Creating Profitable Public Private Partnerships

0:00:01.786 --> 0:00:03.809 Happy Tuesday, or is it Monday? 0:00:04.009 --> 0:00:05.072 I'm very confused, Anthony. 0:00:05.753 --> 0:00:06.974 I'm watching the Super Bowl right now. 0:00:07.014 --> 0:00:07.575 Don't bother me. 0:00:07.876 --> 0:00:08.096 Okay. 0:00:08.157 --> 0:00:08.657 I'm Anthony. 0:00:08.878 --> 0:00:10.179 Welcome to No Vacancy Live. 0:00:10.500 --> 0:00:11.381 That's my friend, Glenn. 0:00:11.542 --> 0:00:12.304 You're watching the number 0:00:12.384 --> 0:00:13.726 one show in hospitality. 0:00:27.385 --> 0:00:27.865 Hey, everybody. 0:00:27.885 --> 0:00:29.888 Thanks for watching No Vacancy Live. 0:00:29.908 --> 0:00:31.068 That's Anthony Melchiorri. 0:00:31.268 --> 0:00:32.069 I'm Glenn Hausman. 0:00:32.109 --> 0:00:33.689 This show was actually recorded. 0:00:34.191 --> 0:00:35.551 We recorded it yesterday at 0:00:35.591 --> 0:00:37.273 a play today because of our schedules. 0:00:37.313 --> 0:00:38.133 But unless, of course, 0:00:38.152 --> 0:00:39.234 you're watching it tomorrow, 0:00:39.533 --> 0:00:41.875 then we recorded it a few days ago. 0:00:42.536 --> 0:00:43.557 You saw it yesterday and you 0:00:43.597 --> 0:00:44.256 won't see it tomorrow. 0:00:44.277 --> 0:00:46.078 But if we do it today, we do it tomorrow. 0:00:46.378 --> 0:00:47.139 I would encourage. 0:00:47.439 --> 0:00:48.320 Who's on third base? 0:00:48.759 --> 0:00:49.701 I feel like the show is 0:00:49.720 --> 0:00:50.320 going to be so good, 0:00:50.341 --> 0:00:50.822 you're going to want to 0:00:50.841 --> 0:00:53.003 watch it every single day. 0:00:53.023 --> 0:00:54.664 We have to get our guest on 0:00:54.704 --> 0:00:56.185 right away because I can't 0:00:56.225 --> 0:00:57.185 talk to you about the Super Bowl. 0:00:57.805 --> 0:00:58.066 All right. 0:00:58.286 --> 0:01:00.406 Yeah, we're not going to do that, 0:01:00.466 --> 0:01:01.607 but I want to just say 0:01:01.948 --> 0:01:03.268 kudos to Las Vegas. 0:01:03.588 --> 0:01:06.228 What a great event that was. 0:01:06.769 --> 0:01:08.950 Let's bring on to the stage right now, 0:01:09.010 --> 0:01:09.971 Stephen Galbraith. 0:01:10.010 --> 0:01:10.870 He's the chief development 0:01:10.911 --> 0:01:13.371 officer with Garfield Public Private. 0:01:13.852 --> 0:01:15.513 What makes them special is 0:01:15.593 --> 0:01:17.114 they've been doing billions 0:01:17.194 --> 0:01:18.816 and billion dollars of 0:01:18.876 --> 0:01:20.597 consulting and planning and 0:01:20.697 --> 0:01:22.040 getting hotels you want 0:01:22.140 --> 0:01:23.981 open actually in the ground 0:01:24.421 --> 0:01:25.643 up and operating. 0:01:25.683 --> 0:01:27.024 Steven, so great to see you, man. 0:01:27.164 --> 0:01:28.084 Hey, how are you guys? 0:01:28.686 --> 0:01:29.706 You know, it's funny. 0:01:29.826 --> 0:01:30.628 I'm calling you Steven, though. 0:01:30.647 --> 0:01:31.948 You came on as Steve because 0:01:31.989 --> 0:01:33.730 back when we first got to know each other, 0:01:33.771 --> 0:01:34.590 you were Steven. 0:01:34.992 --> 0:01:36.033 And this Steve thing is like 0:01:36.072 --> 0:01:37.774 taking me by surprise over here. 0:01:37.813 --> 0:01:39.316 I'm just trying to make it more casual. 0:01:39.335 --> 0:01:39.596 Yeah. 0:01:41.070 --> 0:01:41.590 So, Steve, 0:01:41.631 --> 0:01:43.152 did you watch the Super Bowl yesterday? 0:01:43.932 --> 0:01:44.533 I did. 0:01:44.552 --> 0:01:45.612 I did. 0:01:46.013 --> 0:01:47.334 Glenn did not. 0:01:47.653 --> 0:01:47.933 I did. 0:01:47.953 --> 0:01:48.974 I watched the first half. 0:01:49.834 --> 0:01:50.155 Okay, 0:01:50.174 --> 0:01:52.296 so you watched the— The whole game 0:01:52.316 --> 0:01:53.296 was in the last half. 0:01:54.277 --> 0:01:57.117 The whole game was in the last minute. 0:01:57.237 --> 0:01:59.099 I made a couple of mistakes. 0:01:59.179 --> 0:02:00.599 I ate too many potato skins 0:02:00.638 --> 0:02:01.739 and chicken wings that I made, 0:02:02.040 --> 0:02:03.560 and it just kind of knocked me out. 0:02:03.840 --> 0:02:06.240 So, Steve, I went to school. 0:02:06.281 --> 0:02:07.581 I was in the military in Missouri, 0:02:07.602 --> 0:02:09.342 and I went to school in Kansas City, so— 0:02:10.103 --> 0:02:12.328 And I sat on the board of my university, 0:02:12.348 --> 0:02:14.372 so I'm a big Kansas City fan. 0:02:14.391 --> 0:02:15.313 If I'm not a Jet fan, 0:02:15.814 --> 0:02:16.757 if there are Jets on it. 0:02:16.817 --> 0:02:18.620 So which side were you on 0:02:18.781 --> 0:02:19.842 and what did you think of the game? 0:02:21.217 --> 0:02:22.038 I was a little disappointed 0:02:22.057 --> 0:02:22.837 with the first half. 0:02:23.639 --> 0:02:24.799 I'm a Chiefs fan as well. 0:02:25.959 --> 0:02:27.278 I love Mahomes. 0:02:27.359 --> 0:02:28.979 Who can't get enough of that 0:02:29.020 --> 0:02:30.120 Taylor Swift stuff, right? 0:02:31.340 --> 0:02:33.700 I think I counted six times, 0:02:33.760 --> 0:02:37.342 so that was about my limit. 0:02:37.542 --> 0:02:40.862 It was touching at the end, their embrace. 0:02:40.883 --> 0:02:41.962 They look like a real couple. 