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Client Spotlight: Scarlett Hotel Group

10/01/2018

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Created By and For the Next Generation of Hospitality Leaders

The Client

Scarlett Hotel Group is focused on hotel management, acquisitions, and development. To date, their portfolio is comprised of properties purchased through their own investment arm and alongside other high net worth investors and partners, with a focus of investing throughout the Midwest and Southeast. Owned by Andrew Scarlett, Rob Sadoff, and Zio Pekovic, Scarlett Hotel Group began as a conceptual idea through a simple Facebook message from Andrew to Rob during the fall of 2015. After a few conversations and a flight to Austin, Texas, Rob, Zio, and Andrew joined forces the following spring of 2016, and they closed on their first property in Clearwater, Florida in June of 2016. Over two years later, Scarlett Hotel Group currently employs around 125 people and owns roughly $80 million dollars of hotel real estate.

Scarlett Hotel Group is equipped to work with real estate investors who are looking for investments within the hotel space that may not have the firsthand knowledge on how to run the demanding day-to-day operations of these assets. “Since we have no long-term leases and rent our ‘real estate’ daily, there is very little crossover to anyone who owns or manages retail, industrial, or multi-family real estate,” says Rob Sadoff, Principal & Co-founder at Scarlett Hotel Group. Other clients who are interested in Scarlett Hotel Group’s services are accredited investors looking to diversify their holdings. “Hotel real estate yields a much higher return to these investors, so many of the same people look to place their money with our investment arm as well,” adds Sadoff.

As for a typical day at Scarlett Hotel Group, Sadoff says, “Hotels wake up early, and while our customers may sleep, we do not have the same luxury. Running a 24/7 business never looks the same from day to day.” Typically, you’ll find one of the three Scarlett Hotel Group founders up early while one is up very late. “Being accessible to our properties’ needs is absolutely critical. Once the alarm clock strikes, we are checking in with our general managers, looking at the prior night’s occupancy, and figuring out how to fill up the same night,” says Sadoff. Scarlett Hotel Group’s sales team is hitting the road in their cars or on the phones seeking out new businesses or groups to fill up future dates. Team members are also handling IT issues,  accounting reports, HR, payroll, and capital projects daily. In essence, Scarlett Hotel Group’s work never stops.

The Opportunity

Scarlett Hotel Group discovered LBMC Employment Partners through Andrew Scarlett, whose family had a prior working relationship with one of the company’s partners for several years. “When we found out about LBMC EP’s PEO services, we were excited, as we only work with like-minded partners,” affirms Scarlett, Principal & Co-founder. Scarlett Hotel Group has been working with LBMC EP since its inception, and as a member of LBMC EP’s PEO, they currently receive a comprehensive mix of HR services, including accounting, payroll, benefits, and more. Scarlett says, “LBMC EP has been an extension of our corporate office. They are always on top of their game, and they make us feel like we are their only client, which is incredible, given the amount of businesses they service.” Additionally, Scarlett praises the incredible work ethic of the LBMC EP team, saying, “LBMC EP’s employees are amazing, and they work at the highest levels of service and professionalism.”

The Solution

What makes the relationship with LBMC EP so good? Sadoff says, “One word: Consistency.” Whether reaching out to LBMC EP team members Arielle Sadler or Rebekah Harney, having a single point of contact has proven to keep Scarlett Hotel Group’s business running efficiently.  

Sadoff says LBMC EP improves Scarlett Hotel Group’s business workflow through its one-stop-shop for all HR-related business needs, which he believes is critical for keeping the company in its own lane and positioning it to be the best hotel management company in the U.S. He explains, “If we focus on our team members and our guests, we will always win the battles. LBMC EP’s expertise in the first piece of the equation has proven to be extremely impactful and beneficial to our team members.” For other businesses considering LBMC EP's PEO or other human resources outsourcing services, Sadoff encourages, “Doing everything and mastering nothing is a critical mistake. Whether out of the gate or seasoned, the efficiency of your business when using LBMC EP is only going to help you become more profitable.”