Masters of Moments

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.

As President of Morgan Group, Evan Schlecker manages risk for Morgan with oversight over development and construction activities nationwide. Evan maintains involvement in all aspects of apartment development, construction, management, and finance. Evan serves as a member of Morgan’s Executive Committee and Investment Committee. Since joining Morgan in 2012, Evan has been involved in developing and acquiring over 7,000 units at a cost exceeding $1.8B. Prior to joining Morgan, Evan co-founded BlueRoot Partners to take advantage of opportunities to acquire distressed real estate. Evan began his career at Torchlight Investors (f/k/a ING Clarion) restructuring non-performing commercial real estate. On this episode, Jake and Evan discuss: How Morgan Group sources deals and develops assets How to enhance Multifamily assets Overseeing 20+ projects at one time The US Housing Shortage Mitigating risk during hold periods Connect & Invest with Jake: Follow Jake on Twitter Take the Hospitality Investing Masterclass Learn How to Invest with DoveHill Links Morgan Group Evan on LinkedIn Eagle Island Lodge, Botswana   Timestamps (00:02:16) Evan’s career in Real Estate (00:11:02) Why Scale is important: Plentiful 3rd party Managers (00:15:21) Thoughts on market strategy (00:19:13) Being ‘Hyper-local’ in development and construction (00:22:00) Making the jump from being an entrepreneur to a Family business (00:25:06) Headline stats for Morgan Group (00:26:34) How Morgan sources deals and develops (00:35:57) Thoughts on Single Family Rentals & High-end rental projects (00:40:02) Adam Neumann (00:41:49) How to enhance Multifamily assets (00:43:32) The reality of overseeing 20 projects at once (00:48:55) What is the best way to mitigate risk during a hold period and structure deals? (00:52:33) Being a non-family member leading a Family Business (00:56:29) Thoughts on the Housing Shortage (01:01:20) What incentives are you setting up for team members? (01:09:31) Why do you self-perform? (01:13:20) Making money on the construction side of the business (01:17:20) How are you building the company to perform over the next 5 years? (01:23:44) What is your favorite hotel?

This episode is an appearance Jake made on The Fort Podcast with Chris Powers.  Jake and Chris discuss:  How to create an exceptional hospitality experience How to underwrite hotel investment opportunities Partnering and learning from Barry Sternlicht How to add value to different types of hotels Links Check out Chris Powers and The Fort Podcast Hotel Bel-Air Brush Creek Ranch Blackberry Farm    Connect & Invest with Jake: Follow Jake on Twitter Take the Hospitality Investing Masterclass Learn How to Invest with DoveHill   Timestamps (00:03:14) How do you experience hotels? (00:05:14) What is Hospitality? (00:08:17) Jake’s journey into Hospitality (00:09:45) Jake’s Companies (00:11:36) Hospitality during Covid (00:21:42) How do branded hotels differentiate from each other? (00:23:12) What does great operation look like in a Commodity Hotel? (00:25:04) How are daily rates set? (00:32:39) Airbnb vs. Hotels (00:35:15) How do you define Lifestyle? (00:36:21) Who are people you admire in this industry? (00:39:02) Are there any emerging brands that will overtake the top luxury brands? (00:40:51) How would a hotel development come together? (00:44:19) What are you looking for in a hotel when you want to buy? (00:47:21) What’s a soft brand? (00:48:19) Do you need experience to partner with a Hilton or Marriott? (00:49:14) What does upgrading management look like? (00:54:34) What feedback do you see most often from guests? (00:57:48) Jake on partnering with Barry Sternlicht? (01;03:50) The One in Miami (01:07:56) How do you approach F&B? (01:09:30) What’s the greatest hotel in the world? (01:13:16)  How do you view hotels as investable assets over the next 5 years? (01:16:19) Are there any new revenue streams on the horizon?

