Lessons, Leadership, and the Future of Hospitality | 2025 Highlights

Speaker A: Foreign. I'm a big fan of the concept of architecting your life. So architect your life in terms of the work you do, where you live, who you spend time with, who you let into your circle. I'll give you a very clear example of what this means to me. There's a lot of ways to make money. There's a lot of ways to run a podcast. I know some people who are big podcasters. Some of my peers, uh, they're jumping from city to city, flying every single week, interviewing people in, you know, wherever they live, and they get access to a slightly bigger guest because they're literally flying to that person's house, office, whatever. I have built my podcast studio in a guest house in my backyard. So I'm about 5ft from my bedroom, and I have no interest in. In flying anywhere to do a podcast. I want to walk from my bedroom to my studio, and I will wait as long as it takes for whichever guest to finally make their way to Miami, drive from the airport, and sit their ass in that chair right there, which is, again, five feet from my bedroom. That, to me, is architecting a life that I want to live. There's a lot of other ways that I could build my life. There's a lot of other ways I can make money. I could be traveling every single day. And we'll talk about what we were talking about before we press record in a second. But I think that not enough people focus on, am I actually building the life and architecting the life that I want to live, or am I just building this business to serve my ego, serve some trauma that I experienced as a child with my parents telling me I'm not good enough, like, why am I actually running after this thing or trying to make X amount of money? And I don't think enough people put thought into that. They don't put thought into, okay, say I am entrepreneurial and I do want to build a business, what life am I actually going to end up building for myself? And am I actually going to enjoy that life? Do I enjoy being on the road all the time? Do I never want to leave my house? Or somewhere in between those two extremes? And I think that more people have to take a second pause and think about, okay, if I build this business, take this job, get this pay raise, get this promotion, and I'm successful at it, what does that look like? And I don't think people do that. I think people just jump into the next thing that pays more, that there's more prestige, there's more title there's whatever. And then they wake up one day and they're like, shit. Like, I don't even enjoy my life.

Speaker B: I still don't understand how the air industry gets away with as much as they do that. The hospitality industry. If we ever did some of the things they did, we would be out of business.

Speaker C: It's the difference of service and hospitality. They're in the service industry and we're in the hospitality industry. So we're about how making people feel. They're about getting people from point A to point B. Yeah.

Speaker B: And that's a great way to put it.

Speaker C: Mhm.

Speaker D: That's.

Speaker B: That's 100% true.

Speaker E: Like that's.

Speaker C: It is. Like we're. You're not. I mean, yes, you could sit there and then like go down. Well, like, I like to fly this because I like the seats in first class. But like that, that's just, that's like if you're really getting into it. But at the end of the day, the. They're in the service industry.

Speaker B: Yeah. They're just getting you from point A to point B safely within it. Safely. In a specific amount of time. No, and that's a. So that's a good point though because, you know, and you, I've seen you speak on this before, like there is a difference between service.

Speaker C: Oh, sure.

Speaker B: And hospitality.

Speaker F: Sure.

Speaker B: And I think that again, when we look, we apply the model to, you know, really any business really at this point, it's. You are either providing a service where you're delivering a product or a good or like an outcome.

Speaker C: It's transactional. Or you're delivering transactional versus doing something that like sparks like a bit of an emotion. Like, oh, that was nice.

Speaker D: We started talking about, well, uh, you know, how do people really build like lasting legacy and like build like generational wealth in real estate. And these vacation rentals can't scale. We're capped out at 2. It's not gonna work, you know, that's it. So like most people, we gravitated to your point.

Speaker B: Even if you, even if it was being very successful, if you wanted to trade it at some point, that permit doesn't transfer.

Speaker E: So there's no guarantee that that would continue.

