Customer Success Story:
Sunstone Hotel Investors



Sunstone Hotel Investors is one of the most respected REITS in the hospitality world. Its 27-property portfolio flies the flags of many prestigious brands including Marriott, Hyatt, Fairmont and Hilton.

 

Sunstone has consistently produced impressive net operating income performance improvement, in partnership with their operators, by funding profit-impacting capital projects. Although severe capital funding restrictions have existed across the industry during the past several years, Sunstone moved forward with Capton pilot projects in early 2009.

After experiencing positive results with pilot installations in its Renaissance Washington DC and Marriott Boston Long Wharf hotels, Sunstone will be moving forward with Capton projects in a number of other Sunstone properties.

"Our first project came as the result of a contract signed between Capton and Marriott in the summer of 2008. Marriott was looking for owners who were interested in funding a Capton technology purchase and we thought Capton's product seemed like a winner," said Marc Hoffman, VP Asset Management for Sunstone.

Immediate Savings
"We installed the Renaissance Washington DC in December 2008, and within 90 days we started seeing a liquor cost reduction that was jaw-dropping. The Renaissance Washington DC has always had one of our best performing food and beverage teams, but we felt putting the Capton system into the hands of this team might solve a liquor shrinkage problem which we know exists in every hotel we own."

To combat the problem, Sunstone had focused on inventory-based beverage control solutions in its properties – yet shrinkage problems remained.

"We could see the problem particularly in our larger properties, but not the individual acts that were causing the problem," said Hoffman. "Capton spotlights every single individual act that occurs when drinks are prepared incorrectly or not correctly rung up as revenue. The day the system goes in, that kind of behavior stops and liquor costs plummet."

After the initial success at the Renaissance Washington DC, Sunstone then installed the system at the Marriott Boston Long Wharf. "It was a smaller operation, but we got the same result. The system paid for itself in short order with liquor cost savings, positioning us to increase net operating income, and therefore, immediately increase our portfolio value," commented Hoffman.

Preferred Portfolio Management Solution
Ownership groups prefer the Capton technology because it directly impacts net operating income by reducing costs without increasing operating expenses. Sunstone in particular values its role of partnering with hotel operating teams to provide tools which can immediately help improve profitability. Especially during tough economic times, proven solutions that can reduce operating costs are not optional. Sunstone plans on implementing Capton in another half dozen locations immediately, and looks forward to continuing the Capton rollout throughout its portfolio.

"The great thing about Capton is that when we check back in with our property teams, the ROI result is clear," concluded Hoffman, "and the teams always comment about how much they appreciate the focus and the commitment of Capton to work with them over time to produce and maintain the ROI results. These guys are truly bar operations experts who can make a difference across the board in any beverage operation."

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