0:02:42.502 --> 0:02:43.544 Yeah, that's what I said. 0:02:43.663 --> 0:02:45.284 And listen, it is what it is, 0:02:45.365 --> 0:02:46.445 and they're not hiding from it. 0:02:46.866 --> 0:02:48.447 But again, we went from the football game, 0:02:48.467 --> 0:02:51.008 my ticket teller's win. 0:02:51.109 --> 0:02:52.330 But the last minute, 0:02:52.610 --> 0:02:56.072 and I told my daughter's boyfriend, 0:02:56.953 --> 0:02:58.212 who I've known for six, seven years, 0:02:58.653 --> 0:02:59.693 we watched the game together, 0:02:59.754 --> 0:03:00.275 and I turned to him. 0:03:00.294 --> 0:03:01.175 He doesn't know a lot about football. 0:03:01.194 --> 0:03:01.695 He's in theater. 0:03:01.756 --> 0:03:04.037 And I said to him, uh-oh. 0:03:04.237 --> 0:03:05.057 He said, why? 0:03:05.098 --> 0:03:05.358 I said, 0:03:05.838 --> 0:03:06.878 Kansas City Chiefs are going to win. 0:03:06.899 --> 0:03:07.379 He said, why? 0:03:07.400 --> 0:03:07.539 I said, 0:03:07.560 --> 0:03:08.741 because they just put the ball in 0:03:08.920 --> 0:03:09.781 potentially the greatest 0:03:09.820 --> 0:03:10.741 quarterback to ever live. 0:03:13.463 --> 0:03:14.743 he's going to do it. 0:03:14.824 --> 0:03:15.425 That's what he does. 0:03:15.965 --> 0:03:17.526 Don't you call a timeout there, though, 0:03:17.545 --> 0:03:18.966 to give yourself a couple seconds? 0:03:19.165 --> 0:03:21.268 I mean, they threw that thing. 0:03:21.987 --> 0:03:24.128 I'm screaming, saying, timeout, timeout! 0:03:24.449 --> 0:03:26.729 Yes, if they didn't make that pass, 0:03:26.930 --> 0:03:27.591 I think they wouldn't have 0:03:27.610 --> 0:03:28.711 had time to call a timeout. 0:03:28.751 --> 0:03:29.431 And he turned, 0:03:29.972 --> 0:03:32.212 and if the defender turned 0:03:32.252 --> 0:03:33.493 in the Super Bowl in the corner... 0:03:34.764 --> 0:03:35.925 Interception, game over. 0:03:36.186 --> 0:03:36.787 Yeah, yeah. 0:03:36.847 --> 0:03:37.707 I was shocked by that. 0:03:37.828 --> 0:03:39.270 I thought that would have been a timeout, 0:03:40.091 --> 0:03:41.111 and that was shocked. 0:03:41.271 --> 0:03:42.133 It's a great second half. 0:03:42.633 --> 0:03:44.415 Yeah, it was amazing, Glenn. 0:03:44.924 --> 0:03:46.164 Yeah, I know. 0:03:46.185 --> 0:03:47.006 Honestly, 0:03:47.045 --> 0:03:49.927 I really wish I had stuck around 0:03:50.087 --> 0:03:50.968 with the game, 0:03:51.008 --> 0:03:52.509 but I get distracted easily. 0:03:52.550 --> 0:03:53.931 At the end of the game, 0:03:53.991 --> 0:03:54.931 I'm so excited that I get a 0:03:54.972 --> 0:03:55.772 text from my daughter 0:03:55.793 --> 0:03:57.995 saying a friend's father 0:03:58.014 --> 0:03:59.075 who I know won $150,000 in 0:03:59.096 --> 0:04:00.757 the Super Bowl pool. 0:04:01.217 --> 0:04:01.677 Wow. 0:04:01.837 --> 0:04:02.838 My God. 0:04:03.218 --> 0:04:05.781 That's pretty amazing. 0:04:05.860 --> 0:04:06.662 These are great guys, 0:04:06.701 --> 0:04:07.962 so it couldn't have been a nicer guy. 0:04:08.302 --> 0:04:10.344 also pretty amazing steve 0:04:10.365 --> 0:04:11.705 you guys opened up uh three 0:04:11.746 --> 0:04:13.227 hotels in texas last year 0:04:13.306 --> 0:04:14.647 two in uh two in houston 0:04:14.687 --> 0:04:15.568 and stuff like that a lot 0:04:15.587 --> 0:04:16.329 of people have been uh 0:04:16.908 --> 0:04:18.490 having uh you know issues 0:04:18.589 --> 0:04:20.331 trying to get things done 0:04:20.612 --> 0:04:22.413 and if you know fortunately 0:04:22.492 --> 0:04:23.434 right now the pipeline 0:04:23.454 --> 0:04:25.254 seems to be you know um has 0:04:25.375 --> 0:04:26.596 a lot of projects in it 0:04:26.656 --> 0:04:27.536 according to our friends 0:04:27.596 --> 0:04:28.137 over at lodging 0:04:28.156 --> 0:04:29.137 econometrics but a lot of 0:04:29.177 --> 0:04:29.899 those projects are in 0:04:29.959 --> 0:04:31.180 pre-planning stages and a 0:04:31.259 --> 0:04:32.399 lot of projects can't seem 0:04:32.420 --> 0:04:34.062 to get over the finish line 0:04:34.601 --> 0:04:36.343 because of a lot of financing issues. 0:04:36.382 --> 0:04:36.923 Could you maybe, 0:04:36.983 --> 0:04:37.824 and we're gonna talk a 0:04:37.843 --> 0:04:38.345 little bit about 0:04:38.745 --> 0:04:39.946 hospitality financing and 0:04:40.005 --> 0:04:40.625 what you're doing, 0:04:40.665 --> 0:04:41.987 but maybe let's just start with, 0:04:42.327 --> 0:04:44.088 how are you seeing the 0:04:44.129 --> 0:04:45.410 hotels that you got open 0:04:45.449 --> 0:04:46.891 last year as a model for 0:04:46.930 --> 0:04:47.711 what you're trying to get 0:04:47.752 --> 0:04:48.812 accomplished for yourself 0:04:48.851 --> 0:04:49.392 and your clients? 0:04:50.199 --> 0:04:50.999 Boy, you know, 0:04:51.019 --> 0:04:52.259 it wasn't our plan to have 0:04:52.300 --> 0:04:54.300 three hotels open within 90 days. 0:04:54.980 --> 0:04:55.141 Right. 0:04:55.901 --> 0:04:56.721 That was pretty rough. 0:04:56.740 --> 0:04:57.100 90 days. 0:04:58.742 --> 0:04:59.622 All over Texas. 0:05:00.622 --> 0:05:01.283 One in Abilene, 0:05:01.423 --> 0:05:02.762 which is about three hours 0:05:02.822 --> 0:05:04.204 west of where I live in Dallas here. 0:05:04.303 --> 0:05:04.843 Right. 0:05:04.983 --> 0:05:06.425 And two in the Houston market. 0:05:06.625 --> 0:05:08.305 One in the northern suburbs 0:05:08.444 --> 0:05:11.305 with Conroe and one in Baytown, 0:05:11.326 --> 0:05:13.906 which is about maybe 15 miles east. 0:05:15.028 --> 0:05:15.927 So it was a lot of traveling. 