ATLANTA — Mitch Patel, founder and CEO of Vision Hospitality Group, shared valuable insights into the evolving landscape of the hotel industry during a panel at the Hunter Conference in Atlanta last week. A seasoned leader in the hospitality space, Patel offered his perspectives on strategic growth, partnership building, and the current economic climate for hotels.
Patel, known for his creative analogies, compared the varying types of hotel assets to beer and wine, drawing a distinction between select-service hotels, which he likened to beer, and luxury or full-service properties in high-barrier markets, represented by wine. He explained that beer, much like select-service hotels, has a limited shelf life, requiring regular investment to maintain relevance. In contrast, wine—symbolizing high-end assets—has enduring value, making it a strategic long-term investment.
Vision Hospitality Group, based in Chattanooga, Tennessee, continues to grow its diverse portfolio of over 40 hotels, with plans for four new hotel openings and renovations on another four properties in markets like Colorado, Tennessee, Georgia, and Florida. Patel emphasized the importance of carefully evaluating which assets to hold onto for the long term and which to potentially divest, noting that strategic decision-making can optimize the value of their portfolio.
“We think it’s a great idea for us to build those strategic partnerships with the right groups where our capital is going to go alongside their capital,” Patel remarked. This approach reflects the company’s continued commitment to expansion and collaboration.
As part of Vision’s growth trajectory, Patel recently appointed Mary Beth Cutshall as Chief Growth Officer. He expressed excitement about the addition, recognizing her as a key partner in shaping the company’s future growth. Patel outlined that Vision’s growth will be measured, with a focus on quality over quantity. While he envisions a portfolio of over 60 hotels in the next five years, Patel stressed that his goal is not to rapidly scale but to ensure long-term, sustainable success.
On the topic of the broader economic landscape, Patel acknowledged that the hospitality industry, particularly economy hotels, has faced challenges in recent years. Many owners of economy properties have struggled with rising costs and stagnant revenues, putting them in what Patel described as a “recession” for the past few years. He also noted that a recent softening in business, particularly due to government spending cuts, has impacted certain sectors of the market. However, Patel observed that these issues were largely localized and did not represent a significant threat to the industry as a whole.
Patel also pointed to shifting consumer behavior, citing a decline in consumer confidence as a factor contributing to a more cautious approach to spending, particularly on travel. He stressed that consumer confidence numbers are an important indicator of future market conditions.
Despite the challenges, Patel highlighted the continued strength of Vision’s higher-tier assets, such as The Edwin Hotel in Chattanooga, which has seen an increase in Average Daily Rate (ADR). He attributed this growth to the “experience economy,” where guests are increasingly willing to pay a premium for unique and high-quality experiences.
“There’s no ceiling on what some hotels could charge in ADR,” Patel explained. “If you want to charge $800, $900, or even $1,000, you could do it because people will pay for that unique experience.”
For Vision Hospitality Group, Patel’s vision for the future combines a commitment to strategic growth, meaningful partnerships, and a keen understanding of market dynamics. By focusing on quality assets and maintaining strong relationships within the industry, Vision is poised to navigate the changing economic landscape while delivering exceptional experiences to its guests.
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