Company veteran Duane Schroder sets sites on 50-hotel sweet spot.
WATERFORD, Connecticut ‒ When Duane Schroder talks about “the current economic climate” as one of the drivers for Waterford Hotel Group’s recent shift into high-gear growth, he’s not just referring to interest rate cuts.
Tapped by group Chairman Len Wolman to fill the newly created position of chief growth officer, 22-year Waterford veteran Schroder sees the market softness that followed the rebound recovery-driven performance spikes of 2022 and 2023 as an inside track to achieving the group’s expansion aims.
Owners’ increased rigor in their selection of third-party management companies, acquisition services and project managers plays directly to Waterford’s strengths. Nearly 40 years of metrics demonstrating the company’s ability to optimize owner ROI over various cycles, segments, asset types and service solutions are jumpstarting this industry stalwart toward its ambitious near-term goals, said Schroder.
Duane Schroder, Waterford Hotel Group
“The current economic climate is characterized by stabilizing revenues and rising costs,” Schroder observed in this exclusive interview. “That presents a strategic opportunity for hospitality companies such as Waterford Hotel Group. Our core competencies and proven fundamentals deliver added value to owners, especially when there’s not much of a tailwind. By leveraging our expertise and adaptability we can navigate these challenges effectively and capitalize on emerging growth opportunities.”
Critical mass within 24 months
Waterford’s leadership gave Schroder a definitive mission statement and a big tool kit. They also underscored the need for speed in scaling up before the window of opportunity closes.
“Our strategic objective is to expand our managed hotel portfolio from the current total of 30 properties to the sweet spot of 50 within the next two years,” said Schroder. “This will position us as a major player in the hospitality industry, granting us increased leverage in negotiations with suppliers, enhanced brand recognition and greater access to capital. By reaching this critical mass, we aim to establish a solid foundation for sustained growth and profitability.”
Waterford is targeting three avenues to make that happen: securing additional management contracts, strengthening relationships with existing partners to generate near-term portfolio increases while cultivating strategic partnerships with new capital partners to fuel longer term expansion and, according to company leadership, “acquiring properties that align with owner investment objectives.”
Schroder’s top-tier priorities sit squarely in Waterford’s wheelhouse: select service and extended-stay properties flagged with Marriott, Hilton, Hyatt and IHG brands. Applying the same relationship-first thinking that’s increasing portfolio size, Waterford concentrated on these core segments and big-brand leaders to gain the in-depth expertise and industry status that maximize property-level performance.
“These segments have shown consistent resilience and profitability, making them ideal areas to expand the company's footprint and increase revenue. The team will also seek to grow Waterford’s third-party management services using our established expertise to manage properties for additional owners.”
An adaptable approach allows Waterford to seize opportunities that align with its core strategy. “The question always is, ‘Can we add value to this property?’” noted Schroder. “The fact that the answer is usually ‘yes’ is why our portfolio includes hospitality assets from historic independent inns to 400-plus room hotels and a convention center. Even with our highly disciplined strategy, there’s room for case-by-case exceptions that challenge us to think in new ways.”
Unsurprisingly for a company that makes personalized client communication paramount to owner support, Schroder’s first outreach in this growth campaign will be to Waterford’s current partners, whom he credits with a key role in shaping the company’s growth and reputation.
“These relationships, rooted in trust, collaboration and shared values, have consistently enabled us to deliver on our promises,” said Schroder. “Beyond our strong banking relationships, our strategic partnerships have been a valuable source of capital and financial resources. These collaborations provide us with additional avenues for funding our growth initiatives.”
Value-adds to boost owner buy-in
Although this strategy is tailor-made for Waterford, the continued appeal of high-margin, lower investment parameters for select service and extended stay means Schroder and his team will need a strong story to get a hearing over the noise of a host of competitors with the same agenda.
Property leadership benefits from ongoing dialogues that help them navigate the issues at hand ‒ from labor costs and optimized CapEx to untapped incremental F&B revenue or implementation of new revenue management software and data-driven decision-making.
Duane Schroder
Fortunately, the rush of investors looking to get into or expand in these tiers is also accelerating. Various investor sentiment reports for 2024 indicated that 40% to 44% of hotel investors have these segments on their radar. It’s clear that owners will be spoiled for choice. That’s why Schroder and his team will be talking more than numbers with existing clients looking to expand.
They’ll hone in on Waterford’s substantial investment in refining its management platform, not only to enhance value for property owners but to provide a strong support structure for on-site leadership.
“We believe that empowering property leaders with the right tools and resources is crucial for effective operations and sustained success,” said Schroder.
He noted, “Regular, in-person meetings between corporate teams and property management are essential for fostering effective communication and collaboration. Property leadership benefits from ongoing dialogues that help them navigate the issues at hand ‒ from labor costs and optimized CapEx to untapped incremental F&B revenue or implementation of new revenue management software and data-driven decision-making.”
Leadership remains a cornerstone of the organization’s achievement, he added. “Our thorough selection process ensures we place top-tier talent in key positions, while our inclusive and positive culture fosters long-term leadership retention. Waterford consistently outperforms industry peers in leadership tenure, reflecting the stability and satisfaction of our core team.”
Waterford backs that up with its internal training program, the Waterford Talent Program, aimed at continuously developing its associates. “Our commitment to internal growth, leadership development and operational excellence remains a key driver of our success in hotel management,” said Schroder.
Why an operations expert is leading the growth initiative
His unique voice tells Waterford’s story through more than two decades of operations experience that put him on the owners’ side of the table and gave him a first-hand look at their pain points and properties’ profit potential.
“As we continue to expand through strategic acquisitions and third-party management opportunities, our focus remains on fostering a culture of innovation and collaboration. With experienced leaders and a robust internal development program to cultivate talent, we are well-positioned to sustain our growth while upholding the values that have defined us for decades,” he said.
Schroder added, “Waterford Hotel Group is not only poised for continued success but also dedicated to delivering value and fostering meaningful partnerships that benefit both our company and the communities we serve. By balancing consistency and innovation, we can help owners outperform today and future-proof their hotels to capitalize on the opportunities ahead.”
Mary Scoviak is custom and design content director for Hotel Investment Today by Northstar.
The views and opinions expressed in this content do not necessarily reflect the opinions of Hotel Investment Today by Northstar or Northstar Travel Group and its affiliated companies.