0:05:16.447 --> 0:05:18.348 Houston and Texas in general 0:05:18.369 --> 0:05:20.108 is on fire right now, as you guys know. 0:05:20.269 --> 0:05:22.430 So many people moving to the Texas market. 0:05:22.709 --> 0:05:24.011 It's so busy for business. 0:05:24.870 --> 0:05:26.531 We also built the Westin in 0:05:26.572 --> 0:05:27.391 Las Colinas here. 0:05:27.672 --> 0:05:30.673 That opened about five years ago. 0:05:31.952 --> 0:05:34.053 We have just been doing more 0:05:34.153 --> 0:05:35.894 projects in Texas just 0:05:35.935 --> 0:05:36.714 because it's in our 0:05:36.754 --> 0:05:38.336 backyard and it's been great. 0:05:38.475 --> 0:05:39.576 What's going on with Austin? 0:05:39.696 --> 0:05:41.257 Anything in Austin? 0:05:41.336 --> 0:05:43.016 Austin's on fire as well. 0:05:43.798 --> 0:05:44.257 Austin has... 0:05:45.197 --> 0:05:46.098 a lot of traffic. 0:05:46.119 --> 0:05:47.019 I don't know if you've been 0:05:47.040 --> 0:05:47.880 there and during the day 0:05:47.920 --> 0:05:49.622 and trying to move around recently. 0:05:50.122 --> 0:05:51.425 I was there about six months ago. 0:05:51.904 --> 0:05:53.706 Uh, South by Southwest is there. 0:05:53.747 --> 0:05:55.428 The formula one race is there. 0:05:55.468 --> 0:05:55.788 I mean, it's, 0:05:56.050 --> 0:05:58.372 it's almost cheaper to go fly 0:05:58.492 --> 0:06:00.975 to Monza and go spend a week in, 0:06:01.134 --> 0:06:02.396 in Italy with your family 0:06:02.435 --> 0:06:05.119 than it is to go do a, a VIP package and, 0:06:05.358 --> 0:06:05.639 Listen, 0:06:05.658 --> 0:06:08.341 my daughter is going to Austin next week. 0:06:08.380 --> 0:06:09.041 I said, why Austin? 0:06:09.062 --> 0:06:09.322 She goes, 0:06:09.341 --> 0:06:10.543 because apparently it's a hot place. 0:06:10.983 --> 0:06:11.363 I go, all right, 0:06:11.384 --> 0:06:13.345 go to Joe Rogan's Comedy 0:06:13.365 --> 0:06:14.146 Club because he just opened 0:06:14.165 --> 0:06:14.646 a comedy club. 0:06:14.745 --> 0:06:16.086 And she goes, no, that's all right. 0:06:16.427 --> 0:06:17.048 I'm dying to go. 0:06:17.088 --> 0:06:18.067 I'm going to go just so I 0:06:18.088 --> 0:06:19.069 can go to the comedy club. 0:06:19.529 --> 0:06:21.391 I think 50-year-old guys go there. 0:06:21.411 --> 0:06:22.872 20-somethings don't go there. 0:06:23.291 --> 0:06:25.293 And then she ordered, 0:06:25.572 --> 0:06:26.973 she made her order for 0:06:27.012 --> 0:06:29.273 Terry Black's online. 0:06:29.293 --> 0:06:30.973 And I'm like, what are you doing? 0:06:31.093 --> 0:06:31.954 She goes, I don't want to wait in line. 0:06:31.973 --> 0:06:32.514 I go, no, no, no. 0:06:32.553 --> 0:06:34.254 That's the whole thing. 0:06:34.754 --> 0:06:35.254 You go, 0:06:35.314 --> 0:06:37.355 you wait online and you go through 0:06:37.394 --> 0:06:38.076 the process. 0:06:38.475 --> 0:06:39.495 Don't order it, 0:06:39.855 --> 0:06:40.875 pre-order it and bring it 0:06:40.915 --> 0:06:42.055 back to your Airbnb. 0:06:42.497 --> 0:06:43.757 And yes, when you go to an Airbnb, 0:06:43.776 --> 0:06:44.197 don't judge. 0:06:44.877 --> 0:06:46.879 We have a Terry Black's in Dallas now. 0:06:47.019 --> 0:06:47.459 It's great. 0:06:47.519 --> 0:06:48.180 Yeah, I know. 0:06:48.201 --> 0:06:48.701 I know. 0:06:48.822 --> 0:06:49.461 And I said to her, 0:06:49.502 --> 0:06:50.322 make sure you order it from 0:06:50.343 --> 0:06:51.764 the one in Austin, not the one in Dallas. 0:06:51.964 --> 0:06:52.285 Yes. 0:06:52.305 --> 0:06:52.464 Okay, 0:06:52.504 --> 0:06:55.408 so why that one and not something 0:06:55.447 --> 0:06:57.050 like Franklin's Barbecue? 0:06:57.495 --> 0:06:58.555 Well, you know, like to me, 0:06:58.636 --> 0:07:00.576 Terry Black's is like Katz's Deli. 0:07:01.096 --> 0:07:02.817 If you pre-order Katz's Deli, 0:07:02.838 --> 0:07:03.559 you missed the point. 0:07:03.999 --> 0:07:04.298 Right. 0:07:04.598 --> 0:07:04.800 Yeah. 0:07:05.040 --> 0:07:05.579 You have to have the 0:07:05.620 --> 0:07:07.141 interaction with the desk, right? 0:07:07.281 --> 0:07:07.521 Right. 0:07:07.922 --> 0:07:08.661 I always find that. 0:07:08.682 --> 0:07:09.262 And for those of you who 0:07:09.281 --> 0:07:09.942 have not been there, 0:07:09.983 --> 0:07:11.103 it can be very stressful. 0:07:11.163 --> 0:07:11.863 You've got to kind of know 0:07:11.884 --> 0:07:13.785 what you want ahead of time. 0:07:13.964 --> 0:07:15.245 This is the best. 0:07:15.425 --> 0:07:16.826 Being in New York and Katz's 0:07:17.427 --> 0:07:19.088 is like you go there 0:07:19.209 --> 0:07:21.149 because you are now a concierge. 0:07:21.730 --> 0:07:22.829 So you go there and you're 0:07:22.870 --> 0:07:24.129 telling everybody else that 0:07:24.170 --> 0:07:25.050 doesn't speak the language 0:07:25.211 --> 0:07:27.610 or has never been here before what to do. 0:07:28.091 --> 0:07:28.990 And I tell everybody, 0:07:29.050 --> 0:07:30.252 see that ticket in your hand? 0:07:30.891 --> 0:07:32.072 Tape it to your hand and 0:07:32.132 --> 0:07:33.512 don't lose it in catchers. 0:07:33.531 --> 0:07:34.353 Because if you come out of 0:07:34.392 --> 0:07:35.793 catchers with your food and 0:07:35.812 --> 0:07:36.593 you don't have that ticket, 0:07:36.673 --> 0:07:41.153 you'll get shot in the head. 0:07:41.334 --> 0:07:42.314 They won't let you go and 0:07:42.334 --> 0:07:43.153 they'll put you in prison. 