00:00:00.694 –> 00:00:01.475
Looks like we’ve got

00:00:01.514 –> 00:00:03.956
ourselves an ultra rare

00:00:04.118 –> 00:00:06.559
threefer going on today.

00:00:06.620 –> 00:00:08.221
I know, it’s exciting.

00:00:08.242 –> 00:00:10.003
Woo, let’s hang out.

00:00:10.064 –> 00:00:12.045
I’m Anthony, welcome to No Vacancy Lines.

00:00:12.385 –> 00:00:13.246
That’s my friend Glenn.

00:00:13.426 –> 00:00:14.167
You’re watching the number

00:00:14.268 –> 00:00:15.570
one show in hospitality.

00:00:29.245 –> 00:00:29.786
Hey, everybody.

00:00:29.826 –> 00:00:30.727
Welcome to the one,

00:00:30.746 –> 00:00:33.067
the only No Vacancy Live.

00:00:33.088 –> 00:00:34.768
We got Dr. Producer Suzanne

00:00:34.789 –> 00:00:36.048
Bagnara in the house today,

00:00:36.088 –> 00:00:36.829
and I want to thank each

00:00:36.850 –> 00:00:38.250
and every one of you for

00:00:38.289 –> 00:00:39.670
spending some time with us.

00:00:39.691 –> 00:00:43.393
Yes, live today, March 13th.

00:00:43.432 –> 00:00:46.393
None of that pre-recorded nonsense today,

00:00:46.433 –> 00:00:46.914
Suzanne.

00:00:47.895 –> 00:00:50.176
No, we are in the virtual flesh.

00:00:53.273 –> 00:00:55.014
Yeah, I wish I had some virtual flesh.

00:00:55.054 –> 00:00:56.014
Maybe there’d be a lot less

00:00:56.033 –> 00:00:56.973
of it hanging off of me.

00:00:57.073 –> 00:00:59.155
It was a tough winter.

00:00:59.215 –> 00:00:59.554
Finally,

00:00:59.594 –> 00:01:00.816
the weather’s starting to turn and

00:01:00.856 –> 00:01:01.795
I’m getting back out there

00:01:01.835 –> 00:01:03.697
and getting a little bit of exercise.

00:01:03.777 –> 00:01:05.677
But I was feeling like the

00:01:07.117 –> 00:01:08.677
winter doughboy over here.

00:01:09.298 –> 00:01:10.578
Yeah, well, sorry.

00:01:10.638 –> 00:01:12.039
That’s why we moved to

00:01:12.078 –> 00:01:13.439
Florida from New York.

00:01:14.739 –> 00:01:16.040
So I think even our guest

00:01:16.081 –> 00:01:17.161
has that in common today.

00:01:18.057 –> 00:01:18.278
Yeah.

00:01:18.578 –> 00:01:18.837
All right.

00:01:18.897 –> 00:01:20.679
Well, everybody’s moving to Florida,

00:01:20.739 –> 00:01:22.820
but I am holding firm and

00:01:22.921 –> 00:01:25.263
fast here on Long Island,

00:01:25.283 –> 00:01:26.043
New York at the Houseman

00:01:26.063 –> 00:01:27.525
Resort Pool Club Smokehouse

00:01:27.605 –> 00:01:28.566
and all that kind of stuff.

00:01:29.165 –> 00:01:30.447
How about since we’re going

00:01:30.466 –> 00:01:31.688
all academic today,

00:01:31.888 –> 00:01:33.149
something I certainly did

00:01:33.209 –> 00:01:35.370
not excel at in my days,

00:01:35.490 –> 00:01:39.334
although I did finally try at the end,

00:01:39.373 –> 00:01:40.355
so it went a little bit better.

00:01:40.394 –> 00:01:41.736
But since you’re the academic here,

00:01:42.096 –> 00:01:43.296
why don’t you do our big

00:01:43.397 –> 00:01:44.658
introduction for today,

00:01:44.697 –> 00:01:45.519
and I’ll bring in our guest.

00:01:46.254 –> 00:01:46.754
All right.

00:01:46.855 –> 00:01:49.115
So today we have the honor

00:01:49.236 –> 00:01:51.176
of bringing in a Cornell

00:01:51.277 –> 00:01:53.177
University professor emeritus,

00:01:53.596 –> 00:01:56.477
Jan DeRouche, coming with us today.

00:01:56.638 –> 00:01:57.498
Welcome.

00:01:58.159 –> 00:01:58.838
Well, welcome.

00:01:59.058 –> 00:02:00.519
I’m really pleased to be here.

00:02:00.698 –> 00:02:02.640
I’m still in the industry.

00:02:02.680 –> 00:02:04.840
I call it nose in and fingers out.

00:02:05.301 –> 00:02:06.240
I love that.

00:02:07.921 –> 00:02:09.122
I like that.

00:02:09.383 –> 00:02:09.924
That’s pretty good.

00:02:09.963 –> 00:02:12.506
And I should say that he’s

00:02:12.605 –> 00:02:14.146
also at the SC Johnson

00:02:14.187 –> 00:02:15.187
College of Business and the

00:02:15.247 –> 00:02:16.449
Nolan School of Hotel

00:02:16.508 –> 00:02:19.191
Administration at Cornell University.

00:02:20.312 –> 00:02:20.812
That’s long.

00:02:20.872 –> 00:02:22.013
Did they give you a test on

00:02:22.073 –> 00:02:22.873
memorizing that?

00:02:22.894 –> 00:02:23.775
It reminds me what I had.

00:02:23.854 –> 00:02:25.014
The name is long.

00:02:25.716 –> 00:02:26.856
I do need to be clear.

00:02:26.877 –> 00:02:27.537
I am retired.

00:02:27.616 –> 00:02:29.338
I just do executive programs,

00:02:29.438 –> 00:02:31.139
but I stay affiliated with Cornell.

00:02:31.199 –> 00:02:31.881
I’m now actually the

00:02:31.961 –> 00:02:33.081
president of the Cornell

00:02:33.162 –> 00:02:34.842
Club for the Sarasota and

00:02:34.883 –> 00:02:35.663
Manatee Counties.

00:02:36.223 –> 00:02:38.365
oh that’s pretty uh pretty

00:02:38.405 –> 00:02:39.366
cool suzanne I’m gonna let

00:02:39.385 –> 00:02:40.326
you kind of spearhead some

00:02:40.366 –> 00:02:41.287
of the conversation here

00:02:41.326 –> 00:02:43.008
today but I do want to say

00:02:43.068 –> 00:02:44.348
something about cornell is

00:02:44.389 –> 00:02:45.210
when you go to that

00:02:45.370 –> 00:02:46.971
university it seems that

00:02:47.010 –> 00:02:48.532
you’ve got a network for

00:02:48.651 –> 00:02:50.332
life I was told that when I

00:02:50.372 –> 00:02:51.993
did my fraternity that I

00:02:52.014 –> 00:02:52.653
was going to be able to

00:02:52.693 –> 00:02:53.474
connect with people for

00:02:53.495 –> 00:02:55.055
life no that was not true

00:02:55.295 –> 00:02:56.877
but wherever I go all the

00:02:56.937 –> 00:02:57.817
events there’s always

00:02:57.896 –> 00:02:59.518
cornell get togethers and

00:02:59.538 –> 00:03:01.759
the alumni scene is super

00:03:01.819 –> 00:03:03.501
rich and super healthy all

00:03:03.520 –> 00:03:05.602
right I’ll uh I’ll keep it quiet now jan

00:03:08.263 –> 00:03:11.965
Well, it is super rich and super healthy.

00:03:12.004 –> 00:03:13.245
The thing you need to learn, though,

00:03:13.284 –> 00:03:14.286
is to discriminate.

00:03:14.306 –> 00:03:15.826
There’s Charlie, and then there’s Fred.

00:03:15.887 –> 00:03:16.727
And Charlie’s going to give

00:03:16.747 –> 00:03:17.347
you good advice.

00:03:17.646 –> 00:03:19.247
And when Fred says to buy something,

00:03:19.268 –> 00:03:19.769
you sell.

00:03:20.508 –> 00:03:22.650
And you need to parse that out.

00:03:24.602 –> 00:03:25.282
That is true.

00:03:26.084 –> 00:03:27.044
But you would hope some of

00:03:27.064 –> 00:03:28.286
the people there understand

00:03:28.306 –> 00:03:29.567
the buy and the sell,

00:03:29.586 –> 00:03:31.248
particularly since our very

00:03:31.288 –> 00:03:32.210
own producer Dave is going

00:03:32.229 –> 00:03:33.611
to be coming on in a little while.

00:03:33.671 –> 00:03:34.872
Did a hotel real estate

00:03:34.913 –> 00:03:35.973
investments and asset

00:03:36.054 –> 00:03:38.757
management certificate with you,

00:03:38.836 –> 00:03:39.998
which is pretty cool.

00:03:41.584 –> 00:03:44.724
So that certificate is my labor of love.

00:03:45.965 –> 00:03:47.366
My love is teaching

00:03:47.425 –> 00:03:48.906
executive programs and I

00:03:48.966 –> 00:03:50.186
learned a lot and informed

00:03:50.225 –> 00:03:51.507
my undergraduate programs.

00:03:52.007 –> 00:03:53.766
And I took my executive

00:03:53.787 –> 00:03:55.247
programs and more and more

00:03:55.268 –> 00:03:56.348
was increasingly difficult

00:03:56.367 –> 00:03:57.108
for people to get away,

00:03:57.147 –> 00:03:58.429
especially during the pandemic.

00:03:58.508 –> 00:03:59.329
And Cornell was at the

00:03:59.368 –> 00:04:00.649
forefront of taking things

00:04:00.769 –> 00:04:01.770
and packaging them up with

00:04:01.789 –> 00:04:02.969
really nice technology.

00:04:04.290 –> 00:04:06.051
and chunking them up so that

00:04:06.132 –> 00:04:08.413
people could acquire really

00:04:08.592 –> 00:04:10.694
actionable skills that they

00:04:10.715 –> 00:04:11.675
can use in the industry.

00:04:11.694 –> 00:04:13.697
My goal is not to show

00:04:13.817 –> 00:04:15.198
people that Cornell is a

00:04:15.457 –> 00:04:16.999
place where people can learn things.

00:04:17.079 –> 00:04:18.158
It’s to give you a set of

00:04:18.199 –> 00:04:19.639
skills that you can use in

00:04:19.660 –> 00:04:21.341
your career to make money.

00:04:21.762 –> 00:04:23.603
I’m an unashamed capitalist.

00:04:26.144 –> 00:04:27.365
So maybe you could just talk

00:04:27.406 –> 00:04:28.569
to us a little bit about

00:04:28.668 –> 00:04:30.872
some of your academic and

00:04:30.932 –> 00:04:32.435
executive education type of

00:04:32.536 –> 00:04:33.999
experience for our viewers

00:04:34.059 –> 00:04:35.802
who don’t know enough about

00:04:35.882 –> 00:04:36.764
your background.

00:04:37.605 –> 00:04:39.564
So my background actually

00:04:39.644 –> 00:04:41.105
started in the kitchens in

00:04:41.125 –> 00:04:42.786
a little restaurant in a week.

00:04:42.826 –> 00:04:44.985
I was a foodie and my love is food.

00:04:45.146 –> 00:04:46.466
And I got on the wrong side

00:04:46.487 –> 00:04:47.466
of the wrong professor at

00:04:47.507 –> 00:04:49.047
Cornell and had to reorient

00:04:49.086 –> 00:04:51.327
my career to the physical side.

00:04:51.367 –> 00:04:52.387
So honest to God.

00:04:52.788 –> 00:04:54.627
And so I went out and worked

00:04:54.747 –> 00:04:56.108
with now Ashford

00:04:56.149 –> 00:04:57.889
Hospitality Trust is the REIT,

00:04:59.069 –> 00:05:00.108
the Bennett family and

00:05:00.149 –> 00:05:01.470
worked for them for a while

00:05:01.529 –> 00:05:02.569
after I worked for Sheraton.

00:05:03.029 –> 00:05:05.072
Came back to Cornell about

00:05:05.072 –> 00:05:08.934
35 years ago now and taught

00:05:09.675 –> 00:05:10.636
there for a long time.

00:05:10.696 –> 00:05:11.857
My career switched from real

00:05:12.076 –> 00:05:13.798
estate or actually my

00:05:13.858 –> 00:05:16.920
wheelhouse is lodging as a

00:05:16.980 –> 00:05:18.221
physical asset to lodging

00:05:18.261 –> 00:05:19.041
as a financial asset.

00:05:19.562 –> 00:05:22.384
And so my I treat lodging as

00:05:22.704 –> 00:05:23.625
within the real estate

00:05:23.644 –> 00:05:24.745
space as what it is,

00:05:24.786 –> 00:05:26.427
a very highly risky but

00:05:26.466 –> 00:05:28.548
also highly lucrative asset

00:05:28.569 –> 00:05:31.531
class that needs a lot of

00:05:31.632 –> 00:05:32.632
care and feeding.

00:05:32.672 –> 00:05:33.872
But I know a lot about

00:05:33.913 –> 00:05:35.293
valuation and also a lot

00:05:35.314 –> 00:05:37.055
about control in terms of

00:05:37.156 –> 00:05:39.076
what you either control via lease,

00:05:39.418 –> 00:05:42.040
via franchise, via management contracts.

00:05:42.279 –> 00:05:43.261
So I wrote a book on

00:05:43.300 –> 00:05:45.221
management contracts and I

00:05:45.262 –> 00:05:47.324
have my executive programs

00:05:47.463 –> 00:05:48.745
are at Cornell now.

00:05:49.571 –> 00:05:49.730
You know,

00:05:49.771 –> 00:05:51.713
several of them on real estate as

00:05:51.773 –> 00:05:53.413
part of a larger real estate curriculum.

00:05:53.713 –> 00:05:55.074
And I still do face-to-face

00:05:55.115 –> 00:05:55.995
programs at Cornell.

00:05:56.036 –> 00:05:57.637
I do a three-day program in the summer.

00:05:58.197 –> 00:05:58.398
Wow.

00:05:58.898 –> 00:05:59.819
That’s pretty cool.

00:06:00.178 –> 00:06:01.560
Perfect timing for you’ve

00:06:01.579 –> 00:06:02.661
relocated to Florida.

00:06:02.680 –> 00:06:03.581
So perfect time for you to

00:06:03.601 –> 00:06:05.682
get out of that humidity and go up.

00:06:06.043 –> 00:06:07.064
It’s actually not quite.

00:06:07.084 –> 00:06:07.223
Yeah.

00:06:09.365 –> 00:06:10.247
That year it’s August.

00:06:10.846 –> 00:06:12.048
I wish we had them in August.

00:06:13.769 –> 00:06:15.430
Yeah, that’s the worst.

00:06:15.471 –> 00:06:17.252
But interesting that your

00:06:17.291 –> 00:06:18.954
career has done that.

00:06:18.973 –> 00:06:20.175
What was the motivation for

00:06:20.235 –> 00:06:21.475
you to move on to the

00:06:21.815 –> 00:06:23.637
academic side of things?

00:06:23.838 –> 00:06:27.379
I had a lot of success as a

00:06:27.579 –> 00:06:29.221
graduate student teaching.

00:06:30.362 –> 00:06:32.144
One of our faculty members

00:06:32.444 –> 00:06:33.824
became physically disabled

00:06:34.125 –> 00:06:34.805
during the semester.

00:06:34.846 –> 00:06:36.627
I stood in for him to teach this course.

00:06:37.608 –> 00:06:38.468
I was always sort of,

00:06:38.889 –> 00:06:40.610
I had moved to Houston, did my work.

00:06:40.689 –> 00:06:42.230
I was on an adjunct faculty

00:06:42.269 –> 00:06:43.331
for them and taught in

00:06:43.370 –> 00:06:44.932
their programs as a sort of

00:06:44.951 –> 00:06:45.711
a guest as well.

00:06:47.673 –> 00:06:48.512
Really wanted to,

00:06:48.733 –> 00:06:50.033
I have family in upstate

00:06:50.074 –> 00:06:51.615
New York in the greater Ithaca area,

00:06:51.675 –> 00:06:52.855
always wanted to go back there.

00:06:53.115 –> 00:06:55.117
And these jobs come open

00:06:55.177 –> 00:06:56.857
about once every 10 years.

00:06:57.057 –> 00:06:57.317
And so-

00:06:58.798 –> 00:06:59.778
especially tenure track.

00:06:59.879 –> 00:07:01.560
And so it came open, I applied,

00:07:01.579 –> 00:07:03.339
I got the job and never looked back.

00:07:03.399 –> 00:07:04.021
It was the best thing to

00:07:04.060 –> 00:07:05.060
ever happen in my career.

00:07:05.081 –> 00:07:06.182
You know,

00:07:06.201 –> 00:07:07.141
you leave a little bit of money

00:07:07.201 –> 00:07:07.622
on the table,

00:07:07.661 –> 00:07:08.502
but Cornell gives you a lot

00:07:08.523 –> 00:07:10.083
of freedom to do what you want to do.

00:07:11.103 –> 00:07:16.545
And the hardest thing is, you know,

00:07:16.565 –> 00:07:18.826
you know, enormous amount about nothing.

00:07:19.466 –> 00:07:20.367
Yeah.

00:07:22.089 –> 00:07:24.514
But the people who care really care a lot.

00:07:24.934 –> 00:07:25.295
That’s cool.

00:07:25.415 –> 00:07:26.156
I have the opposite.

00:07:26.196 –> 00:07:28.841
I know barely anything about everything.

00:07:28.860 –> 00:07:30.423
And that’s kind of how I’m squeaking.

00:07:30.442 –> 00:07:31.223
Suzanne?

00:07:34.127 –> 00:07:35.807
It is the component of going

00:07:35.848 –> 00:07:38.108
from industry to going to academics.

00:07:38.249 –> 00:07:39.309
You do give up a lot.

00:07:39.329 –> 00:07:40.269
I think the toughest thing I

00:07:40.288 –> 00:07:42.189
had to give up was my car

00:07:42.230 –> 00:07:43.951
and my insurance as a general manager.

00:07:43.990 –> 00:07:45.050
That was one of the best perks.

00:07:45.130 –> 00:07:46.632
But honestly,

00:07:46.672 –> 00:07:48.252
the rewarding opportunity and

00:07:48.291 –> 00:07:49.892
then the exposure that you

00:07:49.913 –> 00:07:52.874
get from the opportunities

00:07:52.954 –> 00:07:55.334
to consult and do other things.

00:07:55.415 –> 00:07:56.615
And so definitely, I think

00:07:57.149 –> 00:07:58.091
Jen has had some great

00:07:58.190 –> 00:07:59.773
executive education experience.

00:07:59.793 –> 00:08:01.334
And I think that’s where I

00:08:01.394 –> 00:08:03.877
really see our industry

00:08:04.538 –> 00:08:06.040
rallying and finding that

00:08:06.079 –> 00:08:07.201
level of support now.

00:08:07.341 –> 00:08:10.444
So supporting the growth in

00:08:10.464 –> 00:08:12.146
the pipeline of what we’ve got.

00:08:12.307 –> 00:08:13.228
Everyone is hurting for

00:08:13.247 –> 00:08:13.869
talent and these

00:08:13.908 –> 00:08:15.490
certificate programs really help

00:08:16.370 –> 00:08:18.091
people get these actionable skills and,

00:08:18.552 –> 00:08:18.872
you know,

00:08:18.932 –> 00:08:20.353
there’s great programs and

00:08:20.392 –> 00:08:22.894
revenue management in marketing and,

00:08:22.913 –> 00:08:24.153
you know,

00:08:24.194 –> 00:08:25.975
and then newer programs on how

00:08:25.995 –> 00:08:27.654
to automate these with AI.

00:08:28.134 –> 00:08:28.596
There’s some,

00:08:28.995 –> 00:08:30.175
just some fabulous things

00:08:30.396 –> 00:08:32.756
where the certificates, I mean,

00:08:32.817 –> 00:08:34.038
I’m watching my, my,

00:08:34.298 –> 00:08:35.337
my daughter just recently

00:08:35.378 –> 00:08:37.698
graduated from George Washington.

00:08:37.739 –> 00:08:38.839
Her degree is worth a lot

00:08:38.879 –> 00:08:39.860
less than my other two

00:08:39.919 –> 00:08:42.321
daughters who are another

00:08:42.360 –> 00:08:43.380
generation older than her.

00:08:43.980 –> 00:08:45.883
And I just see the, she needs to,

00:08:46.143 –> 00:08:47.322
and she’s already going

00:08:47.364 –> 00:08:48.403
back and acquiring skills.

00:08:49.365 –> 00:08:52.547
I’m paying for two college

00:08:52.567 –> 00:08:53.267
educations right now.

00:08:53.307 –> 00:08:55.729
So that’s really encouraging to hear.

00:08:55.828 –> 00:08:56.229
Bless you.

00:08:56.710 –> 00:08:57.269
Yeah.

00:08:57.350 –> 00:08:57.590
I’m sorry.

00:08:57.610 –> 00:08:58.510
I didn’t mean to cut you off.

00:08:59.500 –> 00:09:01.221
No, it’s lifelong learning, you know?

00:09:01.682 –> 00:09:03.143
Maybe one day you’ll go back to school,

00:09:03.163 –> 00:09:03.342
Glenn.

00:09:04.203 –> 00:09:06.245
Yeah, well, I feel like, fortunately,

00:09:06.346 –> 00:09:07.287
we’re getting educated

00:09:07.447 –> 00:09:10.509
every single day here at No Vacancy Live,

00:09:10.528 –> 00:09:11.129
talking to some of the

00:09:11.169 –> 00:09:11.910
coolest people in the

00:09:11.951 –> 00:09:12.711
hospitality business.

00:09:12.811 –> 00:09:13.792
Dan, today we’re talking to you,

00:09:13.831 –> 00:09:15.813
so I’m going to be a skeptic for a second,

00:09:15.894 –> 00:09:16.094
right?

00:09:16.153 –> 00:09:17.195
Put on my skeptic hat.

00:09:18.515 –> 00:09:19.456
You were just talking about

00:09:19.596 –> 00:09:20.836
the certificates and why

00:09:20.876 –> 00:09:21.576
they’re great and so many

00:09:21.596 –> 00:09:22.518
people need to hire.

00:09:22.597 –> 00:09:25.318
So tell me if I’m a kid out there,

00:09:25.339 –> 00:09:27.178
if there are so many jobs around,

00:09:27.639 –> 00:09:28.980
why do I need a certificate?

00:09:29.120 –> 00:09:31.201
Why can’t I just go get that job?

00:09:32.041 –> 00:09:33.581
Because you are competing

00:09:33.642 –> 00:09:34.662
against a lot of other

00:09:34.682 –> 00:09:36.582
people who have practical experience,

00:09:36.982 –> 00:09:38.602
but maybe not some of the education.

00:09:38.663 –> 00:09:39.663
They haven’t put it together.

00:09:39.724 –> 00:09:40.984
And you have to signal to

00:09:41.063 –> 00:09:41.625
someone who’s going to

00:09:41.644 –> 00:09:43.164
employ you that you have a

00:09:43.225 –> 00:09:44.105
set of skills that are

00:09:44.206 –> 00:09:45.066
actionable right now.

00:09:45.605 –> 00:09:46.407
So what you’re really saying

00:09:46.427 –> 00:09:46.947
is you’re talking about

00:09:46.967 –> 00:09:47.849
getting- It’s one thing to say, hi,

00:09:47.908 –> 00:09:48.330
I’m smart.

00:09:48.389 –> 00:09:48.750
Train me.

00:09:48.789 –> 00:09:49.751
I’m going to be great for

00:09:49.792 –> 00:09:51.173
you in X. And they said, well,

00:09:51.193 –> 00:09:51.854
there’s someone over here

00:09:51.894 –> 00:09:53.216
that I can hire and I don’t

00:09:53.255 –> 00:09:54.076
need to train them and

00:09:54.096 –> 00:09:54.958
they’re ready to rock and roll.

00:09:55.663 –> 00:09:55.842
Right.

00:09:56.624 –> 00:09:56.803
Yes.

00:09:57.144 –> 00:09:57.484
I love it.

00:09:57.865 –> 00:09:58.845
That’s great.

00:09:58.904 –> 00:10:00.767
That’s a perfect reason for it.

00:10:01.086 –> 00:10:03.307
So how are you seeing what

00:10:03.347 –> 00:10:05.649
we learn in schools today in hospitality,

00:10:05.750 –> 00:10:07.250
undergraduate level, for example,

00:10:07.291 –> 00:10:07.831
then we could go to

00:10:07.871 –> 00:10:10.693
graduate and then beyond that,

00:10:10.933 –> 00:10:12.335
really applying to what

00:10:12.414 –> 00:10:15.376
students are doing in the real world?

00:10:17.562 –> 00:10:19.124
I think that most

00:10:19.183 –> 00:10:21.384
curriculums need to really

00:10:21.465 –> 00:10:23.346
embrace what I would call a

00:10:23.405 –> 00:10:24.307
low labor and a more

00:10:24.366 –> 00:10:26.668
automation coming into our industry.

00:10:30.317 –> 00:10:31.097
I think the restaurant

00:10:31.138 –> 00:10:32.859
industry can show us a lot.

00:10:32.938 –> 00:10:34.019
I think the airline industry

00:10:34.038 –> 00:10:34.919
can show us a lot.

00:10:35.340 –> 00:10:36.820
They’re all hospitality industries.

00:10:37.279 –> 00:10:40.741
But it’s basically allowing, you know,

00:10:40.782 –> 00:10:41.481
the big thing was

00:10:41.542 –> 00:10:43.663
facilitated self-service, you know,

00:10:43.743 –> 00:10:44.602
in the 80s, 90s and 00s.

00:10:44.663 –> 00:10:46.923
And then it became more, you know,

00:10:47.063 –> 00:10:48.583
we’re going to call micro

00:10:48.604 –> 00:10:49.804
customization of everything

00:10:49.825 –> 00:10:51.345
was a recent trend.

00:10:51.725 –> 00:10:52.745
But I think more and more

00:10:52.784 –> 00:10:53.525
we’re going to have to do.

00:10:54.745 –> 00:10:58.149
uh, not more with less, uh, human beings.

00:10:58.208 –> 00:10:59.049
It’s going to be working out

00:10:59.070 –> 00:11:00.350
to do more and have a

00:11:00.410 –> 00:11:01.751
better experience because

00:11:01.912 –> 00:11:03.452
it is enabled by AI.

00:11:03.952 –> 00:11:05.433
And that’s where I see the missing piece.

00:11:06.174 –> 00:11:07.255
And I’m glad I’m retired.

00:11:07.296 –> 00:11:08.296
Cause I’m out of ideas.

00:11:08.876 –> 00:11:09.076
Yeah.

00:11:09.297 –> 00:11:10.317
I’ll tell you what, Jen,

00:11:10.357 –> 00:11:12.539
I’m that close to death.

00:11:12.840 –> 00:11:13.159
I mean,

00:11:13.440 –> 00:11:15.020
it’s a brave new world out there and,

00:11:15.041 –> 00:11:15.221
you know,

00:11:15.282 –> 00:11:16.643
and the winners can be folks

00:11:16.722 –> 00:11:18.163
that are not traditional.

00:11:18.183 –> 00:11:19.804
There’s going to be some disruption and,

00:11:19.825 –> 00:11:20.806
um, uh,

00:11:22.421 –> 00:11:24.121
People are looking for experiences now.

00:11:24.162 –> 00:11:25.243
They have enough money.

00:11:25.302 –> 00:11:26.023
When people have enough money,

00:11:26.043 –> 00:11:26.842
they throw money at things

00:11:26.863 –> 00:11:27.604
they want stuff to happen.

00:11:28.063 –> 00:11:29.164
You say you’re out of ideas,

00:11:29.184 –> 00:11:30.004
but you could just use

00:11:30.085 –> 00:11:31.625
OpenAI and just type in,

00:11:31.666 –> 00:11:33.486
give me more ideas, and then you’ll be,

00:11:33.506 –> 00:11:33.927
you know.

00:11:34.347 –> 00:11:35.868
Yeah, but it’s not a magic bullet.

00:11:35.888 –> 00:11:36.229
I mean,

00:11:36.308 –> 00:11:38.629
it’s not like you put frosting on

00:11:38.690 –> 00:11:40.551
it and all of a sudden it tastes better.

00:11:42.451 –> 00:11:44.153
I think you have to really

00:11:44.192 –> 00:11:45.133
think about how this gets

00:11:45.173 –> 00:11:46.394
incorporated into the whole

00:11:46.474 –> 00:11:47.654
service offering that you have.

00:11:48.131 –> 00:11:50.693
I really agree with you on that.

00:11:50.934 –> 00:11:54.717
And I always like to tell people up front,

00:11:54.857 –> 00:11:57.520
I am working with an AI company right now,

00:11:57.561 –> 00:11:58.441
helping them develop a

00:11:58.461 –> 00:11:59.982
strategy for hospitality

00:12:00.062 –> 00:12:01.884
and creating partnerships for them.

00:12:02.585 –> 00:12:04.947
But what I really see AI for,

00:12:05.126 –> 00:12:06.207
and I’m curious as to how

00:12:06.227 –> 00:12:07.028
this is going to play out

00:12:07.109 –> 00:12:09.812
at the educational portion of it,

00:12:10.172 –> 00:12:11.352
I think you were talking about…

00:12:12.874 –> 00:12:14.554
getting rid of jobs that we

00:12:14.596 –> 00:12:15.916
don’t necessarily need

00:12:16.136 –> 00:12:17.998
anymore and allowing people

00:12:18.097 –> 00:12:20.259
to be people as opposed to

00:12:20.299 –> 00:12:22.061
looking over documents and

00:12:22.201 –> 00:12:23.581
spreadsheets and stuff like that.

00:12:23.961 –> 00:12:25.003
Nothing against your amazing

00:12:25.062 –> 00:12:26.323
real estate spreadsheeting program.

00:12:28.325 –> 00:12:29.605
So how do you see schools

00:12:29.666 –> 00:12:31.166
maybe trying to adapt to

00:12:31.245 –> 00:12:32.667
this new reality that we’re

00:12:32.706 –> 00:12:33.626
so tech forward?

00:12:34.006 –> 00:12:36.748
And again, nothing against academia,

00:12:37.067 –> 00:12:38.128
but a lot of those people

00:12:38.168 –> 00:12:39.288
have been in schools for a

00:12:39.349 –> 00:12:40.708
while and are not seeing

00:12:40.749 –> 00:12:41.668
the rapid change of

00:12:41.729 –> 00:12:44.470
technology at the operations level.

00:12:44.750 –> 00:12:46.591
So I came into school in a

00:12:46.650 –> 00:12:49.591
generation where PCs were being adopted,

00:12:49.851 –> 00:12:50.172
right?

00:12:50.211 –> 00:12:51.611
And that was a technology

00:12:51.672 –> 00:12:53.092
that the old car didn’t get.

00:12:54.293 –> 00:12:55.153
And it really changed

00:12:55.234 –> 00:12:56.174
productivity and really

00:12:56.215 –> 00:12:57.254
changed the way things are done.

00:12:57.375 –> 00:12:59.436
And VisiCalc was like, oh, my God,

00:12:59.456 –> 00:13:00.376
the first spreadsheet, right?

00:13:01.658 –> 00:13:02.857
Now we have the old guard

00:13:02.918 –> 00:13:03.678
that knows how to do the

00:13:03.698 –> 00:13:04.839
spreadsheeting really well.

00:13:05.038 –> 00:13:06.840
And now it’s going to be the

00:13:07.400 –> 00:13:10.101
person knows the script to

00:13:10.142 –> 00:13:12.222
tell their little co-pilot,

00:13:12.624 –> 00:13:13.984
built me a spreadsheet that does da, da,

00:13:14.004 –> 00:13:14.705
da, da, da, da, da.

00:13:15.585 –> 00:13:17.166
and show me how sensitive it

00:13:17.245 –> 00:13:19.067
is to interest rates, cap rates,

00:13:19.508 –> 00:13:25.692
exit cap rates, and the change in, say,

00:13:25.772 –> 00:13:26.251
ADR over time.

00:13:26.711 –> 00:13:28.974
And you’ll get that all done

00:13:29.193 –> 00:13:30.754
for you in a pivot table, ready to go.

00:13:31.575 –> 00:13:32.956
You need to now know how to

00:13:32.995 –> 00:13:34.537
take that and leverage that

00:13:34.836 –> 00:13:36.158
and present it in a way

00:13:36.197 –> 00:13:37.499
that you can make information,

00:13:37.839 –> 00:13:38.499
diagnose it,

00:13:38.538 –> 00:13:39.559
make sure the numbers are right,

00:13:39.580 –> 00:13:40.941
but you have the bare bones

00:13:41.000 –> 00:13:41.441
of it in front.

00:13:41.461 –> 00:13:42.701
You don’t have to build it anymore.

00:13:43.447 –> 00:13:44.687
So the,

00:13:45.067 –> 00:13:46.308
but what you need to do is make

00:13:46.328 –> 00:13:47.409
sure the black block isn’t

00:13:47.470 –> 00:13:48.669
a black box and you don’t

00:13:48.690 –> 00:13:49.730
know what’s going on inside

00:13:50.291 –> 00:13:51.591
because black boxes can

00:13:51.611 –> 00:13:52.533
blow up pretty badly.

00:13:52.993 –> 00:13:53.173
Yeah.

00:13:54.014 –> 00:13:55.534
So one of the things, Glenn,

00:13:55.654 –> 00:13:57.596
I just came off of a conference last week,

00:13:57.875 –> 00:13:59.998
um, from I create the sex of Federation.

00:14:00.057 –> 00:14:01.177
And that was really one of

00:14:01.238 –> 00:14:02.899
our hot topics was AI and

00:14:02.918 –> 00:14:03.759
the integration of

00:14:04.264 –> 00:14:05.884
how we as educators in

00:14:05.964 –> 00:14:07.325
hospitality specifically

00:14:07.384 –> 00:14:08.585
can start to infiltrate

00:14:08.625 –> 00:14:10.465
that into our classes and our projects.

00:14:10.524 –> 00:14:14.326
And so there were a few specific examples,

00:14:14.405 –> 00:14:16.527
but it’s still such a new

00:14:16.626 –> 00:14:18.386
piece that we’re working through.

00:14:18.486 –> 00:14:20.027
And from an educator standpoint,

00:14:20.267 –> 00:14:21.027
not gonna lie,

00:14:21.628 –> 00:14:24.988
we have to almost self become the expert.

00:14:25.408 –> 00:14:27.109
So then we can think about

00:14:27.208 –> 00:14:28.969
it of how are we gonna take

00:14:29.009 –> 00:14:30.308
how the industry is using it?

00:14:30.389 –> 00:14:31.409
And so here’s a great

00:14:31.450 –> 00:14:33.029
opportunity for partnering.

