Strategic hotel deal evaluation, underwriting and buyer transaction support services.View All
Active oversight and strategies proven to enhance operational performance and align property management with ownership investment objectives.View All
Capital Planning & Investment
Strategic planning and oversight of renovation and major capital projects, balancing brand requirements and market realities with ownership investment objectives.View All
Connecting developer investment objectives with market realities, through expert guidance on facility programming, market positioning, brand/operator selection, and more.View All
Optimizing hotel investment returns through strategic exit planning and seller transaction services.View All
Owner Support Services
Enabling owners to anticipate and tackle complex issues surrounding hotel operations, management, brand and investment strategy.View All
Customized accounting, cash planning, and compliance services covering a wide-variety of hotel ownership entity structures.View All
Strategic hotel deal evaluation, underwriting and buyer transaction support services.
Projected hotel investment returns are only as good as their underwriting. For over two decades, hotel investors have relied on CHMW to provide guidance and recommendations from preliminary deal review through to acquisition. We have evaluated transactions totaling more than $16 billion, providing insight through an ownership lens and strategic vision to uncover investment upside, identify risks and outline a strategy that serves to maximize value.
Active oversight and strategies proven to enhance operational performance and align property management with ownership investment objectives.
Because hotels are an operating business, asset management for hotels is far more complex than for any other real estate asset class. The role of a hotel asset manager is multifaceted and, to be optimally effective, an asset manager’s knowledge and experience must encompass a variety of disciplines including: hotel and restaurant operations, sales and marketing, real estate finance, accounting, project management, contract law, technology, spa operations, capital expenditure (CapEx) planning, and building systems management. For resorts, the level of required expertise is even greater and will often encompass for-sale real estate (whole ownership and fractional), timeshare/interval ownership, golf, tennis, ski operations, marinas, and a host of ancillary amenities.
The CHMW team comprises roughly 700 years of combined hands-on experience in all facets of the hospitality industry, and as a company, has been in existence for 20 years. The depth of our resources, both in-house and through affiliated subject-matter specialists, is unparalleled for a company of our size anywhere in the world.
CHMW approaches asset management with a focus on three primary objectives.
- Owner’s financial objectives (e.g., increasing asset value, maximizing cash flow, capital planning, exit timing/strategy)
- Owner’s indirect objectives (e.g., sale of related residential real estate, place making for associated real estate (e.g., retail centers, master-planned communities), pride of ownership)
- Risk mitigation (e.g., asset protection, financial controls)
CHMW achieves these objectives through a six-step approach: Strategy, Goal Setting, Oversight, Kaizen (constant improvement), Remediation, and Foresight.
A strategic plan is the roadmap by which owner investment objectives are achieved. This strategic vision must be incorporated into every aspect of asset management to ensure that all decisions made with respect to an asset or portfolio serve to achieve owner’s objectives. Strategy deals with macro factors (e.g., industry and consumer trends, the economy, the competitive landscape), individual property factors (e.g., investment objectives, market positioning/repositioning, life cycle and CapEx issues, brand/management, additions, changes of use), and marketing factors (budgeting and resource allocation, deployment, segmentation, pricing, etc.).
Goal setting applies mainly to short and intermediate-term business planning. While there are multiple components and processes involved, the key ones are:
- The annual Business Plan consisting of the marketing plan, the operating budget, and the one-year capital budget.
- Periodic forecasting/reforecasting, as applicable (as operating businesses, hotels must adjust to changing business conditions and do so in a timely manner).
- Long term capital planning (typically three- or five-year cycles).
Oversight includes more than the routine monitoring of a hotel’s operational performance and reporting variances to ownership. A key point of differentiation amongst asset managers is how information is used and applied to attain the underlying owner objectives. For instance, identifying that spa sales fell short of budgeted performance in a month is important, but identifying why and what can be done about it (besides berating the operator) is what separates the wheat from the chaff among asset managers. A good asset manager is also aware of trends and situations that could affect the property and works with the management team to develop corrective measures.
Oversight also includes monitoring the physical condition of a property and ensuring capital budgets are in balance and sufficient reserve funds are in place to cover required repairs. Simply ensuring that proposed expenditures in any given year do not exceed budget does not accomplish much in the way of enhancing asset value; in fact it could potentially have a negative impact. Re-prioritizing fund allocation to address those projects that yield the greatest financial return and minimize ownership’s risk exposure is the role of asset management.
We would describe our approach to operator oversight as collaborative. That is, we do not treat the operator an as an opposing team that must be beaten into submission. Rather, we take the approach that we are on the same team where we act more as a coach in furtherance of their success (hence, owner’s success). We have found that operators almost always reach greater levels of success from our approach which is demanding, rational, and fair. Of course, we do have a hammer in our tool box and are prepared to use it when other methods fail.
The Japanese principle of kaizen (constant improvement) is fundamental to how we approach our own business and it carries over into our asset management approach. That is, we are constantly looking for opportunities to improve, even when it appears that everything is going according to, or above, plan. Using our deep in-house experience and our cadre of specialized subject-matter experts, CHMW is constantly looking for opportunities to refine and fine tune performance at our asset managed hotels.
By definition, remediation means fixing something. Even with good intentions and appropriate attention, things happen in and to complex operating businesses like hotels. With significant expertise and experience in every aspect of the hotel business, CHMW is fully capable of assessing problems that arise and implementing the necessary changes (whether through the operator, or directly). And we do so in a timely manner, thoroughly educating and conferring with an owner on changes in strategy.
Whereas remediation is a reactive process, foresight is proactive and encompasses four key things.
- A Good Radar: Market knowledge is essential. This pertains not only to supply and demand trends is a given market, but also macro-trend analysis (consumers, lodging industry, technology, etc.)
- Good Filters: In a world awash in information, it is important to know what is relevant and meaningful to an owner’s business.
- Good Business Instincts: This entails an ability to convert knowledge into action and is generally the result of a lot of practical experience (“grey hair”) and having traversed multiple investment cycles. We’ve made – or seen others make – these mistakes, so you don’t have make them.
Why Hotel Asset Management?
Hotel owners might reasonably ask why they need an asset manager for oversight if they have a management company running the hotel. Read More
We have tailored our hotel asset management approach to meet the needs of a wide range of ownership groups, including full asset oversight to high-level portfolio management. We are highly adaptable, and can scale our services to the level of hotel investment oversight that meets specific client needs.
Capital Planning & Investment
Strategic planning and oversight of renovation and major capital projects, balancing brand requirements and market realities with ownership investment objectives.
CHMW has represented owner interests during the planning and execution of capital plans for more than two decades and has been involved with some of the largest hotel renovation and re-development projects ever completed in the U.S. From property repositioning to routine capital planning, our services allow hotel owners to effectively plan and fund projects, balance brand requirements with ownership investment objectives, and preserve the long-term physical and financial value of their assets.
Connecting developer investment objectives with market realities, through expert guidance on facility programming, market positioning, brand/operator selection, and more.
CHMW is well established as a hotel development advisor with a proven track record taking hotel projects from inception to opening and continuing operations. Our services span the entire process, from initial project conception, to the detailed analysis and recommendations surrounding facility programming, market positioning, architect and design team engagement, operator and brand selection, contact negotiation and more. We can advise on all or select phases of the development process, for both new construction and major scale re-development/adaptive reuse.
What makes our team unique is our ability to connect developer investment objectives with operating realities. We understand what goes into an optimal program to ensure it meets the market and supports the investment. We also bring a perspective that bridges the architectural and design “vision” with what is financially feasible and optimal from an operational standpoint, including functionality and flow, materials, key elements to support market positioning and target pricing and more.
We anticipate issues, providing ownership with an opportunity to proactively weigh in and make informed decisions throughout the process, rather than react to issues identified too late in the process to address, or at least not without cost implications.
CHMW will customize a scope of work to meet the needs of each client, and can address all critical phases of the development process through the following:
Optimizing hotel investment returns through strategic exit planning and seller transaction services.
CHMW has advised many clients on the disposition of single-assets and multi-property portfolios. We help owners develop exit strategies that take advantage of market timing, while optimizing investment returns. We have represented hotel owners at every stage of the transaction process, from an evaluation of timing and returns, to executing the P&S and ensuring the highest value at exit. Related transaction services include:
Owner Support Services
Enabling owners to anticipate and tackle complex issues surrounding hotel operations, management, brand and investment strategy.
Whether tackling a complex challenge or simply providing a fresh perspective, CHMW offers a variety of services aimed at supporting owners on critical decisions and approvals, as well as identifying opportunities for operational and value enhancement. We have a proven system for quickly identifying issues and recommending sustainable strategies. Areas in which owners turn to us include:
Customized accounting, cash planning, and compliance services covering a wide-variety of hotel ownership entity structures.
CHMW’s accounting team can fulfill a variety of ownership-level accounting services related to acquiring, owning and selling hotels. The team has extensive experience in maintaining the books and records of hotel partnerships and corporations with varying levels of complexity and can provide ownership level U.S. GAAP-based accounting and financial reporting for a wide range of clients. We also have a proven track record in aggressively managing cash and working capital, escrow requirements and financial waterfalls to balance management needs and available cash to owners. Other services available include fixed asset accounting support, cash flow forecasting, compliance (audit, tax and lender), and development of proration language and calculations related to hotel transactions.
Our accounting team is led by the company’s CFO, Celeste Ledoux, a CPA with over 20 years of public accounting and hospitality financial experience. Areas of available support include: