A historic property located in the heart of San Francisco, the Palace Hotel represents one of eight properties included in a portfolio of assets owned in partnership with an international hotel ownership company since December 2004. This property is rich in history, operates in a prime coastal market with high barriers to entry and physically boasts some of the world’s most beautiful public and dining spaces – truly a trophy asset. CHM serves as part of the ownership’s investment advisory and asset management team, specifically focused on developing and executing initiatives designed to enhance value, taking advantage of opportunities to improve operational performance, as well as considering various re/development options. CHM, in tandem with Kyo-ya Hotels operating team identified available FAR and conducted extensive market research to assess demand for a variety of residential product development on site, including hotel residence whole-ownership and fractional units. An operational assessment performed at the onset of the assignment yielded significant opportunities for improving profitability. Based on these findings, a strategic plan has been developed outlining a strategy for implementing the various initiatives identified.