00:14:33.590 –> 00:14:35.211
with our industry folks if

00:14:35.311 –> 00:14:37.231
you are using it and

00:14:37.312 –> 00:14:38.572
leveraging that tool

00:14:39.052 –> 00:14:40.173
connect with your local

00:14:40.212 –> 00:14:41.774
hospitality educators

00:14:41.874 –> 00:14:43.335
because then we can create

00:14:43.414 –> 00:14:44.674
assignments and activities

00:14:44.754 –> 00:14:45.916
that we can put into the

00:14:45.956 –> 00:14:47.836
classroom experience to

00:14:47.937 –> 00:14:49.238
generate that propelled

00:14:49.337 –> 00:14:51.318
young individual with with

00:14:51.438 –> 00:14:53.019
using these tools we are

00:14:53.099 –> 00:14:56.221
still a ways out from this yeah

00:14:57.240 –> 00:14:58.081
And I think it’ll change the

00:14:58.121 –> 00:14:59.302
nature of what an assignment is.

00:14:59.562 –> 00:15:01.023
So maybe the assignment is

00:15:01.202 –> 00:15:02.423
group as a class.

00:15:02.543 –> 00:15:04.144
You need to figure out how

00:15:04.164 –> 00:15:05.666
to make me an app that does

00:15:05.785 –> 00:15:07.886
this by the end of the term.

00:15:08.466 –> 00:15:09.248
And you figure it out

00:15:09.947 –> 00:15:10.969
because I think the

00:15:10.989 –> 00:15:11.948
students will be dragging

00:15:11.989 –> 00:15:13.049
some of the faculty along.

00:15:13.897 –> 00:15:14.937
Quite possibly,

00:15:14.977 –> 00:15:15.619
as long as they’re

00:15:15.658 –> 00:15:16.700
comfortable in doing that.

00:15:16.960 –> 00:15:19.663
Yeah, and that takes a leap, you know,

00:15:19.722 –> 00:15:20.644
it takes a faculty member

00:15:20.663 –> 00:15:21.504
that’s really open to

00:15:21.585 –> 00:15:23.726
question on their own expertise.

00:15:23.947 –> 00:15:24.807
To me, it’s like a tool,

00:15:24.847 –> 00:15:26.048
especially if we’re a tool, right?

00:15:26.089 –> 00:15:27.009
We have a new tool,

00:15:27.049 –> 00:15:28.270
we need to learn how to use a tool.

00:15:28.630 –> 00:15:31.995
It’s not a new, it’s not knowledge per se,

00:15:32.054 –> 00:15:33.976
but it’s a tool that I think can help

00:15:34.691 –> 00:15:35.692
really drive a lot of

00:15:35.731 –> 00:15:37.153
productivity gains as well

00:15:37.293 –> 00:15:39.235
as product offering.

00:15:39.855 –> 00:15:42.538
And I’m sure one of the

00:15:42.577 –> 00:15:44.019
concerns that you and Dr.

00:15:44.038 –> 00:15:45.500
Producer Suzanne have is,

00:15:45.660 –> 00:15:47.562
is this really a tool or is

00:15:47.621 –> 00:15:49.844
it just of the moment over here?

00:15:50.625 –> 00:15:52.285
If we, you know, if we focus,

00:15:52.306 –> 00:15:55.068
if we focus on something in the moment,

00:15:55.109 –> 00:15:56.129
sometimes it doesn’t pan out.

00:15:56.169 –> 00:15:57.551
Like we were talking blockchain,

00:15:57.591 –> 00:16:00.133
blockchain for crazy, right?

00:16:00.493 –> 00:16:02.315
But now nobody’s really talking about,

00:16:02.595 –> 00:16:04.635
about that, for example.

00:16:04.655 –> 00:16:05.476
We’re talking about blockchain.

00:16:05.496 –> 00:16:06.756
They may be talking less about crypto,

00:16:06.797 –> 00:16:07.437
although the crypto

00:16:07.457 –> 00:16:11.700
exchanges have changed the crypto ETFs.

00:16:12.159 –> 00:16:13.000
Seriously,

00:16:13.080 –> 00:16:15.381
I jumped into a little crypto

00:16:15.442 –> 00:16:16.062
for the heck of it,

00:16:16.162 –> 00:16:19.144
and it’s up 60% over the last month,

00:16:19.583 –> 00:16:21.205
which is amazing.

00:16:21.245 –> 00:16:22.926
I mean, 60% from what I invested.

00:16:22.985 –> 00:16:25.647
We all know the kid that

00:16:25.687 –> 00:16:26.567
everybody was shaking their

00:16:26.606 –> 00:16:28.708
head 12 years ago.

00:16:28.729 –> 00:16:29.788
What are you doing?

00:16:30.188 –> 00:16:31.450
Oh, yeah, I bought this mining rig.

00:16:31.860 –> 00:16:34.280
And now they’ve got a nice

00:16:34.321 –> 00:16:34.961
place in Florida.

00:16:35.302 –> 00:16:35.721
Seriously.

00:16:36.381 –> 00:16:36.763
Seriously.

00:16:37.423 –> 00:16:38.403
If I had just done that when

00:16:38.423 –> 00:16:40.904
Silicon Valley had done it on HBO,

00:16:41.144 –> 00:16:43.926
I could have retired by now, like you,

00:16:44.285 –> 00:16:46.527
and had that nice house in Florida.

00:16:46.868 –> 00:16:48.207
But I wouldn’t have earned

00:16:48.227 –> 00:16:49.469
that spiffy Cornell cap

00:16:49.509 –> 00:16:50.730
that you have behind you.

00:16:51.730 –> 00:16:54.811
How do you think you’re alluding to,

00:16:54.831 –> 00:16:56.692
I think what we’re talking about,

00:16:56.711 –> 00:16:58.052
changing the way we teach?

00:16:58.153 –> 00:16:59.452
Because if kids could go and

00:16:59.472 –> 00:17:00.833
they could do stuff with AI,

00:17:00.894 –> 00:17:02.774
how do you continue to challenge them?

00:17:03.174 –> 00:17:04.075
How do you make sure they’re

00:17:04.255 –> 00:17:06.496
actually learning and not

00:17:06.536 –> 00:17:08.257
just parroting back what you want to hear,

00:17:08.277 –> 00:17:08.416
Jim?

00:17:09.484 –> 00:17:09.765
That’s a,

00:17:10.506 –> 00:17:12.067
that I think is the question of

00:17:12.106 –> 00:17:12.626
the moment.

00:17:12.807 –> 00:17:15.068
And for me, it would be a combination of,

00:17:15.088 –> 00:17:16.189
I would call it some group work,

00:17:16.209 –> 00:17:17.829
but then some individual work on,

00:17:17.869 –> 00:17:20.251
you know, can they integrate?

00:17:20.672 –> 00:17:20.872
To me,

00:17:20.932 –> 00:17:22.212
it’s always about the student’s

00:17:22.252 –> 00:17:25.035
ability not to recite facts per se,

00:17:25.894 –> 00:17:27.155
but to weave those facts

00:17:27.175 –> 00:17:27.997
together in a meaningful

00:17:28.017 –> 00:17:29.458
way where they can do the

00:17:29.498 –> 00:17:30.377
integration and they can

00:17:30.417 –> 00:17:32.819
understand what something means.

00:17:33.279 –> 00:17:34.560
And I think, I still think the best,

00:17:35.467 –> 00:17:37.608
way in terms of my world is

00:17:38.068 –> 00:17:40.010
is an offering memo give

00:17:40.030 –> 00:17:40.971
students an offering memo

00:17:41.892 –> 00:17:43.413
and uh what what point what

00:17:43.453 –> 00:17:44.173
price would you pay for

00:17:44.213 –> 00:17:46.596
this right that’s

00:17:46.635 –> 00:17:48.478
interesting yeah you just

00:17:48.498 –> 00:17:49.378
give them an old one and

00:17:49.598 –> 00:17:51.180
you know just uh that and

00:17:51.941 –> 00:17:53.041
um it’s an individual

00:17:53.082 –> 00:17:55.683
assignment that uh and but

00:17:55.703 –> 00:17:56.304
they have to build their

00:17:56.324 –> 00:17:57.525
own spreadsheets and then

00:17:57.545 –> 00:17:59.186
but the data is in the om in the offering

00:17:59.962 –> 00:18:00.103
Yeah,

00:18:00.143 –> 00:18:02.885
when I was an adjunct professor at NYU,

00:18:03.006 –> 00:18:04.528
I did PR and advertising

00:18:04.567 –> 00:18:05.788
and consumer behavior classes.

00:18:05.808 –> 00:18:06.951
So for PR and advertising,

00:18:06.990 –> 00:18:07.991
I would do a final project

00:18:08.031 –> 00:18:10.193
where they had to create a

00:18:10.253 –> 00:18:12.777
resort and then figure out

00:18:12.836 –> 00:18:13.897
how they would market it

00:18:14.159 –> 00:18:16.181
and advertise it to the public.

00:18:16.201 –> 00:18:17.001
And that’s not something you

00:18:17.041 –> 00:18:18.222
necessarily- That’s great integration,

00:18:18.403 –> 00:18:18.643
yeah.

00:18:18.763 –> 00:18:18.923
Right.

00:18:19.480 –> 00:18:21.382
And I try to do that here on

00:18:21.422 –> 00:18:22.483
this program where we take

00:18:22.644 –> 00:18:23.904
ideas from all these

00:18:23.944 –> 00:18:25.467
different places and kind

00:18:25.507 –> 00:18:27.269
of pull them together and

00:18:27.309 –> 00:18:28.871
hopefully have some unique

00:18:28.891 –> 00:18:30.232
and interesting perspective

00:18:30.313 –> 00:18:32.655
that could drive culture or

00:18:32.736 –> 00:18:34.778
drive innovation or something like that.

00:18:35.038 –> 00:18:35.479
And ideally,

00:18:35.499 –> 00:18:36.400
that’s what you’re probably

00:18:36.440 –> 00:18:37.442
trying to achieve too, right?

00:18:38.188 –> 00:18:39.048
Yeah, I am.

00:18:39.088 –> 00:18:40.811
I mean, at some level,

00:18:43.174 –> 00:18:44.596
there’s this magical thing

00:18:44.636 –> 00:18:45.877
called a promote structure.

00:18:46.118 –> 00:18:47.800
It’s what the private equity

00:18:47.840 –> 00:18:48.922
firms are very,

00:18:48.981 –> 00:18:50.443
very good at is once I

00:18:50.463 –> 00:18:52.606
deliver a certain level of returns to my

00:18:53.428 –> 00:18:54.208
limited partners.

00:18:55.028 –> 00:18:55.209
I,

00:18:56.148 –> 00:18:58.348
as the general partner and the promoter

00:18:58.509 –> 00:19:00.009
of this venture,

00:19:00.430 –> 00:19:01.690
I now start to take a super

00:19:01.710 –> 00:19:02.589
share of the returns.

00:19:03.049 –> 00:19:06.330
And you can do this on a very small basis.

00:19:06.510 –> 00:19:06.810
Actually,

00:19:06.830 –> 00:19:08.051
I’m a limited partner in a few

00:19:08.372 –> 00:19:09.231
deals with a former

00:19:09.271 –> 00:19:11.932
Marriott exec that’s on their own now,

00:19:11.972 –> 00:19:12.952
then they’re very successful.

00:19:14.413 –> 00:19:15.855
And I’m very happy with the

00:19:15.954 –> 00:19:17.336
deal because their promote

00:19:17.355 –> 00:19:20.199
structure is not nearly what, say,

00:19:20.259 –> 00:19:21.700
Blackstone or Apollo does.

00:19:21.720 –> 00:19:23.101
Basically, what those folks,

00:19:23.401 –> 00:19:25.363
once they get you to their, say, 16%,

00:19:25.363 –> 00:19:27.404
they start taking like 90% of the upside.

00:19:29.346 –> 00:19:29.526
Right.

00:19:29.826 –> 00:19:33.028
Where I think, well, because they can’t.

