I think you just did a better job then my 4-years of Penn State ;) This only made me want to connect further with you more. One additional distinction - that has blown my mind - especially in the US (Oh did I mention I just worked for an ownership/management group..) the brands aren't typically managing anymore - unless it's high end full service. There are a HUGE amount of 3rd party managers. I tell this to friends all the time who want to get mad at Hilton for a bad stay. The bad stay was not Hilton's 'fault' Hilton is a franchisor. The owner and/or management company are really in charge of the guest experience....
Yup white label management is huge! More control over operations because the white label companies are more likely to have the best interest of the owner in mind compared to brands/global chains
Thank you for sharing. I really enjoyed your piece. I used to be head of PR for Omni Hotels & Resorts. Omni is the owner/operator of almost all its 50+ hotels. Those hotels you mentioned that KSL used to own are now owned by Omniâs parent company TRT Holdings. Omni is the owner operator and brand of Omni Grove Park Inn, Omni Barton Creek and Omni Rancho Las Palmas and Omni Homestead. Omni invested $155M in Homesteadâs restoration. Again, your piece is perfect for PRS entering into the hospitality space.
Amazing! Iâm so glad you enjoyed my piece. I think Iâll tackle hotel categories next. I saw that TRT just purchased the Greenbrier past-due loans. Iâm curious your thoughts on that acquisition?
I donât think the sale price has ever been shared publicly, but it was close to $1B for 36 properties. Outrigger / KSL sold 6 properties two years after the sale for $310M if that helps. The Reef was owned in a fee simple structure. The majority of the value was in the opco (brand and management).
A great rundown!! I wrote my masterâs thesis on how operating models are evolving and these ownership structures are such an interesting topic that totally reflect the sophistication (industry-specific knowledge) of owners and investors
Thanks for the explanation. Intuitively I knew why some hotels work better for me and why I avoid the big names but this  follow the money  explanation now gives me the rationale for it!
I think you just did a better job then my 4-years of Penn State ;) This only made me want to connect further with you more. One additional distinction - that has blown my mind - especially in the US (Oh did I mention I just worked for an ownership/management group..) the brands aren't typically managing anymore - unless it's high end full service. There are a HUGE amount of 3rd party managers. I tell this to friends all the time who want to get mad at Hilton for a bad stay. The bad stay was not Hilton's 'fault' Hilton is a franchisor. The owner and/or management company are really in charge of the guest experience....
True! We worked with Springboard Hospitality as our manager partner for the Hilton Garden Inn. I totally left that part out đ
Yup white label management is huge! More control over operations because the white label companies are more likely to have the best interest of the owner in mind compared to brands/global chains
Thank you for sharing. I really enjoyed your piece. I used to be head of PR for Omni Hotels & Resorts. Omni is the owner/operator of almost all its 50+ hotels. Those hotels you mentioned that KSL used to own are now owned by Omniâs parent company TRT Holdings. Omni is the owner operator and brand of Omni Grove Park Inn, Omni Barton Creek and Omni Rancho Las Palmas and Omni Homestead. Omni invested $155M in Homesteadâs restoration. Again, your piece is perfect for PRS entering into the hospitality space.
Amazing! Iâm so glad you enjoyed my piece. I think Iâll tackle hotel categories next. I saw that TRT just purchased the Greenbrier past-due loans. Iâm curious your thoughts on that acquisition?
This was great! I'm curious to know how much KSL bought Outrigger for, and how much of that value was attributed to the opco vs propco?
I donât think the sale price has ever been shared publicly, but it was close to $1B for 36 properties. Outrigger / KSL sold 6 properties two years after the sale for $310M if that helps. The Reef was owned in a fee simple structure. The majority of the value was in the opco (brand and management).
thatâs amazing!! thanks for sharing :)
A great rundown!! I wrote my masterâs thesis on how operating models are evolving and these ownership structures are such an interesting topic that totally reflect the sophistication (industry-specific knowledge) of owners and investors
Oh so fun! Iâd love to see you do a post with some pieces of your thesis
I should!!!
Really great explanation of this super complicated space!
Thank you! Glad you enjoyed it. Did you learn anything new?
Yeah I was already familiar with the franchise structure but how the others work is new to me
Thanks for the explanation. Intuitively I knew why some hotels work better for me and why I avoid the big names but this  follow the money  explanation now gives me the rationale for it!
Itâs a complex system of different ownership models, but definitely try to stay in owner operated hotels for a more streamlined experience
Smart article because as you point out, ownership is not understood but affects the whole experience.