By : Subuk Hasnain
Tue, 11/26/2013 - 3:27pm
The Metropolitan Pier and Exposition Authority Board awarded on Tuesday a five-year, $1.36 million contract to Capital Hotel Management LLC for asset management consulting services related to the Hyatt Regency hotel near McCormick Place.
Beverly, Mass.-based Capital Hotel Management LLC, which touts itself as the largest independent hotel management and investment advisory company in the country, will review the hotel’s “operation and performance and report its finding and recommendation to the authority’s staff,” according to board documents.
Those duties were previously performed by HVS Asset Management.
Under the terms of the deal, Capital Hotel Management will also provide asset management consulting for McPier’s planned Marriott Marquis hotel. Scheduled to open in late 2016, the 1,200-room convention hotel will be located next to McCormick Place’s West Building.
McPier issued a request for proposals for the hotel asset management contract on Aug. 12. Out of 10 submissions, Capital Hotel Management LLC proposed the lowest monthly consultant fees. It will initially receive $17,500 per month for the consulting services. Payments to the consultants will jump to $25,500 per month once the Marriot hotel opens and Capital Hotel Management takes responsibility for asset management consulting at both hotels.
Also at Tuesday’s meeting, board members approved an amendment to the McPier’s contract with Hyatt Corporation for the management of the new tower that opened in June at McCormick Place’s Hyatt hotel.
The contract includes incentives designed to encourage Hyatt to maximize hotel revenue, according to the board’s agenda. Hyatt Corporation has been managing the McCormick Place hotel since 2009, and the terms of the newly-amended contract run through June 30, 2024.
This article was originally published on the Daily Whale website in 2013.