00:19:33.589 –> 00:19:34.309
Oh, yeah.

00:19:34.349 –> 00:19:35.711
I think in a smaller scale,

00:19:35.771 –> 00:19:37.212
the sort of you start to

00:19:37.232 –> 00:19:38.814
say you put in 10 percent,

00:19:39.115 –> 00:19:40.796
then you start taking 25

00:19:40.796 –> 00:19:43.278
percent or 30 a third of the upside.

00:19:43.618 –> 00:19:46.020
That starts to work really well.

00:19:46.861 –> 00:19:47.981
But really, I think it’s.

00:19:48.883 –> 00:19:52.126
It’s not only good and fair at some level,

00:19:52.606 –> 00:19:53.867
but it’s incredibly good

00:19:53.907 –> 00:19:54.729
corporate governance

00:19:54.808 –> 00:19:56.391
because you don’t get paid

00:19:56.872 –> 00:19:58.093
the upside unless you’ve

00:19:58.133 –> 00:19:59.674
delivered the goods to your investors.

00:20:01.236 –> 00:20:02.617
And I just think it’s

00:20:02.698 –> 00:20:04.400
fabulous governance without

00:20:04.440 –> 00:20:06.781
having to have so much legal paper on it.

00:20:06.821 –> 00:20:08.063
You just incentivize people

00:20:08.083 –> 00:20:09.164
to do the right thing through money.

00:20:09.792 –> 00:20:09.972
Yeah,

00:20:10.594 –> 00:20:11.775
I think that’s always the best way to

00:20:11.815 –> 00:20:12.035
do it.

00:20:12.596 –> 00:20:12.776
Jan,

00:20:12.796 –> 00:20:13.916
I’ve been like promoting

00:20:14.218 –> 00:20:15.239
sustainability in our

00:20:15.439 –> 00:20:16.579
industry in a meaningful way,

00:20:16.619 –> 00:20:17.801
hopefully for the last 10 years.

00:20:17.842 –> 00:20:19.943
But I always try to say you

00:20:19.963 –> 00:20:21.986
can’t do it by saying it feels good.

00:20:22.487 –> 00:20:24.228
How are owners and operators

00:20:24.268 –> 00:20:25.450
going to either make money

00:20:25.529 –> 00:20:27.451
from it or have no increase

00:20:27.511 –> 00:20:28.313
in their expenses?

00:20:28.633 –> 00:20:28.833
Right.

00:20:28.853 –> 00:20:30.154
So it’s that same kind of thinking.

00:20:31.137 –> 00:20:32.057
Well, actually,

00:20:32.538 –> 00:20:34.539
I have worked with a really

00:20:34.799 –> 00:20:35.740
smart young lady.

00:20:35.759 –> 00:20:38.161
It was about six, seven years ago.

00:20:38.221 –> 00:20:40.102
She did her honors thesis on

00:20:40.162 –> 00:20:42.502
sustainability and exactly your question.

00:20:42.522 –> 00:20:43.963
And we broke it apart really simply.

00:20:44.003 –> 00:20:45.884
Value is NOI,

00:20:46.105 –> 00:20:47.726
cash flow divided by a cap rate, right?

00:20:48.105 –> 00:20:49.105
And so what’s going to change?

00:20:49.465 –> 00:20:51.507
And what she found is a big

00:20:51.547 –> 00:20:52.867
piece of the sustainability

00:20:53.188 –> 00:20:54.469
story is that if you have

00:20:54.509 –> 00:20:55.449
an asset that the banks

00:20:55.489 –> 00:20:56.529
consider to be a lower risk,

00:20:57.390 –> 00:20:58.911
your cost of capital could be less.

00:20:59.590 –> 00:21:01.070
And we find it’s not that

00:21:01.090 –> 00:21:02.531
much lower cost of capital

00:21:02.571 –> 00:21:03.892
to make a very meaningful

00:21:03.951 –> 00:21:05.073
difference in valuations.

00:21:05.573 –> 00:21:09.953
So I think there’s some stories on the NOI,

00:21:09.973 –> 00:21:11.194
better cash flows as well.

00:21:11.934 –> 00:21:13.996
But a lower cost of capital, I think,

00:21:14.056 –> 00:21:16.056
is a really great story there.

00:21:17.116 –> 00:21:17.356
Yeah.

00:21:17.517 –> 00:21:17.876
Suzanne?

00:21:19.869 –> 00:21:21.131
Totally on point.

00:21:21.290 –> 00:21:22.590
I’m looking to see from your

00:21:22.651 –> 00:21:24.791
take in the data from a

00:21:24.852 –> 00:21:26.271
recovery standpoint coming

00:21:26.392 –> 00:21:28.772
off of COVID-19 and seeing

00:21:28.792 –> 00:21:29.573
the world recover.

00:21:29.673 –> 00:21:31.094
What are some surprises that

00:21:31.213 –> 00:21:32.713
you’ve seen from that data?

00:21:34.295 –> 00:21:36.836
What the biggest surprise is how

00:21:38.492 –> 00:21:39.932
not how much you could push

00:21:39.992 –> 00:21:40.693
rates but how much the

00:21:40.733 –> 00:21:42.074
industry did push rates

00:21:42.153 –> 00:21:44.575
when travel recovered um

00:21:45.015 –> 00:21:47.055
and just how elastic uh

00:21:47.134 –> 00:21:48.976
prices are in the short run

00:21:49.296 –> 00:21:50.375
when the supply is fixed

00:21:50.816 –> 00:21:51.376
and you know all the

00:21:51.396 –> 00:21:52.416
revenge trail and all that

00:21:53.237 –> 00:21:54.176
um yeah we’re gonna have

00:21:54.217 –> 00:21:54.917
some tough you know

00:21:54.938 –> 00:21:56.178
comparables going forward

00:21:56.238 –> 00:21:57.617
but um that really

00:21:57.657 –> 00:21:59.259
surprised me what surprised

00:21:59.278 –> 00:22:00.919
me also is within real

00:22:00.979 –> 00:22:03.200
estate what’s now toxic and what um

00:22:03.940 –> 00:22:06.142
isn’t and um you know all

00:22:06.162 –> 00:22:07.383
the offices are obviously

00:22:07.423 –> 00:22:09.204
the big toxic asset now but

00:22:09.625 –> 00:22:11.406
um you know even you know

00:22:11.446 –> 00:22:12.488
warehouse stuff has gotten

00:22:12.508 –> 00:22:13.769
a little built out and you

00:22:13.808 –> 00:22:14.670
know apartments got a

00:22:14.690 –> 00:22:16.771
little built out uh during

00:22:16.811 –> 00:22:19.094
the late uh pandemic uh

00:22:19.114 –> 00:22:20.375
there’s a lot of new supply

00:22:20.414 –> 00:22:22.136
so what surprised me is you

00:22:22.156 –> 00:22:23.038
know you always used to say

00:22:23.077 –> 00:22:24.739
well people invest in

00:22:24.778 –> 00:22:26.701
hotels because they stink less than x

00:22:28.001 –> 00:22:30.242
um sometimes right uh

00:22:30.262 –> 00:22:31.223
they’re the least stinky

00:22:31.403 –> 00:22:33.724
and um the hotels have held

00:22:33.785 –> 00:22:35.945
up really really nicely um

00:22:36.266 –> 00:22:37.586
and the you know everybody

00:22:37.707 –> 00:22:40.387
was you know what was it

00:22:40.387 –> 00:22:42.209
2011 was the fire sale that

00:22:42.249 –> 00:22:44.750
didn’t happen uh 2022 was

00:22:44.789 –> 00:22:45.990
the repricing that never

00:22:46.030 –> 00:22:47.791
happened 2020 it was you

00:22:48.172 –> 00:22:50.073
know 2023 was like oh they

00:22:50.113 –> 00:22:51.614
raised interest rates the stinkers

00:22:52.634 –> 00:22:54.075
I still look at the data and

00:22:54.115 –> 00:22:56.596
I see a lot of transactions

00:22:56.635 –> 00:22:57.635
happening and new

00:22:57.655 –> 00:22:59.057
financings and the new

00:22:59.116 –> 00:23:00.817
normal is about somewhere

00:23:00.857 –> 00:23:02.057
around seven and a half, 8%.

00:23:02.057 –> 00:23:05.138
And there’s still a lot of trends.

00:23:05.180 –> 00:23:06.019
And so it still works.

00:23:06.872 –> 00:23:07.071
Yeah,

00:23:07.172 –> 00:23:09.012
and we’ve been talking about this an

00:23:09.453 –> 00:23:10.634
awful lot.

00:23:10.654 –> 00:23:11.734
As a matter of fact,

00:23:11.934 –> 00:23:13.415
check one of our shows last

00:23:13.477 –> 00:23:14.576
week that we did live

00:23:14.616 –> 00:23:16.499
during Click7 out in

00:23:16.618 –> 00:23:18.259
California where we talked

00:23:18.460 –> 00:23:22.001
all about converting offices into hotels.

00:23:22.061 –> 00:23:23.282
I think you’ll be interesting about that.

00:23:23.903 –> 00:23:25.765
Our guest, Todd Stevens,

00:23:25.805 –> 00:23:26.766
gives some really great

00:23:26.806 –> 00:23:28.567
insight on where and where

00:23:28.747 –> 00:23:30.468
not this would work.

00:23:30.768 –> 00:23:31.769
But I’ll tell you, Jan –

00:23:31.949 –> 00:23:33.410
Something that did work is

00:23:34.230 –> 00:23:35.411
our very own producer, Dave,

00:23:35.451 –> 00:23:36.511
happens to be a general

00:23:36.592 –> 00:23:38.373
manager of a hotel on the

00:23:38.492 –> 00:23:40.294
east side of New York City.

00:23:40.334 –> 00:23:41.654
And he recently achieved a

00:23:41.935 –> 00:23:42.695
hotel real estate

00:23:42.736 –> 00:23:43.777
investments and asset

00:23:43.817 –> 00:23:46.038
management certificate with you.

00:23:46.117 –> 00:23:47.138
So we’re going to bring him

00:23:47.378 –> 00:23:48.579
on and see if he’s happy

00:23:48.619 –> 00:23:50.840
about this or he’s got some choice words.

00:23:50.881 –> 00:23:52.221
So, Dave, how are you?

00:23:52.241 –> 00:23:54.884
Well, I do have some very choice words.

00:23:55.344 –> 00:23:56.664
But they’re all good.

00:23:57.005 –> 00:23:57.465
Yay!

00:23:57.486 –> 00:23:58.185
They’re all good.

00:23:58.226 –> 00:23:59.426
They’re all good.

00:24:00.971 –> 00:24:02.673
I’m sure that my opinion was

00:24:02.792 –> 00:24:04.394
really weighing very heavily on you.

00:24:04.473 –> 00:24:04.914
That’s cool.

00:24:05.194 –> 00:24:06.316
I know Dave sounds like he’s

00:24:06.336 –> 00:24:08.096
at the bottom of a well right now,

00:24:08.156 –> 00:24:09.198
but we put him there unless

00:24:09.238 –> 00:24:10.638
he said nice things about the program.

00:24:10.659 –> 00:24:11.799
Yes, I apologize.

00:24:11.819 –> 00:24:13.601
But you can see I have my earbuds in,

00:24:13.661 –> 00:24:14.582
so the sound on these

00:24:14.682 –> 00:24:15.782
babies is not the best.

00:24:15.823 –> 00:24:16.903
So I’m going to talk a little louder.

00:24:16.923 –> 00:24:18.365
I’m not screaming at you.

00:24:19.025 –> 00:24:20.185
I just want to be heard so I

00:24:20.205 –> 00:24:21.547
can get above that waterline.

00:24:21.646 –> 00:24:24.890
But I wanted to come on here because, yes,

00:24:24.950 –> 00:24:25.971
I did take the certificate

00:24:26.010 –> 00:24:28.913
program facilitated by a professor,

00:24:29.700 –> 00:24:30.079
the ruse.

