ATLANTA — Essex Hotel Management is on a mission to double its portfolio, fueled by a marketing refresh, newer technologies and a bet on its boutique, hands-on approach.
The company is currently trying to hit the sweet spot for business, where Essex can still maintain its hands-on approach while seeing notable growth, Barbara Purvis, president at Essex Hotel Management, told Hotel News Now at the Hunter Hotel Investment Conference.
"We want to try to double the size of our portfolio over these next five years," Purvis said. "I think that we'll be a very formal, formidable force out there."
Currently, the company's portfolio of about a dozen properties is located on the East Coast across three states — Florida, Virginia and New York, where Essex is based — but Purvis said she is interested in expanding to promising markets. She said when she travels, she counts the cranes to see if movement is happening in a market.
"We are open to operating in other states as long as we can be successful, and being successful is making sure that we can deliver returns to partners," she said.
One of the company's priorities is building a new website that better showcases the business and what the team has to offer, Purvis said.
“Over this past year, we have been working on trying to craft our message," she said. "As an organization, we've been a little below the radar, and we wanted to be able to get the message out about who we are and how we've been operating, so we are updating our website."
Raising Essex's profile is crucial to its growth strategy as it at brings on new partners.
“It's a very competitive business out there. ... It's a business in some ways [of] who's whispered in your ear last,” she said.
Current headwinds
Purvis admits there are several things that will make Essex's growth plans harder to execute — namely pending tariffs, supply chain issues, labor market challenges and rising costs associated with insurance and real estate taxes.
Supply chain costs have settled from the pandemic, but new challenges have emerged with inflation and tariffs. Purvis added, "how much stability we'll see in 2025 — I think the jury is still out on that."
"The whole the political situation right now ... and the instability and uncertainty — how do we plan for that?" she said. "We always have to protect our downside and be patient, be prepared, but it's just it's very difficult to plan."
A rise in natural disasters — even ones occurring in markets outside of where Essex operates — is leading to rising insurance costs that affect the company's bottom line, as are real estate taxes. The recovering labor market post-pandemic continues to be a challenge.
"It's been increasingly difficult to get that bottom line to flow as costs have gone up, but we're pulling out all the stops to make that happen," she said.
Opportunities in tech, staying small
Despite these industry challenges, Purvis said there are some opportunities for Essex on its journey of growth — especially when it comes to staying competitive.
“There's a great deal of merger activity among management companies as many are seeking size and scale in order to compete. ... In our mind, there's going to be a real opportunity for that smaller boutique management company that can provide that hands-on service," Purvis said, adding that anyone on her team — even at the executive level — is just a phone call away.
"I think there is going to be a bifurcation, and I think we'll have an opportunity to be extremely successful," she said.
This is a feature that's increasingly more important with the market's uncertainty.
"We're able to pivot and look at each market and [do] what we need to do in order to recruit," Purvis said.
Growing trends in technology are also helping streamline business for Essex, she said, for both front desk and back-of-house operations. The company currently is testing a robot vacuum named Rosie for hotel hallways. It's these types of tools — ones that won't replace team members, but make their jobs a little easier— that are most attractive to Essex.
"We are always looking at technology and AI in all different ways to operate more efficiently, more effectively, [and to] deliver the right services to our guests," Purvis said. "That will continue to be a challenge and an opportunity in 2025."
