The following are examples of operating results obtained by Flagship and its principals as a result of the implementation of its management philosophy.
As a developer, majority stockholder, project manager and operator, Flagship operates a 222-room full-service hotel that encompasses over 15,000 square feet of meeting and banquets facilities, four restaurants, an action pool, and more than 280 parking spaces - with a total investment of $35,000,000. This Hotel has operated since 2004 as the Verdanza Hotel, San Juan’s only independently owned and operated full service hotel.
Flagship was contracted to provide technical advice to the owners during the development and construction phases of the project. Flagship subsequently successfully managed and operated the 118-room award-winning resort from 2001 to October 2008, greatly elevating the image that the Porta del Sol region on Puerto Rico¹s west coast projects to its customer base.
The Rincón Beach Resort, under the management of Flagship, was positioned as one of the West Coast’s premier resort properties.
Flagship, together with RECP-Credit Suisse, has acquired interest in the most important hospitality property presently under construction in Puerto Rico, Cayo Largo Resort. A luxury, hotel/resort/residential community that broke ground in 2001 and was halted in 2003. Flagship provides Owner Representation and Project Management for the investment group that is redeveloping this project. The property is slated to become operational in the fourth quarter of 2010.
For over sixty years, the Caparra Country Club located in the affluent San Patricio area of the city of Guaynabo, has been serving the social, recreational, and sporting need of its members. The Club, organized in 1944, now serves over 1,000 member families, many whom are third generation members.
The Club’s facilities include multiple tennis and basketball courts, baseball parks, and both Olympic-grade and recreational swimming pools. A children’s playground, restaurant, bar, and multiple meeting rooms complement the Club’s banquet hall, which has been home to many of Puerto Rico’s most prestigious galas and special events.
During the last quarter of 2003, the Club began a massive capital improvement program that included among other initiatives, the construction of a new, covered basketball court with bleachers, a new swimming pool, the rehabilitation of the Olympic pool, the reconstruction of the Club’s kitchen, restaurant, and bar areas, and a complete renovation of the banquet hall and support areas. The Club underwent a multi million-dollar renovation to prepare it for the next stage in its evolution, in line with the needs and interests of its membership.
Consistent with its vision and future development, the Club contracted the services of Flagship Services Corporation to manage and operate Caparra Country Club on behalf of its Board of Directors and its members. A five-year contract was executed and FSC operated the property until contract expiration.
In 1996, RECP I acquired a controlling interest in the former Sands Hotel & Casino that had been under severe financial constraints for several years and was in need of a major physical renovation to remain competitive in the local market.
Recognizing that RECP needed a partner with local market expertise, RECP engaged Flagship Services Corporation to assist in the redesign and architectural modifications needed to upgrade the product under the name of San Juan Grand Beach Resort and Casino. Flagship had been actively involved in the evaluation of the financially troubled Sands Hotel & Casino since 1991 and was in large part responsible for enabling the hotel to remain competitive given the lack of available funds for a full renovation of the asset. RECP was introduced to the opportunity through Flagships’ senior managing members, Richard Abati and Rick Newman, and benefited from their direction during the acquisition of the property and thereafter.
RECP contracted Flagship to manage the comprehensive renovation and improvement of the property in 1996. In addition, RECP implemented a marketing and repositioning program geared toward promoting the property’s new image. As a result of the successful repositioning, the Hotel was included in the Resorts and Great Hotels publication, Millennium Edition.
Flagship Services Corporation served as the owner’s representative in Puerto Rico for the Real Estate Capital Partners (RECP) group of Credit Suisse. This group had acquired the asset known as the Ritz Carlton San Juan operated by the Ritz Carlton Hotel Company, an affiliate of Marriott International.
RECP completed the acquisition of this asset in June 2003 and immediately initiated a focused effort to stabilize the product, plan its renovation, and implement new positioning in the Puerto Rico and Caribbean travel markets. Flagship served as an integral component of the RECP team in bringing about the required changes to meet the expectations of the new ownership group, of which Flagship was a minority participant.
The Ritz Carlton San Juan offers superior facilities and services to cater to the leisure, corporate and group guest. It features 419 guest rooms and suites, casino, restaurants, meeting and conference facilities, and a spa.
In 2007 Credit Suisse RECP and Flagship Services Corporation, together with a group of international and local Investors in Aruba, acquired interest in the 40 acre property. The Resort features 556 hotel rooms, casino and spa facilities, and a convention center with 22m square feet of function space. Flagship's participation includes Owner Representation and Asset Management.
Flagship acted as technical advisor prior to and during construction, subsequently operating the property in Culebra, an island off the southeast coast of Puerto Rico. Flagship terminated its’ involvement in the project when the concept was changed from a hotel to second-home apartments.
Flagship was an investor and co-developer in this project. The company subsequently sold its interest to its partner.
The North Redington Beach Hilton opened in Tampa, Florida, in June 1987 and was initially managed by an inexperienced owner with limited hospitality background. As a result, the hotel quickly suffered from poor performance. Flagship Services Corporation was retained to execute a quick turnaround of the property.
Within 90 days, Flagship designed and implemented a new three-year marketing plan, new food and beverage concepts, training programs, and new standards of service. These efforts produced immediate and dramatic increases in occupancy, average rate, and margin. The North Redington Beach Hilton’s actual operating results exceeded those set forth in its budget for years following Flagship’s repositioning of the property.
Hospitality consulting projects
Flagship has acted, and continues to act, as a paid consultant to a variety of developers in conceptualizing, preparing feasibility analyses, and providing technical assistance for early-stage projects in the hospitality sector.
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