00:24:30.240 –> 00:24:31.580
And it was spectacular.

00:24:32.182 –> 00:24:33.143
From someone that was going

00:24:33.182 –> 00:24:34.123
into this really with

00:24:34.584 –> 00:24:35.703
minimal knowledge in terms

00:24:35.763 –> 00:24:36.904
of the real estate side of it,

00:24:37.486 –> 00:24:38.385
asset management side,

00:24:38.405 –> 00:24:39.807
I had a little more experience on,

00:24:39.886 –> 00:24:40.627
but the real estate

00:24:40.647 –> 00:24:41.807
investment side had no

00:24:41.888 –> 00:24:42.808
experience whatsoever.

00:24:43.789 –> 00:24:44.911
It was a really just,

00:24:45.050 –> 00:24:46.652
I recommend it really for anybody,

00:24:46.751 –> 00:24:47.972
whether you’re interested

00:24:48.032 –> 00:24:49.114
in that space or not.

00:24:49.773 –> 00:24:52.675
And because it was very digestible.

00:24:52.976 –> 00:24:53.717
Dave, why,

00:24:54.037 –> 00:24:55.857
why did you take this particular

00:24:56.057 –> 00:24:56.659
certificate?

00:24:57.397 –> 00:24:58.459
Because I’m interested in that space.

00:24:58.838 –> 00:24:59.519
Yeah, but why?

00:24:59.618 –> 00:25:00.619
Yeah,

00:25:00.660 –> 00:25:03.221
how do you see that applying to you

00:25:03.340 –> 00:25:05.423
personally and your career in general?

00:25:05.782 –> 00:25:07.324
Yeah, so I mean, obviously, you know,

00:25:07.403 –> 00:25:08.263
everybody that’s involved

00:25:08.284 –> 00:25:09.704
with this show knows that I

00:25:09.765 –> 00:25:10.806
hang around with some real

00:25:10.826 –> 00:25:12.146
estate guys and some asset

00:25:12.166 –> 00:25:13.086
management guys and people

00:25:13.106 –> 00:25:14.188
that kind of know this side

00:25:14.228 –> 00:25:14.827
of the business.

00:25:15.428 –> 00:25:17.950
So I’m involved in those conversations.

00:25:19.050 –> 00:25:19.971
You know, yesterday’s guest,

00:25:20.030 –> 00:25:20.611
Michael Schumer,

00:25:20.631 –> 00:25:21.632
has been on several times.

00:25:21.652 –> 00:25:22.992
I’ve spoken to him several times.

00:25:23.053 –> 00:25:24.493
And I’m always interested in

00:25:24.554 –> 00:25:25.673
his shows and his

00:25:25.753 –> 00:25:26.714
conversations personally.

00:25:27.284 –> 00:25:27.463
Of course,

00:25:27.483 –> 00:25:28.905
you could talk about Craig or anybody,

00:25:28.925 –> 00:25:30.166
any number of other people

00:25:30.227 –> 00:25:31.508
involved in these shows and

00:25:31.548 –> 00:25:32.229
these productions.

00:25:32.969 –> 00:25:33.930
And it was something I

00:25:34.510 –> 00:25:35.711
enjoyed hearing about,

00:25:35.731 –> 00:25:37.492
but not something I really

00:25:37.614 –> 00:25:39.654
could understand in terms

00:25:39.674 –> 00:25:40.536
of what was being said,

00:25:40.596 –> 00:25:41.537
especially as some of these

00:25:41.576 –> 00:25:43.538
higher level conversations happened.

00:25:43.979 –> 00:25:45.740
Certain acronyms were being said,

00:25:45.840 –> 00:25:47.643
certain terminology was being said,

00:25:47.682 –> 00:25:48.383
and everyone knew what

00:25:48.403 –> 00:25:49.423
everyone was talking about.

00:25:49.443 –> 00:25:49.825
And I’m like…

00:25:51.128 –> 00:25:52.029
Again, for a lot of years,

00:25:52.069 –> 00:25:53.391
I just nodded and smiled.

00:25:53.451 –> 00:25:53.770
I still do.

00:25:53.810 –> 00:25:54.672
Nod and smile.

00:25:54.791 –> 00:25:55.573
Nod and smile.

00:25:55.613 –> 00:25:56.614
So, you know.

00:25:56.693 –> 00:25:57.694
You know, that’s on purpose.

00:25:58.414 –> 00:25:59.536
It’s basically just to

00:25:59.717 –> 00:26:01.417
obfuscate the obvious and

00:26:01.738 –> 00:26:02.939
speak in another language

00:26:03.019 –> 00:26:05.000
that lay people don’t understand.

00:26:05.020 –> 00:26:07.222
That’s the whole thing about real estate.

00:26:07.723 –> 00:26:07.884
Yeah.

00:26:07.903 –> 00:26:07.983
Well,

00:26:08.243 –> 00:26:09.805
I am certainly a lay person in that

00:26:09.884 –> 00:26:10.226
space.

00:26:10.566 –> 00:26:12.146
So, you know, but again,

00:26:12.208 –> 00:26:12.728
it was something that was

00:26:12.768 –> 00:26:13.989
always very interesting to me.

00:26:14.009 –> 00:26:15.589
You know, going to these conferences.

00:26:15.990 –> 00:26:17.332
I was with you at NYU.

00:26:17.571 –> 00:26:18.393
Obviously, click.

00:26:19.924 –> 00:26:21.286
So seeing how these kind of

00:26:21.326 –> 00:26:22.567
deals start to come together,

00:26:22.606 –> 00:26:24.407
I wanted to learn more both

00:26:24.428 –> 00:26:26.769
from a personal curiosity

00:26:26.789 –> 00:26:28.672
standpoint and also a

00:26:28.711 –> 00:26:31.314
professional development standpoint.

00:26:31.453 –> 00:26:32.755
And obviously Cornell in

00:26:32.835 –> 00:26:33.935
general has a very well

00:26:33.976 –> 00:26:35.637
respected name in the industry.

00:26:36.417 –> 00:26:37.459
I hopped over to that

00:26:37.519 –> 00:26:39.300
website and I was talking to one of my,

00:26:39.780 –> 00:26:40.961
I won’t say a colleague

00:26:40.981 –> 00:26:42.503
because she’s well above me

00:26:42.523 –> 00:26:43.044
in the company,

00:26:43.084 –> 00:26:44.244
but somebody who’s well

00:26:45.105 –> 00:26:46.547
respected in my company about

00:26:47.405 –> 00:26:49.007
professional development opportunities.

00:26:49.047 –> 00:26:50.788
And she mentioned a course

00:26:50.988 –> 00:26:52.910
like that within Cornell.

00:26:53.430 –> 00:26:54.371
So when I went onto the

00:26:54.431 –> 00:26:56.231
website and saw the large

00:26:56.311 –> 00:26:57.172
number of certificate

00:26:57.192 –> 00:26:58.252
programs that are there,

00:26:59.534 –> 00:27:01.275
that one immediately stood out to me.

00:27:01.535 –> 00:27:03.155
I didn’t know Professor

00:27:03.175 –> 00:27:04.017
DeRose ahead of time.

00:27:04.057 –> 00:27:05.698
There was no connection to me,

00:27:05.778 –> 00:27:07.078
to him or his work.

00:27:07.538 –> 00:27:08.058
Before that,

00:27:08.078 –> 00:27:09.480
it just happened that we

00:27:09.519 –> 00:27:12.021
connected or I connected to his material.

00:27:13.173 –> 00:27:14.694
And it was just so well laid out.

00:27:14.934 –> 00:27:15.835
And I’m not just saying that.

00:27:15.934 –> 00:27:17.056
I know we get our shameless

00:27:17.155 –> 00:27:19.856
plug time for Professor DeRozan.

00:27:19.896 –> 00:27:20.797
I’m taking that time.

00:27:23.617 –> 00:27:25.439
It was so well laid out.

00:27:25.858 –> 00:27:27.160
It was really digestible.

00:27:27.220 –> 00:27:28.381
Again, I’m a lay person.

00:27:29.560 –> 00:27:30.922
The terms are well done.

00:27:30.942 –> 00:27:31.902
But it’s not just something where,

00:27:31.922 –> 00:27:32.481
you know,

00:27:32.501 –> 00:27:34.423
it’s some writings and some recordings.

00:27:35.604 –> 00:27:38.184
They give you the tools to be successful,

00:27:38.484 –> 00:27:41.006
not just for the course and the program.

00:27:41.925 –> 00:27:42.767
but for the future.

00:27:42.787 –> 00:27:43.866
Professor DeRose,

00:27:43.886 –> 00:27:44.847
you can speak to this further.

00:27:45.607 –> 00:27:46.689
I downloaded every single

00:27:46.729 –> 00:27:47.589
spreadsheet that you

00:27:47.829 –> 00:27:51.311
developed and created in my computer.

00:27:51.633 –> 00:27:52.952
There’s pre-built

00:27:53.032 –> 00:27:54.493
spreadsheets that you use

00:27:54.554 –> 00:27:55.815
to learn the content,

00:27:56.675 –> 00:27:57.496
but then you take those

00:27:57.516 –> 00:27:59.597
spreadsheets for the rest of your career.

00:27:59.738 –> 00:28:01.838
Now that I’m done with the program,

00:28:02.019 –> 00:28:05.142
I’ve been dabbling in some practice.

00:28:05.261 –> 00:28:06.501
I’m very fortunate through

00:28:06.521 –> 00:28:07.522
some of those contacts I

00:28:07.542 –> 00:28:08.284
was just mentioning.

00:28:08.304 –> 00:28:10.164
They’ve been able to give me some

00:28:10.915 –> 00:28:12.016
dummy accounts and things

00:28:12.056 –> 00:28:13.017
they’re working on.

00:28:14.037 –> 00:28:14.196
Um,

00:28:14.957 –> 00:28:16.518
and I’ve been messing around practicing

00:28:16.538 –> 00:28:17.337
when I’ve reached out to

00:28:17.357 –> 00:28:18.759
Professor DeRue’s like, Hey, I’m stuck,

00:28:19.318 –> 00:28:20.598
you know,

00:28:20.618 –> 00:28:22.019
to help me through our connection here.

00:28:22.140 –> 00:28:25.780
But, um, it’s, it’s a,

00:28:26.000 –> 00:28:29.061
it’s a real easy way to get

00:28:29.102 –> 00:28:30.321
a base level knowledge of

00:28:30.662 –> 00:28:31.663
that side of the industry

00:28:31.702 –> 00:28:32.522
or other sides of the

00:28:32.542 –> 00:28:33.383
industry that you may not

00:28:33.442 –> 00:28:34.683
know about other topics.

00:28:34.723 –> 00:28:37.045
Of course, I found it very digestible.

00:28:37.065 –> 00:28:38.125
I found it very fun.

00:28:38.669 –> 00:28:39.990
I found it very affordable,

00:28:40.170 –> 00:28:41.411
which is also key because, hey,

00:28:41.570 –> 00:28:42.132
three kids,

00:28:42.951 –> 00:28:44.153
not much is very affordable

00:28:44.212 –> 00:28:45.013
for me right now.

00:28:46.734 –> 00:28:48.516
But it’s just very easily accessible.

00:28:48.536 –> 00:28:51.198
The barrier of entry is very low.

00:28:51.917 –> 00:28:54.180
And the prerequisite knowledge, yes.

00:28:54.941 –> 00:28:55.820
Will it help to have some

00:28:55.881 –> 00:28:56.922
prerequisite knowledge in

00:28:56.981 –> 00:28:59.483
P&L understanding how some

00:28:59.523 –> 00:29:00.144
of the deals get made?

00:29:00.203 –> 00:29:00.884
Yes, of course.

