BALTIMORE & BEVERLY, Mass.--(EON: Enhanced Online News)--Capital Hotel Management (CHM), a leading hotel asset management and investment advisory firm, today announced that it has been awarded a second contract extension for the asset management of the 757-room Hilton Baltimore Convention Center Hotel. CHM was originally retained in 2006 by the Baltimore Development Corporation, following a competitive bid process.
“We now see a trend of retaining larger, full-service asset management firms to help with the overall portfolio, as well as provide the in-depth expertise required to effectively implement the strategies developed to create asset value.”
“We have worked closely with the hotel’s operators to optimize revenues while minimizing overhead during a very difficult period that has been impacted by a slow economic recovery, a sluggish meeting market and the effects of increased rooms supply,” noted Michael Doyle, executive vice president and head of asset management for CHM. “This three-year contract extension will mark over a decade of service to the City of Baltimore, and we look forward to building upon that foundation.”
“Asset management is particularly critical for convention center headquarter hotels,” he said. “They are complex, costly assets that require a careful balance between the requirements of the brand, operator and the City. Our role is to oversee the City’s best interests in all aspects of the hotel’s investment and operation.”
Located in downtown Baltimore’s Inner Harbor, the AAA Four Diamond-hotel is directly connected to the Baltimore Convention Center and nearby such area attractions as Oriole Park at Camden Yards, M&T Stadium, and the University of Maryland Medical Center. The hotel features 60,000 sq. ft. of flexible function space, including two ballrooms with spectacular pre-function space overlooking Oriole Park, the Diamond Tavern Restaurant, lobby bar, heated indoor pool, sauna and fitness center.
“Asset management continues to evolve throughout this economic cycle,” said Chad Crandell, president of CHM. “Many city-owned convention center hotels are re-examining the role and expertise that asset management brings to the asset. We are seeing an increase in the number of asset management contracts being put out to bid by cities. They are seeking asset management firms that can provide the full-range of services to optimize their taxpayers’ investment in these properties.”
Crandell noted that institutional investors also are re-examining their approach to asset management. “Many institutional investors have acquired a number of assets well into the hundreds of millions of dollars over the past few years and have built portfolios that require an in-house asset manager,” he noted. “However, in a number of cases, their portfolios have grown so large that it has become difficult to give full attention to each asset.
“Initially, many of these investment groups responded by hiring specialists to address specific aspects of their portfolios,” he pointed out. “We now see a trend of retaining larger, full-service asset management firms to help with the overall portfolio, as well as provide the in-depth expertise required to effectively implement the strategies developed to create asset value.
“Portfolios are more diversified today and require asset management expertise in all hotel types, ranging from urban center, ‘big-box’ hotels to focused-service properties in secondary markets. Full-service asset management firms are particularly skilled to handle this variety of hotel types, as well as offer services to provide investors with a level of expertise in areas such as acquisition due diligence, financial performance assessment, operator selection and full-asset oversight, among others.
“We expect to see an increase in demand for asset management services, especially during this phase of the cycle, when investors need to balance the needs of immediate returns with their longer-term exit strategies.”
In addition to the Hilton Baltimore, CHM has provided asset management services for more than 100 hotels over the past decade, ranging from convention center hotels to focused-service assets located in primary and secondary cities across the U.S.
Capital Hotel Management (CHM) is a dedicated hotel asset management company, offering a wide-range of services to hotel owners, investors, lenders and public agencies. CHM has actively asset managed more than 100 hotels over the past decade including urban landmark properties, high-profile destination resorts, convention headquarter hotels and focus-service asserts. Today, CHM oversees a portfolio of approximately 30 hotels, aggregating more than 16,000 rooms. Available services include full-asset management, as well as advisory services such as acquisition due diligence, management selection, contract negotiation, financial and operational assessments, capital planning and renovation oversight, among others. For more information on CHM, visit their website at www.chmhotel.com or contact them at (978) 522-7000.