2010 – 2012
CHMW was retained by Boston University to asset manage the Hotel Commonwealth, an independent luxury hotel located in Kenmore Square, Boston, Massachusetts. The hotel occupied a prime location adjacent to Boston University, Fenway Park and the Longwood Medical area, but was struggling from a market positioning standpoint. CHMW was brought in to collaborate with the management team to identify opportunities for enhancing revenue, through repositioning and segmentation strategies, reducing expenses, and developing a balanced capital plan focused on maintaining competitive positioning and preserving the asset.
Developed comprehensive marketing strategy to redefine market positioning.
Operational Asset Management
- Significantly improved TripAdvisor ranking to the #1 position out of all hotels in Boston; Voted # 7 hotel in the United States on TripAdvisor’s Travelers’ Choice 2013.
- Re-aligned key management positions and replaced the Director of Revenue Management with a fully qualified senior executive and aligned reporting to the General Manager, focusing on revenue generation and yielding of total hotel.
- Increased total revenues by $2.1M from 2011 to 2012; increases in rooms revenue represented 85% of the overall increase.
- Improved transient ADR by 9% and total ADR by 10% by benchmarking to luxury competitors, adjusting pricing strategies, and clearly differentiating the product from the competitive set.
- Improved occupancy 7 percentage points, fueled by transient room night growth of 13%.
- Increased RevPAR by more than 18%, outpacing competitive set growth by more than 6%.
- Identified cost savings opportunities and effectively reduced total cost per occupied room by $12.
- Improved NOI by $1.9M in our last year of asset management alone, equating to a 90% flow through.
- Executed disposition strategy and sold hotel at a premium, representing the highest per key transaction in Boston in 2012.
Capital Planning & Oversight
Developed a 5-year capital plan to maintain value and determine when asset should be monetized.