Proven Hospitality Investment Principles Still Apply Despite Pandemic's Effects on Hotel Industry, Investor Interest Still Present
By Rick Takach | HNN columnist October 5, 2021 | real estate markets, including hospitality, are no strangers to periodic economic cycles.
The abrupt and unforeseen nature of the COVID-19 pandemic should really be viewed as a disruptive and unprecedented event, much different from the typical slow windup and eventual slowdown of an economic cycle. The attempts to mitigate the virus spread via restricted travel and stay-at-home orders in various parts of the country over the past 19 months proved to be a longer-term consideration for nearly all commercial real estate asset classes.
In the deepest days of the pandemic, comprehensive stay-at-home orders halted both business and leisure travel and forced many traditional office professionals to work from home. This intentional disruption curtailed business travel, and new consumer patterns emerged — as did investor attractiveness to different real estate investment classes. Those asset classes that performed most favorably during the pandemic included multifamily housing; warehousing and distribution facilities; commodity retail, such as retail giant Walmart, pharmacies, grocery stores; and specialty areas such as data centers, self-storage facilities and, in some cases, medical facilities. Many office, retail and hotel properties, particularly those in downtown business centers in major cities, faced significant challenges.
Despite the challenges, hotel valuations have remained reasonably stable in light of the pandemic-driven performance. At the same time, we are witnessing excellent availability of capital for hotel investments recognizing forthcoming pent-up demand opportunities and lack of new supply.
F&B Remains Integral to the Guest Experience and Operating Revenue: Learning from the Pandemic
By Mark Hemmer President, Vesta Hospitality | August 29, 2021
Hospitality is a broad concept, rooted in our most basic human experiences and impulses, and, also, an expansive industry with a wonderful history and traditions. From limited service and extended stay to full service and luxury properties, the modern hotel encompasses a broad range of services and amenities, in addition a room.
An inviting lobby able to provide individual quiet spaces, as well as bring people together; yes, those days will return. Internet access and infotainment systems in our rooms. Comfortable pool, fitness centers and spas. Business center. Meeting rooms, ballrooms, and convention space. Outdoor terraces. Garage space. All these "amenities" take substantial resources and staff to provide and service properly.
Center stage among such functions areas is food and beverage operations. They touch every guest. They test our skills in many ways. It is one of our most complex businesses within a business. Inventory management, food safety, preparation and service, marketing all play their part.
We already know how competitive the restaurant business is as a whole is, but here we are, intrepid hoteliers, taking that challenge on. Not just as "breakfasteers." Interestingly, pre-pandemic, food and beverage operations and fine dining components were increasingly important to revenue generation (total spend, or gross profit per room) strategies for many hotels.
Hotel Investors 'Kick the Can' on Acquisitions as Distressed Assets Haven't Materialized
By Sean McCracken | Hotel News Now | August 12, 2021
Owners Expect Pace of Hotel Transactions Could Quicken in Next 18 Months
Jonathan Stanner, CEO of Summit Hotel Properties, (left) and Rick Takach, chairman and CEO of Vesta Hospitality, speak during the 2021 Americas Lodging Investment Summit. (Sean McCracken)]
Jonathan Stanner, CEO of Summit Hotel Properties, (left) and Rick Takach, chairman and CEO of Vesta Hospitality, speak during the 2021 Americas Lodging Investment Summit. (Sean McCracken)By Sean McCracken
LOS ANGELES — Hotel owners who thought they were experienced and poised to make the most out of a crisis following the Great Recession had to learn the hard way just how bad things could get.
Speaking during the "Boardroom Outlook: Investment Strategies/Assets" panel at the 2021 Americas Lodging Investment Summit, Rick Takach, chairman and CEO of Vesta Hospitality, said he understands why the previous year and a half could scare investors away.
"2020 hit, and obviously the 2009-2010 numbers are gone. They're out the window," he said. "Anybody who would look at 2020 might not ever want to invest in the hospitality industry again. However, I think it's an asset class that's here to stay."
Both Takach's company and real estate investment trust Ashford Hospitality Trust went into the latest crisis with leverage levels around 60% to 65%. Ashford Trust CEO Rob Hays said his company's leadership team quickly learned that recipe didn't work despite yielding positive results during the previous downturn.
Succeeding in an Era When Guests Define and Drive Service Concepts as Never Before
Hotel Executive: Hotel Business Review
By Richard Takach, Jr. President & CEO, Vesta Hospitality | April 18, 2021
At its most fundamental, the hospitality industry has always been about anticipating and responding to the needs of its guests. Treat guests as you would like to be treated and you will be rewarded with their patronage, genuine appreciation and loyalty. Operating revenues and profitability will follow.
However, in our modern era, this imperative has been complicated and challenged in several ways. For starters, even within individual brand platforms and asset classes, both leisure and business travelers are not necessarily looking to have as standardized a guest experience as in generations past. It's not "plug and play" anymore. The key is the ability to modify the experience at any given property to meet as many guest expectations as possible. Be flexible and always try to view any stay from the guest's perspective.
altX video podcast presented by Nvestiv Capital
January 2021
"Most of the Industry Experts predict that 2nd half of 2021 will see a rebound of the Hospitality Industry. I have gone through a lot of cycles and every cycle becomes scarier and scarier. But one thing is for certain, that every time this industry bounces back stronger than the last time." Rick Takach, Chairman & CEO, Vesta Hospitality
Rick from Vesta Hospitality talks with us about the Hospitality Industry and how it has been affected by Opportunity Zones, COVID-19, some stiff competition as well as opportunities for distressed buying during the pandemic and how 2021 looks for this industry.
https://www.youtube.com/watch?v=TgfsfZTZm0I&feature=youtu.be (video podcast presented by Nvestiv Capital)
AC Hotel breaks ground at Port of Vancouver’s Terminal 1
The Columbian
By Anthony Macuk, Columbian business reporter - Published: August 22, 2019
First project underway at redevelopment site after three years of planning.
After more than three years of planning, work on the first project in the Port of Vancouver’s Terminal 1 redevelopment is underway. Construction of the AC Hotel by Marriott kicked off with a groundbreaking ceremony Thursday afternoon.
Rent Check — Company Perks Up Workers With Year’s Worth of Free Housing
Workforce by Francesca Mathewes, August 12, 2019
Whether it’s part of a rewards program or a long-term benefit, housing perks are something employees buy into.Everyone loves prizes — particularly when those prizes include free housing for a year.
For the past seven years, Vancouver, Washington-based Vesta Hospitality has been running an associate of the month program called “Work Hard Live Free.”
Developer Vesta Hospitality benefited from new opportunity zone
A Developer Vesta Hospitality is putting the finishing touches on its plans for The AC Hotel by Marriott, which is slated to occupy one of the main lots at Terminal 1, the riverside redevelopment site owned by the Port of Vancouver.
HB ON THE SCENE: The Art of the Deal
Many factors go into the financial wheeling and dealing of the hospitality sector. One of the most important is finding the right partner.
Managing Expectations: Leading Owner/Operators Outline Expectations During BITAC® Symposium
A handful of chief executives from top owner/operators convened during the recent BITAC® Symposium 2017 to discuss current industry conditions and provide a glimpse into what they see in the near-term future.
Vesta Hospitality a New Corporate Partner for Columbia Springs
Vesta Hospitality is pleased to become a new corporate partner for Columbia Springs, a nonprofit environmental education center based in Vancouver, WA. Columbia Springs provides science-based education to thousands of children in Clark County each year. Vesta’s partnership with Columbia Springs reflects our commitment to supporting excellence in education in our community.
Vesta Hospitality celebrates two decades of growth
Vancouver Business Journal - December 23, 2016: Vancouver-based Vesta Hospitality has achieved much success in creating this kind of hospitable atmosphere in each of their properties.
At 20, Vesta Hospitality looks forward, continues to give back
Not only is Vesta Hospitality celebrating 20 years of being in business, it’s also boasting the upcoming lease of a public-private partnership project in its hometown, new acquisitions in a neighboring state, and reminding leaders in the hospitality space to always give back to organizations in surrounding communities.
Vesta offers more details for new Marriott at port of Vancouver
Vesta Hospitality owns or manages hotels throughout the West, but it has only one in its own backyard of Vancouver. That will change within the next couple of years with the Port of Vancouver’s selection of the little-known company to develop, own and operate a new hotel at the port’s Terminal 1.