Tony O. Lawson’s Post

Transcript

Hello everyone. Today I'm joined by Eslava Parker, the Executive Director of the Black Hoteliers and Investors Association. How are you doing today as Levine? Let's see you. Good to see you too. Now for all those who aren't familiar, can you tell us what is the Black Hoteliers and Investors Association? Yeah, sure. So Black Hoteliers and Investors Association, BH and I for short, we are A501C6 application pending trade association and we are leaning into the opportunity to grow and scale the independent black-owned market of hospitality to $8 billion. By 2060. So we're definitely mission driven and we're member driven as well. Awesome. And what inspired the start of the organization? Amazing things. There have been so many different inflection points that have gotten me in the organization to this point. But I think probably the most recent and relevant, I think it was really significant for me to enroll in my masters program after being out of school for about a decade or so. I just brought so much in to my masters program at Georgetown. Shout out to the School of Continuing Studies. And I enrolled in a program called Global Hospitality. Leadership. And as I matriculated, I learned a lot more from the hospitality management perspective. But as I went into my masters thesis, I wanted to explore the intersections of ownership in the unique outperformance of boutique ownership. And so I created my master's thesis was on the equitable representation of Black owners in the boutique segment. And so there were some really interesting findings in there. It was the first scholarly qualitative research of its kind and there was just so many different findings. I mean, I think that from a communal perspective or community perspective, we found that that was a huge win for a lot of our owners in this space who identify as Black and who specifically are in the independent hotel concept phase. And then we also looked at some of the opportunities to kind of build. These entrepreneurs and those were in the areas of marketing and also proper capitalization. So looking at both what was working and where we could really properly resource these black hotel entrepreneurs, BH and I was born. And so we got to see where exactly we sit right now at the market size which is less than 110th of 1%, not ideal whatsoever, but. This $8 billion number gives us equitable representation by 13%. And so TBH and IA by 2060, we have a proudly ambitious goal of to properly capitalize on property, properly resourced black hotel entrepreneurs and independent space. And what are some of the common misconceptions about Horner Hotel ownership and investing? Yeah. I think that there that's a big question for our audience specifically that it's easy. I think it's really interesting to have these amazingly creative concepts and working to bring them to market. But for our audience specifically, it's. It's the proper capitalization that is really the value adds to continue to get these concepts to market #1 and then make sure that the process to getting them to market is seamless. I think that a lot of our entrepreneurs have challenges with because proper capitalization is such an issue, actually getting to market, making sure that you don't have any stop gaps along the pathway of development. So I think that there's probably a big misconception about hotel ownership that we definitely want to alleviate a little bit. And. The hospitality industry, so it's an evolved in recent years. What are some of the challenges and opportunities that it presents to black hotel owners and investors that you've noticed? Hmm. Yeah, the hospitality industry has definitely evolved. I would say especially since the pandemic. I think hospitality as an industry at large has the opportunity to rebrand hospitality. More specifically when we're talking about the workforce and how the workforce, when I say workforce, I mean the frontline workers, I guess are quote UN quote essential workers in the hospitality space really sees and feels and appreciates hospitality. It's not really. Something that is being of service or being in servitude, but rather being in service to folks. And I think hospitality owners, specifically hospitality owners with deep cultural nuances and backgrounds and affiliations with their communities can really lean into that opportunity to create a more inclusive workspace. And how do you currently measure the, I guess the success or the well start with the the economic impact right of black-owned hotels and local communities. What's the best way to measure the success there, would you say? Yeah, I think the first step is looking at the proper capitalization, looking at the checks, whether it be equity or debt that is contributed to to these actual hotels and resorts because then that way. We can measure from where we previously have been, where we are now with the length of time that it takes to get to market with you being actually proper capitalized, having that shortened. And that means you can actually start generating revenue and creating an impact in these communities more quickly and more sustainably, especially when we're talking about employing individuals who are from a particular community, where the hotel is and where the hotel is located and for a lot of. Times for these black hotel entrepreneurs, Not always, but sometimes they're they're in spaces, geographies and neighborhoods that reflect our unique experiences. Are you noticing any, uh, specific geographic regions that are more interest to hotel owners and others? That's a great question. I would say no and that's what I think is the most amazing thing because black hotel entrepreneurs are doing their due diligence. They're really finding the right size fit between their brand feasibility and the geographic market feasibility. So I've seen examples of black hotel entrepreneurs and black hotel yours who will say, I have this great idea because I have an emotional connection to XYZ city, I want to place it here, but come to find out later after