The Danger of Private Equity in Hospitality Now - Sloan Dean, Remington Hospitality

In this episode, we're joined by Remington Hospitality CEO Sloan Dean, who shares what he sees as the danger of private equity in the hospitality business today.

You'll learn about:

• The Role of Private Equity (PE) in Hospitality: Understand the dynamics of PE ownership in hospitality operating platforms and why it often leads to overvaluation - and undervaluation - in critical areas.
• Challenges of Scaling: Discover why scaling beyond a certain number of hotels can lead to diminishing returns and how the relationship-oriented nature of the business complicates large-scale operations.
• Public vs. Private Valuation: Learn about the pitfalls of attempting to arbitrage between private and public valuations, and why the dream of going public often remains unfulfilled.
• Impact of High Interest Rates: Explore how high interest rates and leveraged buyouts are affecting operating platforms, leading to cost-cutting measures that can degrade service quality.
• The Importance of "Smart Growth": Hear why organic, steady growth is more sustainable than rapid expansion, and how PE's aggressive strategies have led to value destruction in many cases.

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Music for this show is produced by Clay Bassford of Bespoke Sound: Music Identity Design for Hospitality Brands