Masters of Moments

#15: Jay Shah - Executive Chairman of Hersha Hotels & Resorts | Building a REIT in Hospitality

May 31, 2023

Jay Shah, Executive Chairman of Hersha Hotels & Resorts, discusses building a REIT in hospitality, pros and cons of REITs, missed opportunities and biggest wins. They also touch on financing challenges when opening the first hotel in NYC, transitioning into full-service and lifestyle operations, the impact of COVID on the hospitality industry, and exploring new markets.

01:27:48

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Episode guests

Jay Shah

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Episode notes

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Quick takeaways

Shifting focus from limited-service to upscale and luxury hotels due to higher growth and revenue potential.

Importance of crispness and maintenance in hotels' appearance to address potential deferred maintenance or structural issues.

Active involvement in revenue management and pricing strategy to drive optimal revenue and long-term value for the property.

Emphasizing rational capital allocation, considering deferred maintenance and ROI, and investing in assets with multiple revenue levers and value drivers.

Deep dives

Focus on Upscale and Luxury Hotels

The company has shifted its focus from limited-service hotels to upscale and luxury hotels. This strategic shift is driven by the higher growth and revenue potential of upscale and luxury segments compared to limited-service hotels. They have found that upscale and luxury hotels tend to outperform in both downturns and upturns in the market.

Introduction

2min

Lessons Learned: Financing Challenges and Overcoming Obstacles in the Hotel Industry

9min

Formation and Growth of Hersha Hotels & Resorts

32min

Transitioning to Full Service and High-Profile Assets

23min

Shift towards Experiential Retail and Impact of COVID on the Hospitality Industry

3min

Challenges and Importance of the Hotel Business

12min

Exploring new markets and favorite hotels

6min

Hersha Hospitality Trust (NYSE: HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates luxury and lifestyle hotels in urban gateway and regional resort markets. The Company’s 25 hotels totaling 3,811 rooms are located in New York, Washington, DC, Boston, Philadelphia, South Florida, and California.

Jay is involved in all areas of the business with a particular emphasis on strategic relationships, capital transactions, asset management, and acquisitions.

On this episode, Jake and Jay discuss: