BALTIMORE, MD—Capital Hotel Management was awarded a second contract extension for the asset management of the 757-room Hilton Baltimore Convention Center Hotel.
CHM was originally retained in 2006 by the Baltimore Development Corp. following a competitive bid process.
“We have worked closely with the hotel’s operators to optimize revenues while minimizing overhead during a very difficult period that has been impacted by a slow economic recovery, a sluggish meeting market and the effects of increased rooms supply,” stated Michael Dovie, EVP/head of asset management for CHM. “This three-year contract extension will mark over a decade of service to the City of Baltimore and we look forward to building upon that foundation.”
“Asset management is particularly critical for convention center headquarter hotels,” he added. “They are complex, costly assets that require a careful balance between the requirements of the brand, operator and the City. Our role is to oversee the City’s best interests in all aspects of the hotel’s investment and operation.”
Located in downtown Baltimore’s Inner Harbor, the AAA Four Diamond-hotel is directly connected to the Baltimore Convention Center and near area attractions such as Oriole Park at Camden Yards, M&T Stadium and the University of Maryland Medical Center. The hotel features 60,000 sq. ft. of flexible function space, including two ballrooms with pre-function space overlooking Oriole Park, the Diamond Tavern Restaurant, lobby bar, heated indoor pool, sauna and fitness center.
“Asset management continues to evolve throughout this economic cycle,” stated CHM President Chad Crandell. “Many city-owned convention center hotels are re-examining the role and expertise that asset management brings to the asset. We are seeing an increase in the number of asset-management contracts being put out to bid by cities. They are seeking asset-management firms that can provide the full range of services to optimize their taxpayers’ investment in these properties.”
Crandell added institutional investors also are re-examining their approach to asset management. “Many institutional investors have acquired a number of assets well into the hundreds of millions of dollars over the past few years and have built portfolios that require an in-house asset manager; however, in a number of cases, their portfolios have grown so large that it has become difficult to give full attention to each asset.
“Initially, many of these investment groups responded by hiring specialists to address specific aspects of their portfolios,” he pointed out. “We now see a trend of retaining larger, full-service, asset-management firms to help with the overall portfolio, as well as provide the in-depth expertise required to effectively implement the strategies developed to create asset value,” he stated.
In addition to the Hilton Baltimore, CHM has provided asset-management services for more than 100 hotels over the past decade, ranging from convention center hotels to focused-service assets located in primary and secondary cities across the United States.