After several years of ever-increasing success assisting clients with the acquisition, structuring, and capitalization of over 70 hospitality transactions, Joseph G. Gillespie, with a series of partners, began acquiring hotel assets for his personal account. The first several transactions were completed with day-to-day management provided by a succession of major third party management companies. While these early transactions all proved to be very successful from a financial perspective, Mr. Gillespie became aware of the conflicts and inefficiencies and indeed overall lack of drive (or sense of urgency) exhibited by the third party management providers. The unfortunate result was diminished financial and operational performance of the asset and the investment.
Based on Mr. Gillespie’s extensive industry contacts by virtue of his investment experience, he embarked on a search for the ideal management company. While there were many competent companies who were very good at marketing their services, Mr. Gillespie sought a more analytical approach and reviewed the actual financial performance of literally hundreds of different hotels managed by dozens of different management companies. After completing this exhaustive analysis, Mr. Gillespie concluded that while there were clearly a handful of superior operators, if he wanted to achieve exceptional returns, he would need to assemble the personnel and infrastructure to manage the hotels with an ownership mentality. What he needed was an organization that understood the business plan and underwriting from which the investment was derived.
In 1992 Mr. Gillespie started his first hospitality management company. Since then he has directly managed over 78 hotel and resort assets, the majority of which were distressed or in need of immediate renovation and/or turn-around.
By introducing an owner/operator mentality to management and operations, Mr. Gillespie was able to drive 40% more cash flow than was previously experienced with third party management companies. The result was a significant increase the value of his investments.
In 2003, Mr. Gillespie joined forces with Stephen Nalley to create a new, multi-faceted hotel & resort Management Company. The new company utilized the existing fundamental principles of hotel management, while incorporating cutting-edge technological, purchasing, reporting, and real-time key statistical monitoring techniques. All of their efforts focused on the singular goal of increasing and maintaining enhanced profitability. Their development and implementation of standard operating procedures and unique reporting and monitoring techniques allowed for real-time management and decision-making throughout the existing portfolio of hotels. The result was a 30% reduction in operating expenses across the entire portfolio of 35 operating hotels in extremely competitive and challenging environments.
In 2010, Inner Circle expanded their business base to include third party management opportunities. The intent was to provide owners and investors with the entire range of Inner Circles services and management philosophy that increases the value of their real estate through the maximization of cash flow from hotel operations.
Mr. Nalley brings more than 25 years of leadership, management and operations experience to the Inner Circle Team. Over the past 13 years, Mr. Nalley has built one of the most dynamic and result oriented hospitality management teams in the industry. Through his leadership and passion to develop a winning organization, Inner Circle is uniquely positioned for continued growth and success.
