Driftwood Europe-Background

Driftwood has been active in Europe since 1999 with the acquisition of a group of hotels in Belgium and the Netherlands. Since that time Driftwood’s marketing offices located in London have become a significant player in the tour operator business and supply hotels in the Caribbean, North America, and Central America.

The Driftwood development team has participated in different European acquisition opportunities with its partners during 2005 to 2007 and is now poised to re-enter the European market again in 2011 and take advantage of the cyclical nature of the hospitality market and economic conditions.

Major Brand Conversion & Business Model

Our Business Model: The opportunity to convert existing hotels in the European Markets to Major Brand Franchise names such as Sheraton, Hilton, Westin, Crowne Plaza, and Intercontinental Hotels, affords potentially high yield returns with manageable risks.

Driftwood as a small entrepreneurial management company has a unique track record of franchise Brand conversions in both the US and European Markets. With 2,000 employees and annual revenue of $200,000,000 the company has a long standing track record with major hotel brands within key markets both sides of the Atlantic. Driftwood has identified a number of minor brand hotels located in London, Dublin and other key European markets as potential acquisitions and is engaged in negotiations for the acquisition of a substantial hotel in London.

Brand Strategy, Typical Driftwood Approach;

For example only, assuming the following business mix;

With a new brand in place and deployment of Driftwood management and best practice systems it is estimated that the business mix would change as follows;

This example demonstrates that twenty percent of the business has moved from the lowest rate categories, to the three higher rate categories. Bottom line, this is what a strong brand combined with Driftwood management, and local sales support will do to improve performance.

The Brand will bring new higher rated business currently enjoyed in other parts of the London area by doing the following;

1. RFP process will provide the hotel access to major corporate business that is not currently available to minor brands.

2. Corporate meetings business will benefit from major brands, regional and international sales efforts, providing focus on this very lucrative segment.

3. GDS connectivity is where travel agents and travel planners book through systems like Apollo.

4. Guest Loyalty Programs provide members of popular guest programs, like Priority Club from Intercontinental Hotel Group with 49 Million members, access to London hotels and account for 45% to 65% of the bookings for European Hotels.

Prior to actually going on line with the new brand, Driftwood would host detailed marketing meetings at the property with key players within the brand. For example if the brand were a Starwood brand we would expect participation from the following Sheraton and Starwood staff members:

1. Specialist in the Brands Web Site

2. Sales specialist covering major tour operators. Coupled with Driftwoods own very successful tour operations based in London we would target high yielding inbound tour operators from China, South America, Far East, USA, Europe and Japan.

3. Specialist working with major travel Agencies, for example, American Express

4. Specialist covering Government Agencies

5. Specialist covering Military

6. Specialist covering Major conventions and congress. The subject property would be the largest meeting facility for Starwood in the London Area.

7. Specialist covering industries like pharmaceutical, automotive, banking

8. Specialist covering third party reservations systems

9. Airline specialists

10. Medical organization specialists

11. American market specialists

12. European market specialist

13. Group specialist such as retired military, retired public employees

14. GDS specialist who work with direct booking engines

15. Advertising and Public Relations specialist

It is not unusual that a major brand would have one or more people working in each category. In case of Starwood for example they would be based in Brussels.

Driftwood Executive Team

Peter J. Walz

President, Driftwood Europe

Principal and Executive Vice President

Driftwood Hospitality Management, LLC, USA

Mr. Walz is in charge of Marketing and Sales, and Internet Strategies for Driftwood USA and leads Driftwood's expansion into Europe. Prior to DHM, Mr. Walz was President of Lodgian Europe, SA and Executive Vice President of Acquisitions and Development for Servico from 1994 to 1999. While leading the development of Servico the company grew from 42 hotels to 110 hotels. Prior to Servico Mr. Walz developed a hotel and several office and retail projects in California. In addition Mr. Walz was marketing manager for new products, The Pillsbury Company, and CEO and marketing architect for Rollerblades. He is also a recipient of an Emmy nomination for his work in Children and Family Television Programming.

Michael Heffernan

Managing Director, Driftwood Europe

Recently appointed to take a leadership role and plan expansion initiatives to establish the firm in Europe through, sourcing capital and private investment, strategic acquisitions and the establishment of an operating platform in Europe. He has extensive international experience in the development of market growth strategies and rollout of new products and services within multiple industries. Michael has spent his career building new ventures from the ground up with sharp focus on planning and execution, marketing and strategic planning and while a resident in the United States for 25 years he has kept close ties in Ireland and the UK were he has key contacts and business relationships in investment, banking, government, economic development and tourism to combine a cadre of contacts that accelerate the firm’s market entry. He has held “C” level positions with companies in healthcare, eCommaerce and commercial real estate development.

Driftwood Europe Advisory Board

Mike Ashton

Mike Ashton is a leading hotel executive with significant brand management and professional training background. As the former Senior Vice President of Marketing for Hilton International Mike will be able to assist Driftwood with key brand analysis, hotel marketing optimization as well as bring extensive international contacts to key people in the Hospitality Industry.

Paula Whitehead

Paula Whitehead has extensive back ground working with major tour operators based in Europe. As the former head of purchasing for British Airways Holidays, the largest in bound tour operator for the UK, Paula will be aligning our tour operator business for each of our key hotels.

Colin Pegler

Colin Pegler, has been Driftwoods European based marketing director for 10 years. His role will be critical in optimizing the revenue for inbound UK and Europe leisure and tour operator business. Not only the details of contracting, but follow through with reservation center training, reservation incentives and promotions.

Tony S. Simmons

Tony is in charge of developments in London and the UK. He moved to the UK in early 2003 to build upon an existing relationships to Join LUXE LLP partners with whom he has a long background in the construction, project management and delivery of Premium Homes, Hotels and mixed use schemes in London and across UK and Europe; notably, Hyatt Churchill, Portman and Mandarin Hotel refurbishments. Mr Simmons’ company is currently working on a number of hotel schemes in prime central London.

© Driftwood Management, 2008