CHM Asset Management - part of
Detroit's Downtown Renewal
Detroit Marriott Renaissance Center
Detroit, Michigan
1,297 rooms


Services Provided
  • Acting as owner's representative providing asset advisory services with active and daily interfacing.

  • Undertook the management company selection to replace Starwood (Westin), successfully negotiating a favorable management agreement with Marriott, which included equity participation.

  • Oversaw a $100+ million renovation and participated in the redevelopment programming and monitored operations during the transition and renovation phases.

  • Oversaw all pre-opening efforts with re-introducing the renovated Detroit Marriott Renaissance Center including developing operating strategies and market positioning.

  • Established financial goals, annual budgets and capital plans to meet Owner's financial objectives.

  • Developed strong relationship with Owner (GM) and Building Manager (Hines). Coordinate relationship among Owner, Building Manager, and Hotel Operator (Marriott).



Key Results
  • Renovation complete and Hotel is fully operational under a management agreement with very favorable terms for the Owner.

  • Turned the property from a negative NOI in 2000 to an estimated $5 million for 2002. Expectations are to achieve a $15 million NOI within 2 years.

  • Facilitated a working relationship between the Detroit Marriott Renaissance Center and the nearby Courtyard by Marriott (GM-owned) to minimize marketing and operating costs.


Commentary

CHM provides asset management services to the Detroit Marriott, which serves as host hotel to General Motor's global headquarters. This 1,297-room, 50-story property anchors the 5.5 million square foot Renaissance Center, a mixed-use office and retail development situated in the heart of Detroit's downtown. With more than 120,000 square feet of meeting space, the Detroit Marriott serves as the principal hotel for the Cobo Center, among the largest convention/exhibition complex in the United States. Recently, a $100+ million renovation project was completed at the Detroit Marriott, one of the largest renovation projects in the world, which included a complete guest room rehab and refurbishment of the hotel's meeting space, lobby area and food and beverage outlets. During this renovation, the Hotel remained open; CHM, along with Hotel management, coordinated the opening and closing of areas in order to maintain continuity, retain high quality employees, and maximize cash flow while balancing guest service.
Earlier, General Motors purchased a hotel across from the Renaissance Center. Under the direction of CHM, this property underwent a $12 million renovation and was converted to a Courtyard by Marriott. In addition to outperforming all expectations, CHM has been instrumental in ensuring that both the Courtyard and the Marriott Renaissance Center coordinate all activities to minimize expenses and maximize Owners returns.