MTM Management Excels at Managing High End Hotels
Expects to Double Its Portfolio of Properties by 2010
February 1, 2005
What do the Sorrento Hotel in Seattle, the Woodmark Hotel and Spa in Kirkland and the Willows Lodge in Woodinville have in common? For one thing, all are unique, distinct properties that cater to sophisticated, discerning and affluent business and leisure travelers. In addition, all are managed by MTM Management, a Seattle company specializing in independent luxury hotels, inns and resorts ranging in size from 30 to 300 rooms.
MTM’s Birth
MTM is the brainchild of its CEO Jim Treadway. A third generation hotelier, Jim spent 23 years with Westin Hotel and Resorts, eventually becoming president of its North American Division. He left when Westin was sold in 1995.
The co-owner of the Sorrento Hotel, Michael Malone, then asked Jim to consult at the Sorrento and find a capable general manager for it. “While doing that work, I fell in love with this historic hotel,” says Jim, “and saw some significant upside.”
That love fueled his desire to start his own hotel management company operating upscale properties like the Sorrento. Jim took this step in 1996 when he, Michael Malone and another partner formed MTM.
In 2000, Jim recruited James Simkins, Westin’s “Top Gun” in Asia, to first open Willows Lodge, then serve as EVP Operations for all of MTM. James is now a partner in the business.
The company now has nine properties under contract. Seven are in Washington and one each in Boston and San Diego.
For all these properties, MTM manages the entire operation. That includes sales and marketing, revenue and expense management, quality assurance, facility management, staffing, training and compliance. “Our business model places a heavy emphasis on ensuring the general manager and rest of the on-site management team are world class. Recruiting, training, retention and ‘inspiring’ are our long suits,” says Jim. “Every employee is hand picked after a series of extensive interviews. We hire for heart and personality first, then train skills, if necessary.”
What Makes MTM Different
MTM differs from other hotel management companies in several ways. MTM’s management contracts, for example, run for five years. That’s shorter than many hotel management contracts, some of which run as long as 20 years. MTM’s contracts include generous termination rights that make it easier for hotel owners to cancel the contract. In addition, MTM’s fees are heavily weighted in favor of pay for performance. “We treat our hotel owners as partners and customers,” says Jim, “and encourage their active involvement and participation in all decisions taken on their behalf. This is not the norm amongst our competitors.”
Hotels Now Seek Out MTM
During the first several years of MTM’s existence, the company often developed business by calling on owners and developers of luxury hotel properties. But now, thanks to MTM’s positive reputation and growing national presence, it’s the owners and developers that are initiating the contact. “We find our phone ringing several times a week with new opportunities,” says Jim.
Most of these opportunities, however, don’t lead to management contracts because MTM is highly selective about the properties it takes on. “The ones we manage must be at the top of the markets they serve and among the best properties in the region,” says Jim.
MTM’s Growth Plans
By 2010 MTM wants to double the number of properties it manages to 18. Given MTM’s success to date and its reputation, the company shouldn’t have any trouble meeting this goal.
As MTM expands its portfolio of properties, Graham & Dunn will be there to help the company grow and prosper. The law firm’s link to MTM goes back to the days when Jim was working at Westin and Graham & Dunn’s Irv Sandman served as Westin’s outside counsel. “Irv and his team were a valuable resource in the area of contract development and administration,” says Jim.
The team now doing MTM’s legal work includes Graham & Dunn lawyers Bob Cumbow as well as Irv, who has represented MTM in nearly all its management agreements. “Irv’s acumen as a lawyer and knowledge of our industry undoubtedly have saved MTM significant dollars, headaches and the cost of frivolous litigation,” says Jim. “In addition to being a great lawyer, Irv is a good friend.”
For more information about MTM Management, visit www.mtmmanagement.net. To contact Irvin W. Sandman at Graham & Dunn, call 206.340.9651 or e-mail isandman@grahamdunn.com.
