Scarlett Hotel Group is focused on hotel management, acquisitions, and development. Owned by Andrew Scarlett, Rob Sadoff, and Zio Pekovic, Scarlett Hotel Group acquired its first hotel property in Clearwater, Florida in June of 2016. Coming from a background of larger hospitality organizations, the group saw an opportunity to flourish within the industry by taking a hands-on, entrepreneurial approach. The team now acquires, develops, and manages quality hospitality assets—particularly Marriott, Hilton, and Hyatt Brands—with 155 employees across all locations.

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 Challenge

Partnering with LBMC Employment Partners in 2017, Scarlett Hotel Group had 34 employees, steadily growing to its current workforce of 155. The group sought HR services to offer its managers benefits that were competitive with those of larger organizations. In addition to better benefits, the group knew it would be better served by spending time at the properties with their teams, instead of inside an office overseeing a payroll and HR department.

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 Results

LBMC Employment Partners increased the scalability of Scarlett Hotel Group’s workforce, supporting its consistent growth from 34 employees in 2017 to 155 in 2020.

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.”

Scarlett Hotel Group regularly acquires new hotel properties, which calls for LBMC Employment Partners to transition new employees to its PEO accurately and efficiently—currently including a total of four properties and the group’s corporate team.

With six Scarlett Hotel Group clients in total, including properties that only require HR services, LBMC Employment Partners supports the group as it continues to acquire hotel properties.

As it grows, Scarlett Hotel Group leverages a competitive benefits package to attract qualified, talented managers to join its team, as well as increase the retention rate of its current managers.

Testimonial Icon
LBMC has been a key element in helping us to maintain our entrepreneurial approach to owning and managing hotels, while offering the same services to our family (team) members that a larger institutional owner and operator would.
Zio Pekovic, Principal & Co-Founder