There are several ways to measure the success of a hotel management company; HEI's can be measured with:

Expense Margin.  HEI’s detailed, productivity-based approach to budgeting and operations compliance, combined with proprietary tools and training, has resulted in our hotels achieving superior operating margins in the industry. A 1% change in Expense Margin over a 5-year hold period (at 65% leverage) results in a 250 basis point improvement in IRR. This begins with the underwriting process, where, on average, HEI has found 380 basis points of Expense Margin improvement opportunity. The operating team frequently exceeds the underwritten expense savings, which is a testament to this continuous improvement.

Market Share.  A 1% change in Market Share over a 5-year hold period (at 65% leverage) results in a 100 basis point improvement in IRR. During underwriting, HEI leverages its depth of experience across the four major brand families and detailed customer segmentation analysis to identify Market Share growth opportunities.

Associate Satisfaction Scores.  HEI has consistently achieved industry-leading associate (employee) satisfaction scores, well above the peer set of comparable hotel companies. Associate satisfaction is a cornerstone of HEI’s approach to operating hotels and is a critical component to help drive its Ex­pense Margin and Market Share gains. To ensure full alignment of focus, a portion of each hotel general manager’s incentive plan is based on achieving associate satisfaction scores that are much higher than industry average.

Guest Satisfaction Scores.  Achieving appropriate guest satisfaction scores is critical to strong Expense Margin and Market Share growth. HEI routinely exceeds guest expectations while maximizing Expense Margin savings through extensive associate training and targeted capital improve­ments. The strength of HEI’s guest satisfaction scores creates value by driving favorable franchise fee terms from strong brand relationships.

Industry Reputation.  Over the last decade HEI has become one of the largest Full-Service indepen­dent lodging operators in the US. During this time HEI has strengthened existing relationships and forged new ones, evidenced by HEI’s current operating relationships with LaSalle Hotel Properties, Chesapeake Lodging Trust, Pebblebrook Hotel Trust, Cornerstone Real Es­tate Advisors, Starwood Capital Group, and many others.