Speaker D: Exactly. Yeah, yeah. There wasn't, there wasn't a clear like line of like, okay, how can we build something scalable? And so I defer back to what I originally started with when I was reading all about real estate. There's so much literature out there about multifamily real estate, commercial real estate investing, multifamily because you can. There's levers that you can pull through net operating income that can generate, you know, you can force appreciation, unlike with residential real estate. So we bought, you know, an online course. Um, it's actually really, really valuable. Uh, but it was on multifamily real estate. And so we're like, all in. Let's do it. Let's go buy some apartments. Only problem was here in Hawaii, it's logistically challenging to go and purchase apartments, particularly because there's. Number one, there's not a lot in Hawaii. So if you're looking at value opportunities in Cincinnati, Ohio, and you live in Maui, it's just really difficult to start out, at least, like, trying to figure out a way to. To buy apartments when you're so far away. So we're hitting this challenge. So we started looking locally, and one of the first properties that was on the market here in Maui that we saw in the listing notes of this apartment, it said, this building, uh, is currently being operated as a hostel. We're like, just like a small little note, like, just. By the way, it was kind of like a little asterisk.

Speaker B: So I'm like, FYI, just when you

Speaker E: get here, just so you're aware.

Speaker D: Yeah, these. These.

Speaker B: These tenants are here long term.

Speaker D: Yeah, exactly. Like, you just get rid of these guys. Like, they're. They're not.

Speaker G: This.

Speaker D: Just a side note, this hostile thing is weird. Like, just we're. This is a multifamily apartment. And so we call the listing agent and we start asking about it. And, um, in. In the course of the conversation, you know, he said, well, unfortunately, this building, it just went under contract, but if you're interested in anything else, then just let me know. I'm your guy. And so I was like, oh, I'm curious.

Speaker G: What.

Speaker D: What is this hostile thing about? Like, I. And so he started describing the hustle thing, and I knew nothing about it. And he could sense that there was some interest there. And this dude was like. He was like, Sal Goodman. Saul Goodman, you know, from the show. Like, he had that, like, salesman, like, Better Call Saul style. I can't even. Like, it was uncanny. Just on the phone, his voice. And so he was just, like. All of a sudden felt this rush of, like, all right, I'll sell you on the hostel. And he started talking about hostels. And this guy, I give him credit, he followed up multiple times and started selling some idea of a hostel. And so that's where the seed was planted, is if a hostel combines the cash flow of Short term rentals. But then the commercial uh, value of forced appreciation. Maybe there's something to this because that was this connection with multifamily apartments that we were finding that was like really difficult to swallow as an investor was there's just not a lot of cash flow. You know, the money's all made down the line. So there's like very, this trickle of cash flow. In the beginning there's, there's very little. And that was exactly what I had felt with my first set of investments. Very little cash flow, a lot of appreciation. Second one was all appreciate, all, all cash flow. Not that much relatively appreciation. And then so this idea of combining the two in whether this is a hostel or this is hospitality, it all is the same. That is what appeals to me with hospitality is the ability to have a cash flowing business with forced appreciation that led us to this idea of a hostel.

Speaker H: The problem is people don't prioritize social media. They still think of it as a hobby, as a nice to have, as a time waster, as, you know, just catching up with friends, being entertained. They don't look at it that it's the most important tube of, of of communication that exists on the planet today. They don't understand that when they, there's a uh, military coup in a country that the first thing that they do is shut off the social media because they're afraid they could overturn and the uh, communication gets out of what they're trying to do. So if it's most, if it's powerful enough to stop a military coup, you don't think it's powerful enough to sell a hotel room.

Speaker B: How do you see the independent segment ultimately at the end of the day, competing with and complementing um, those larger franchise systems like where, like do you think that the owners that end up signing with those franchisers, um, maybe are selling themselves short?

Speaker I: Listen, I think there's room for everyone. There are, there's a segment of travelers that are always just going to stay at where they can use points. And true that it like there's no way around that. We all know people like that, right? They're like, oh, and I guess with

Speaker B: that said, I should like preface that with if I'm traveling for business, I will always be saying at uh, you know, it's always going to be the Hyatt or Marriott or Hilton because of the points. But I definitely would go to an independent for my own personal. Like travel.

Speaker I: Exactly. So even just you know, looking at you as a case study, like you're going to have both. Right. So.

Speaker A: Right.

