CHM in the public eye
Hyatt Hotel McCormick Place
Chicago, IL
800 rooms


Services Provided
  • Oversaw pre-opening efforts, including establishing operating strategies and market positioning

  • Developed first-year capital priority plan and budget

  • Re-negotiated hotel management contract

  • Oversaw development, established booking policies and managed pre-opening efforts for the conference center, added in 2001

  • Acting as owner's representative providing asset advisory services

  • Ensure compliance with public financing and Minority and Women Business Enterprise requirements


Key Results
  • Profitability exceeded pro-forma in first year

  • Management contract renegotiation resulted in highly favorable terms for the Authority, well below average market fees

  • Hotel achieved a 9 point RevPAR increase in fiscal year 2002 over prior year results

  • Fostered and continue to maintain a positive working relationship between the MPEA and the hotel management company



Commentary

The 800-room Hyatt Regency McCormick Place opened June 1998 and was developed as an integral component of the McCormick Place Convention Center (MPCC) expansion. Capital Hotel Management (CHM) was retained by Metropolitan Pier and Exposition Authority (MPEA) to oversee pre-opening efforts, ensure that the Hyatt Regency was competitively positioned, and assess the operating systems. Not only did the hotel provide a base of first-class hotel rooms necessary to support the expanded MPCC, it provided a solid profit stream to support the Authority, exceeding profit expectations even within its first year of operation. In 2000, CHM was instrumental in renegotiating the Management Agreement, which resulted in improved terms, including fees below the industry average for MPEA. In August 2001, a dedicated conference center was constructed, which added more than 50,000 square feet of conference and function space. CHM oversaw its development, coordinated pre-opening efforts and assisted in establishing booking policies for the new space.

Today, CHM continues to provide on-going asset management services for the City's convention headquarters hotel, overseeing operations and ensuring compliance with local business and financing requirements. The Hyatt Regency McCormick Place's success speaks for itself, as the property achieves operating margins that rank among the leaders in the Hyatt chain.