8923 E. Mission, #135 Spokane, WA 99212
(509) 928-6848
FAX: (509) 928-6860

                                       kVc Development, Inc.

                                                                                           &

                             STERLING HOSPITALITY MANAGEMENT, LLC

 

An Overview

kVc Development, Inc. and Sterling Hospitality Management combine to offer comprehensive hotel development and management services in the limited service sector of the lodging industry.

 

The principals of kVc and Sterling collectively possess 35 years of experience in development, management and ownership of budget and limited service lodging properties.  The Companies focus exclusively on the lodging industry in the western United States.  Given that the principals hold a number of properties in their own portfolio, the development and management philosophy is shaped from an owner’s perspective, which is critical in achieving the balance in revenue maximization, cost control, and guest satisfaction.

 

History

kVc  Development was formed prior to the death of Vern Clausen, the father of Kent, Cal, and Clay.  The Big “V” in kVc represents Vern, while the k and c represent Kent, Cal, and Clay.  Vern Clausen started in the motel business in 1977 when he constructed a Super 8 Motel in Missoula, Montana.  Not only was it Vern’s first motel venture, it was also the first Super 8 in Montana.  Over the next twelve years, Vern and two other individuals developed and operated motels in Kalispell,  Wenatchee, Spokane, Salt Lake City, Albuquerque, Las Vegas and Nogales, Arizona.  In total, they built ten motels, all but one being Super 8’s.   Four of these Super 8’s, (three in Albuquerque and one in Las Vegas) are still owned by the group;  the others have been sold.  The Las Vegas Super 8 is 300 rooms, making it the largest Super 8 in the chain of 1,300 motels.

 

In 1991, kVc obtained an option to purchase the property in Spokane that is commonly referred to as the “Rock”.  The property was to be the first development by kVc.  Several factors contributed to a long and difficult development process on the property:  1) financing for motels was almost non-existent in the early 1990’s;  2) the geologic makeup of the site posed unique development circumstances, and 3) last but not least, Vern Clausen was battling what turned out to be fatal lung cancer.  Even though Vern was suggesting the option agreement on the property be terminated, no less than 33 lenders had turned down our financing request, and certain prominent businessmen in Spokane were opposing our development, we were able to persevere and complete the project in 1994.

 

In 1996, kVc completed construction on Holiday Inn Express Hotels in Layton, Spokane, and Wenatchee.  In 1998 construction was completed on the Scottsdale Quality Suites and the Layton Hampton Inn.  Also in 1998, the Spokane Quality Inn was purchased.  Presently the seven properties operated by Sterling Hospitality comprise 810 guest rooms, 250 employees, and have annual revenues of approximately $16,000,000.  Two additional hotels – one a Holiday Inn Express Hotel & Suites and one a Hampton Inn & Suites were completed in 2001 in Henderson, Nevada, adding 200 guest rooms and approximately 60 employees to the Sterling portfolio. 

 

Much of kVc’s and Sterling’s business philosophy stems from its roots in the budget Motel industry as well as Kent’s, Cal’s, and Clay’s involvement with their father.  A “hands on” approach was patterned by Vern and is carried forward today.  Vern, while not overly sophisticated in his business dealings, was very people oriented, exhibiting sincere compassion for his employees and customers.  kVc and Sterling emulate this style, as it has been and continues to be, a very successful and “fun” operational style.  The hands on style is exhibited by the fact that Clay, Cal and Kent personally design all buildings, select all furniture and fixtures, perform construction supervision, oversee and participate in FF&E installation, hire good managers, head housekeepers, sales directors, and otherwise spend significant amounts of time at the properties.

 

kVc and Sterling have intentionally paced their  growth so as to allow time to instill this hands on approach to their key employees.  Additional growth shall not compromise the operations of existing facilities.

 

MANAGEMENT AND DEVELOPMENT EXPERIENCE

Previous Developments:

Over the past 19 years the members of kVc Development have been involved in the development, ownership, and management of the following limited service lodging properties


Washington:

CITY

NUMBER OF ROOMS

YEAR BUILT

Spokane

190(1)

1980

Wenatchee

104

1986

Spokane

119

1994

Spokane

104

1996

Wenatchee

90

1996

 

Montana

 

CITY

NUMBER OF ROOMS

YEAR BUILT

Missoula

102(2)

1977

Missoula

80

1997

Kalispell

74

1983

 

New Mexico

 

CITY

NUMBER OF ROOMS

YEAR BUILT

Albuquerque

198 (3)(4)

1985

Albuquerque

100

1990

Albuquerque

100

1995

 

Utah

 

CITY

NUMBER OF ROOMS

YEAR BUILT

Salt Lake City

123

1982

Layton

102

1996

Layton

98

1999

 

 

 

Arizona

 

CITY

NUMBER OF ROOMS

YEAR BUILT

Scottsdale

172

1997 (5)

Nogales

116

1988

 

Nevada

 

CITY

NUMBER OF ROOMS

YEAR BUILT

Las Vegas

300

1989

Henderson

99

2001

Henderson

101

2001

 

The above noted properties have been extremely successful, outperforming both competing motels and industry standards.

(1) Original property was 122 rooms, a 68 room addition was completed in 1984

(2) Original property was 62 rooms1 a 40 room addition was completed in 1979.

(3) Original property was 120 rooms, a 78 room addition was completed in 1988.

(4) A 48 room addition was completed in 1994.

                         

                            Sterling Hospitality Management

                                         Property Awards       

 

BEST HOLIDAY INN EXPRESS WORLDWIDE  

                Presented by Bass Hotels,  Holiday Inn Worldwide

                                                The most prestigious award presented by Bass Hotels, Sterling Hospitality was

very proud when this award was presented to our Holiday Inn Express,  Spokane Valley, for the Year 2000.                           

               

TorchbearerPresented by Bass Hotels;  Holiday Inn Worldwide

                                                                                              Must obtain top scores in inspections, market

              penetration and guest service surveys.  The Area

              Field Manager must nominate the property.  Only one

              property is chosen in each Region.

 

§          1999 – Holiday Inn Express – Spokane Valley, WA

§          1998 -  Holiday Inn Express – Spokane Valley, WA

§          1996 -  Holiday Inn Express – Downtown Spokane, WA

§          1995 -  Holiday Inn Express – Downtown Spokane, WA

 

 

QUALITY EXCELLENCE

                                                                               

                                                Awarded by Bass Hotels; based on inspections and guest service scores.  Must obtain at least 945 points

                                    out of a possible 1000 in order to qualify.

                                                                               

q       1999 – Holiday Inn Express – Layton, UT

q       1999 – Holiday Inn Express – Wenatchee, WA

q       1998 – Holiday Inn Express – Spokane Valley,  wA

q       1998 – Holiday Inn Express – Wenatchee, WA

q       1997 – Holiday Inn Express – Downtown Spokane, WA

 

        GOLD AWARD – Awarded To only 2% of all Choice Properties Worldwide

Based on inspection of property and a rigorous series of test calls in which the hotel must receive a 100% score.

v       2000 -  Quality Suites -  Scottsdale, AZ

v       1999 – Quality Suites – Scottsdale, AZ

 

NEWCOMER OF THE YEAR

 

                Awarded by Bass Hotels to only one hotel in each region.  This award is given for superior

               design and interior  finish, combined with excellent inspection scores and guest satisfaction ratings.

 

§          1997 – Holiday Inn Express – Spokane Valley, WA

§          1994 – Holiday Inn Express – Downtown Spokane, WA

 

Breakfast Bar Employee of the Year – Presented by Bass Hotels to only one property in the chain; this award is given for the most attractive, consistently appealing breakfast bar.

 

v       1998 – Holiday Inn Express – Spokane Valley, WA