HB ON THE SCENE: NABHOOD CEO Roundtable Tops The Agenda For Bottom-Line Watchers

SOUTH BEACH, FL— It was billed as the Hotel Industry CEO Roundtable, though none of the panelists addressing attendees on the first full day of the Seventh Annual International Multicultural Tourism/Hotel Ownership Summit & Trade Show carried the specific title of chief executive officer. However, the three letters nonetheless proved appropriate as an acronym exhorting those contemplating entry into the hotel-ownership fray to “check everything out” before proceeding. With Lincoln Marshall, PhD— associate professor of tourism at The George Washington University— presiding over the mid-morning session, one particularly well-seasoned hotel company executive and a trio of fledgling as well as experienced lodging property owners/developers offered their own unique insights into the profit opportunities (in addition to the pitfalls) the industry holds in store for African-American entrepreneurial types. For starters, Wyndham International Executive VP/Business Development and Chief Investment Officer Joe Champ cited strong evidence of his company’s commitment to helping bring more minorities into the hotel-ownership fold. In addition to providing prospective property-owners with a strong franchise-partner option, he noted Wyndham can also offer opportunities for outright hotel ownership vis-à-vis the direct-sale route. Specifically, Champ pointed to his organization’s recent disposition of The Mayfair Hotel in St. Louis— a Wyndham Historic Hotel— to the Roberts Cos. for something in excess of $4 million (plus the right to retain a management contract on the property). As such, the Wyndham executive maintained this transaction makes The Mayfair “the first Black-owned hotel in St. Louis.” Next up was the voice of experience, as served up by RLJ Development LLC President Tom Baltimore. Speaking from the vantage point of overseeing a 12-property portfolio, consisting of 10 Hilton Hotels products and two Marriott-branded establishments, Baltimore said the stage has been set particularly well for acquisitions by the fact today’s hoteliers are caught between falling revenues and rising expenses. Accordingly, many are looking for a way out, he said. “In fact, just about the only thing preventing the current situation from being ‘a perfect storm’ is the fact interest rates have largely held to historically low levels,” Baltimore maintained. On the other hand, he reminded, there’s “lots of pent-up money sitting on the sidelines, just waiting to get in [especially when and if the opportunity involves acquisitions].” This observation made for an effective segue to remarks offered by Bill Fuller, head of Fulco Development LLC, stressing the true secret to success in the hotel-ownership game is “investment, as well as overall access to capital. “The idea,” he said, referring back to Baltimore’s advice about taking advantage of joint ventures and partnerships, “is to limit your own risk and spread the total risk out among several capital sources… with the offering of a moneyed stake in the project [to those putting up necessary capital].” As for his own credo in this arena, Fuller basically contended it doesn’t hurt to be patient— and prudent— prior to reaching any decision regarding hotel investment and/or development. Rounding out the panel discussion was James Guillory, Centerpointe Hotels LLC president and director/development and acquisitions. Demonstrating the energy and spirit that comes with building— and opening— one’s first hotel (in this instance, a Hampton Inn in a highly industrialized area of Houston), Guillory adopted a quasi-cheerleader stance and encouraged attendees: “Don’t let financial challenges keep you from pursuing your goal.” By way of explanation, the Centerpointe Hotels executive admitted— in his case— he had to knock on the doors of some 22 banks before he was able to round up the funding he needed to turn his dream into a 65-room reality. “The bottom line,” he said, “is you have to know exactly what it is