Milestone’s Approach to Property Management

Milestone has decades of experience and expertise in all facets of hotel management operations and financial reporting:
   Acquisition / Transition / Disposition
   Construction / Renovation
       • Architectural / Engineering / Design
       • Project Management
   Legal Compliance / Oversight
   Franchise Relations
   Accounting / Finance / Audit
   Human Resources / Training
   Operations / Expense Management / Value Engineering
   Sales & Marketing / Feasibility / Market Assessment
   Guest Services
   Food & Beverage / Volume Purchasing
   Property Operations / Preventative Maintenance
Milestone believes that operational success comes from proactive, hands-on management - providing each property with dedicated support from its highly experienced team.

Acquisition & Pre-Transition

Milestone provides a full suite of support services in the due diligence and pre-transition period, including:
   Conduct market research and prepare feasibility analyses in support of client financing and/or acquisition initiatives
   Coordinate preparation of 3rd party reports, including appraisal, survey, engineering, environmental & zoning analyses
   Audit the operations, staffing, and financial records of current ownership, in the case of an existing property
   Coordinate the efforts of architects, engineers and general contractors, in the case of a development project

Planning & Design

Milestone is fully capable of coordinating the planning & design process, with an established network of relationships in the design fields that will benefit any renovation or construction project. Services include:
   Manage the efforts of architect, engineer, land planner, and/or interior designer
   Coordinate the layout and procurement of hotel furnishings, including kitchen, restaurant, lounge, fitness and laundry        equipment
   Ensure that property design achieves maximum return potential for ownership

Construction / Capital Improvements / Renovation

Milestone has amassed more than two decades of experience managing construction projects, overseeing capital improvement plans, and renovating existing assets. Services include:
   Provision of direct field oversight, and coordination with all construction-related disciplines, including legal,
       architectural, engineering, environmental, structural, interior design and purchasing agents
   Establish bidding procedures and coordinate the award of contracts and subcontracts
   Site / zoning application and approval process
   Perform pre-opening inspections and punch list to verify compliance with project contracts
   Preparation of annual capital budget s– updated monthly – prioritizing and tracking capital replacement projects
   Oversight of ongoing replacement projects by fully-staffed centralized Capital Expenditures Committee

Franchise Relations

Milestone has developed a network of relationships with major brand partners including Hilton Hotels Corporation, InterContinental Hotels Group, Best Western International, Choice Hotels, and Wyndham Hotels & Resorts. Our franchise relations committee will work closely with the property and its franchise partner to ensure a mutually beneficial relationship. Services include:
   Expedite franchise approval of Milestone as replacement property manager
   Conduct feasibility analysis to identify optimal franchise affiliation
   Franchise application assistance
   Negotiation of franchise fees, cost and scope of property improvement plans (and oversight of implementation of same)
   Protection of lender rights under existing or to-be-negotiated franchisor/lender “comfort” agreements
   Representation on franchise advisory committees, and strong relationships with both regional and national franchise
       support resources to leverage full value of any brand affiliation
   Ensure compliance with brand standards, operating procedures, and implementation of action steps to improve
       overall guest satisfaction and quality assurance as measured by the brand

Accounting / Finance / Audit

Milestone’s senior finance / accounting staff will work closely with the property to institute best practices and models. Services include:
   Process all transactions including cash receipts, payroll, accounts payable, fixed assets and other journal entries
   Produce monthly management reports: profit and loss statement, balance sheet, and operating statistical summaries
   Develop detailed operating models to project property revenue and expenditures
   Produce short range (2-week) and long range (1-year) cash forecast models
   Analyze operating margins and productivity measures on a monthly basis
   Coordinate appraisals and other consultant reports
   Consult on debt and equity structuring

Human Resources / Training

Milestone’s Human Resources department will work closely with the transition team to recruit, retain and train talented hotel professionals and departmental managers. Services include:
   Verify current staffing levels in all departments; review staffing guides, productivity measures, and budget compliance
   Use of behavioral assessment tools such as Predictive Index to promote efficient and effective hiring practices
   Development and administration of compensation strategies, benefit program & policies, employment communications
       (handbook and newsletter), labor standards, performance review, audit and investigation
   Ensure compliance with employment law and regulatory agency requirements
   Develop customized employee orientation programs
   Training in standard operating procedures and protocols to ensure brand compliance, as applicable
   Training and resources in areas of potential risk, employment liability, site safety and loss control

