In this second part of our CPNA Supplier Focus, we look at two case studies involving a first-time developer in the hospitality sector and an established manager with over 300 renovations to his name. Both relied on the experience, efficiency and skills of the CPNA team to complete their projects successfully.
Parth Bhatt, Director of Bhatt Hospitality, LLC
Parth Bhatt’s family was in the metal recycling business when a real estate development opportunity presented itself in 2001. His father had been interested in expanding into real estate for some time, attending AAHOA sessions throughout the 1990s. So, in 2001, when he learned about a development opportunity, he jumped in.
In August 2019, just a few months before the pandemic changed the world, they broke ground and started developing a new Microtel Inn & Suites in Liberty, Missouri.
Being a ground-up development, they recognized the need for a full-service contract purchasing provider. CPNA was among the candidates and won the business with a competitive, complete, and comprehensive bid. Parth found CPNA to be both engaging and responsive, and these qualities extended throughout the project and led to a solid professional relationship.
Parth learned on the fly as a first-time, ground-up, hands-on developer, and CPNA helped him avoid many costly rookie mistakes. Many times, when he didn’t even know that he was walking the edge of the cliff and could have stepped over any time, CPNA helped direct him away from the edge and stay on track.
Getting a quote from a vendor can take up to 3-4 weeks on average. Yet, even during the pandemic and tariff trade wars, CPNA could quote and requote much more quickly and efficiently than expected.
“Elaine Gordon had the site supervisors’ phone number and the construction schedule and was proactive in managing communication.” In some cases, you could have 12-week lead times pre-covid and longer during a pandemic. As a result, Parth could have received a furniture delivery while the property is still under construction, resulting in additional storage fees. The potential for Items not showing up when expected also presented its own set of problems. CPNA helped avoid those problems.
“CPNA was mindful of these timeframes on my behalf and took extra steps to proactively get construction schedule updates. She didn’t have to take this on, but it was part of the service.”
Adding even more benefit to the relationship, CPNA had worked with Microtel hotels before. Parth provided construction plans, and CPNA provided a comprehensive launch plan. Due to CPNA’s involvement, the development was successful, and the hotel enjoyed a soft opening in April of 2021.
When asked if he would recommend CPNA to other developers, Parth responded, “Absolutely. 100%. I will be using them for future projects. Cost savings come with selecting the best vendors, the most competitively priced, etc., and avoiding expensive mistakes. CPNA’s project management and robust communications were critical to making the project a success.”
Larry Hambro, Principal, HHAC
Former brand leader for the Wingate and Hawthorn brands, Larry Hambro, has been in the hospitality business for over 30 years and has been involved in over 300 renovations. He’s witnessed many new hotel owners, who were successful in other lines of business, believe they could manage a renovation or a conversion of a hotel themselves.
Seeking to avoid that common mistake, Larry engaged CPNA. “(CPNA) really knows the business and knows the franchisee profile.” They educated Larry on the benefits of using a Preferred Service Provider (PSP) like CPNA. CPNA took him through the design, procurement, planning, and logistics stages and explained how they kept projects on track. For example, poor logistics alone could cost tens of thousands of dollars, if not more.
A false concern among franchisees is that since CPNA is based out of Canada, they don’t understand the US business and will ultimately cost more. All untrue. “They provide knowledge, honestly, fairness at all levels of the project. These guys were logistically and timely to a point to where they could save a hotel tens of thousands of dollars.”
CPNA anticipated our current supply chain issues years ago and knew how to time everything so that there was no lost revenue. Many franchisees who thought they could do it independently ended up with containers on the lot for months before they could even open them due to poor timing. Container damage over time due to exposure could result in re-orders and lost revenue.
Project Planning is one of CPNA’s strengths. They build a plan before anything happens, and things will happen. Their budgeting helps you avoid overbudgeting, and CPNA communicates transparently and provides all details upfront before they occur. And when problems do occur, as they will, CPNA explains why they did and how to solve them.
CPNA understands what the franchisees need and what to expect in terms of construction and quality of products. “CPNA has relationships that allow them to move past hurdles that the franchisees would not be able to by themselves. CPNA would insulate the owner from all of the stress. They would address the problem, resolve the problem, and communicate with the franchisee and the brand. ”
Larry Hamro and Parth Bhatt share the same respect for CPNA. “CPNA builds relationships on a foundation of transparency, trust, and respect. Having complete faith and respect for (CPNA) made it easy to work with them. CPNA has a successful track record.”