R.A. Rauch & Associates leads El Cordova to profits

SAN DIEGO, Calif (Jan. 31, 2011) – Hotel management company, R.A. Rauch & Associates (RAR) was awarded the contract to manage El Cordova Hotel, a 40 room boutique hotel in Coronado. As a third party management firm, R.A. Rauch & Associates has taken over the marketing and management aspects of the hotel in an effort to return El Cordova to the high level of quality and consistency it enjoyed in the recent past.

“We are really focusing on strengthening our relationships in the wonderful community of Coronado,” said Robert Rauch, President of R.A. Rauch & Associates. “Additionally, we are cooperating more with other local hotels in the area. That strategy has helped El Cordova’s business get off to a great start in 2011 and begin a return to the reputation is has previously enjoyed.”

El Cordova Hotel was originally built as a retirement mansion for wealthy industrialist Elisha Babcock in 1902. In 1930 it was converted to a Spanish Village hotel and has been updated and expanded several times to provide additional rooms and amenities. The most recent renovations took place in 2010. The Hotel sits in the heart of the Coronado village, on Orange Avenue, one block from the best beaches on the Island. It has twelve boutique shops on site and four restaurants, including The Brigantine and Miguel’s Mexican restaurant.
R.A. Rauch & Associates has managed the assets of several properties over the years, and has managed all of the properties in which it has had an ownership position. However, this is the first third party management agreement for R.A. Rauch & Associates in many years and the beginning of a new strategy where R.A. Rauch & Associates is able to assist selected hotel owners of premium properties in San Diego with hotel development, operations, and marketing.

“The economy has taken a nose dive over the last couple of years, but is finally on the upswing,” said Natasha Perez, Managing Director of Acquisitions and Development at R.A. Rauch & Associates. “Whether a hotel was under performing due to the economy, reduced sales force, or underachieving marketing, this is the perfect environment for our company to help get hotels back on track.”

For more information about R.A. Rauch & Associates, Inc. visit www.hotelguru.com.

For more information about El Cordova hotel visit www.elcordovahotel.com.

By: Robert A. Rauch, CHA

Today’s economy has had an enormous impact on the fortunes of the U.S. lodging industry. Some markets have been impacted more than others. Thankfully, for San Diego, the access to millions of potential travelers within a short driving distance, along with a diverse economy and a strong convention center, has lessened the blow. This article seeks to show how San Diego is faring vis a vis overall industry financial performance.

According to Smith Travel Research, (STR) the U.S. hotel industry is projected to end 2010 with increases in two of the three key performance measurements, according to their most recent forecast update earlier this month.

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The recovery is real, as we reported in our last update in Hospitality Innsights. Double-dip recession fears are just that – “fears.” It has become clear to forecasters that the bearish predictions for 2010 were a bit over the top. On a macro basis, gross domestic product grew 3 percent in the first quarter of 2010, down from the nearly six percent growth in Q4 of 2009. This growth seems to be more sustainable, and unemployment levels seem to inching back, albeit at a slower pace than all of us would like to see.

Tourism spending rose at an annual rate of 3.9 percent during the first quarter, led by increased spending on hotels and other accommodations, according to The Bureau of Economic Analysis. The increase is significant when compared with a 1.5 percent drop during the fourth quarter of 2009.  Spending on hotels and other accommodations rose at an annual rate of 11 percent in the first quarter, after falling at a rate of 7.9 percent in the fourth quarter. The BEA said accommodations were the largest contributor to the growth in travel and tourism spending.
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