0:07:43.194 --> 0:07:44.134 You have to have the ticket. 0:07:45.055 --> 0:07:45.495 Yeah. 0:07:45.894 --> 0:07:46.074 So – 0:07:46.855 --> 0:07:47.035 Steve, 0:07:47.074 --> 0:07:48.396 the main topic of today is I really 0:07:48.415 --> 0:07:49.156 want to talk about 0:07:49.797 --> 0:07:52.259 secondary and tertiary markets, right? 0:07:52.559 --> 0:07:53.860 We see a lot of hotel development, 0:07:53.899 --> 0:07:54.721 particularly hotel 0:07:54.761 --> 0:07:55.982 development that's more 0:07:56.982 --> 0:07:58.863 select service or these 0:07:59.004 --> 0:08:01.185 quasi full-service hotels 0:08:01.245 --> 0:08:02.947 like a Hilton Garden Inn, which I love, 0:08:03.286 --> 0:08:03.987 but I'm just saying that as 0:08:04.007 --> 0:08:06.009 an example for not full-service hotels. 0:08:06.209 --> 0:08:08.670 type of hotels that are being built. 0:08:09.211 --> 0:08:10.271 You're a very big believer 0:08:10.290 --> 0:08:12.992 that you can get full-service hotels done, 0:08:13.653 --> 0:08:16.673 financed, over the finish line, and built, 0:08:17.533 --> 0:08:18.634 and, dare I say, 0:08:18.694 --> 0:08:20.115 profitable at the same time. 0:08:20.196 --> 0:08:21.315 So let's start at the beginning. 0:08:21.396 --> 0:08:23.057 Why are you thinking that 0:08:23.117 --> 0:08:24.278 full-service hotels in some 0:08:24.298 --> 0:08:25.877 of these secondary and tertiary cities, 0:08:25.918 --> 0:08:26.738 which have been ignored a 0:08:26.798 --> 0:08:28.220 lot by developers and big brands, 0:08:28.519 --> 0:08:29.720 are ripe for development today? 0:08:30.120 --> 0:08:33.642 So we've got kind of a special mix here. 0:08:34.121 --> 0:08:35.202 The big issue is 0:08:35.722 --> 0:08:37.203 with those cities is 0:08:37.604 --> 0:08:38.644 typically they're trying to 0:08:38.683 --> 0:08:39.705 get a convention center 0:08:39.725 --> 0:08:40.745 hotel or a full service 0:08:40.764 --> 0:08:41.966 hotel for their for their 0:08:41.985 --> 0:08:43.985 business community in in a 0:08:44.125 --> 0:08:44.807 in this market. 0:08:44.866 --> 0:08:45.086 Right. 0:08:45.326 --> 0:08:46.788 So we typically do these 0:08:46.988 --> 0:08:48.148 with a municipal partner. 0:08:48.788 --> 0:08:50.328 So we've got a city says, hey, 0:08:50.369 --> 0:08:52.169 we want to have let's pick Abilene, 0:08:52.210 --> 0:08:52.870 for instance. 0:08:53.149 --> 0:08:54.510 Abilene's been trying to do 0:08:54.551 --> 0:08:56.171 a downtown hotel with a 0:08:56.211 --> 0:08:57.751 convention center for 0:08:58.705 --> 0:08:58.965 30 years. 0:08:59.304 --> 0:08:59.546 Okay. 0:08:59.865 --> 0:09:00.446 They've got the, 0:09:00.546 --> 0:09:02.966 they've got the old convention center. 0:09:02.986 --> 0:09:03.506 That's there. 0:09:03.547 --> 0:09:04.748 It's got some ballroom space, 0:09:04.788 --> 0:09:06.009 got a beautiful feeder. 0:09:06.188 --> 0:09:08.490 It's got some great expo space, but it was, 0:09:08.529 --> 0:09:10.029 it didn't have a headquarters hotel. 0:09:10.090 --> 0:09:11.110 So it's really hard to get 0:09:11.150 --> 0:09:12.350 that association business 0:09:12.410 --> 0:09:13.131 and folks in there. 0:09:13.611 --> 0:09:13.971 So, right. 0:09:13.991 --> 0:09:15.232 Because if you're bringing 0:09:15.352 --> 0:09:16.212 in all these people, 0:09:16.273 --> 0:09:17.073 they're not necessarily 0:09:17.094 --> 0:09:18.014 going to stay at a select 0:09:18.033 --> 0:09:19.475 service hotel for this type 0:09:19.615 --> 0:09:21.296 of experience that they want to have. 0:09:21.316 --> 0:09:21.596 Sure. 0:09:21.635 --> 0:09:21.796 Sure. 0:09:21.895 --> 0:09:23.235 And some of them could, some of them, 0:09:23.336 --> 0:09:24.576 you know, when we do a city event, 0:09:24.596 --> 0:09:24.917 they're going to, 0:09:24.937 --> 0:09:25.576 they're going to fill all 0:09:25.618 --> 0:09:26.298 the hotels really. 0:09:26.317 --> 0:09:26.398 Yeah. 0:09:26.778 --> 0:09:27.138 Well, 0:09:27.158 --> 0:09:28.318 there's something about like in your 0:09:28.359 --> 0:09:29.559 hometown of Dallas over there, 0:09:29.580 --> 0:09:30.679 the convention center being 0:09:30.720 --> 0:09:32.961 attached to that major branded hotel. 0:09:33.162 --> 0:09:34.743 There's just such great flow with it. 0:09:34.783 --> 0:09:35.842 And you can have events that 0:09:35.863 --> 0:09:37.104 are in both places and 0:09:37.163 --> 0:09:37.884 additional food and 0:09:37.923 --> 0:09:39.625 beverage and meeting places 0:09:39.664 --> 0:09:41.886 for smaller meetings with top executives, 0:09:41.907 --> 0:09:43.508 that sort of stuff. 0:09:43.628 --> 0:09:44.408 Sure, sure, sure. 0:09:44.648 --> 0:09:45.408 So but when you take a 0:09:45.469 --> 0:09:47.549 smaller market that's got, you know, 0:09:47.590 --> 0:09:49.350 maybe it's got a feeder and 0:09:49.350 --> 0:09:51.532 20,000 square feet expo space, 0:09:51.572 --> 0:09:52.272 a couple of ballrooms. 0:09:52.511 --> 0:09:54.452 We come in, for instance, 0:09:54.472 --> 0:09:56.173 that hotel is a Doubletree by Hilton. 0:09:56.493 --> 0:09:57.833 It's a little bit different brand. 