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.
Thoughts, questions, suggestions? Send me a text message
This episode is brought to you with support from Sojern. I teamed up with Sojern to study how hoteliers use data to drive revenue and build stronger guest relationships. You can see what we found in this research report: How Hotel Brands Are Using First-Party Data to Drive Revenue & Build Stronger Relationships.
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Music by Clay Bassford of Bespoke Sound: Music Identity Design for Hospitality Brands
