labor environment,” he said. “Our backbone is training and development. Our Pathways program proved to be a real benefit to our organization with some amazing retention at the managerial levels, and helped us as an organization work through that.”
The Pathways program, which has been in place for more than 15 years, is the company’s training and mentorship program focused on fostering internal growth and development, and creating a path for employees that leads to management both at a property and corporate level, according to Forde, who added, “Over the past five years, Pathways has demonstrated 90% employee retention rates that have guided Island Hospitality’s short- and long-term goals of building a balanced, educated and empathetic team of hospitality professionals.”
He continued, “Our industry is by nature a highly transient one. If you look at anything about employee satisfaction, employee retention always goes to how you provide growth, how you provide opportunities and how you make people feel great about where they work.”
The company has made investing in the development of employees a cornerstone of its business. “It is a leading principle for us,” said Forde. “That shows in a couple of different places, whether that’s retention at the managerial level, or just by the number of managers, middle management and upper-management who started in the hotels the company has owned and operated. They continue to work with the company for five, 10, 15 years. That has a positive impact on the company from a culture standpoint and on a results basis.”
New developments
While Forde said he is excited about several of the company’s latest developments, he is particularly interested in the new Home2 Suites by Hilton Woodland Hills Los Angeles set to open this month in Los Angeles’ Warner Center neighborhood. “It is a fantastic location, fantastic looking property,” he said. “I think it’s amazing.”
The seven-story, 170-room hotel will include contemporary design, with amenities including a fitness center, saltwater swimming pool, meeting spaces and city views from all public spaces.
What is also exciting for Forde is that the property will include the second outpost of Island Hospitality’s homegrown F&B concept Toasted Barrel, described as “an all-American, bourbon-forward” restaurant designed to infuse local flavors and influences.
The Toasted Barrel concept was launched in 2018 at its SpringHill Suites by Marriott Savannah Downtown hotel by transforming an underutilized event space into a contemporary 36-seat bourbon bar. The bar was so successful in its first year, delivering a 24% ROI and drawing a local Savannah crowd, that Forde said the company began to look at other underperforming spaces within its hotels that could similarly enhance existing branded hotel outlets and create locally driven F&B experiences reflective of the destination.
Island plans to bring more locations of Toasted Barrel to its properties in the coming year. “Transitioning these underutilized spaces within these hotels is anticipated to increase individual property revenue and add value to the overall guest experience at select-service and extended-stay properties that traditionally haven’t been known as destinations for food & beverage,” he said.
While the year has been a challenge, Forde said he is ready for what the future holds for the company, adding, “With our 35th year being the most challenging to date, I am so proud of our team to be able to manage through adversity, meet the many new challenges in our industry and perform at a high level as we look forward to continue building on the first 35 years of the company.”
