A landmark in the market since 1973, the Marriott Los Angeles Airport was acquired as part of a 6-hotel portfolio in late 2000. The hotel offers more than 50,000 square feet of meeting space, including the largest ballroom in the Airport market, as well as large recreation area including a resort pool, unmatched in the market.

Purchased just prior to the events of 9/11, wars and economic recession, the hotel was faced with an extremely challenging operating climate, particularly in light of its airport location. Despite the down market, CHM was successful in monitoring performance and minimizing negative impact to NOI. CHM worked closely with management to develop and implement creative cost containment initiatives to offset the continuing revenue declines. Critical to the operating strategy during this period was holding fast on room rates and not succumbing to the dramatic rate discounting occurring amongst the competition. Knowledgeable that this strategy does not often work, we carefully evaluated impact, tested rates and monitored the market, ultimately concluding that deep discounting would not move the occupancy needle sufficiently to offset losses in rate. Maintaining the integrity of the rate structure also proved to position the hotel for a quicker recovery as the market started to improve.

Also under CHM's asset management, we took advantage of lower periods of occupancy to move ahead with a $12 million renovation, to prepare the property to be competitively positioned to take advantage of the market recovery. The renovation was aimed at improving overall product quality, as well as reprogramming underutilized space to attract new markets and further solidify the hotel's position as a rate and RevPAR leader. The property was sold in June 2005 as part of a 4-property sale, with an allocated value 35% higher than the initial acquisition price.