00:29:01.424 –> 00:29:02.145
So I wouldn’t just say…

00:29:02.772 –> 00:29:03.772
If you have no clue what a

00:29:03.814 –> 00:29:05.213
P&L is or no clue what a

00:29:05.273 –> 00:29:06.855
line item is or no clue how

00:29:06.875 –> 00:29:08.615
a budget or forecast model gets built,

00:29:09.155 –> 00:29:10.156
maybe learn that first.

00:29:11.416 –> 00:29:12.938
But if you do have that understanding,

00:29:13.057 –> 00:29:14.138
you can jump right in and

00:29:14.298 –> 00:29:15.138
really understand it.

00:29:15.659 –> 00:29:17.720
And more so than that, I would say,

00:29:17.839 –> 00:29:18.800
and Professor, you can say,

00:29:19.161 –> 00:29:20.342
both professors can tell me

00:29:20.362 –> 00:29:21.061
if this is different.

00:29:22.803 –> 00:29:23.682
Once the course ended,

00:29:24.284 –> 00:29:25.584
I was just hungry for more knowledge.

00:29:26.684 –> 00:29:27.704
I reached out to some people.

00:29:27.724 –> 00:29:29.346
They gave me some more opportunities,

00:29:29.385 –> 00:29:30.826
some books to read.

00:29:31.997 –> 00:29:33.219
Just on a pre-call here,

00:29:33.419 –> 00:29:34.079
I’m going to go take

00:29:34.099 –> 00:29:35.122
another certificate program

00:29:35.162 –> 00:29:36.663
recommended by Professor Deroos.

00:29:36.923 –> 00:29:38.105
So, you know,

00:29:38.145 –> 00:29:39.607
it just may be hungrier to learn more.

00:29:39.667 –> 00:29:41.711
It may be hungrier to get into this field.

00:29:42.172 –> 00:29:43.394
It may be hungrier to learn

00:29:43.433 –> 00:29:44.295
more of this side of the

00:29:44.355 –> 00:29:45.175
business for my

00:29:45.215 –> 00:29:46.157
professional development

00:29:46.597 –> 00:29:47.900
and potentially career progression.

00:29:47.940 –> 00:29:48.320
Who knows?

00:29:48.933 –> 00:29:50.154
so dave I’ve got a question

00:29:50.194 –> 00:29:52.096
for you um you just came

00:29:52.175 –> 00:29:53.237
off of going to the click

00:29:53.257 –> 00:29:56.298
conference and so how as

00:29:56.358 –> 00:29:57.318
you know this is what us

00:29:57.459 –> 00:29:58.819
academics love to hear

00:29:58.960 –> 00:30:00.681
right I want to hear how

00:30:00.740 –> 00:30:03.702
you translated what uh dr

00:30:03.782 –> 00:30:06.065
drews shared in that class

00:30:06.144 –> 00:30:07.125
and how you were able to

00:30:07.224 –> 00:30:08.865
leverage that knowledge and

00:30:09.067 –> 00:30:11.008
maybe show up glenn um with

00:30:11.048 –> 00:30:12.328
his lack of knowledge when

00:30:12.348 –> 00:30:13.308
you were out in california

00:30:15.592 –> 00:30:16.532
This is true.

00:30:16.553 –> 00:30:17.953
From the first Click

00:30:18.213 –> 00:30:19.855
conference I went to two

00:30:19.875 –> 00:30:24.317
years ago to this one, night and day,

00:30:25.818 –> 00:30:27.640
simply and solely because of the program.

00:30:29.000 –> 00:30:30.342
I’m not saying that because

00:30:30.603 –> 00:30:31.182
you’re on the show.

00:30:31.202 –> 00:30:32.344
I’m not saying that because

00:30:32.844 –> 00:30:34.005
I’m trying to promote you.

00:30:34.125 –> 00:30:35.385
It’s truly facts.

00:30:36.125 –> 00:30:37.047
As you’re going through the

00:30:37.086 –> 00:30:37.788
different panels,

00:30:38.647 –> 00:30:41.609
as we had the initial show with Bruce.

00:30:42.131 –> 00:30:42.211
Yep.

00:30:43.911 –> 00:30:45.971
a lot of that stuff made more sense to me.

00:30:46.551 –> 00:30:47.452
I was able to actually have

00:30:47.492 –> 00:30:48.953
a knowledgeable conversation.

00:30:48.993 –> 00:30:49.753
That explains why you

00:30:49.773 –> 00:30:50.434
actually asked some good

00:30:50.474 –> 00:30:51.194
questions for once.

00:30:51.434 –> 00:30:52.056
Yeah, see?

00:30:52.875 –> 00:30:54.497
You’re going to make me cry.

00:30:54.517 –> 00:30:56.278
I’m serious.

00:30:57.096 –> 00:30:59.258
that’s exactly the idea it

00:30:59.317 –> 00:31:00.659
was it was all about

00:31:00.858 –> 00:31:03.180
actionable things that you

00:31:03.200 –> 00:31:05.421
can use in your career now

00:31:05.441 –> 00:31:06.820
I hope that as you progress

00:31:06.840 –> 00:31:07.922
you get on the ownership

00:31:07.942 –> 00:31:09.501
side because you get to do

00:31:09.521 –> 00:31:11.623
the money dance when you do

00:31:11.682 –> 00:31:12.784
the refinancing of your

00:31:12.824 –> 00:31:13.923
hotel so you bought it for

00:31:13.923 –> 00:31:15.365
100 you financed it and

00:31:15.404 –> 00:31:16.305
then you know rates have

00:31:16.365 –> 00:31:17.486
risen and inflation has

00:31:17.506 –> 00:31:18.286
been good and you’ve been a

00:31:18.346 –> 00:31:20.067
good manager or asset manager

00:31:20.586 –> 00:31:22.548
And you now have a bigger cash flow.

00:31:22.929 –> 00:31:24.930
You refinance it and you pay

00:31:25.010 –> 00:31:26.332
off your old mortgage and

00:31:26.352 –> 00:31:27.913
you get to keep all the upside.

00:31:28.712 –> 00:31:31.454
It’s an amazing, amazing thing.

00:31:31.535 –> 00:31:33.136
You get to buy drinks and you don’t care.

00:31:33.676 –> 00:31:35.157
Yeah.

00:31:35.618 –> 00:31:37.359
But that’s exactly, that’s exactly what,

00:31:37.440 –> 00:31:37.720
you know,

00:31:37.779 –> 00:31:38.921
now I need to take that next step.

00:31:38.980 –> 00:31:39.201
Right.

00:31:39.240 –> 00:31:41.482
So now I understand what he just said.

00:31:41.502 –> 00:31:43.565
I probably wouldn’t have six months ago.

00:31:44.184 –> 00:31:44.444
Right.

00:31:44.505 –> 00:31:45.506
If you had asked me how to

00:31:45.546 –> 00:31:46.446
actually execute that.

00:31:47.923 –> 00:31:49.986
I’m going to continue to wear that.

00:31:50.026 –> 00:31:51.047
That’s the next level.

00:31:51.747 –> 00:31:53.128
I do that in my face-to-face course,

00:31:53.148 –> 00:31:54.430
which is talk a lot about, okay,

00:31:54.450 –> 00:31:57.772
so now execution.

00:31:59.034 –> 00:32:02.096
That’s where my real-world

00:32:02.136 –> 00:32:03.176
experience has helped me

00:32:03.278 –> 00:32:07.121
because things pass a smell test.

00:32:08.761 –> 00:32:10.104
This is something that’s

00:32:10.183 –> 00:32:11.545
translatable across a wide range of

00:32:16.184 –> 00:32:17.445
We’re not just talking about

00:32:17.465 –> 00:32:20.909
this being usable in New

00:32:20.949 –> 00:32:23.531
York or Florida or California.

00:32:23.612 –> 00:32:26.453
You can translate these concepts across.

00:32:26.534 –> 00:32:28.476
I will tell you that this is

00:32:28.556 –> 00:32:30.238
not how they do business in Kenya.

00:32:31.338 –> 00:32:33.681
That person in class and uh-uh.

00:32:34.869 –> 00:32:35.990
I know you taught in Paris.

00:32:36.050 –> 00:32:36.892
How about in Paris?

00:32:39.015 –> 00:32:40.096
They do follow what I call

00:32:40.115 –> 00:32:41.698
Western norms of finance over there.

00:32:41.718 –> 00:32:43.559
This all works because we’re capitalists.

00:32:43.980 –> 00:32:49.066
If you get to places where money is…

00:32:50.607 –> 00:32:53.368
more fungible.

00:32:53.388 –> 00:32:55.108
Before we wrap up,

00:32:55.368 –> 00:32:57.489
the message I’m taking away from this is,

00:32:57.990 –> 00:32:59.470
whereas hospitality schools

00:32:59.529 –> 00:33:00.789
used to fundamentally focus

00:33:00.829 –> 00:33:01.490
a lot on what’s

00:33:01.529 –> 00:33:03.830
specifically happening on the property,

00:33:04.270 –> 00:33:07.131
programs like your offering, Jan,

00:33:07.171 –> 00:33:08.251
is really helping people

00:33:08.291 –> 00:33:09.791
understand there are so

00:33:09.852 –> 00:33:11.172
many other facets to our

00:33:11.211 –> 00:33:12.372
business where you could be

00:33:12.432 –> 00:33:13.393
in hospitality,

00:33:13.772 –> 00:33:15.272
but not necessarily have to

00:33:15.313 –> 00:33:17.073
be servicing a customer at

00:33:17.113 –> 00:33:18.513
the property level.

00:33:18.534 –> 00:33:19.433
How do you see this fitting

00:33:19.493 –> 00:33:20.094
into the scheme

00:33:20.213 –> 00:33:20.554
Well,

00:33:20.653 –> 00:33:23.256
I think it’s incredibly important for

00:33:23.296 –> 00:33:24.076
people that have great

00:33:24.176 –> 00:33:25.377
ideas and support

00:33:25.417 –> 00:33:27.338
operations and have

00:33:28.160 –> 00:33:29.540
businesses that are tremendous.

00:33:29.580 –> 00:33:30.521
But there’s a whole capital

00:33:30.582 –> 00:33:31.622
market side of the business

00:33:31.642 –> 00:33:33.163
that treats these as financial assets.

00:33:33.784 –> 00:33:34.805
And that’s another side of

00:33:34.825 –> 00:33:35.904
the industry that I think

00:33:36.465 –> 00:33:37.686
people can have very

00:33:37.787 –> 00:33:39.107
legitimate and great careers in.

00:33:39.688 –> 00:33:40.828
But sometimes, you know,

00:33:40.848 –> 00:33:41.848
when I see students that

00:33:41.888 –> 00:33:42.710
are really creative,

00:33:42.789 –> 00:33:43.609
I always encourage them to

00:33:43.650 –> 00:33:44.671
go on the operations side

00:33:44.691 –> 00:33:45.491
because you can make a lot

00:33:45.511 –> 00:33:46.892
of money with good ideas on

00:33:46.951 –> 00:33:49.094
that side and not get stuck

00:33:49.134 –> 00:33:51.515
being an analyst all day.

00:33:51.595 –> 00:33:53.256
I mean,

00:33:53.276 –> 00:33:54.517
there’s hard work to be done on

00:33:54.557 –> 00:33:54.997
both sides,

00:33:55.057 –> 00:33:56.458
but I think the actual

00:33:56.518 –> 00:33:58.619
operations side of this is enormous fun.

00:33:58.759 –> 00:34:00.361
But it’s, you know,

00:34:00.441 –> 00:34:01.461
there’s a product side and

00:34:01.500 –> 00:34:02.501
there’s a capital market side.

