2004 – Present
CHMW was selected following a public RFP process to represent the Denver Convention Center Authority and provide asset management services during the pre-opening and operational ramp-up of the $355 million headquarter hotel at the Colorado Convention Center. Over a decade later, CHMW continues to asset manage and enhance the value of the Hyatt Denver and was recently awarded a fourth contract extension, ensuring our continued involvement through 2016.
While not involved in the initial management contract negotiation, CHMW was successful in re-negotiating the agreement with Hyatt, resulting in improved terms for the Authority, including lower cost of management with higher performance thresholds.
Operational Asset Management
- Brought strategic focus to pre-sales pricing and yield management, generating an estimated $500,000 in incremental revenue. Reinforced concept of whole hotel yielding through revising the incentive plan to include goals for rooms, as well as and food and beverage contribution.
- Opened the hotel with more than $100 million of business on the books, marking the most successful pre-opening sales campaign achieved in the history of the Hyatt brand. First year actual NOI exceeded proforma profit and budget expectations by a significant margin.
- The hotel has consistently ranked #1 in ADR and #2 in RevPAR, exceeding the competitive set average RevPAR by approximately $20. Even amidst a major guestroom renovation in 2013, the hotel was able to maintain a RevPAR ranking of #2 out of 5.
- Total sales for 2014 are on pace to exceed prior year by more than $5M due to a combination of occupancy growth, achieved through a shift in business mix, and a $9 increase in ADR, resulting from a strong focus on selling to the renovated product offering. This, coupled with strategies for continually improving food and beverage capture and close oversight of cost performance is anticipated to translate into an 81% flow thru to GOP on incremental sales.
- Profit margins for this property are outstanding, especially for a unionized convention center hotel. GOP is running in excess of 40% and NOI is forecasted at 32.5% for year-end 2014.
Capital Planning & Oversight
Developed a 10-year capital budget and funding strategy, including negotiating with the city to reserve excess funds to cover future anticipated capital requirements. Advised on the execution of a $25 million renovation project completed in early 2014. Estimated savings to budget was $1.9 million, resulting from value engineering and careful project oversight.