Over three years in the making, the world’s leading hotel real estate association launched CHAM in 2012 as the industry’s first and only professional designation for hotel asset managers.

PurposePurpose

Created under the co-sponsorship and guidance of HAMA and leading hospitality educational institutions (Cornell University, Michigan State University and Educational Institute of AH&LA) in order to establish industry-wide standards of excellence within the hotel asset management profession as a means for further solidifying the institutional/fiduciary role and expectations of a senior asset manager within the international hotel real estate community.

Sampling of Comparable DesignationsSampling of Comparable Designations

Certified Hotel Administrator *Certified Property ManagerReal Property AdministratorCertified Hospitality Accountant ExecutiveCertified Hospitality Technology ProfessionalClub Managers DesignationCertified Financial AnalystCertified Commercial Investment MemberCounselors of Real EstateMAI (Certified Appraiser)

* Primary Benchmark

Role of the CHAM Role of the CHAM Advisory PanelAdvisory Panel

The CHAM Advisory Panel is made up of CHAM designees and representatives of academia who are charged with managing and keeping current the CHAM exam content, revising as appropriate the overall designation criteria and reviewing/approving CHAM applications. The Advisory Panel is an on-going CHAM regulatory body with members approved by the HAMA Board of Directors to oversee the professional designation.

Current Current CHAM Advisory PanelCHAM Advisory Panel

Richard Musgrove (Chair), EVP, Hotel AVE Craig Mason, SVP, Host Hotels & Resorts Cody Bradshaw, SVP, Starwood Capital Group Joe Bello, SVP, Xenia Hotels and Resorts Barry Robinson, Principal, Centennial Hospitality Asset

Management Chad Crandell, President/Founder, Capital Hotel Mgmt A.J. Singh, Professor, Michigan State University Jeanne Varney, Professor, Cornell University David Corsun, Professor, Denver University

Role of the CHAM Role of the CHAM Endorsement CommitteeEndorsement Committee

The CHAM Endorsement Committee was made up of renowned experts from across the global hotel real estate community who had voiced their support for the CHAM designation and collectively reviewed and approved the designation structure, prerequisites and exam content development by the CHAM Advisory Panel.

CHAM CHAM Endorsement CommitteeEndorsement Committee

Robert Kline, (Chair), CEO, Chartres Lodging GroupDenise Coll, former President of N.A., Starwood Hotels &

Resorts Chuck Henry, President, Hotel Capital Advisors, Inc.John Arabia, CFO & EVP, Sunstone Hotel InvestorsDavid Hodes, Managing Partner, Hodes Weill &

AssociatesKevin Fitzpatrick, Managing Director, Spring Bay PCJoel Eisemann, CDO and EVP, IHGMinaz Abji, EVP, Host Hotels & Resorts

CHAM PrerequisitesCHAM Prerequisites

Seven (7) years of lead asset management experience

Two (2) letters of recommendation, at least one from client if applicable

Application Fee ($950 non-HAMA members, $750 HAMA members)

Passing score on CHAM exam

Acceptance of CHAM Code of Ethics

HAMA membership not a requirement to apply

CHAM recertification process every five (5) years

CHAM Recertification RequirementsCHAM Recertification Requirements

Mirrors the CHA requirements

No additional exam required if recertification requirements met

Recertification Fee (currently at $100)

Recertification Requirements – 60 “points” over 5 years Professional Experience – .5 points/month; Min 18/Max 30 points

Continuing Education – Points vary on nature of course/seminar; Min 5, Max 25 points

Industry Involvement - Points vary on nature of involvement; Min 4, Max 25 points

Educational Service – Points vary; No Min, Max 20 Points

About the CHAM ExamAbout the CHAM Exam

Initial exam content created by the Advisory Panel, approved by the Endorsement Committee, and reviewed by HAMA membership via survey

Content developed into 70 - page exam preparation book available only to applicants approved to take the exam

Test bank of 750 exam questions

Exam consists of six (6) sections covering all facets of hotel asset management

A total of 200 questions must be answered within a four (4) hour time period

Passing score is 70% on overall exam (minimum score of 50% required on each of the six (6) sections in order to pass the exam)

Exam available on-line through AH&LA’s EI or in-person

CHAM designee must be present to proctor all exam sessions

Applicants have two chances to pass the exam

CHAM Exam---Content SummaryCHAM Exam---Content Summary

I. The Asset Management Process – Weighted 20% (40 Questions)History and Economics of Asset Management The Asset Management Process The Asset Management/Strategic Plan Market Analysis and Asset Positioning Evaluating Brand and Chain Affiliations

II. Hotel Operations – Weighted 15% (30 Questions)Accounting Marketing, Sales & Revenue MgmtLeadership Human Resources Rooms Food & Beverage Other Operating Departments

III. Real Estate and the Physical Asset - Weighted 15% (30 Questions)Real Estate - Terminology, Economics and the RE Cycle Development and Construction Engineering and Maintenance Analyzing, Planning and Managing Capital Expenditures Insurance, Risk Management and Disaster Recovery Property Taxes and Assessments Mixed Use Assets

CHAM Exam---Content SummaryCHAM Exam---Content Summary

IV. Contracts and Legal Aspects - Weighted 20% (40 Questions)Management Agreements Franchise Agreements Space Leases and License Agreements Ground Leases Other Legal Documents and Considerations