00:34:03.317 –> 00:34:04.196
let me say one last thing

00:34:04.217 –> 00:34:05.397
from my side you know if

00:34:05.417 –> 00:34:06.278
you are on the operations

00:34:06.298 –> 00:34:07.357
side coming from someone on

00:34:07.377 –> 00:34:08.318
the operations side just

00:34:08.358 –> 00:34:09.518
because you may not want to

00:34:09.559 –> 00:34:10.760
go into that side of the

00:34:10.800 –> 00:34:11.739
business does not mean this

00:34:11.780 –> 00:34:13.099
knowledge is not useful to

00:34:13.159 –> 00:34:14.760
you as well this is

00:34:14.840 –> 00:34:16.362
definitely you know if I

00:34:16.501 –> 00:34:18.702
never change past and I’m a

00:34:18.762 –> 00:34:20.003
gm for the rest of my life

00:34:20.902 –> 00:34:23.123
this information is very

00:34:23.224 –> 00:34:24.483
useful to understand how to

00:34:24.523 –> 00:34:26.344
most efficiently run this operation

00:34:26.826 –> 00:34:27.065
Right.

00:34:27.085 –> 00:34:28.347
You don’t understand that side.

00:34:28.367 –> 00:34:29.128
You don’t understand what

00:34:29.148 –> 00:34:30.369
the owner wants to do and

00:34:30.409 –> 00:34:30.949
understand their

00:34:30.969 –> 00:34:32.331
motivations and their reasonings,

00:34:32.371 –> 00:34:34.432
which is a large part of this program.

00:34:34.952 –> 00:34:36.094
And now I understand.

00:34:36.735 –> 00:34:37.195
I mean,

00:34:37.235 –> 00:34:38.677
I literally went back and read my

00:34:38.876 –> 00:34:40.398
HMA after the certificate

00:34:40.438 –> 00:34:41.179
and I understand,

00:34:41.498 –> 00:34:43.900
understood it’s so much better.

00:34:44.101 –> 00:34:45.643
And I literally was tying

00:34:46.563 –> 00:34:48.065
paragraphs and content in

00:34:48.105 –> 00:34:50.567
the HMA hotel management agreement,

00:34:50.626 –> 00:34:53.170
if you don’t know, but HMA to

00:34:54.704 –> 00:34:55.606
you know, the course.

00:34:55.686 –> 00:34:56.505
And I was remembering, okay,

00:34:56.545 –> 00:34:58.427
this part of the course, it said this,

00:34:58.507 –> 00:34:59.606
and I’m seeing it right here.

00:35:00.387 –> 00:35:01.847
So it was just, it was wonderful.

00:35:01.907 –> 00:35:02.949
So I still recommend if

00:35:03.048 –> 00:35:03.929
you’re an operations side

00:35:03.949 –> 00:35:05.909
to look into a course like this,

00:35:06.331 –> 00:35:07.550
because it will help that

00:35:07.990 –> 00:35:08.952
progression in your career

00:35:08.972 –> 00:35:09.931
from the operational side.

00:35:10.552 –> 00:35:11.213
Just for kicks,

00:35:11.233 –> 00:35:12.313
did you read your franchise

00:35:12.373 –> 00:35:13.614
disclosure agreement yet?

00:35:14.092 –> 00:35:14.773
I haven’t gotten there yet.

00:35:14.934 –> 00:35:15.893
I have a lot to read.

00:35:16.273 –> 00:35:17.454
I have picked up so much to

00:35:17.514 –> 00:35:19.556
read in that continuation of education.

00:35:19.657 –> 00:35:22.278
Right now I have a 570 some odd page book.

00:35:22.818 –> 00:35:24.280
I don’t remember the exact clauses.

00:35:24.300 –> 00:35:25.440
There’s only four clauses

00:35:25.481 –> 00:35:26.981
that really matter in an FDD.

00:35:27.181 –> 00:35:30.704
So the rest of it’s required

00:35:30.784 –> 00:35:33.965
by the Federal Trade Commission.

00:35:34.005 –> 00:35:34.987
Out of 360 pages,

00:35:35.007 –> 00:35:35.887
you probably only need four.

00:35:36.563 –> 00:35:36.784
Yeah.

00:35:37.945 –> 00:35:38.885
All right.

00:35:38.905 –> 00:35:40.045
So let’s wrap things up.

00:35:40.706 –> 00:35:41.086
Jan,

00:35:41.126 –> 00:35:42.688
I know Jay’s been shamelessly plugging

00:35:42.708 –> 00:35:42.887
you,

00:35:43.007 –> 00:35:45.829
but how do we learn more about this

00:35:45.949 –> 00:35:46.670
program, please?

00:35:48.431 –> 00:35:51.253
Oh, www.ecornell.com.

00:35:52.253 –> 00:35:52.713
Easy enough.

00:35:53.603 –> 00:35:53.963
Easy enough.

00:35:54.284 –> 00:35:56.907
I’m going to say let’s go there,

00:35:56.927 –> 00:35:58.447
but then also find the right program.

00:35:58.467 –> 00:35:59.789
Because there’s so many programs,

00:35:59.869 –> 00:36:00.550
not even in Hockey Town.

00:36:00.570 –> 00:36:01.490
Just put my name in.

00:36:01.771 –> 00:36:06.114
Or real estate.

00:36:06.135 –> 00:36:07.175
When you get there, just real estate.

00:36:07.195 –> 00:36:08.458
There’s a very rich real

00:36:08.478 –> 00:36:09.137
estate curriculum.

00:36:09.177 –> 00:36:09.978
And I don’t want to tout

00:36:10.018 –> 00:36:11.440
mine as if soul…

00:36:12.481 –> 00:36:13.762
Arbiter of good stuff.

00:36:13.782 –> 00:36:16.302
There’s everybody who loves

00:36:16.422 –> 00:36:17.422
the executive program.

00:36:17.523 –> 00:36:21.143
We all, Suzanne, tell me if I’m wrong.

00:36:21.324 –> 00:36:22.565
We love our undergraduates.

00:36:22.985 –> 00:36:25.106
We love our executive programs.

00:36:25.445 –> 00:36:26.965
Our grads are pains in the ass.

00:36:29.867 –> 00:36:31.148
I will do an executive

00:36:31.208 –> 00:36:33.268
education program over a grant any day.

00:36:33.608 –> 00:36:33.849
Yeah.

00:36:34.289 –> 00:36:36.210
And so that’s just the way it is.

00:36:36.269 –> 00:36:37.190
So, you know,

00:36:37.309 –> 00:36:38.311
we love our executive

00:36:38.331 –> 00:36:39.271
programs and people want to

00:36:39.291 –> 00:36:40.572
put their good stuff online.

00:36:41.271 –> 00:36:41.532
Awesome.

00:36:41.782 –> 00:36:43.625
So my question before you go,

00:36:44.065 –> 00:36:45.567
just because I want to pull

00:36:45.646 –> 00:36:47.027
off of executive education,

00:36:47.068 –> 00:36:49.010
but really just get your final take.

00:36:49.030 –> 00:36:50.492
I know we talked a lot about HI,

00:36:50.552 –> 00:36:52.193
but what do you see as

00:36:52.333 –> 00:36:54.635
either the clouds and the

00:36:54.695 –> 00:36:56.438
bright spots coming up on

00:36:56.478 –> 00:36:59.061
the horizon in the next year and beyond?

00:37:00.036 –> 00:37:03.197
I think the clouds are

00:37:03.358 –> 00:37:06.840
continuing redefinitions of

00:37:06.880 –> 00:37:08.101
the industry of what supply

00:37:08.201 –> 00:37:09.280
is and that supply being

00:37:09.360 –> 00:37:11.282
able to grow really quickly

00:37:11.342 –> 00:37:12.722
like Airbnb just brought in

00:37:12.963 –> 00:37:13.902
additional supply.

00:37:14.463 –> 00:37:15.784
I think that’s a real threat.

00:37:17.164 –> 00:37:20.427
And I think that, unfortunately,

00:37:21.007 –> 00:37:23.429
inbound travel could be restricted.

00:37:24.210 –> 00:37:27.273
So I think that’s a threat

00:37:27.614 –> 00:37:28.875
to occupancies as a whole.

00:37:29.456 –> 00:37:31.137
In terms of bright spots,

00:37:31.757 –> 00:37:33.759
I think our economy is booming.

00:37:33.918 –> 00:37:35.079
I think people want to travel.

00:37:35.119 –> 00:37:36.601
The first thing you want to do,

00:37:37.822 –> 00:37:39.143
it’s pinky swear,

00:37:39.184 –> 00:37:40.844
we’re taking me on vacation this year,

00:37:40.864 –> 00:37:42.646
you son of a gun.

00:37:42.927 –> 00:37:44.751
right um and we’re taking

00:37:44.791 –> 00:37:45.833
the kids somewhere and you

00:37:46.132 –> 00:37:47.755
know that’s really a huge

00:37:47.835 –> 00:37:48.898
piece on giving the

00:37:49.139 –> 00:37:50.481
businesses back getting

00:37:50.521 –> 00:37:51.764
leisure back and group back

00:37:51.844 –> 00:37:53.226
I think is uh you know

00:37:53.567 –> 00:37:54.668
people want to travel and

00:37:54.829 –> 00:37:55.710
have new experiences

00:37:56.461 –> 00:37:57.563
Yep, absolutely.

00:37:58.043 –> 00:37:58.943
Well, thank you so much, Dan.

00:37:58.983 –> 00:38:01.425
We really appreciate you being here today.

00:38:01.445 –> 00:38:01.885
Thank you.

00:38:02.445 –> 00:38:02.945
Thank you.

00:38:02.965 –> 00:38:03.905
Hey, Dave.

00:38:03.925 –> 00:38:05.726
Appreciate me being here too?

00:38:05.887 –> 00:38:07.847
No, I work here at every moment.

00:38:07.887 –> 00:38:09.588
You’re sharing a screen with me.

00:38:09.869 –> 00:38:10.750
But I do want to say, hey,

00:38:10.789 –> 00:38:11.530
maybe you want to do an

00:38:11.570 –> 00:38:12.831
official sign-off today as well.

00:38:12.851 –> 00:38:14.072
We’ll have a triple sign-off

00:38:14.112 –> 00:38:14.731
or something like that.

00:38:14.891 –> 00:38:15.992
Before that, hey,

00:38:16.032 –> 00:38:17.253
make sure you download the

00:38:17.313 –> 00:38:18.715
video version of this on audio.

00:38:18.735 –> 00:38:19.596
You’re out walking the dog.

00:38:19.635 –> 00:38:21.157
You’re out getting some exercise,

00:38:21.197 –> 00:38:21.757
which I’m going to be

00:38:21.777 –> 00:38:23.298
hopefully doing this afternoon.

00:38:23.579 –> 00:38:24.539
And I like listening to my

00:38:24.579 –> 00:38:25.360
favorite podcast,

00:38:25.400 –> 00:38:26.880
Why Not Download No Vacancy,

00:38:26.940 –> 00:38:28.623
and have us in your ears.

00:38:28.663 –> 00:38:29.563
Lots of great information.

00:38:29.844 –> 00:38:30.684
You want to re-listen to that.

00:38:30.724 –> 00:38:31.565
And if you want to watch us,

00:38:31.605 –> 00:38:34.086
find us on Facebook, LinkedIn, of course,

00:38:34.126 –> 00:38:37.690
at NoVacancyNews.com, and on YouTube.

00:38:37.730 –> 00:38:38.751
Thanks, everyone, for being here.

00:38:38.771 –> 00:38:40.311
And remember, you’ve got one life,

00:38:40.331 –> 00:38:41.172
so blaze on.

00:38:42.273 –> 00:38:43.034
Follow your passion.

00:38:44.050 –> 00:38:44.913
Be kind to yourself.

00:38:46.016 –> 00:38:46.356
All right.

00:38:46.416 –> 00:38:46.818
There we go.

00:38:46.838 –> 00:38:47.340
That’s tomorrow.

00:38:47.380 –> 00:38:47.800
All right.

00:38:47.820 –> 00:38:48.643
See you tomorrow.