Operations / Expense Management / Value Engineering

Milestone’s corporate operations team will lead the transition and ensure continual improvement in operating results. Services include:
   Develop strategic marketing plan and operating budget
   Establish daily / weekly / monthly financial, operating, and sales reporting protocols
   Leverage existing portfolio of managed properties to achieve cost savings in credit card processing, payroll systems,
       back office software, customer relations management, utilities, telecom, and all lines of insurance, including worker's comp,        property, casualty, employment practices, and general liability
   Review existing vendor, service, and maintenance contracts, as well as equipment and tenant lease agreements
   Schedule periodic and regular orientation, training and re-training sessions for all managers and employees
   Audit compliance with all applicable local, state and federal regulations governing the operation of public facilities
   Review quality assurance and guest satisfaction as measured by franchise partners, if applicable, or by independent
       third party providers; create action steps for overall improvement

Sales & Marketing / Feasibility & Market Assessment

Led by our Vice President of Sales, Milestone will develop a comprehensive sales & marketing plan for the property. Services include:
   Conduct market research and feasibility analysis to develop key accounts, prospecting sources, and business plan
   Determine competitive set, conduct SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
   Review sales technology platform; examine opportunities to implement sales automation program
       (e.g. Delphi Multi-Property Edition)
   Develop public relations plan to reestablish goodwill with key existing and potential clients, and community leaders
   Review of current media plan, advertisements, marketing collateral; make changes where necessary
   Determine staffing and salaries of sales department
   Establish reasonable and attainable sales booking goals
   Review Revenue Management strategy, leveraging brand and third-party resources, as applicable
   Review brand resources, as applicable, for direct sales, lead generation, RFP process, and preferred traveler programs
   Establish weekly review of key result areas
   Evaluate positioning for segmentation marketing
   Review existing contracts, membership agreements, and food & beverage marketing opportunities

Guest Services

Milestone’s team will work to ensure continual improvement in guest satisfaction. Services include:
   Review staffing and productivity guidelines of guest services department
   Review and implement brand Standard Operating Procedures, as applicable
   Review contact information for emergency services, as outlined in the emergency procedures manual
   Establish daily / weekly / monthly operating protocols
   Review current guest survey scores and create action plans for achievement of targeted results

Food & Beverage

Led by our Vice President - Operations, Milestone will ensure that the property’s restaurant, lounge, and banqueting operations run efficiently and economically. Services include:
   Expedite the transfer of liquor license from prior licensee and provide for appropriate liquor liability insurance
   Audit operating protocols and facility management to ensure compliance with Health Department regulations
   Evaluate food & beverage department staffing guides and labor productivity reporting
   Assess existing Point of Sale software systems and reporting capabilities
   Establish key controls for all beverage purchase, storage and use
   Ensure property employees are fully informed in applicable law and regulation for the sale of alcoholic beverages;
       and implement mandatory alcoholic beverage service training programs
   Acquisition of ID-scanning equipment and implementation of electronic screening protocols
   Mystery shopping programs to ensure employee compliance with all applicable laws and regulations
   Reexamine pricing policies, service delivery, and standard operating protocols to ensure targeted margins are achieved
   Implement departmental and brand standards training, as applicable
   Evaluate existing and/or proposed leased-operation opportunities

Volume Purchasing

Milestone’s long history and successful track record will benefit the property through its existing vendor relationships and purchasing experience. Services include:
   Implement national and regional account pricing to maximize cost savings opportunities
   Relationships regionally, nationally, and internationally with vendors supplying all aspects of property furniture,
       fixtures, equipment, mechanical systems, and branded/unbranded operating supplies
  — Fully-staffed Capital Expenditures Committee and on-site delivery, installation, and project management capabilities

Property Operations / Preventative Maintenance

Milestone’s engineering team and Capital Expenditures Committee will add value to the property through direct oversight of renovation and preventative maintenance programs. Services include:
   Establish preventative maintenance program internally and risk prevention program specific to properties in conjunction
       with insurance carriers
   Review emergency procedures and revise, as necessary
   Ensure compliance with emergency equipment testing requirements of relevant governmental authorities, insurance
       carriers, and/or franchise partners
   Review supply inventories and key control practices
   Review staffing and productivity guidelines
   Establish a facilities maintenance management program to trace critical information, vendor contact, warranty terms
       and conditions; and collect / secure physical and/or electronic library of operating manuals
   Establish Energy Conservation programs

Dispositions / Refinance

Milestone will reposition the asset to achieve maximum value at the time of sale or refinance. Services include:
   Preparation of marketing materials required by real estate and/or mortgage brokers
  Develop and prepare 10-year financial forecasts and other supportive financial analyses, as may be required
   Develop and prepare narratives, as required, assessing market conditions / critical factors involved in the maintenance
       and/or improvement of operating performance
   Serve as liaison with brokers, potential buyers, and third party agents
   Utilize extensive contacts with nationally-recognized brokerage community specializing exclusively in the sale of hotel        properties
   Negotiate purchase and sale agreements, or terms and conditions of property refinance

      2014 © Milestone Hospitality Management All Rights Reserved.