Key Aspects in Growing a Hospitality Portfolio and Organization
By Mark Ricketts President & Chief Operating Officer, McNeill Hotel Company | February 2019
Hospitality is a demanding, fast-paced operating business all rolled into a complex commercial real estate investment. As we know, those entities looking to expand their portfolios, and their accompanying organizations at the property level and in the C-suite, have their work cut out for them.
Between our competition on the one hand and the guests we care for on the other, there is always a scramble for properties and people. For any given entity, finding the appropriate properties in which to invest must fulfill a demanding constellation of well-defined parameters. These include such factors as location, per broad national region and within a discrete market; the condition of the property, from new build to complete rehabilitation; the class of property, whether economy, select-service or upscale/boutique; debt structure and overall financing; anticipated operating income or the potential for asset appreciation.
Similarly, a host of factors determine which people are best suited for any organization, whether we are considering a housekeeper, front desk staff, director of sales or human resources manager. Who to hire and when to hire are traditional challenges, perhaps complicated further by the competition for talent in today's strong employment marketplace.
In this article, we will look at some of these challenges and discuss principles and approaches to achieving that desired path of growth. Issues considered include: core philosophies; operations and outsourcing; property type, geographic region and brand affiliations; and the overall "people part" of hospitality.
Setting Core Values and Culture
It may be useful to consider the difference between an organization's investment and operational strategies, even its vision or mission, and its core values.