0:09:58.594 --> 0:09:59.994 People don't typically look 0:10:00.033 --> 0:10:01.754 at a Doubletree as a new build hotel, 0:10:01.794 --> 0:10:03.215 but we're really trying to 0:10:03.275 --> 0:10:06.056 take the Doubletree brand and take that. 0:10:06.196 --> 0:10:07.797 And that's really the entry 0:10:07.897 --> 0:10:09.817 level full service hotel 0:10:10.018 --> 0:10:11.717 for Hilton in some of these markets. 0:10:11.758 --> 0:10:12.418 And we've made it. 0:10:12.438 --> 0:10:13.239 That's fascinating. 0:10:13.379 --> 0:10:14.418 It's basically a Hilton, 0:10:14.698 --> 0:10:16.759 but we weren't able to use that brand. 0:10:17.121 --> 0:10:17.282 Right. 0:10:17.361 --> 0:10:18.643 Let me just tell everybody, 0:10:19.062 --> 0:10:19.844 just so they know, 0:10:19.964 --> 0:10:20.384 Doubletree has 0:10:20.443 --> 0:10:23.426 traditionally been a conversion brand, 0:10:23.446 --> 0:10:25.567 but you can do new build properties. 0:10:25.587 --> 0:10:26.427 As a matter of fact, 0:10:27.649 --> 0:10:29.571 there's one in Pennsylvania I know of. 0:10:29.610 --> 0:10:30.890 They were going to go one direction, 0:10:30.912 --> 0:10:31.511 and they went with the 0:10:31.552 --> 0:10:32.592 Doubletree because of what 0:10:32.613 --> 0:10:33.432 you were saying about 0:10:33.592 --> 0:10:34.874 availability of brands and 0:10:34.913 --> 0:10:36.014 all of that kind of stuff. 0:10:36.095 --> 0:10:36.355 Yeah, 0:10:36.634 --> 0:10:39.596 and this is the first full-service 0:10:39.636 --> 0:10:42.077 hotel built in decades in Abilene, 0:10:42.118 --> 0:10:43.518 first construction tower in 0:10:43.518 --> 0:10:44.958 40 years in the city. 0:10:46.139 --> 0:10:49.181 And honestly, so Conrad Hilton, 0:10:49.821 --> 0:10:52.383 his first hotel that he did is in Cisco, 0:10:52.423 --> 0:10:53.942 Texas, about 45 minutes away. 0:10:54.943 --> 0:10:56.443 But the first hotel that had 0:10:56.504 --> 0:10:57.284 his name on it, 0:10:57.745 --> 0:11:00.388 was the Hilton name on it was in Abilene, 0:11:00.408 --> 0:11:00.788 Texas. 0:11:00.849 --> 0:11:01.690 And it's still there. 0:11:01.870 --> 0:11:03.392 It's still there today in that building. 0:11:03.412 --> 0:11:05.053 It's a residential building, but, 0:11:06.154 --> 0:11:07.537 but it's a, it's an interesting piece. 0:11:07.557 --> 0:11:09.139 So when we went to Hilton and said, Hey, 0:11:09.519 --> 0:11:10.500 we'd really like you guys 0:11:10.520 --> 0:11:11.182 to consider this. 0:11:11.542 --> 0:11:12.482 They kind of looked back at 0:11:12.523 --> 0:11:13.985 their roots and said, absolutely. 0:11:14.024 --> 0:11:14.625 We want to do that. 0:11:15.187 --> 0:11:16.168 So, so we did. 0:11:17.235 --> 0:11:19.236 Yeah, that's so interesting to me. 0:11:19.277 --> 0:11:20.798 But what if it wasn't 0:11:20.938 --> 0:11:22.559 something that had to do 0:11:22.679 --> 0:11:23.821 with their roots? 0:11:23.841 --> 0:11:24.900 I'm sure that the numbers 0:11:24.941 --> 0:11:27.243 have still got to work out. 0:11:27.423 --> 0:11:29.684 So how much does being tied 0:11:29.725 --> 0:11:30.686 to a convention center 0:11:30.765 --> 0:11:32.586 really help in the scheme of things? 0:11:33.004 --> 0:11:33.303 Yeah. 0:11:33.365 --> 0:11:34.706 So so, you know, 0:11:35.427 --> 0:11:36.369 let me let me kind of just 0:11:36.509 --> 0:11:37.730 back up and kind of give 0:11:37.750 --> 0:11:38.631 you a high level kind of 0:11:38.772 --> 0:11:40.214 finance how we how we do it. 0:11:40.673 --> 0:11:42.998 We'll go out to a city in Abilene, 0:11:43.018 --> 0:11:43.498 for instance. 0:11:44.198 --> 0:11:46.481 Let's say it's a 90 million 0:11:46.501 --> 0:11:47.082 dollar project. 0:11:47.102 --> 0:11:47.943 I'm just making a round 0:11:47.984 --> 0:11:49.385 number so I can I can I can 0:11:49.687 --> 0:11:50.167 put it together. 0:11:50.807 --> 0:11:52.708 We'll go out and be able to 0:11:52.769 --> 0:11:54.770 sell maybe $60 million in 0:11:54.831 --> 0:11:56.131 bonds on the open market. 0:11:56.272 --> 0:11:58.572 And somebody like Vanguard 0:11:58.732 --> 0:12:00.274 or T. Rowe Price or 0:12:00.534 --> 0:12:02.296 BlackRock or some of these 0:12:02.355 --> 0:12:03.697 big institutional investors 0:12:03.736 --> 0:12:04.857 will buy those bonds. 0:12:05.317 --> 0:12:06.479 The city has to come up with 0:12:06.519 --> 0:12:07.278 that extra piece, 0:12:07.318 --> 0:12:08.240 and that's called the gap. 0:12:08.720 --> 0:12:09.740 So the city comes in, 0:12:10.120 --> 0:12:11.981 they'll put in their $30 million, 0:12:12.022 --> 0:12:13.143 maybe a third or so. 0:12:13.222 --> 0:12:14.104 Maybe it's a little bit more 0:12:14.124 --> 0:12:15.485 right now with interest rates. 0:12:15.985 --> 0:12:17.225 But they'll put that piece in, 0:12:17.586 --> 0:12:19.027 and they get bricks and mortar for it. 0:12:19.047 --> 0:12:20.488 They get the ballroom space. 0:12:20.508 --> 0:12:21.548 They get the pre-function. 0:12:21.589 --> 0:12:24.451 The podium is owned by the city. 0:12:24.870 --> 0:12:26.532 The tower piece ends up 0:12:26.552 --> 0:12:27.972 being owned by a not-for-profit, 0:12:28.073 --> 0:12:30.355 either it's a local 0:12:30.394 --> 0:12:31.475 government corporation like 0:12:31.495 --> 0:12:32.856 we did in Abilene, 0:12:32.917 --> 0:12:34.238 or it could be a municipal 0:12:34.278 --> 0:12:35.158 development district like 0:12:35.177 --> 0:12:36.058 we did in Baytown. 