Beukema eyes opportunity in third-party hotel management

Peter Beukema saw an opportunity during the pandemic to start a new role in the hospitality industry, stepping down as CEO of suburban hostels at the end of last year. He is still one of the owners of the family business, but he started his own third-party hotel management company called 6:00 p.m. Hospitality Partners LLC.

“There’s a huge opportunity for third-party management done right, and that’s really what we’re looking to do is provide a level of care that’s just not really seen or experienced in this space” , Beukema said.

Beukema’s parents are retired and not looking to expand the family business, offering Beukema the opportunity to exit the business to enter into development deals, he said.

The new company takes on the role of the owner’s representative in new hotel developments by seeing a project open and then becoming the management company for the property, Beukema said. Beukema owns the hotel developments, but it is not part of 6PM Hospitality, he added.

6PM is overseeing the demolition of the Lakeshore Motel in Manistee to make way for a 102-room Hampton Inn and Suites. Demolition began this month and the new hotel is expected to open in May 2023.

“We saw an opportunity with an extremely unique property to create something unique and attract Hilton Honors members to Manistee,” Beukema said.

Thanks to 6PM Hospitality, Beukema also works with Little River Holdings LLCa company 100% owned by Little River Band of Ottawa Indians, to put a hotel in downtown Manistee. Additionally, 6PM Hospitality works with Battle Creek Unlimited on the redevelopment of the McCamly Plaza Hotel in downtown Battle Creek. The company is among four other projects that are not ready to be announced, Beukema said.

“We’ve had conversations in Illinois and even up groups in the Caribbean,” Beukema said. “Our nets are wide and we are ready to work with anyone like-minded with our mission.”

Beukema also notices the upward trend in room rates, which is reflected in national data. To offset high construction costs, hotels are raising room rates as long as guests allow, he said.

“Our industry’s margins are already pretty thin, and with the hit we’ve taken during COVID, we can’t afford those costs,” Beukema said. “I still have my glass half full and we are moving in the right direction. We are a very strong industry.

Nicholas E. Crittendon