Myrtle Beach, South Carolina – Crown Reef Hotel
Office: Horwath HTL, Atlanta-Dunwoody
Project Overview: The Crown Reef Resort is a three tower, 12-story, oceanfront property located in Myrtle Beach, South Carolina. The property features 514 oceanfront guestrooms and suites, 20 pools, hot tubs, and fountains, 2 restaurants, 575-foot lazy river, and an 11,500 square foot conference center. Horwath HTL was hired to turn around the hotel, which was operating in a distressed state. The goal was to turn the property around into a positive position for sale.
Horwath HTL Solution: Horwath HTL implemented a full asset management turnaround package for the client. We sat down with the management team to get a full understanding of the financial position and find out if there were any immediate decisions that needed to be made. Once we had a good understanding of the business and the priorities, it became clear that the property needed to drive top line revenue, so we helped the property hire a 3rd party management company to increase revenue and marketing efforts.
We worked to establish a new 3rd party management company to help implement the various capital expenditures and procedural changes we had recommended, we introduced the client to a top brokerage firm to get the property ready for sale.
Project Status: Performance at the hotel improved and the client was able to derive a fair offer for the property, which was sold in 2013.