0:12:36.339 --> 0:12:36.980 But it's owned by a 0:12:37.059 --> 0:12:39.642 quasi-governmental entity. 0:12:40.422 --> 0:12:42.644 And that piece, you know, that piece, 0:12:43.443 --> 0:12:44.424 all those bonds that we 0:12:44.485 --> 0:12:46.666 sold are only against the 0:12:46.706 --> 0:12:47.486 revenue of the hotel. 0:12:48.206 --> 0:12:49.307 So the city puts in their 0:12:49.368 --> 0:12:50.509 piece and then they get 0:12:50.548 --> 0:12:52.049 this this property and a 0:12:52.070 --> 0:12:52.910 property that they've been 0:12:52.951 --> 0:12:54.851 dreaming about for years and years. 0:12:55.131 --> 0:12:56.533 So it's important. 0:12:57.234 --> 0:12:58.955 And how much for people that don't know, 0:12:59.034 --> 0:13:00.255 once you sell the bonds, how much? 0:13:01.177 --> 0:13:02.979 control do whether it be the 0:13:02.999 --> 0:13:04.239 black rocks or whoever come 0:13:04.318 --> 0:13:06.500 in do they have over the 0:13:06.559 --> 0:13:09.640 say of the build so uh so 0:13:09.941 --> 0:13:11.081 typically they're they're 0:13:11.120 --> 0:13:12.802 rated bonds through moody's 0:13:12.861 --> 0:13:14.562 or s&p those these ones 0:13:14.601 --> 0:13:15.822 have all been through s&p 0:13:16.582 --> 0:13:18.342 um we don't get a lot of 0:13:18.523 --> 0:13:20.083 input from from a 0:13:20.984 --> 0:13:22.024 institutional buyer for 0:13:22.124 --> 0:13:24.404 instance on one of our 0:13:24.465 --> 0:13:26.046 projects we are selling 73 0:13:26.046 --> 0:13:27.025 million dollars worth of bonds 0:13:28.416 --> 0:13:29.116 In big numbers, 0:13:29.177 --> 0:13:33.399 I think we had $1.25 billion in orders. 0:13:33.500 --> 0:13:34.620 We were 25 times 0:13:34.780 --> 0:13:37.283 oversubscribed on the orders. 0:13:37.562 --> 0:13:39.683 So that says that many 0:13:39.783 --> 0:13:41.385 people wanted to buy those bonds, 0:13:41.686 --> 0:13:43.147 and it drove the rate down. 0:13:43.346 --> 0:13:45.869 In October of 21, when we sold those bonds, 0:13:46.389 --> 0:13:47.409 we were selling bonds at 3%, 4%, 5%, 0:13:47.409 --> 0:13:51.706 not 5%, 6%, 7%. 0:13:51.706 --> 0:13:52.927 Wow. 0:13:53.128 --> 0:13:55.110 So I'm not a finance guy. 0:13:55.149 --> 0:13:56.510 So when you say drove the 0:13:56.530 --> 0:13:57.511 rate down because there's 0:13:57.831 --> 0:13:59.274 so many people that are interested, 0:13:59.313 --> 0:13:59.933 you could say, well, 0:13:59.953 --> 0:14:01.414 instead of giving you 6% now, 0:14:01.676 --> 0:14:02.216 we're going to do 4%. 0:14:02.216 --> 0:14:05.219 How many of you are still interested? 0:14:05.239 --> 0:14:05.318 Yeah. 0:14:05.438 --> 0:14:06.720 I think it dropped it down 0:14:06.860 --> 0:14:11.443 about 30 basis points, which was 0.3%. 0:14:11.443 --> 0:14:12.565 But it's still a lot, right? 0:14:12.884 --> 0:14:13.085 I mean, 0:14:13.326 --> 0:14:14.726 that's the lowest rates of our 0:14:14.787 --> 0:14:16.187 lifetimes of any of us. 0:14:16.227 --> 0:14:16.427 I mean, 0:14:16.447 --> 0:14:17.828 you look at your home mortgage or 0:14:17.869 --> 0:14:18.309 something, right? 0:14:19.317 --> 0:14:20.119 Yeah, 0:14:20.139 --> 0:14:21.360 but it's better than what you're 0:14:21.400 --> 0:14:22.522 getting on the over market. 0:14:23.243 --> 0:14:24.725 Oh, and these are tax exempt. 0:14:25.485 --> 0:14:25.666 Right. 0:14:26.086 --> 0:14:26.285 Oh, wow. 0:14:28.801 --> 0:14:30.201 It's difficult. 0:14:30.562 --> 0:14:31.763 You're an architect by trade. 0:14:32.003 --> 0:14:33.163 And think about everything 0:14:33.183 --> 0:14:34.684 that you know now, financing. 0:14:34.725 --> 0:14:35.525 And I'm going to derail the 0:14:35.566 --> 0:14:36.346 conversation again because 0:14:36.365 --> 0:14:37.246 Glenn likes when I do that. 0:14:37.886 --> 0:14:39.368 So when you're an architect 0:14:40.109 --> 0:14:41.529 and you have the ability to 0:14:41.590 --> 0:14:42.770 go into building office 0:14:42.811 --> 0:14:43.750 buildings or building 0:14:43.910 --> 0:14:46.873 clinics or hospitals or hotels, 0:14:47.433 --> 0:14:48.995 what was the click in the hotels? 0:14:49.414 --> 0:14:50.995 And are you glad you stayed in hotels? 0:14:51.557 --> 0:14:52.756 Oh, absolutely. 0:14:52.897 --> 0:14:54.778 I mean, hotels are my passion. 0:14:54.859 --> 0:14:55.078 I mean, 0:14:56.245 --> 0:14:57.869 Just the people we get to hang out with, 0:14:57.928 --> 0:14:58.149 right? 0:14:58.249 --> 0:15:00.393 I mean, it's the most fun projects. 0:15:01.234 --> 0:15:02.475 All the design teams are 0:15:02.535 --> 0:15:04.259 just super talented. 0:15:04.639 --> 0:15:05.620 I think there's a passion 0:15:05.640 --> 0:15:06.682 for taking care of people. 0:15:07.631 --> 0:15:09.712 Um, and hospitality, I think, 0:15:10.033 --> 0:15:11.474 I think making sure people 0:15:11.494 --> 0:15:13.014 are having a great experience, 0:15:13.075 --> 0:15:14.436 whether it's, um, 0:15:14.816 --> 0:15:16.356 having a meal or just 0:15:16.717 --> 0:15:18.519 getting in late from a business trip and, 0:15:18.739 --> 0:15:19.599 and being able to grab 0:15:19.639 --> 0:15:20.559 something in the market and 0:15:20.600 --> 0:15:22.181 take it up to your room or go to the bar. 0:15:22.201 --> 0:15:22.240 Um, 0:15:23.280 --> 0:15:24.481 we just like to make sure people are 0:15:24.501 --> 0:15:25.283 getting taken care of. 0:15:25.482 --> 0:15:26.682 And so, you know, it, 0:15:26.802 --> 0:15:27.844 it is all about the guests. 