Close

CASE STUDY - BELLANCA

Strategically Phased Renovation

Sparkling wine and food table on the deck at Bellanca Hotel overlooking Avalon Harbor

Project Overview

Bellanca Hotel is a 40-room hotel in the highly constrained market of Avalon, California. In 2016, the property was sold and the new owners hired Eat.Drink.Sleep. to manage the property and develop a repositioning strategy. EDS immediately implemented a phase one plan to improve cash flows, which included a brand refresh, and revenue optimization strategy. In early 2020, the property completed phase two, which included a capital raise and a full remodel. The property fully re-opened in mid-2020 as Catalina Island’s newest boutique hotel and restaurant.

Eat.Drink.Sleep. Increases Bellanca
Hotel’s Revenue by $2.2 Million

The Challenge

The property was acquired in 2016 and Eat.Drink.Sleep. was tasked with leading operations and developing repositioning strategy. Prior to EDS, the property was family owned with a third-party operated F&B outlet. Due to capital restraints, there was deferred maintenance through the property, dated design, and an antiquated tech stack.
Portofino before building photo
Bellanca after building photo

The Approach

EDS tackled this property in two phases with the intent of improving cash flow in the short term and raising capital for a complete renovation in the long term.
Phase 1: Upon acquisition, EDS immediately modernized the hotel’s technology, which included a new website, property management system and centralized reservation system. This allowed the property wider third-party distribution and revenue optimization. These updates along with a brand refresh resulted in a 12% increase in room sales in the first full year of operation and an additional 24% increase in the second year.
Phase 2: In early 2020, the property closed for $4.3 million PIP and a rebrand led by Eat Drink Sleep’s design arm, Second Sight Design. The property re-opened in July 2020. Strategic property improvements re-purposed underutilized square footage, which resulted in 4 additional guestrooms, rooftop deck bar, an on-site laundry room, and additional ocean view seating in the restaurant. Additionally, FF&E was updated in every guest room, the lobby was redesigned and necessary repairs were made.

“The team at Eat.Drink.Sleep.  exceeded our wildest dreams. Bellanca Hotel is a challenging property due to its remote location, and the renovation occurred  during the peak of the pandemic, yet through it all EDS provided flexible solutions and deep expertise.”- Aldon Cole

Bellanca Hotel badge

Results

2016 Purchase Price
$7.85 Million

2020 Renovation
$4.3 Million

2022 Value*
$20.5 Million

*5.5% Capitalization Rate

Services

Interior Design
Branding
Construction Management
Tech Stack
Operations
Marketing
F&B

Market

Catalina Island, home to approximately 4,000 people, is located 29 miles off the coast of Los Angeles. 90% of the island is designated conservancy land with the most development happening in the island’s only city, Avalon. Over 1 million people travel to this waterfront resort community annually.