John Meadow is the founder and president of LDV Hospitality, a boutique hospitality group that was founded on his realization of the ambition to bring the dream of “La Dolce Vita,” to everyday life. Focused on concept and business development, John drives the creative process for the company, envisioning restaurants and bringing them to life, as well as forging new partnerships with hotel developers to create bespoke food and beverage experiences for their guests. John began LDV in 2008, with critically acclaimed flagship Scarpetta restaurant, followed by signature brands American Cut and Dolce Italian. On this episode, Jake and John Discuss: Creating the Ultimate Dining Experience Building a Restaurant in Rome Scaling LDV to a Global level Leadership Lessons Links: LDV Hospitality: https://ldvhospitality.com/ Ralph’s Restaurant in Paris: https://www.ralphlauren.co.uk/en/global/ralphs-paris/7120 Outliers by Malcolm Gladwell: https://bit.ly/42k0AMX The Grand Hotel Parker's Naples Italy: https://en.grandhotelparkers.it/ Connect & Invest with Jake: Follow Jake on Twitter Take the Hospitality Investing Masterclass Learn How to Invest with DoveHill Timestamps: (00:02:14) - Introducing John & his journey into hospitality (00:06:26) - Early lessons on how to cultivate an experience in Hospitality (00:11:32) - What characteristics are you for in partners? (00:13:39) - How do you set the vision for a project? (00:16:05) - Scaling on a Global level (00:27:14) - What are the tipping points for restaurants in design that you implement every time? (00:31:35) - The changing way people engage with night life (00:34:37) - Membership concepts (00:37:54) - Designing a restaurant in Rome (00:53:07) - What would surprise listeners about your leadership style? (00:57:02) - Mentorship (01:01:36) - Can a chef own a truly successful restaurant for a long period? (01:04:17) - How have you managed to rebuild investor confidence and maintain relationships since the Pandemic? (01:10:51) - How do you utilize what you learn from traveling? (01:12:30) - What is your favorite hotel?

Alex Cabañas is passionate about leading and growing a company that makes a profound difference in the lives of employees, guests, owners, industry partners, and the community.  His life mission since college has been to create opportunities for others to be successful.  As President, Alex is focused on strategic planning, people development, pursuing growth and new opportunities, promoting the delivery of memorable customer service and ultimately being the best third-party management company in the industry, acting in the best interest of owners every day.  On this episode, Jake and Alex discuss: How Alex grew a 20-hotel company to 250 hotels via mergers and acquisitions How Hotel M&A works How to run a Global team Integrating teams through Mergers Creating an F&B think tank platform Links: Alex on LinkedIn Pyramid Global Hospitality Willow’s Lodge - Seattle Connect & Invest with Jake: Follow Jake on Twitter Take the Hospitality Investing Masterclass Learn How to Invest with DoveHill Topics: (00:02:17) - Completing a major Merger during the Pandemic (00:12:51) - What are you able to do post-merger that you weren’t able to before? (00:17:20) - How are you creating a culture that fosters retention? (00:19:53) - Is scale and size better in the management business? (00:29:17) - What behaviors thrive at the senior level in Hospitality? (00:34:40) - Mergers and Acquisitions (00:44:32) - What have you learned from your partner, Warren? (00:47:47) - How are you thinking about growing your management company? (00:51:51) - How are you handling the leadership position after all these mergers? (00:53:47) - Structuring a Merger (01:00:57) - How are you integrating the positives from lifestyle hotels with the other assets in your portfolio? (01:04:57) - What have you found to be some of the best ways to win at F&B? (01:08:52) - How are you optimizing costs & hiring? (01:14:29) - How are you thinking about leadership interactions and meetings with your team? (01:18:52) - What is your favorite hotel?

Delve into the world of hospitality investment with insights on underwriting processes. Learn how DoveHill Capital Management evaluates deals through both qualitative and quantitative lenses. Explore the crucial factors like historical performance and revenue trends, plus the art of modeling essential deal components. Jake Wurzak shares lessons from past mistakes and highlights key steps in their investment committee process. Gain valuable tips on how to navigate Capex issues and make informed investment decisions.

