Hyatt Regency McCormick Place
Chicago, IL
800 Rooms
800 Rooms
- 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
- Re-negotiated management agreement resulting in highly favorable terms for the Authority, well below average market fees
- Exceeded opening year NOI projections by $1M
CHM Advisory Services in the Public Eye
The 800-room Hyatt Regency McCormick Place opened June 1998, as an integral component of the McCormick Place Convention Center (MPCC) planned expansion. The expanded complex offers 5.9 million square feet of state-of-the-art exhibition and meeting space, and represents the largest trade and convention complex operating in North America. Metropolitan Pier and Exposition Authority (MPEA) owns the Hyatt Regency and is the local government agency responsible for the McCormick Place Convention Center (MPCC) and all related aspects of promoting and supporting meeting and convention activity within Cook County, Illinois.
CHM was retained by MPEA in 1998, just prior to the Hyatt's opening. In its first year, under CHM's asset management supervision, the Hotel exceeded proforma NOI projections by approximately $1 million. In 2000, CHM renegotiated the Management Agreement, which resulted in improved terms, including fees below industry average. Shortly thereafter, we evaluated the addition of a dedicated conference center to improve occupancy and minimize the fluctuations in staffing and labor during MPCC "dark" days which was constructed in 2001. We oversaw its development, coordinated pre-opening efforts and assisted in establishing booking policies for the new space. In 2002, the MPCC future booking trends reflected a significant downturn in citywide/convention business; we worked with the operator in developing cost containment initiatives and revisited the sales strategy to focus on alternative sources of group business. This plan included selling to larger groups, using MPCC unoccupied space and reinventing the hotel as a "training" facility.
CHM served as the asset manager and Authority's advisor from 1998 to 2006. In light of other significant real estate holdings by MPEA, the decision was made to develop and establish an in-house asset management function to oversee all of the Authority's assets. CHM assisted in facilitating MPEA's efforts to bring this function in house and in late 2006, the hotel was transitioned to staff within the Authority.
CHM was retained by MPEA in 1998, just prior to the Hyatt's opening. In its first year, under CHM's asset management supervision, the Hotel exceeded proforma NOI projections by approximately $1 million. In 2000, CHM renegotiated the Management Agreement, which resulted in improved terms, including fees below industry average. Shortly thereafter, we evaluated the addition of a dedicated conference center to improve occupancy and minimize the fluctuations in staffing and labor during MPCC "dark" days which was constructed in 2001. We oversaw its development, coordinated pre-opening efforts and assisted in establishing booking policies for the new space. In 2002, the MPCC future booking trends reflected a significant downturn in citywide/convention business; we worked with the operator in developing cost containment initiatives and revisited the sales strategy to focus on alternative sources of group business. This plan included selling to larger groups, using MPCC unoccupied space and reinventing the hotel as a "training" facility.
CHM served as the asset manager and Authority's advisor from 1998 to 2006. In light of other significant real estate holdings by MPEA, the decision was made to develop and establish an in-house asset management function to oversee all of the Authority's assets. CHM assisted in facilitating MPEA's efforts to bring this function in house and in late 2006, the hotel was transitioned to staff within the Authority.
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