Client

Private Equity

Property

D.C. Metro area hotel

Challenge

Parking operations were leased to a third-party vendor under a revenue-share agreement that limited upside potential. Declining valet usage and falling annual revenue made the amenity increasingly unprofitable.

Approach

Ownership was advised to restructure parking as an internal department, eliminating the third-party lease and optimizing staffing and cost allocation. The new model gave the hotel direct control over pricing, labor, and expense management—turning a stagnant cost center into a profit driver.

• Took a hard look at how much money the outside parking company was really making for the hotel

• Realized the current deal was limiting profit and control

• Recommended eliminating valet based on low demand and shrinking returns

• Brought parking back in-house so the hotel controlled pricing, staffing, and service

• Simplified the operation to reduce costs and increase profit