GREENVILLE, SC— When economic times get tough and prosperity and profitability are uncertain, the brain trust at JHM Hotels here is convinced enhanced productivity is key. The prevailing notion among executives at the builder/buyer/ owner/operator of predominantly limited-service lodging properties— founded and headed up by H.P. Rama— is that the company does best when it concentrates on those things it can control, like bottom-line expenses, in the face of industry and national developments that are beyond its control. As noted by Rama, JHM Hotels’ chairman/CEO and past chairman of the American Hotel & Lodging Association (AH&LA), the company has increasingly watched— and weighed— its expense/spending lines over the course of the past year. “Prior to last 9/11,” he said, “we had already implemented a company-wide ‘profit-mandate’ program. However, after 9/11, that changed to a ‘survival-mandate’ program.” Exactly what did such a revised program entail? First and foremost, it meant the nearly quarter-century-old organization began deepening cuts to its economic outlays, “but always with the needs and satisfaction of the customer in mind,” Rama stressed. What’s more, in addition to asking the company’s principals to act as “survival-mandate consultants,” the new program similarly meant “more personal visits by me to our properties, so I could explain on a one-to-one basis what we’re looking to accomplish,” the JHM chieftain added. In direct deference to the troubled times gripping the industry over the past year, Rama maintained the firm is prepared for just such a scenario; at least, as prepared as any firm can be when a tragic and unexpected terrorist event exacerbates an already challenging operating climate. “We planned for a tough 2002, and so we put certain systems and procedures in place accordingly,” he explained. In addition to the virtually immediate implementation of a portfolio-wide property-efficiency plan, Rama contended the company “looked at just about everything, and renegotiated whenever and wherever possible. It also helped us immensely that we carry a floating interest rate [on the firm’s debt load].” On the other hand, even with its obvious preparation for and reaction to depressed financial conditions, JHM Hotels has still felt the impact of an economy that has been slower to recover than many had originally foreseen. According to Rama, the current environment has been responsible for delaying at least one of the developments in the company’s pipeline. “We purposely held back in order to preserve cash— just in case the downturn continued longer than anticipated. However, we now expect to break ground on this project sometime in the next 60 days.” Moreover, Rama pointed out financing most any project or undertaking— in general— has become much more difficult of late. “Fortunately,” he said, “we have strong relationships with our banks, so we’ve been able to continue to do more buying of properties rather than building recently.” Along these lines, Rama noted JHM has been able to open two new properties in recent months: a 210-room Residence Inn in Orlando, FL, and a 130-room Courtyard by Marriott in Gastonia, NC. Additionally, an even newer facility (opened as a joint venture) came on line in Greenbelt, MD in the form of a 120-room Residence Inn, while yet another joint-venture project now in the works is a 192-room Residence Inn in San Diego, CA, slated for a January 2003 debut. Consequently, as a result of the company’s “operational battle plans,” its banking relationships, its partnerships with other developers, its hands-on style of management by ownership, and a measurable commitment to proprietary/primarily in-house-developed technologies, JHM Hotels has actually managed to turn a profit so far in 2002… making for a pleasant surprise for Rama and his corporate associates. “We’ve been able to chalk up more profit— on lower overall guest volume— in the first six months of 2002 as compared to t
