The Creative Hotel Associates services package reflects its business philosophy of driving the property owner's return on investment and increasing asset value. CHA's services are focused on increasing the profits of each hotel by increasing revenues from operations and reducing the costs of those operations. Guest service and satisfaction, physical plant maintenance and employee development and retention are fundamental aspects of CHA's operating philosophy.

Rooms Operations

Creative Hotel Associates is organized on a regional basis, with the Regional Manager and the property General Manager setting and monitoring controls on payroll, maintenance, energy and other expenditures based on CHA's operational procedures manual and targeted performance standards. Room rates are set and modified using the latest in yield management programs. Technical assistance is provided as needed in daily operations.

Sales and Marketing Support

In the competitive environment of the hotel industry, CHA's marketing and sales focus stands out. CHA was founded by Bob Hazard and Jerry Petitt, whose creation of brand segmentation in the lodging industry revolutionized hotel marketing. CHA's personnel help drive revenues through sales training, sales blitzes, advertising assistance, trade show attendance and the development of sales plans for each hotel. Marketing dollars and sales activities are optimized by capitalizing on combined property efforts and geographic synergies.

Human Resources

Recruiting and retaining strong management is crucial to the long-term success of a property. CHA believes in promoting from within and is constantly working to develop qualified candidates for promotion from its existing property base, while supplementing this base of management resources by actively recruiting in each market area served. CHA offers a competitive package of benefits, including paid holidays, sick and vacation leave, tuition reimbursement and a comprehensive medical insurance program that are heavily subsidized by CHA.

Financial Controls

The use of efficient centralized accounting allows close daily monitoring of results while reducing the load on the General Manager, allowing more time for sales efforts and active operations management at the hotel. CHA's Accounting Department records property revenues, pays invoices, processes payroll, reconciles bank statements, manages cash, files sales and use tax returns and generates daily and monthly tracking reports. A detailed review of each property's statements, focused on improving performance, is performed monthly with the property GM, the Corporate Controller and the Vice President Operations. Audits at the property level of both procedures and the reports are done on a regular basis.

Reservations/ Yield Management

CHA personnel have been intimately involved in the design and development of reservation systems for the lodging industry for more than 25 years. A focus on the listings in the chain reservation systems and the constant monitoring of rates and availability in those systems is particularly important today as internet access and reservation generation become common. Participation in key e-reservation and regional and national referral networks is co-ordinated by the regional manager. CHA actively uses the yield management systems recommended by each chain while supplementing their results with local market knowledge.

Purchasing

CHA has established close relationships with many leading vendors in the lodging industry. CHA leverages its purchasing power, as well as the purchasing power of the various chains with which it is affiliated, to minimize renovation, general purchasing and operating supply costs. Design and architectural services are available through suppliers tested previously by CHA that meet its high standards.

Business Plan

The development of a business plan is mandatory to ensure the owner and the manager of a hotel are in agreement on the goals and strategies for the property. The plan will include both operating and capital budgets, as well as sales and marketing budgets and personnel development plans. CHA's business plans are not stale forms filed away but living documents referred to on a regular basis and used for employee incentives and bonus awards. Comparisons of actual results to the plan are performed throughout the year.

Franchisor Relationship

The three partners of CHA have more than seventy years experience as senior managers of franchise companies. They know the franchisor - franchisee relationship from both sides and know the responsibilities and capabilities of each party. Close personal relationships with the senior executives at each franchise company allow CHA to make the most of the franchise relationship, whether it relates to fee negotiations, brand standards or reservation services.

Development Assistance

CHA has developed or purchased many hotels since its founding in 1996 and has current and detailed experience in all the facets of development, including financing, architectural design, approvals and permits, construction budgeting, construction supervision and pre-opening and opening services, as well as transition and takeover procedures to follow when an existing hotel is purchased.

Risk Management

CHA monitors property and casualty insurance programs on a regular basis and offers managed properties the opportunity to participate in these programs. Savings which result from CHA's purchasing power result in lower property operating expenses.

Communication