Midas Hospitality takes on new director of revenue management

Morgan Bilek. Photo credit: Midas Hospitality
In this position, Bilek will implement and execute the companywide revenue management culture and philosophy. Her responsibilities include handling transient and group pricing strategies, creating a proper segmentation mix, and overseeing revenue management objectives and strategies in order to maximize hotel room revenue at all Midas properties.

Bilek has more than 12 years of hospitality experience. Before joining Midas Hospitality, she worked as the director of revenue management for a hospitality management group based in Kentucky. She also has worked in a similar capacity for a hospitality property operator and developer in Wyoming.

“Morgan’s extensive IHG and Marriott brand experience, coupled with a strategically-focused financial mindset, makes her a great fit for Midas,” Kurt Furlong, EVP of sales & marketing and principal at Midas Hospitality, said in a statement. “She brings a vast mix of communication and analytical skills to this position, and we look forward to working with her.”

Founded in 2006, Midas Hospitality has developed, opened and currently manages numerous properties including 40 hotels in 14 states. The company serves global brands including Hilton, IHG, Marriott and Starwood. Midas Hospitality’s headquarters are located in Maryland Heights, Mo.

Hotel operator Midas launches $100 million fund to build bigger projects

By Brian Feldt St. Louis Post-Dispatch Feb 9, 2018

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Midas Hospitality, a growing hotel operator in the St. Louis area, has plans to raise up to $100 million to help fund future acquisitions and development.

The money raised will be deployed in key markets such as Charlotte, N.C., Dallas, Atlanta, Denver and St. Louis, and help accelerate future growth. Midas, along with an affiliated development firm called MC Hotel Construction, separately reported a combined $137.7 million in revenue in 2017, a 40 percent increase over 2016.

Established in 2006, Midas has developed approximately $500 million worth of hotel properties across 14 states. The company is behind two high-profile projects soon to begin in midtown — the $25 million, 153-room Element by Westin on the site of the current Habitat for Humanity St. Louis headquarters at 3763 Forest Park Avenue, and the $28 million, 129-room Aloft Hotel in Cortex at 4245 Duncan Avenue. Habitat for Humanity St. Louis is moving its headquarters to a former grocery store property at the corner of South Grand Boulevard and Chippewa Street in south St. Louis.

Midas also recently opened the $25 million dual-branded Residence Inn and Fairfield Inn & Suites by Marriott in Maryland Heights in January.

The new fund, said co-founder and managing member J.T. Norville, is a “unique vehicle for our investors in St. Louis.” Approximately $5 million of the total fund has been raised to date, Norville said.

“There are other real estate funds in St. Louis, but none that are strictly focused on the hotel sector,” he said. “With that type of capital, we’ll be going after bigger projects moving forward.”

U.S. hotel transaction volume is expected to remain flat around $28 billion in 2018, according to research from real estate firm JLL. JLL found an increase in buying activity from private equity and institutional investors — more than 70 percent of hotel transactions worth $45 billion were acquired by such investors, up from 62 percent in 2014.

Revenue per available room (RevPAR) and average daily rate (ADR) — two key metrics watched closely by industry experts — have risen in the St. Louis market from $73.55 and $108.18, respectively, in fiscal 2016 to $76.01 and $111.85 in fiscal 2018, according to data from the St. Louis Convention and Visitors Commission. Occupancy rates, meanwhile, have remained about flat.

Midas, with nearly 900 employees nationwide, has steadily increased revenue over the last decade to $79.4 million in 2017. The MC Hotel Construction affiliate, which shares an office building in Maryland Heights with Midas, has grown rapidly since being founded in 2013 from just $1 million in its first year to $58.3 million last year.

Both companies actually leveraged the economic recession between 2008 and 2010 to grow.

“We started at an ideal time,” said Midas co-founder David Robert. “We didn’t have any old, ugly assets in our portfolio that would have to suffer through the recession, and we also had the opportunity to find some opportunities to buy assets low.”

Robert said Midas is on track to grow into a 50-hotel portfolio company by 2020 with enterprise-wide revenue of $270 million and more than 1,500 employees.

Gary Andreas, a hotel analyst with H&H Consulting, said Midas’ growth trajectory is similar to Drury Hotels, the St. Louis-based firm founded in the early 1970s that has more than $500 million in annual revenue.

“Drury got started as a construction company and then started building limited service hotels,” Andreas said.

Andreas said investors for hotels typically seek a company ready to act on several projects at once. “Midas has made that commitment and they’ve got the staff in-house to start on considerably larger properties than a lot of pure property management ownership companies do,” he said.