In 2004, Scott and his father, Bob, started Moss. Together they created the company’s first winning presentation and managed the company’s first project. Today, Moss employs over 1,600 people across the US with revenue exceeding $3 billion. As CEO of Moss, Scott inspires and empowers his team to create the exceptional. His innate curiosity drives a culture of continuous learning where insight, engagement, and determination define an individual’s success.  On this episode, Jake and Scott Discuss: The process of building a generational family business Implementing a Vision Leadership Council A deep dive on the Construction Industry Moss' growing Solar Business   Links: Scott on LinkedIn Moss Construction The Palace in St. Moritz   Connect & Invest with Jake: Follow Jake on Twitter Take the Hospitality Investing Masterclass Learn How to Invest with DoveHill   Topics: (00:02:50) - Scott’s career in construction (00:12:56) - Do you set goals every year or every 5 years? (00:13:50) - How has the construction market changed over the past 10 years? (00:16:21) - Are you seeing non-diversified companies go under? (00:17:44) - How do you select new markets? (00:20:51) - How do you think your customers view your company? (00:23:19) - What are some mistakes you see developers make? (00:27:40) - When should people start the conversation with their General Contractor? (00:29:53) - What are your first steps when you begin a project? (00:33:19) - When a market is lacking sub-contractors, do you ever bring in subs from out of the market? (00:34:48) - What’s changed in your strategy over the past 5 years? (00:37:53) - How do public and private jobs differ? (00:41:23) - Scott’s Vision Leadership Council (00:48:38) - Can you repair trust once it's broken? (00:50:24) - How do you view your role with regard to this council? (00:51:32) - How do you ensure your culture scales with the company's growth? (00:56:59) - What meetings are you attending that help you keep a pulse on the business? (01:01:18) - Where is most of your energy spent on a weekly basis? (01:04:13) - What are your goals for the solar side of the business? (01:06:04) - How much does China impact the future of your business? (01:09:40) - Are you seeing any major shift in your industry right now? (01:15:23) - How are you building Moss to be a generational business? (01:21:32) - What is your favorite hotel?

Zach has over a decade of experience developing real estate throughout the Southeast.  Current and past projects include hotels, multi-family, mixed-use, and retail. As CEO, he sets the overall strategy for the firm and oversees all acquisition, development, and financing efforts. Kupperman Companies designs, develops, and acquires hotels, retail, multi-family, and mixed-use projects in Louisiana, Texas, Georgia, Alabama, Colorado, and across the Gulf Coast. They invest in award-winning historic redevelopments that preserve the history, architecture, and culture of the surrounding community. Kupperman currently owns and manages over 520,000 square feet of hospitality, retail, and mixed-use assets and over 100 acres and 500 pads of manufactured housing communities through their affiliate, Lucky Communities. On this episode, Jake and Zach discuss: Transitioning from law into Real Estate Historic Tax Credit deals The impact of New Orleans' transformation since Katrina Acquiring one of the most coveted pieces of Real Estate in Aspen, CO Building partnerships with hospitality operators Links: Kupperman Companies Zach on LinkedIn The Little Nell in Aspen The Chloe, New Orleans Hotel Saint Vincent, New Orleans Hotel Peter & Paul, New Orleans   Connect & Invest with Jake: Follow Jake on Twitter Take the Hospitality Investing Masterclass Learn How to Invest with DoveHill   Topics: (2:27) - Zach’s transition into real estate (7:12) - How do Historic Tax Credit deals work? (10:04) - How did placemaking become a bigger part of your strategy? (11:30) - How has New Orleans changed since Katrina? (14:08) - What else does the city need to do from a RE perspective? (14:52) - What led you to add hospitality to your portfolio? (17:57) - Do memberships offset some of the costs that you lose with smaller door counts? (19:37) - With The Drifter & Hotel St. Vincent, what was your intention in setting the vibe? (24:16) - How do you structure your deals? (26:02)  - Where are your investors located? (26:24) - What did your debt and equity structure look like for the Saint Vincent Hotel? (32:36) - What did the business plan for the hotel end up being? (39:55) - What aspects of a historic tax credit deal would give you hesitation before jumping in on one? (41:02) - Do you manage Hotel St. Vincent? (42:03) - What have you learned about hotel ops? (43:42) - What are you focusing on now when thinking about new deals? (45:01) - Do your investors ever express concern about diversifying your portfolio? (46:39) - Are there any big opportunities that have you excited right now? (47:46) - How does a guy from NOL get one of the most coveted pieces of RE in Aspen, CO? (54:43) - How important is integrating F&B into the hotel experience today? (56:20) - How are the independent hotels in your portfolio competing against the market? (1:01:08) - Converting Hotels into MF (1:09:59) - How do you run Kupperman and how have you utilized that strategy to grow the firm? (1:13:44) - What does a typical week look like for you? (1:15:41) - How did you train your offshored underwriter? (1:20:13) - What is your favorite hotel?

