Dow Targets Management in Luxury Segment

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. June 10, 2009

JUNE 9, 2009 - The company plans to add up to five new management contracts to its portfolio over the next year, including a substantial portion of four- and five-star level hotels.

"Historically, we have been thought of solely as a leader in the upper, upscale segment," said Murray Dow, president of DHC. "While accurate, this perception overlooks the fact that our senior executive team has more than 50 years of highly successful management expertise in the luxury segment, including branded and boutique hotels, resorts, conference centers, spas and golf courses. We successfully have worked through a number major downturns and have the systems and infrastructure in place to take on a select number of luxury properties."

According to Smith Travel Research data, luxury hotel RevPAR declined 28.2 percent in April. "Maintaining RevPAR by lowering costs and building top line revenues is a more delicate operation at the luxury level," Dow noted. "Cost cutting in the luxury segment must be handled like a surgeon with a scalpel, not a chainsaw, so that long-term guests are not scarred by the process. We have carefully selected and groomed our senior management team to excel in these circumstances, and have the experience and results to prove it."

Dow said that the company's decision to expand into the luxury segment was a result of a growing number of requests for assistance from existing clients who owned luxury properties not managed by Dow. In response, the company took a number of proactive steps to accommodate the requests. In addition, the company has received a number of calls from lending institutions who have or are about to become reluctant owners, but do not have hotel expertise in-house. "We have added quality depth to our senior management team with the addition and promotion of highly experienced operations and marketing executives. We have added bench strength while others are cutting. We also have built in-depth expertise to assist lenders and others with bankruptcies and distressed inventory."

DHC's team has operated more than 20 luxury properties, including such renowned brands as Ritz-Carlton and Four Seasons. Additionally, the company has overseen top four- and five-star independent and boutique hotels and resorts, as well as upscale conference centers.

"This augmented direction plays naturally into our skill set," noted Dow. "There is a unique set of problems besetting the luxury segment and we have re-organized our company to respond positively to those owners' needs. Luxury hotel owners are now reaching out to the top-tier operators like Dow to help them through these unprecedented times. We believe this will create new growth opportunities for the company on a highly selective basis. Concurrently, we have enhanced the quality of management at our existing hotels. We are in a once-in-a-generation operating environment and we have responded by adding experienced hoteliers, supported by cutting edge proprietary systems and economies of scale."