curating research. From performing traveler insights and interviews, they come to find out, well, maybe this isn't the best location for the brand concept that I have. And so there are definitely iterations of looking at that feasibility match and mix in order to have the best performing asset and or brand. What ways do you support that your members? Great question. So BH and IA, we are, we have almost a double sided market. So we have investor members and then we also have black hotel your members. So our black hotel your members again like based on the the thesis we're looking at those two areas where we can really write fit those resources. So one is marketing which is a huge challenge that our members have with actually staying marketed to travelers. And so we want to make sure that, you know, travelers are not only aware, but really excuse me, but and the experiential offerings, understand the brand offerings, what is unique about the brand. And so marketing is a big vehicle in order for us to do that. The other piece is capitalization. So I'm going to throw in a little teaser here. So at our conference that we're hosting in November, we're going to make a grand announcement, but what I can share. Specifically about being properly capitalized is that BH and I shared at its industry outlook earlier this year in 2024 that because. Our goal is to have 650 hotels and resorts by 2060. We really wanted to break that down and curate a road map. So for this year, our goal is to capitalize or be responsible for capitalizing or driving capital too at least six hotel deals and or black hotel yours. We want to make sure that's very clear and that'll help us kind of ramp up the momentum up through 2025. So starting 2025 for 15 years, we want to be responsible for capitalizing. At least 15 deals for 15 years and then afterwards 20 deals for 20 years. And so that way we're providing value to our members in order for them to get access to this capital. I'll share exactly how we intend on doing that at the conference. And then also community there have been even at our investors and owners breakfast that we hosted a few weeks ago, we had a few developers and owners there that number one said I, I didn't have a community. Before and now I have folks who I can rely on and not to say that there aren't individuals who are aware of other organizations in this space because there are some amazing organizations and hospitality who support and curate opportunities and resources for hotel entrepreneurs. Now, BH and I, a Black hoteliers and investors association. We just happen to be the only hospitality organization who is focused on proper capitalization. Specifically on black owners and black owners of independent brands. So for me, just to clarify, independent brands are, are non chains, right? And so we want to make sure BH IA that we're fostering creativity and also due diligence and bring something really unique to the travelers in the market because black hoteliers are not short of creative concepts by any means. And who would you say is your? I think I already know what the answer is going to be. Your typical member? Yeah. So on our investor side, we are seeking investor members who are individuals who represent ultra high net worth individuals and family offices and or the individual ultra high net worth individuals themselves and also institutions. So that could be anywhere from a private equity firm, venture capital firm, hedge funds and institutional economic funds who are really seeking to deploy capital to #1. Get a return on their investment. The independent market just so happens to be one of hospitalities historically outperforming markets. And so we really want to lean into that unique value proposition there for all of our investors who are seeking traditionally outsized returns. So that is number one, we definitely want to make sure that our investors are receiving their return on investment. And on the, I guess the non investor side, what is the typical member look like there? Yeah. So our members. They identify as black. They self identify as black. They happen to. From what I've seen thus far, they happen to have experience either in development and real estate. Previously, they've worked in the executive ranks of hospitality and are looking for their next steps. They too could be. I would say independently wealthy individuals who may have land or families who have inherited land who are seeking ways for monetizing and really right fitting their land for historical legacies and opportunities to, you know, develop and welcome travelers into their space. So, and you touched on it a little bit earlier, but are there any upcoming events or upcoming news that we should be staying tuned for? Yeah, great question. So I did mention our Black Hoteliers and investors retreat. So this is our very first annual conference, our inaugural conference where we are bringing together an intimate group of 200 ultra high net worth individuals, accredited investors, financiers and black hotel yours too. Network and to also really understand what the market opportunity is for investing in this space. And we are highly collaborative. So we'd love to hear insights, feedback from both the hotel, your side and the investor side, institutional and individuals on how we can make this a win, win, win for everyone. Because building out an emerging domestic market to $8 billion, I would say is not an easy feat. And we're looking for stakeholders, we're seeking partners. Across the entire ecosystem or spectrum of resources that includes finances, development, architectural design, engineering, literally every facet of what it takes for a hotel and a collection of hotel brands to run. Interesting. Well, it's Levine. Thank you so much for stopping by and sharing all your insights and information. Definitely looking forward to all the success that your organization is going to have and you have a great rest of the day. Well, I appreciate you making some time for us, Tony. Take care of yourself. Thank you. Do the same. Peace.