Matt Marquis was named CEO of Pacifica Hotels after 7 years as the company's President and succeeded his father who founded the organization in 1970. Pacifica is the largest owner and operator of Boutique hotels on the Pacific Coast. On this episode, Jake and Matt discuss: A walkthrough of converting an independent hotel in Hawaii  Developing Investor Relations Growing and evolving a Management Company  Key to differentiating the hotel experience Links: PacificaHotels.com Matt on Instagram King Kamehameha's Kona Beach Hotel Hotel Bel Air   Connect & Invest with Jake: Follow Jake on Twitter Take the Hospitality Investing Masterclass Learn How to Invest with DoveHill   Topics: (00:02:07) - Matt’s career background (000:07:46) - What did you do within the hotel asset that made you so successful? (00:08:50- What did you come to be known for? (00:10:00) - What was so appealing about doing deals in California? (00:11:24)- How would you describe your portfolio in 2023? (00:12:51)- Converting an independent hotel (00:19:46) - Selling an Asset to Blackstone (00:23:41) - How do you think about taking a profit? (00:29:33) - What happens when you have a ReFi? (00:32:57) - Do you readjust your holding patterns when working with Institutional Capital? (00:36:25) - What have you learned about Investor Relations? (00:39:52) - Where do you find investors now? (00:41:07) - What pillars won’t you move on in negotiating with investors? (00:42:18) - What was it like being managed by Blackstone? (00:44:52) - What’s the process of creating a Hotel Brand? (00:50:20) - Is there a certain size hotel where the amenities become challenging? (00:53:18) - Are there simply too few deals out there? (00:54:16) - Is it unsettling having all this dry powder on the sidelines? (00:55:46) - How has your management company evolved over the years? (00:57:42) - What key things do you focus on to differentiate the hotel experience? (01:03:18) - How do you think about preparing your business for the next generation? (01:07:26) - How are you growing the management company? (01:09:54) - What is your favorite hotel? (01:14:46) - Where can people find you online?

Vamsi Bonthala is the Chief Executive Officer and co-founder of Arbor Lodging Partners, an award-winning national hotel investment firm. Vamsi has overseen approximately $1 billion of transaction volume since the inception of Arbor Lodging Partners, where he leads all company activities including general corporate strategy, investor relations, strategic relationships, acquisitions, dispositions, and asset management. On this episode, Jake and Vamsi discuss: Breaking down Vamsi's first deal Growing Arbor Lodging and building a vertically integrated management team Maintaining efficient deal pipelines Converting Hotels to Multifamily   Links: Vamsi on LinkedIn Arbor Lodging Partners The Grand Hyatt Kauai   Connect & Invest with Jake: Follow Jake on Twitter Take the Hospitality Investing Masterclass Learn How to Invest with DoveHill   Topics: (1:50) - Vamsi’s journey into Hospitality (6:38) - What happened in your first deal? (8:05) - How did you raise money for the deal? (10:41) - Looking back, what were some of the questions you should have asked in your first deal? (12:14) - How did you structure the deal with investors? (12:57) - Hospitality as a complex asset (14:51) - Were you looking for broken RE deals early on in your career? (17:15) - When did you start to grow your team? (18:57) - What made you decide to bring management in-house? (21:20) - Did institutional partners start to flow in once you became vertically integrated? (22:04) - How has your philosophy been shaped by doing deals in markets outside your own backyard? (25:36) - How do you and your partner figure out what deals and markets you’ll focus on? (28:21) - How do you keep your acquisitions team incentivized and motivated? (31:45) - How do you make sure your deal pipeline is as efficient as possible? (32:52) - What is your strategy for 2023? (34:58) - Are you looking at converting Office to Hotel? (39:40) - Do you have separate capital for Debt and Equity? (42:36) - How do you make the economics work at scale? (45:26) - Why do you work with institutional partners vs. syndicating deals? (53:30) - At what point did you start viewing the management side as its own business? (58:31) - What’s something surprising that you’re doing in the management company? (1:00:03) - What tools are you using to maintain a pulse on the business? (1:05:22) - How do you approach hybrid work with your teams? (1:07:10) - How do you convert hotels to multifamily? (1:18:13) - What is your favorite hotel?