Lodging Leaders

When it launched five years ago, crowdfunding for real estate development was a hot topic, especially among hotel developers seeking new ways to pay for their projects.

Though it’s not creating the same level of buzz as it did when it first became a federally sanctioned option in 2014, crowdfunding remains a viable tool in attracting a wide range of investors and sourcing new streams of cash.

Basically, crowdfunding is a campaign for small amounts of money from a large number of people. It is friends and family financing gone viral.

We talk to hotel developers who are using the alternative financing method to raise cash for their projects.

The projects are vastly different, as are the fundraisers’ goals, and target investors.

One is a boutique property in a resort market, and the developer plans to raise the entire construction cost via crowdfunding. The other is a midscale branded hotel in a technology park, and the firm is selling shares to close a funding gap.

Featured in today’s report is Nathan Kivi, founder of HotelierCo, an online fundraising company targeting hotel development; and Bhavik Dani, founder of EquityRoots, another fintech venture that’s raising capital for one project while about to break ground on another.

We also explain the evolution of crowdfunding, and why the federal government gave the technology its nod of approval as part of a national economic recovery program.

Anyone considering raising money for a project over the internet, or investing money via an online program, should first consult a professional adviser.

Hotel developers and investors seeking new ideas might do well to remember history.

More travelers today want an immersive experience not just in the places they visit but in the hotels in which they stay. And they’re willing to pay more for it.

Historic hotels often give guests what they crave – a sense of place, a connection to something meaningful, a story to tell, a time to remember.

Historic hotels also give owners and operators what they desire – a significant return on investment.

CBRE Hotels America’s Research reports that the more than 300 hotels that are members of Historic Hotels of America generate greater occupancy and command higher rate than their contemporary counterparts.

In today’s episode we talk with Lawrence Horwitz, executive director of Historic Hotels of America, about the growth in preservation of historic lodging accommodations as well as buildings that have been restored and transformed into hotels. Also featured are Kevin Hellmich, director of sales and marketing at the Grand Hotel in Point Clear, Alabama; Susan Stein, Grand Hotel historian; and Guido Piccinni, managing director of the Georgian Terrace in midtown Atlanta.

It’s not what you know, it’s who you know.

That career adage is about 100 years old, but it still rings true today, especially when it comes to social media. If you’re not tuned into social media platforms such as Facebook, Instagram, Twitter and LinkedIn, it’s time to reconsider.

With more than 3 billion people on social media around the world, the platforms can expose you to tons of knowledge and connect you to people who can help grow your career or business.

While a lot of attention is given to Facebook, Youtube and Instagram these days, one platform professionals should pay attention to is LinkedIn.

Though it got a slow start more than 15 years ago, the global channel has nearly 600 million members. It is the place to be today for professionals who want to see, and be seen.

In this episode, Lodging Leaders talks to three business-minded LinkedIn members about how they use the social media platform as a tool to position themselves as industry leaders, share their brand messaging, and grow personally and professionally.

They offer advice and tips on how you can use LinkedIn to gain recognition in the B2B arena and expand your, and your company’s, circle of influence.

We talk to William Arruda, an author and adviser on personal branding, social media and LinkedIn; Rupesh Patel, CEO of State Hospitality, a hotel company, and founder of SmartGuests.com, a customer-service venture; and Rocco Bova, a general manager and entrepreneur who coaches industry newcomers on how to use social media as a continual education platform.

Most people the world over think of the United States as a multicultural melting pot. We are still quintessentially American, but from north to south and east to west, our cities and outlying communities are dotted with districts defined by residents’ ethnicity and culture.

Today, the more developed and culturally defined areas are attracting visitors in search of new experiences and information.

Cities with Chinatowns, Latino barrios, Indian American corridors and African American neighborhoods are seeing a surge in national and international travelers eager to either connect with their roots or satisfy their curiosity.

Many ethnically diverse communities, as well as business and social organizations, are rising up to abet the travel trend, which many experts say is only going to grow stronger as more and more travelers seek unique and memorable experiences.

Multicultural or heritage tourism is good for the hospitality industry and it is also beneficial to a city’s economic growth. One study we’ll talk about says the more diverse a city, the stronger its economy.

In today’s episode, Lodging Leaders examines how hotels and other hospitality businesses can capture a generous piece of this tourism trend.

We talk to Connie Kinnard, vice president of multicultural tourism development for the Greater Miami Convention & Visitors Bureau; Greg DeShields, executive director of PHL Diversity in Philadelphia; and Michael Fullerton, senior director of public policy and public affairs for Brand USA.

“Equal opportunity for people of color in the United States remains an unrealized goal.”

That is the opening statement in a recently released study by NAACP.

The same opening statement appears in the organization’s 2012 report on diversity in the U.S. hotel industry.

The 2019 study titled “Opportunity & Diversity Report Card: The Hotel & Lodging Industry,” not only shows stagnation in racial equality in hospitality workplaces, it reveals African Americans have lost ground over the past decade in their climb to the top in U.S. hotel companies.

The report card examines the efforts of four major hotel corporations to diversify their workforces, from rank-and-file all the way up to the C-suites.

None of the companies – Marriott International, Hilton Worldwide, Hyatt Hotels Corp. and Wyndham Hotels & Resorts – fared well in the study, which was based on research performed in 2017. Grades ranged from Bs to Fs in various categories such as hiring, promotion and supplier diversity.

The research was limited. NAACP surveyed the highest-earning companies and their corporate-owned and managed hotels. Franchised properties were not included. But the NAACP and other minority leaders hope to change that dynamic by pushing for information on the diversity of franchisees, as well as who is working in their branded hotels.

