Hospitality Niche is a Bright Spot for Main Street
March 19, 2015
By Bob Coleman
Editor, Coleman Report
Bob Coleman: “Welcome to the Choice Hotels Owners Conference in San Antonio. I am here with Rocky Pintozzi and Bobby Sheth, tell us what about this event and what we are doing here.”
Bobby Sheth: “We have gathered our owners for our different brands and brougt them to San Antonio to discuss how 2015, 2016, and 2017 are predicted to be incredible peak profit years for the hotel industry. We are giving our owners tools on how to optimize that revenue for the next three years.”
Bob Coleman: “Well that is really good news right Rocky? You and I met in the depths of 2008 when there was not a lot of good news, there is a lot of excitement going on here.”
Rocky Pintozzi: “This is what we have been waiting for Bob. Our hotels have been gearing up. The Choice Hotels that we represent are Comfort Inns, Comfort Suites, Quality Inns and Sleep Inns. Our hoteliers are getting ready because companies are coming, and we know that. We are spending hundreds of millions of dollars to get our hotels ready for the new guests that are coming. Gas prices are down, the economy is back, business travel is up and our hotels provide a great value for 4-star ammenties for a 2-3 star price.”
Bob Coleman: “I appreciate being involved with this group, this is the third year that you have invited me out. My session was on lending and I had the nice privilege to talk with a lot of your members. This is really good news for lenders. What I want to know is how should my lenders view choice?”
Rocky Pintozzi: “These hotels are ready, we are ready for the upturn of the economy. Our hotels are ready to receive these guests. They are prepared with all of the ammenities that guests would expect. High speed internet is free, it has always been free with us, you don’t have to pay for it. Some of these larger hotels are charging $25 a day. They are spending a lot of money to make sure that when the guests come, they are going to be statisfied to stay with our hotels.”
Bob Coleman: “Bobby, again the same comments are that it is a much more exciting time now that it was even from last year. In terms of the future of the industry, how would you judge it? Is this the best we have seen it?”
Bobby Sheth: “This is the best we have seen it. This is even beyond the 2007 levels. Based on a report from STR, they are actually predicting growth until 2020. Which is fantastic news for the industry.”
Bob Coleman: “Well what I enjoy about this industry, and I love talking to these people, is my comment is ‘You are small business owners. You hire people, you create value to your community, you pay taxes. These are not commercial real estate investors.’ And I think the takeaway for the lenders is lets get these people classified and get the regulators to classify these as small business owners and not investors. Rocky, Bobby, thank you for the invitation.
Rocky Pintozzi: “Thank you Bob.”
Bobby Sheth: “Thank you Bob.”