RE #128: @SomeHotelGuy - Hotel Industry State of the Market

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! Follow Chris on Twitter: www.Twitter.com/FortWorthChris Learn more about Chris Powers and Fort Capital: www.FortCapitalLP.com Follow Chris on LinkedIn: www.linkedin.com/in/chrispowersjr/ Follow Fort Capital on LinkedIn: https://www.linkedin.com/company/fort-capital (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? (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? Twitter Questions (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