In this episode, we take a closer look at the latest report. We hear from Marvin Owens, senior director of economic development at the NAACP; Andy Ingraham, president and CEO of the National Association of Black Hotel Owners, Operators and Developers; and Dyshaun Hines and Skye Curry, graduate students in hospitality administration. We also feature remarks by Hilton CEO Chris Nassetta, who Ingraham interviewed at last week’s NABHOOD summit in Miami, Florida.

Independent hotel supply in the U.S. has decreased in the past 10 years, reports STR.

The lodging-data company reports independently owned and operated hotels account for less than 40 percent of all hotels. About 1 percent of those close each year.

But that trend may take a turn.

It appears more and more hoteliers who have grown their companies with franchised brands are considering going independent.

We’re talking about entrepreneurs are converting existing branded properties into non-affiliated hotels.

The franchise contracts are approaching the end, and thanks to the internet, online distribution channels and sophisticated operating and marketing technologies, flying solo is no longer a day dream.

However, before lowering your brand flag, listen to the advice of three hoteliers who either have done it or are planning to do it.

You may discover that franchising is the best model for your business, after all.

In today’s episode, we talk to San Diego hoteliers Bobby Patel of Hotel Investment Group which has nine independent hotels, and Vipul Dayal of VNR Management who is converting a family-owned franchised property and writing a book about it.

We also hear from Timesh Patel of Ohm Culture Hotels in Inglewood, California, who, as he puts it, was “punched in the face” when he transitioned from franchised to independent.

Last week, part one of our report on Airbnb looked at the home-sharing giant’s impact on hotel business performance. We reported on a study that shows for every 100 percent increase in Airbnb accommodations in a market, hotel RevPAR declines by an average 3 percent.

We also reported a growth in the number of whole houses on online distribution channels as homes become “investor units.”

Meantime, more everyday homeowners have warmed up to the idea of making some extra money by sharing their digs with short-term travelers.

This week, in part two, we explore what’s good and smart about Airbnb and how hotels can successfully vie for travelers’ bookings and loyalty. We also take a look at new lodging trends spurred by the home-sharing movement.

We talk to Leslie James, head of marketing at AirDNA, a data research platform for the home-sharing industry. We hear from Paul Breslin of Horwath HTL and Mark Woodworth of CBRE Hotels Americas Research about the new generation of travelers driving the home-sharing trend. We also talk more with Makarand Mody, a researcher and assistant professor at Boston University School of Hospitality Administration who has published several studies about Airbnb and the home-sharing phenomenon. And with Hans Detlefsen of Hotel Appraisers and Advisors, who has ideas about hotel companies adopting some Airbnb business practices.

More than 10 years ago, the short-term home rental industry began to shapeshift with the birth of Airbnb.

The technology company has quickly grown from a small peer-to-peer home-sharing platform into a virtual behemoth with more rooms than any hotel company on the planet.

Today, Airbnb has more than 4 million listings in nearly 100,000 cities, and two million people stay in an Airbnb-listed home every night.

In this episode, we examine the impact of Airbnb’s growth on U.S. hotel performance. It’s big topic, so we broke it down into two parts.

In this first installment, we talk to Makarand Mody, an assistant professor at Boston University’s School of Hospitality Administration and co-author of the academic paper on Airbnb’s disruptive impact in key hotel markets. We hear from Hans Detlefsen of Hotel Appraisers and Advisors, which studied Airbnb’s market share of U.S. lodging demand, and from Thomas O’Shaughnessy, head of research at Clever Real Estate, an online agency. We also share information provided by Airbnb, which declined to provide someone to interview.

Resources and Links

Makarand Mody

Boston University School of Hospitality Administration

Thomas O’Shaughnessy

Clever Real Estate

Hans Detlefsen

Hotel Appraisers and Advisors

Airbnb

More than 10 years ago, the short-term home rental industry began to shapeshift with the birth of Airbnb.

The technology company has quickly grown from a small peer-to-peer home-sharing platform into a virtual behemoth with more rooms than any hotel company on the planet.

Today, Airbnb has more than 4 million listings in nearly 100,000 cities, and two million people stay in an Airbnb-listed home every night.

In this episode, we examine the impact of Airbnb’s growth on U.S. hotel performance. It’s big topic, so we broke it down into two parts.

In this first installment, we talk to Makarand Mody, an assistant professor at Boston University’s School of Hospitality Administration and co-author of the academic paper on Airbnb’s disruptive impact in key hotel markets. We hear from Hans Detlefsen of Hotel Appraisers and Advisors, which studied Airbnb’s market share of U.S. lodging demand, and from Thomas O’Shaughnessy, head of research at Clever Real Estate, an online agency. We also share information provided by Airbnb, which declined to provide someone to interview.

It’s no secret the hospitality industry in America is in dire need of skilled employees. Many hotel owners and operators continually seek ways to attract and keep talent.

The Bureau of Labor Statistics says the hospitality industry has a turnover rate of nearly 75 percent per year, compared to a healthy rate of 10 to 15 percent.

Turnover costs money, not only in lost productivity, but also in the company’s investment in each worker … and the cost to train a replacement.

The greater the job responsibility, the higher the cost of replacement – from about $3,000 for an entry-level employee to $8,000 for a manager, reports Daily Pay.

In a search for ways to train and retain hospitality leaders, companies have turned to the American Hotel and Lodging Association.

Last year, a group of hotel management businesses and the association’s educational foundation teamed up to create a lodging manager apprenticeship program.

Several hundred apprentices signed on to learn the different aspects of running a hotel through hands-on training, online courses and one-to-one mentorship.

In this episode, we hear from Rosanna Maietta, president of the American Hotel Lodging Educational Foundation, and apprentice Daniel Ovichegan, who came to the U.S. from Mumbai, India, to pursue his dream career in hospitality.