The Indigo Road

During our forty-five years of combined experience in the management of independent, boutique and upper-upscale and luxury hotels, we have had the opportunity to participate in the success of dozens of upper-upscale independent hotels in markets where the independent hotels compete against chain affiliated competitors. As we observed more boutique hotel developers electing to affiliate with the various chain’s soft brands, often largely due to their investors and/or lenders inability to get comfortable with a hotel project without chain affiliation, we lamented that there was not the data readily available to support and prove to investors and lenders that an unaffiliated boutique hotel of good quality and well operated by a qualified operator who understands effective marketing and room inventory distribution for independent hotels can not only compete with the chain affiliated properties but outperform them on GOPAR and EBITDA. In the table below, are the results of comparing twenty upper-upscale independent, boutique hotels with twenty that are chain affiliated. In the table below, are the results of comparing twenty upper-upscale independent, boutique hotels with twenty that are chain affiliated.

The Indigo Road Hospitality Group is pleased to announce that Chef Masatomo “Masa” Hamaya joined its O-Ku Atlanta team as executive chef. Chef Masa was born in Tokyo and has years of experience working in some of the top Sushi Restaurants in the United States such as head sushi chef for Qui in Austin, TX and the executive chef for Ozumo in San Francisco. Most notably, he was head sushi chef at James Beard award-winning restaurant Uchi in Austin, TX and Michelin Star restaurant Ame in San Francisco. Chef Masa comes to O-Ku Atlanta from the restaurant Dragonfly Izakya in Doral, Florida.

In the Hotel Model, we approach the condo property as we would a hotel, charging only a relatively small management fee based upon both a percentage of gross revenue and a percentage of net income to the unit owners. The 5% management fee on gross revenue and the operating and marketing expenses are deducted from the gross rental revenues and the remaining net rental proceeds are distributed to unit owners. An owner’s share of the net proceeds is the same as the owner’s unit’s percentage of gross rental revenue received by the rental program in the same period. For resorts or condotels with revenue-generating amenities or resort fees, it is important to note that this model entitles the unit owners to all of the gross revenues, not just the rental revenues.