The transformation of Westlake-based TravelCenters of America Inc. is a focus for this Wall Street Journal article about truck stops, which the paper says “are rising as one of many brighter spots for business actual property in the course of the pandemic, together with better-known classes like warehouses and life-science buildings.”
From the article:
These companies have been capable of revenue whilst demand for motels, procuring malls, senior housing and different more-traditional property sorts has eroded severely.
Truck-stop actual property often is the most area of interest of all of the property sorts doing comparatively nicely now. The business began with mom-and-pop operators however consolidated over the previous half-century as scale grew to become more and more essential for chopping offers with the nation’s largest truck fleets. It’s now dominated by three firms, together with TravelCenters.
The Journal notes that shares of TravelCenters, the biggest publicly traded truck cease proprietor. “are up greater than 50% since reporting quarterly outcomes on Aug. 5, which confirmed an almost 80% enhance in internet revenue over the year-earlier interval.” It says CEO Jonathan Pertchik, who took the highest job late final yr, “was examined nearly instantly. When the pandemic hit, he accelerated a turnaround technique of chopping prices and rethinking components of the corporate.”
Among the many steps: TravelCenters shut down most of its 169 full-service eating places “as a result of they weren’t thought-about important. That meant furloughing four,000 employees, nevertheless it helped enhance the corporate’s internet revenue by 78.three% and earnings earlier than curiosity, taxes, depreciation and amortization by 24.2%.” About half of the full-service eating places have reopened, the paper experiences, however Pertchik “mentioned he’s planning huge adjustments to that enterprise, together with presumably bringing in outdoors firms to run it.”
The paper says Pertchik additionally has “overhauled TravelCenters’ buying procedures. Somewhat than shopping for gas in 30-million-gallon increments, the corporate’s new head of gas buying is now seeking to put in an order for 750 million gallons, attaining a bulk low cost.” And TravelCenters is saving cash “by competitively bidding its uniforms for its truck mechanics and saving electrical energy by changing to LED lighting.”
You may go here for a Crain’s article from Could about TravelCenters’ efforts to remake its enterprise.