Speaker I: I don't think that it's that, you know, that there isn't room for both brands and independents. I think there is this growing segment of travelers and I think, you know, really, um, really kind of sped up and grew coming out of COVID too. I think that, you know, people were pent up and not traveling for so long that once they were finally able to, they were looking for more, more than just a place to rest their heads. And I think we're just continuing to see that more and more that people are looking for an experience, a real connection to their destination. That in my opinion, I think independents really are the ones that do that best. Because I know for myself when I stay, um, at ah, a really cool boutique hotel in a certain city, um, and the bath amenities, I'm like, oh, I haven't, you know, heard of this brand before. And then I look on the back and it's like made locally and there's, you know, lavender from a farm nearby or honey from, you know, I mean it's like, right. It's interesting, right. And it tells part of the story and it makes you feel more connected to the destination. So it's that it's like, you know, art and you know, sometimes they'll have um, like activations and common areas and things like that where you can, you know, learn about the artists that provided all of the art for the hotel. And everything is different in every room. And it just. Those types of touches I think are really what keep people coming back to those hotels and make them memorable that you just don't have at uh, a branded property. So I think your question about, you know, our owners selling themselves short by going to a brand. I think there are scenarios and you know, certain destinations and especially in some urban areas where those hotels really need the brands for distribution. And that's what we hear sometimes when, you know, an independent then decides to flag. And that's kind of their, their only solution at that point. And so sometimes I think it's a necessity. But if it's an owner that, you know, wants to stay independent and really believes in the independent spirit and all of that, I think curator is really that alternative for them that really didn't exist before. So our goal is that we're giving them the benefits of joining, you know, uh, a big brand, but with that flexibility and ability to really stay unique, that being able to, to, you know, have those cost savings and exposure as

Speaker B: well, you, I feel like, have the hottest. It's. I wouldn't say it's the hottest new kid on the block because it's not new. Right.

Speaker F: But it's 10 years or so you've been at it now, which is new

Speaker E: in the hospitality space.

Speaker F: It is pretty new. And, and we've, we've made a, we made a lot of uh, made a lot of friends along the way. Uh, and we've done what we're doing with uh, a great deal of integrity. And so it's enjoyable to uh, to participate in the industry, you know. Yeah, we've got a lot of big competitors and we're certainly not anywhere close to them. But uh, we're definitely enjoying what we do.

Speaker E: Right.

Speaker B: So, so, so that everyone understands what is a My Place hotel.

Speaker F: So My Place. When we originally started My Place we looked at the, the hospitality industry. Of course we'd been in the business for a long time. I had started in the business. I'm uh, this year's my 20th year uh, in career in hospitality and uh, so for about 10 years I had been in development and construction management in hospitality. And during that period of time and prior to me coming on board, um, we were owner, operator, developer of all the major brands. So that's where I got my start. We really looked at what we had been uh, doing as franchisees and we looked at the relationship between franchisor and franchisee. We looked at the investment proposition and said there's gotta be something better than this and we have the resource and we have the infrastructure. We really just went at it and said hey, let's start our own deal and see um, where we go from there. And so we looked at the industry and said where is the biggest space? And it was very easily definable as extended stay. Um, at the time it was 5 to 7% of the industry in terms of supply, so lots of open room there. Um, and then we also looked at the concept and said well we have the aging economy segment and we have the upper mid scale segment that seems uh, to be really prolific but have somewhat less character than what it should. And so let's create something that hopefully will provide a good balance to the three primary stakeholders, the guest, the franchisee and the franchisor. So how can we all get on the same page, um, and do it, do business from a position of integrity and also um, something that is sustainable because it does provide balance.

Speaker I: Right.

