Webinar screen

Hosting America’s Business: The Phoenix American Hospitality Story

ORIGINALLY BROADCAST ON 05/18/2022
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Q&A from the Webinar:

Q: This seems like a great niche, how did you decide this would be your focus, a financial answer please?

A: The profit margins are a lot higher in the business select sector than they are in the resort sector of hospitality. Less labor involved, just rooms and buffet breakfast to focus on.

 

Q: Are you still facing challenges from COVID?

A: We are still using the enhanced cleaning systems we put in place during COVID. We also have been bagging breakfasts to “go” instead of having guests congregate around the breakfast buffet.

 

Q: Why did you want to start your own company?

A: I didn’t enjoy working for a corporation anymore. I wanted to start my own company using the following 3 principles: buy only business select hotels, buy only under the Marriott, Hilton and Hyatt brands, own and operate the hotels.

 

Q: How has your vision turned out?

A: During bad economic times and certainly during the Pandemic Business select hotels have been the first hospitality sector to recover. In fact, Average Daily Rates have significantly surpassed 2019 rates! Marriott, Hilton and Hyatt have very strong brand loyalty and we continue to see the brand bring business through our doors.

 

Q:  Would you ever consider buying hotels internationally?

A: We have talked about it but right now we feel that our expertise is in the U.S. domestic market.

 

Q: I received a 10% dividend check last weekend. I was surprised and happy! Do you think I will continue to see higher than the 8% preferred return?

A: As a REIT (Real Estate Investment Trust) we are required to distribute 90% of our profits. During our operational phase our investors will continue to participate in those profits if they are above 8%. When we sell the properties our investors will participate in the appreciation value as well. PAH will take 20% of the proceeds until our investors have seen a 12% return and then the rest of the profits will be split 60/40 (investor/PAH).