0:15:27.884 --> 0:15:29.245 I mean, I know a lot of people say that, 0:15:29.345 --> 0:15:30.125 but it's where we, 0:15:30.605 --> 0:15:31.725 all these hotels are built 0:15:32.187 --> 0:15:32.787 for that person. 0:15:33.068 --> 0:15:34.070 Right, and you know what? 0:15:34.190 --> 0:15:35.770 And you just may be taking 0:15:35.791 --> 0:15:37.273 care of a guest in the end 0:15:37.312 --> 0:15:38.433 zone of the Super Bowl in 0:15:38.474 --> 0:15:40.615 Vegas and watching the game 0:15:40.676 --> 0:15:41.856 as you're taking care of that guest. 0:15:42.277 --> 0:15:43.918 Absolutely, absolutely. 0:15:44.298 --> 0:15:44.519 Yeah, 0:15:44.639 --> 0:15:45.960 and Glenn would have missed the whole 0:15:46.000 --> 0:15:46.200 thing. 0:15:46.760 --> 0:15:47.020 I know. 0:15:48.322 --> 0:15:50.163 No, he definitely would have been there, 0:15:50.224 --> 0:15:51.465 but he'd be talking about 0:15:51.504 --> 0:15:52.666 the wings as they won, 0:15:52.765 --> 0:15:54.047 and everybody would be like, is he nuts? 0:15:54.648 --> 0:15:54.807 I know. 0:15:55.508 --> 0:15:56.609 listen I'm sure I would have 0:15:56.629 --> 0:15:57.369 sampled some of the other 0:15:57.389 --> 0:15:58.808 food as well the problem is 0:15:58.828 --> 0:16:00.049 steve uh my wife came home 0:16:00.090 --> 0:16:01.890 from florida and uh you 0:16:01.910 --> 0:16:02.931 know she took a little uh 0:16:03.350 --> 0:16:04.030 took a little something to 0:16:04.072 --> 0:16:04.851 make her flight a little 0:16:04.892 --> 0:16:06.412 bit easier so she kind of 0:16:06.432 --> 0:16:07.393 passed out as soon as she 0:16:07.413 --> 0:16:08.633 got home and I was left 0:16:08.712 --> 0:16:10.653 alone and there's only so 0:16:10.673 --> 0:16:11.955 many beer chicken wings and 0:16:12.014 --> 0:16:13.634 stuff I could eat uh alone 0:16:13.875 --> 0:16:14.735 without you know getting a 0:16:14.775 --> 0:16:16.096 little snoozy so what are 0:16:16.115 --> 0:16:16.897 you what are you gonna do 0:16:18.557 --> 0:16:19.898 But to your point, 0:16:19.918 --> 0:16:21.457 this is the best business in the world. 0:16:21.538 --> 0:16:23.178 And as I say all the time, 0:16:23.239 --> 0:16:23.879 and we have a new show 0:16:23.899 --> 0:16:24.659 coming out called Hotel 0:16:24.720 --> 0:16:27.360 All-Stars about introducing the show, 0:16:27.541 --> 0:16:28.780 the business to people. 0:16:29.241 --> 0:16:30.081 And you're an architect, 0:16:30.121 --> 0:16:31.383 but you're in the hotel business, right? 0:16:32.263 --> 0:16:32.982 And you're a developer, 0:16:33.222 --> 0:16:35.024 but you're in the hotel business. 0:16:36.125 --> 0:16:39.326 And because it's exciting, it's sexy, 0:16:39.485 --> 0:16:40.186 it's unbelievable. 0:16:40.566 --> 0:16:41.027 And like you said, 0:16:41.047 --> 0:16:42.006 you hang out with the coolest people, 0:16:42.267 --> 0:16:43.467 whether famous or not famous, 0:16:43.668 --> 0:16:44.947 whether rich or not so rich. 0:16:45.447 --> 0:16:46.308 And it's amazing. 0:16:47.243 --> 0:16:49.325 So one thing I'd say that we 0:16:49.365 --> 0:16:52.066 kind of find is as as a I don't know, 0:16:52.186 --> 0:16:53.246 one of our passions is 0:16:53.687 --> 0:16:58.250 bringing great design to 0:16:58.289 --> 0:17:00.350 the market and kind of to the people. 0:17:00.451 --> 0:17:00.692 Right. 0:17:00.851 --> 0:17:02.633 I mean, this is not a Four Seasons. 0:17:02.712 --> 0:17:05.494 It's not a Ritz Carlton or a Waldorf. 0:17:05.795 --> 0:17:06.976 These are these are kind of 0:17:07.076 --> 0:17:08.656 salt to the earth guests. 0:17:09.488 --> 0:17:11.691 that are probably an association business. 0:17:11.711 --> 0:17:12.711 For instance, in Abilene, 0:17:13.012 --> 0:17:13.794 let's say it's an 0:17:14.134 --> 0:17:16.636 association of county clerks convention. 0:17:17.057 --> 0:17:18.920 Those people might not travel that much, 0:17:19.299 --> 0:17:20.261 but it's still important 0:17:20.281 --> 0:17:21.042 that they have a great 0:17:21.083 --> 0:17:22.443 experience and they might 0:17:22.483 --> 0:17:24.106 not know why they like that room so much, 0:17:24.146 --> 0:17:25.228 but we have great lighting 0:17:25.268 --> 0:17:25.949 and we have great 0:17:26.288 --> 0:17:26.528 you know, 0:17:27.309 --> 0:17:28.852 jackpacks for plugging in everything. 0:17:28.872 --> 0:17:29.531 You're not climbing 0:17:29.551 --> 0:17:30.992 underneath the desk and the 0:17:31.054 --> 0:17:32.154 air conditioning is quiet. 0:17:32.174 --> 0:17:32.835 And we've got a great 0:17:32.894 --> 0:17:34.115 bathroom and it's just all 0:17:34.155 --> 0:17:35.917 those things that those people leave. 0:17:36.337 --> 0:17:37.920 And they've had a great couple of days in, 0:17:38.019 --> 0:17:39.641 in one of our hotels that 0:17:39.740 --> 0:17:41.303 that's what gets us excited 0:17:41.363 --> 0:17:42.844 is really bringing it to those folks. 0:17:42.923 --> 0:17:43.204 And we're, 0:17:43.224 --> 0:17:44.506 we're bringing the world-class 0:17:44.586 --> 0:17:45.686 architects and interior 0:17:45.707 --> 0:17:47.608 designers and vendors, uh, 0:17:49.067 --> 0:17:49.407 And, you know, 0:17:49.827 --> 0:17:51.848 it comes down to the nuance. 