Speaker B: Do you feel like all the brands right now, all the major franchises merit Hilton, ihg, Windham, Hyatt in a way, um, choice. Do you think that we're we're approaching a problem zone with adding too many

Speaker E: brands with the biggest question of our time. I think right now it's the soft brand itis and it's the each brand is trying to consume as many room nights as possible. They're also keep in mind the brands are trying to serve the owner's requests as well. So it's two edged sword. The brands are saying where's my customer? After all the surveys, uh, we do where's the customer today and what's the age group at the demographic? So we have the challenge of finding the customer who is served by whom. We know the guy slinging a hammer is probably staying at the Echo, uh, Suites. Uh, they're in transition from one market to the next. Uh, they're usually contractors, uh, electricians, whatever GC guys or they're younger people getting transferred to a new place in town. So they're staying at the economy level, uh, extended stay. Then you've got the in between families, the people who are in between relationships, in between jobs, in between um, uh, uh, careers, uh, retiring, et cetera, moving down from Chicago to Florida. And they stay in an extended stay for a month or two to figure out what they want to do. Then you got the upper tier economy of people, the demographic who doesn't really have a problem. They're going to stay in a nice place no matter what because they're already set. So you have that demographic issue. But in general the brands are trying to figure out who that demographic is, how to serve them at the same time. Yeah. There's obviously Greek element of it saying well I want to capture more of the market. So that's business. Right, Right. Uh, is there too many? The customer will tell you if it's too many. We as a franchise company and I think the other tiers, the other companies have more um, different levels of brands and different segmentations. So do I think it's crazy? Yes. Here's where the problem is to the, let's call it the big guys, the top three. Their challenge is they're consuming themselves. Uh, so you look at the name brands which we all know the big name brands and then they're offshoot brands, they're soft brands, they're hard brands. But you know, the brands that I don't want to name names, the names in their portfolio that are similar, let's call it to uh, a legacy product but at the same time upscale. It's Kishi, it's got that new boutique look to it. And every, the big three have all those Confusing. But the owners are also in their own world confused because they want something different. They're tired of the big box. They're tired of a doubletree entire. I've got four of them I don't need. I want something unique. I want to do something fun. And, and so they take one of those or they buy a sister company or a sister product and they make it into one of these new unique names. The market will dictate whether they're successful. The challenge is the consistency of that customer coming back. Is it a one time experiential stay or is it a consistent stay? What you'll find is and the big event groups, event companies, event markets like the big Chicago's and Orlando's and Nashville, New York and San Diego and la. People stay in traditional product. It's just easier to do. They know what's going to be there. They're less likely to test the offshoot luxury cool hip brand. So your demographic shifts, right? Uh, you, you have a demographic that'll stay there on their own but not for business.

Speaker G: So in one of the breakout sessions they were saying that they project the next 16 months will be very slow. Right. You've got a decrease in business, rise in operating costs. You know, I think the EBITDA is going to be down like 2%. So it's going to be very tough. And those guys who overpaid in 21, 22 and who were kind of going through the grieving process are now realizing, shoot, best case scenario, I sell for my basis. Worst case scenario. Actually worst case scenario is even a worst case scenario. Right, but that's their best case. Right? Sell it, sell it to the. Sell it for their basis and just get out. Yeah. So that's the, It'll be interesting to see how 26.

Speaker B: Is there anything that you could advise somebody to be able to do that they could make a change today to help them try to get in a position where it's going to be a good deal six to 12 months from

Speaker G: today for the seller.

Speaker B: For the seller.

Speaker G: You know, I know you can't generate,

Speaker B: I mean you can't bus in business. I mean every. We're down across the board and that's

Speaker G: the hardest part, right. It's the value is the product of the business. Right? What I would advise them, do the work that you're reluctant to do. If you're capable of doing it, do the work. Because worst case scenario you're going to have to still own the hotel and that is going to be a major piece that your customers are going to want, right? You. You can't just keep running the property into the sound and hope that gets your basis out right?

Speaker B: Because it only gets worse.

Speaker G: It's only. It's only going to get worse.

Speaker B: The hole just gets dug deeper and deeper. This episode of Check In With Brian is a production of RH Media Productions, hosted by Brian Fish Executive Producer Tyler Alexander. Marketing support provided by Sunny Templar. Thanks for checking in. Be sure to follow us wherever you get your podcasts so you don't miss this week's Friday checkout. Coming this Friday Friday at 9am Eastern. The views and opinions expressed in this podcast are those of the hosts and guests and do not necessarily reflect the official policy or position of Reliance Hospitality Global, Inc. For any of its affiliates, partners or subsidiaries. All content is for informational and entertainment purposes only and should not be interpreted as professional or legal advice.