What We Do
Profit Maximization Asset Appreciation
Coastal Hospitality Management Company is dedicated to helping hotel owners maximize the cash flow and overall value of their real estate assets. Starting with initial market and site analysis, we then build and execute a business plan & operating budget that effectively implements the necessary capital expenditures and strategic operational procedures to maximize revenue, control costs and ultimately produce above market ROI for our partners.
What We Offer
While we are flexible in structure, a typical property management agreement will include compensation that consists of a base fee between 3-5% of the gross revenue in addition to an incentive fee between 7-15% of the net income. This traditional pricing model aligns the interest of the owner and management company, with a main focus on maximizing net operating income.
Services we offer in a typical management agreement include:
- Establish an annual operating budget for owner approval that includes maintenance and capital improvement funds.
- Plug into CHG marketing systems, which include online travel agent management, social media, email blasts, cross-marketing and corporate sales programs, and individual website and online optimization.
- Full staffing services, from hiring, training, and managing staff members (employees and contractors) in all departments to handling payroll systems, taxes, workers compensations, payrolls, and other human resources responsibilities.
- Providing reports that can be created as often as requested by our clients, whether it be daily night audits, weekly maintenance updates, and monthly, quarterly and annual operating data.
- Asset management as well as value-adding program establishment and execution, which includes construction oversight, entitlements, and repositioning of properties.
Reservation Center
Coastal Hospitality Management Company has an in-house reservation center which provides each property with 24/7 phone and email expert sales coverage, as well as full service marketing, yield management, payment processing and off-site customer service, allowing the onsite staff to focus on in-house customer service and maintaining the property. Our reservation center is available a la carte or packaged in with full service management. The reservation center charges a base monthly fee of $30 per room, or 1.5% of gross revenue, whichever is higher.
Investment Services
Coastal Hospitality Management Company is often called during the due diligence and site selection stage, where they will help an investor decide whether a particular property has the potential ROI that they are looking for and will be an overall good investment. It is common for an investor to partner with us as they need an experienced operator to fulfill a lender requirement. Whether as a consultant, management contract or a co-ownership structure, we are entrepreneurial and flexible in our structure to fit the clients needs.
Partnership Structure
Our team is flexible and can participate in the following operational structures:
MANAGEMENT AGREEMENT
These multi year property management agreements allow the owner to put a professional operator in place to run their hospitality asset, while taking on the risk and reward of profit. The management company will handle all day-to-day operations and set goals for the property with the owner and execute a business plan to achieve those goals
TRIPLE NET (NNN) LEASE
For owners who want nothing to do with the operations or the risks that come with running a business, but would like to lease their hospitality out to a qualified operator, CHMCO can sign a NNN lease covering all costs, including property taxes, insurance and maintenance and provide the property owner with steady monthly lease payments for the term of the lease.
JOINT VENTURE
Investors who are in need of operational expertise as well as capital may want to consider a joint venture with CHMCO. Generally the investor will put up the majority of the capital and/or secure the bank financing, while the management company will provide some capital, guarantees on the debt and operational expertise.
Partnership Structure
Our team is flexible and can participate in the following operational structures:
MANAGEMENT AGREEMENT
Multiyear property management agreements allow the owner to put a professional operator in place to run their hospitality asset, while taking on the risks and rewards of gaining profit. We will handle all day-to-day operations and set goals for the property with the owner and execute a business plan to achieve them.
TRIPLE NET (NNN) LEASE
If you want nothing to do with the operations and other possibilities that come with running a business but would like to rent your hotel to a qualified operator, our company can sign an NNN lease covering all costs. It will include property taxes, insurance and maintenance, and provide you with monthly lease payments for its term.
JOINT VENTURE
Investors who are in need of operational expertise as well as capital may want to consider a joint venture with our company. The financier will provide the majority of the capital and secure the bank financing while we provide minimal funds, acquire loan guarantees, and offer operational expertise.
Why Choose Us
As hotel owners ourselves, we understand the importance of protecting and growing the overall value of the business and real estate by:
- Establishing an adequate and ongoing maintenance program
- Investing in proper capital improvements
- Maximizing net operating income
All sales and marketing processes for each hotel are performed from our corporate office. Trained marketing professionals are constantly handling our inventory, rates, and promotions to ensure that everything is going smoothly, we also monitor daily financial performances, conduct weekly audits, and submit monthly, quarterly, and annual reports to our clients and investors.
Our property managers go through thorough training in customer service, team management, and property maintenance. In addition to this, our regional manager visits each property weekly and spends time with each member of the staff to address potential issues and ensure quality performance.
Plug Into Our Systems!
Hotel owner? Contact us today to see how our systems can benefit your property