News for the Hospitality Executive
|BEVERLY, Mass - Capital Hotel Management (“CHM”), a leading
hotel investment and asset management firm, today announced that it has
been engaged as a hotel investment advisor to RexCorp Realty LLC (“RexCorp”),
to asset manage the newly acquired Marriott Long Island Hotel & Conference
Center in Uniondale, New York.
RexCorp is a Long Island-based, fully integrated, private real estate company, with approximately US$3 billion in assets under management, including approximately 11 million square feet in 70 properties, and is one of the largest office landlords, in the New York Tri-State area.
On January 25, 2007, RexCorp entered into a joint venture with Marathon Real Estate, a global real estate investment firm that specializes in opportunity-based asset-repositioning and redevelopment, and acquired the Marriott Long Island, as part of a larger real estate portfolio and redevelopment opportunity valued at $2 billion.
“We understand the tremendous opportunity in this asset and want to be sure we surround ourselves with a team of sector-specific experts to see it through to fruition. CHM represents an unparalleled team of lodging specialists, possessing the tools and experience in enhancing the hotel value. CHM demonstrates an innovative and effective approach to managing hotel projects, and an ability to react quickly and implement a program aimed at deriving maximum value and investment returns,” said Scott Rechler, CEO of RexCorp.
Marriott Hotel Long Island & Conference Center is situated adjacent
to the Nassau Coliseum and represents one of the largest properties and
major group facilities available in the county. The hotel is slated to
undergo a $21 million renovation, scheduled for completion by June 2008,
which will enhance the 618 guestrooms, public areas and 27,000+/- square
feet of state-of-the-art conference and function space. The Marriott Long
Island offers multiple dining and entertainment outlets, an on-site spa
and salon, fitness
“Partnering with RexCorp on this project represents a tremendous opportunity for CHM to do what we do best – create value and optimize investment returns. Our success to date lies in our innovative approach and an ability to collaborate with the operating team to identify opportunities and create a program for implementing strategies that maximize performance, enhance value and optimize owner investment returns. This hotel possesses the fundamentals for successful repositioning – a good product, prime location and an ownership commitment to uncovering value through innovative strategies. With the Marriott brand and operating team, we foresee tremendous opportunities in the immediate future,” said Ken Wilson, Chief Executive Officer of CHM.
“What makes this opportunity especially exciting is the chance to work with RexCorp. RexCorp, and its management team, has a stellar reputation in the Real Estate community and we look forward to working together,” Mr. Wilson concluded.
CHM has enjoyed a successful track record since inception in 2000, and steady, controlled growth, has afforded the company an extremely loyal clientele base, which presently entrusts CHM with hotel assets representing approximately 13,500 guestrooms. Hotels currently under asset management are collectively valued at over $5.0 billion, marking nearly 300% growth in asset value under CHM’s control over the last five years.
Chad Crandell, President of CHM comments, “Our strategy has been to grow our business with a select base of clients, representing ownership interests in high-profile properties in major destination markets with tremendous operational and/or (re)development potential. Hotel ownership in today’s marketplace requires a strategic and entrepreneurial approach to truly maximize investment returns.”
Capital Hotel Management, LLC (CHM)
|Also See:||Across Long Island, New York, the Lodging Industry Began to Stabilize in 2006 as it Finally Absorbed the 20 Hotels Built Since 1999 / February 2007|
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