V. Financial Analysis and Benchmarking - Weighted 10% (20 Questions)Benchmarking Hotel Revenues Benchmarking Hotel Expenses Space Optimization/Highest and Best Use Sources of Benchmarking Information Business Intelligence and Reporting Systems

VI. The Investment Decision - Weighted 20% (40 Questions)Capital Structures Debt Terms and Tests Equity Sources and ReturnsPortfolio Risk Assessment Valuation and Techniques Buy/Sell/Hold/Refinance

CHAM Exam---Sample QuestionsCHAM Exam---Sample Questions

I. The Asset Management Process

The four components of a typical asset management cycle do NOT include:A) Identification of ownership objectivesB) Acquisition of assetC) Monitoring of the ongoing operationsD) Brokerage of the asset disposition

Correct alternative: D

As part of assessing the exit strategy for a hotel asset, if the hotel has achieved the initial investment objectives an asset manager should:

A) Recommend immediate disposition of the assetB) Inform owner of the achievement of investment objective and recommend dispositionC) Evaluate market and property conditions, and recommend disposition of the asset if

the asset does not meet ownership's current investment criteriaD) Consider Recommend additional value creating investments in the property to

further improve returns

Correct alternative: C

CHAM Exam---Sample QuestionsCHAM Exam---Sample Questions

II. Hotel Operations

Before determining productivity standards, a manager must:A) Determine performance standards.B) Have a fully trained and fully staffed department.C) Budget for upcoming labor expenditures.D) Formulate a departmental wage a salary scale.

Correct alternative: A

Menu engineering focuses on the _________ and _________ of competing menu items.A) Food costs; labor costsB) Supply; demandC) Profitability; popularityD) Food costs; demand

Correct alternative: C

CHAM Exam---Sample QuestionsCHAM Exam---Sample Questions

III. Real Estate and the Physical Asset

Building quality is specified in the ______ code, whereas building height is specified in the ______ code.

A) Building, planningB) Planning, zoningC) Zoning, buildingD) Building, zoning

Correct alternative: D

Installing a "deduct meter" in a water system is done to:A) Reduce the charges for purchased waterB) Reduce the charges for sewer treatmentC) Increase water conservationD) None of the above

Correct alternative: B

CHAM Exam---Sample QuestionsCHAM Exam---Sample Questions

IV. Contracts and Legal

Which is generally worse for the owner of a hotel?A) Giving the manager the right of first offerB) Giving the manager the right of first refusal if the hotel is soldC) There is no difference between the two

Correct alternative: B

Owners and operators use multiple dispute settlement mechanisms to handle disputes in management contracts including: 1. Litigation, 2. Mediation, 3. Arbitration, in general, these are used in the following order:

A) 1,2,3B) 2,1,3C) 2,3,1D) 3,2,1

Correct alternative: C

CHAM Exam---Sample QuestionsCHAM Exam---Sample Questions

V. Financial Analysis and Benchmarking

Which of the following qualifies for treatment as "complimentary rooms" based on the USALI?A) A guest room for which no rent is collectedB) Rooms provided as part of a trade outC) A free room provided as part of a group contractD) All of the above

Correct alternative: A

Based on the following information, select the correct RevPAR penetration for a subject property: Hotel occupancy of 70%, Hotel Average Daily Rate of $100, Market occupancy of 68% and Market Average Daily Rate of $108.

A) 97.4%B) 93.5%C) 95.3%D) 92.5%

Correct alternative: C

CHAM Exam---Sample QuestionsCHAM Exam---Sample Questions

VI. The Investment Decision

A lender originating floating rate debt would typically require that the borrower enter into which type of interest rate protection:

A) SwapB) CapC) FloorD) None of the above

Correct alternative: B

ABC Investors recently purchased a property in a major urban market and you have been told that it was sold on an "8 cap." Assuming that the property's income was stabilized, mortgages are available at 6.0%, and that ABC financed 60% of their purchase price, what equity return can you assume that ABC is seeking on their investments?

A) 19%B) 14%C) 11%D) 8%

Correct alternative: C

Update of Recent DevelopmentsUpdate of Recent Developments

Currently there are 18 designees and 6 candidates

Each candidate is assigned another CHAM designee as a “Mentor”

A comprehensive update of the test question bank has been completed over the past year, focused in part on missed questions from candidates taking the exam

Approved candidates holding CHA designations will not need to take Section II on Operations, unless desired to boost overall score

Candidates who do not pass the full exam, will not need to retake any sections which were passed on first test

Focus group calls are being scheduled with potential candidates to identify impediments to increasing applicant flow

Discussions have been initiated with AHLA EI regarding potential application fee discounts for multiple designations

Q&A Panelists and CHAM DesigneesQ&A Panelists and CHAM Designees

Joe Bello, Senior Vice President of Asset Management, Xenia Hotels and Resorts

Danny Lin, Vice President, Hotel Asset Value Enhancement

Rich Niedbala, Senior Vice President, Asset Management, Lodging Capital Partners

Bill Robinson, President, Robinson Asset Management

CHAM Applications available on-line at www.hamagroup.org

For questions on applications or candidacy, contact Stephanie Roy at smroy17@comcast.net or

(917) 544-7330

To participate in a CHAM focus group call, contact Joe Bello at jbello@xeniareit.com or

(407) 982-4152