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Ace Parking Extends Its Empire Across the States

ACE PARKING MANAGEMENT INC.

CEO: John Baumgardner.

Revenue: $369 million in 2010.

No. of local employees: 1,671.

Investors: Family-owned.

Headquarters: Downtown San Diego.

Year founded: 1950.

Company description: Privately held Ace Parking Management Inc. provides parking services to garage and parking lot owners with a focus on commercial buildings and hotels.

San Diego’s Ace Parking Management Inc., ranked among the largest privately owned parking management companies in the U.S., is evidently not content to remain parked in neutral.

The family-owned firm has shifted into high gear with a number of new deals in recent weeks.

In mid-March, Keith Jones, managing principal and third-generation owner, said his closely held business had been selected as the operator of all city-owned parking facilities for Phoenix and separately, said he had expanded operations to Omaha, Neb.

The Arizona deal makes Ace the largest parking management operator in that desert metropolis with 15 parking sites and 350 local workers, while the Nebraska deal extended its reach of Ace into seven states.

But not for long. On April 12, Jones said Ace began parking operations at the Sofitel hotel in Washington, D.C., and the Renaissance & Residence Inn Capital View in Arlington, Va., bringing the total number of states served to eight, plus the District of Columbia.

For Phoenix’s city government, Ace Parking will operate three parking garages and five surface lots, including parking operations for the police department. The company began operations there a decade ago with a contract with the commercial airport.

In Omaha, Ace will manage parking for the newly renovated City Center Garage and DoubleTree Hotel in the downtown area, the two of which are served by an 800-car parking structure.

Wherewithal to Compete Nationally

“We’re part of the next generation, and we’re expanding,” said Jones. “We’re looking to set our own footprint.

“We have an executive team that is better than it has ever been before, and we’re now smart enough and strong enough to go off and compete nationally,” he added.

Office building owner and operator Orange County-based The Irvine Co. and Marriott International Inc., based in suburban Washington, are among the firm’s high-profile clients.

Founded in 1950, Jones said the company has annual revenues approaching $370 million.

Despite the troublesome economy and raising gas prices, Jones said his business has expanded operations by 30 percent during the last five years, and now manages more than 450 U.S. locations serving 200,000 motorists a day.

To be sure, Jones said his family has experienced times good and bad over the past six decades (business declined 25 percent in San Diego alone during the 18-month period prior to December 2009), but has been able to get back into a growth mode with expansion efforts, particularly with hotels.

“I wouldn’t say that the market has recovered,” he said, but noted that the declining patterns in core business areas “has stopped dropping off and starting to pick back up.

“It’s only a few percentage points here and there, so it definitely hasn’t gotten worse.”

Large Slice of Local Market

Jones said Ace controls about 70 percent of the San Diego parking market.

Other states where it manages parking lots include Arizona, Louisiana, Oregon, Texas and Washington.

The company provides management services to more than 50 hotels west of the Mississippi River.

Ray Warren, general manager of the San Diego Marriott Marquis & Marina hotel, noted that Ace has been handling its parking chores for the past 15 years, work that includes serving as the doormen at the entrance to the hotel.

“They’re phenomenal partners of ours,” said Warren. “When we went to find someone to handle our parking, we wanted someone who could provide the same quality of service that our employees provide. Ace has done that, and more.”

He noted that Ace provides audited accounting of the parking revenues it collects, and recommends ways to boost that revenue. That service helps to set the business apart from competitors.

Hospitality Sector Ripe for Growth

Jones said the hospitality sector is where he expects to grow the business during the next few years.

“That’s one of the largest divisions of our company.”

“It’s a niche business and we know what we’re doing,” said Jones. “We can provide a better value and a better business than our competitors.”

Jones said each generation has found ways to expand the company.

He said Evan Jones, his grandfather, started and based his business on personal relationships, and didn’t think he could parlay the approach beyond San Diego.

Nevertheless, Jones said Scott Jones, his father, recognized that he could maintain close relationships with clients if he expanded in California, and still be successful. And he did go beyond San Diego.

Keith Jones thinks he can make a go of it nationwide.

“We’re private, and still considered a small company,” said Keith. Clients can work directly with top managers to resolve issues as they arise, he said.

“We’re big enough to handle any type of operation, but we’re small enough to be nimble,” he said.

Tom York is a contributing editor for the San Diego Business Journal.

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