2010 – Present
The Cleveland Marriott was challenged in its post-recession recovery. Occupancy was at an all-time low and ADR had been severely impacted. This, coupled with additions to the competitive supply and an aging product quality, was taking its toll on performance. CHMW assumed asset management of the 400-room Cleveland Marriott Downtown at Key Center in June 2010 and immediately developed a strategic plan for improving performance and enhancing asset value.
Identified the optimal segmentation and revised target mix of business (increased group rooms/revenue target) to reflect changes in local market demand.
Operational Asset Management
- Analyzed Special Corporate account production and ADR to maximize market share, including negotiating two-year agreements with select corporate accounts.
- Ensured Capital Plan had sufficient funds for LED lighting initiative to reduce electrical consumption/expenses.
Capital Planning & Oversight
Between the end of 2010 (CHMW takeover) and 2013 we achieved the following improvement to the financial performance of the hotel:
- Increased RevPAR by 23%.
- Increased Food and Beverage revenue by 21%.
- Increased GOP margin by 7 percentage points.
- Increased Adjusted NOI by $2.5M, or 138%.
- Original capital plan was programmed to be completed over several years but CHMW developed a funding strategy that would allow for the renovation to take place in one year.
- Negotiated with Marriott an amendment to management agreement to allow for a higher reserve percentage for one year to accrue necessary capital to fund the renovation to mitigate an Ownership capital call.
- Developed and executed a Capital Plan that allowed for a $4.0M renovation in 2014 to better position the hotel in light of new competition.