On this episode, Chris talks with the anonymous "Some Hotel Guy" () about the hotel industry. SHG details the nuances of owning & operating both independent and branded hotels, the process of working with "The Big 4" Hoteliers, how the industry...
On this episode, Chris talks with the anonymous "Some Hotel Guy" (www.Twitter.com/SomeHotelGuy) about the hotel industry. SHG details the nuances of owning & operating both independent and branded hotels, the process of working with "The Big 4" Hoteliers, how the industry was affected by COVID-19, and how he sees the industry moving forward. Enjoy!
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(03:04) - What’s your position within the industry?
(04:00) - Do you operate under one or multiple brands?
(04:49) - What types of hotels are you involved in?
(05:47) - Describe Upper Mid-Scale, Upscale and Upper-Upscale Hotels
(07:26) - Do you have to get approved as an owner/operator to be associated with one of these brands?
(09:26) - Is there ever conflict within owners working under multiple brands?
(10:22) - Scenario: I’ve never owned a hotel, but I own a great piece of land for a hotel and I approach Marriott: How does that conversation go?
(11:53) - How does the payment structure work as an owner?
(13:45) - Do the “Big 4” have a true monopoly over the resources available to hotel owners such as booking software?
(17:15) - What’s the difference between an independent hotel and brand affiliated?
(17:49) - In an independent scenario, is the owner often the operator?
(18:31) - Who’s bearing the risk in a situation of an owner franchising a hotel and hiring an operator?
(22:12) - How do you see the owner/operator relationship changing in light of the last year?
(24:08) - When did you know something was about to happen from a business standpoint in 2020?
(25:51) - What happened from your perspective in April/May for hotel Owners & Operators?
(28:48) - Did the industry suffer a lack of clarity in terms of a uniform response across the country?
(31:17) - Are closures determined on local government mandates or customer demand?
(32:34) - How much do labor markets play into what hotels decide to do?
(34:19) - Is there anything you’re seeing legislation-wise that will be beneficial to the hospitality industry?
(35:10) - What are the Big 4 brands mandating as it comes to cost structures over the next couple of years? Where are you saving money and where do you need to add costs?
(38:19) - Is there anything that keeps you up at night or are you more optimistic as we move forward?
(41:19) - What’s the % of hotel stays that are international vs. domestic in a market like New York?
(42:40) - Is the international issue more that we won’t be letting people in or that they won’t want to come?
(43:34) - Are there hotels that will fare off better than others? Or will everyone recover the same?
(44:49) - Have there been any notable transactions as it pertains to M&A within hotels?
(48:35) - What’s going on at hotels that aren’t open?
(51:26) - What’s the state of capital markets?
(53:49) - Are you having to underwrite differently now?
(54:57) - What does the hotel industry think about Airbnb and its place in the industry?
(57:10) - Is Airbnb going to get into the hotel industry?
(59:11) - What are your thoughts on the Kayak hotel opening?
(1:00:21) - If you had $100m, what would you go do in the industry?
(1:01:53) - Do you see the check-in experience changing?
(1:03:02) - Is there any technology that interests you right now?
(1:04:42) - What amenities matter in hotels or things on the horizon people want?
(1:06:35) - Room Service vs. Uber Eats/DoorDash
(1:08:41) - “If I own a 1960’s hotel in Trenton, NJ that is primarily longer stays for low-income folks: Do I sell now and cash out before it’s too late? Or, how long do people with roach motels have before it’s an obsolete asset?”
(1:10:17) - What are some common mistakes independent operators make pre-opening?
(1:11:57) - What are some common mistakes inexperienced operators make?
(1:14:17) - Is there still room for independent boutique hotels in the industry?
(1:15:06) - SomeHotelGuy’s Fear of Heights
The FORT with Chris Powers is produced by Straight Up Podcasts