What Makes Us Different From Other Management Companies?



Contract Terms

Capital Hospitality Management doesn't ask for your trust, we earn your trust. While our competition requires a contract of 10 to 15 years, we believe that our 3 year contract establishes the comfortable and trusting relationship that we prize.

In fact, we are so committed to earning your trust that Capital Hospitality Management allows Hotel Owners to "test drive" our services for 3 months without a contract! CHM is the only company in the industry with the confidence to subject its strategies to such immediate testing. If we're not the best management company for you, we would prefer that you look elsewhere, GUARANTEED!

Other Management Companies: 10 to 15 Years

Capital Hospitality Management: 3 Years (optional extended terms to be determined by Property Owner)


Renewal Terms

Other Management Companies: The terms of the sequential contract are 5 years, to be renewed 90 days prior to the expiration of the original contract.

Capital Hospitality Management: We'll leave that entirely up to you!


Termination

While we hope for a longstanding relationship with all of our clients, we believe strongly that you should feel free to walk away if we are not meeting your utmost expectations. Our penalty-free termination policies build trust while encouraging our managers to give their all in each stage of our association.


Termination For Convenience

Other Management Companies:

  • 1) 90 days notice
  • 2) Termination fee determined by the number of years remaining in the contract

Capital Hospitality Management: For your ease and convenience, we require 90 days notice only.


Early Termination Due To Sale

Other Management Companies: In addition to 90 days notice, the owner must provide the name of the buyer and pay a liquidated damage fee.

Capital Hospitality Management: If it becomes profitable for you to sell your property, we simply require 90 days notice.


Termination Due To Failure Of Performance Tests

Other Management Companies: A performance test will be conducted after the first fiscal year. If the gross operating profit is less than 75% of that of similar hotels in same area and market, the management company will then have two years to cure the issue. If, after two years, there is still no cure, the property owner may break his/her contract with 45 days notice.

Capital Hospitality Management: We are in no doubt you will be completely satisfied by the results you see with Capital Hospitality; but if you are not, you should not be obligated to continue in your contract. We allow for penalty-free release, under all circumstances, with 90 days notice.


Contract, Equipment, Lease, and Other Agreements

Capital Hospitality Management: Like our competitors, we exist to handle your business worries so that you don't have to. You can truly rest easy in our experienced hands. You can also rest in the knowledge that you will not be left out of the important issues facing your business. We will require your permission before implementing any contract totaling more than $25,000 or lasting longer than 1 full year.


Base Management Fee

Other Management Companies: The management fee is 2-4% of the gross monthly revenue.

Capital Hospitality Management: Our all-inclusive management fee is 3% of the gross monthly revenue.


Incentive Management Fee

Other Management Companies: A yearly incentive fee of 10-15% of the difference between the gross operating profits from current to previous fiscal years will be paid to management.

Capital Hospitality Management: A yearly incentive fee of 10% of the difference between the gross operating profits from current to previous fiscal years will be paid to management.


Furniture, Fixture and Equipment

Other Management Companies: The management fee from your interior design project is 3-5% of the total cost of implementation.

Capital Hospitality Management: Your base management fee is all-inclusive. Additional cost is only applicable if extra labor if needed.


Sales and Marketing

Other Management Companies: The management company shall be paid 1-4% of the Gross Room Revenue from all sales credited to management efforts.

Capital Hospitality Management: Marketing fees are not applicable as our persistent efforts are compensated by our all-inclusive 3% base management fee.


Additional Expenses and Cost

Other Management Companies: Car, gas, travel, phone and other incidentals are paid for out of an operating account.

Capital Hospitality Management: Additional expenses and accounts are not applicable as business related expenditures are all covered by our 3% base management fee.