0:17:52.269 --> 0:17:53.269 If you want to kind of make 0:17:53.329 --> 0:17:54.349 friction free and you want 0:17:54.369 --> 0:17:55.191 to make seamless, 0:17:55.691 --> 0:17:56.411 you have to have the 0:17:56.530 --> 0:17:59.292 architect and with a mind 0:17:59.992 --> 0:18:01.054 of a director of housekeeping. 0:18:01.554 --> 0:18:01.973 Sure. 0:18:02.954 --> 0:18:04.375 And because it's like I 0:18:04.435 --> 0:18:05.135 remember I was in a 0:18:05.715 --> 0:18:07.396 development meeting and, you know, 0:18:07.436 --> 0:18:09.117 those little where you put 0:18:09.157 --> 0:18:10.398 your leg on these little 0:18:10.439 --> 0:18:11.680 tiles so you can shave your 0:18:11.700 --> 0:18:13.820 legs in the shower. 0:18:14.320 --> 0:18:15.642 And everybody thought that was crazy. 0:18:16.122 --> 0:18:17.042 And I was like, no, no, no. 0:18:17.462 --> 0:18:17.682 It's like, 0:18:17.722 --> 0:18:18.903 why are we talking about that now? 0:18:18.923 --> 0:18:19.345 I was like, 0:18:19.384 --> 0:18:20.444 because when you're thinking 0:18:20.464 --> 0:18:21.026 about the shower, 0:18:21.046 --> 0:18:21.746 can we think about where 0:18:21.766 --> 0:18:22.366 we're going to put that? 0:18:22.426 --> 0:18:23.448 And where's that where the 0:18:23.468 --> 0:18:24.367 showerhead is going to be? 0:18:24.387 --> 0:18:25.548 And, and then like, 0:18:25.628 --> 0:18:27.550 it brings up because when you're in there, 0:18:27.590 --> 0:18:28.531 you're like, oh, that's cool. 0:18:29.051 --> 0:18:29.311 You know, 0:18:29.372 --> 0:18:31.073 that it's easier for me now to do that, 0:18:31.153 --> 0:18:31.473 you know? 0:18:32.034 --> 0:18:34.715 And I just think that this 0:18:35.537 --> 0:18:38.439 industry needs people with your mind. 0:18:38.519 --> 0:18:40.461 I appreciate from the bottom 0:18:40.840 --> 0:18:42.402 to the top understands 0:18:42.781 --> 0:18:43.502 everything matters. 0:18:44.042 --> 0:18:44.243 Yes. 0:18:44.644 --> 0:18:46.786 I mean, we look at the same thing, 0:18:47.907 --> 0:18:48.868 the shaving shelf, 0:18:50.871 --> 0:18:52.333 where the handle is in the 0:18:52.393 --> 0:18:53.433 shower so that you can open 0:18:53.453 --> 0:18:54.535 the door and turn it on 0:18:54.575 --> 0:18:55.896 without getting soaked, right? 0:18:56.237 --> 0:18:57.438 Well, we all love doing that. 0:18:58.920 --> 0:18:59.359 All those things. 0:18:59.420 --> 0:19:00.220 I got that moved down. 0:19:01.161 --> 0:19:01.401 Yeah. 0:19:01.441 --> 0:19:02.701 So just, I mean, you know, 0:19:02.740 --> 0:19:04.361 we look at all that stuff. 0:19:04.461 --> 0:19:05.842 And a lot of that is from my 0:19:05.882 --> 0:19:07.122 years of being an architect. 0:19:07.142 --> 0:19:07.781 Right. 0:19:07.902 --> 0:19:09.423 Or just years of being a guy 0:19:09.442 --> 0:19:10.563 who travels and is like, 0:19:10.603 --> 0:19:12.303 why is that crack under my door? 0:19:12.762 --> 0:19:13.123 Why? 0:19:13.423 --> 0:19:13.864 Steven, 0:19:13.884 --> 0:19:15.064 one of the things that pisses me 0:19:15.124 --> 0:19:15.943 off most of all, 0:19:16.243 --> 0:19:18.384 and I say this whenever I'm on stage, 0:19:18.424 --> 0:19:21.384 is think about how you use a hotel. 0:19:21.484 --> 0:19:23.405 Why don't we do that enough? 0:19:23.665 --> 0:19:26.169 But the problem is to what Steve just said, 0:19:26.628 --> 0:19:28.832 because it happens in stages. 0:19:29.613 --> 0:19:31.674 So the time I'm in the room, right? 0:19:31.694 --> 0:19:33.017 You know, I got myself in the, 0:19:33.477 --> 0:19:34.218 in the position now that 0:19:34.238 --> 0:19:35.700 I'm in the room usually very early, 0:19:36.220 --> 0:19:37.321 but the time a guy like me 0:19:37.362 --> 0:19:37.942 is in the room, 0:19:38.663 --> 0:19:40.784 With Steve, it's sometimes too late. 0:19:41.263 --> 0:19:41.503 Right. 0:19:41.703 --> 0:19:43.463 And so more and more, 0:19:43.483 --> 0:19:45.444 you're seeing that guys 0:19:45.484 --> 0:19:46.964 like me that have been in 0:19:47.005 --> 0:19:48.105 operations our whole life 0:19:48.125 --> 0:19:50.326 and are in the room early. 0:19:50.605 --> 0:19:52.046 And that's where you save a 0:19:52.105 --> 0:19:52.767 lot of problems. 0:19:53.126 --> 0:19:53.807 I always say, 0:19:54.166 --> 0:19:55.707 hire me now or I'll bring 0:19:55.747 --> 0:19:57.028 Hotel Impossible to you later. 0:19:57.087 --> 0:19:57.907 Whatever you want to do. 0:20:00.156 --> 0:20:02.357 look we we agree we we look 0:20:02.397 --> 0:20:03.518 at little things like 0:20:04.038 --> 0:20:06.138 curving the end of the the 0:20:06.278 --> 0:20:07.579 the the furniture for the 0:20:07.640 --> 0:20:08.740 bed so you're not you know 0:20:08.759 --> 0:20:09.721 thank you that should catch 0:20:09.760 --> 0:20:11.761 in your your leg we put uh 0:20:12.001 --> 0:20:13.142 you know night lights in 0:20:13.162 --> 0:20:14.863 just little things or a 0:20:15.182 --> 0:20:16.603 clock in the mirror because 0:20:16.784 --> 0:20:18.064 you're like oh gee I gotta 0:20:18.104 --> 0:20:19.924 go you know so all those 0:20:19.964 --> 0:20:21.125 things and operationally 0:20:21.664 --> 0:20:22.865 figuring out how we're 0:20:22.905 --> 0:20:25.067 getting uh you know how you 0:20:25.086 --> 0:20:25.886 get to all that without 0:20:25.926 --> 0:20:26.787 having a cart sitting in 0:20:26.826 --> 0:20:28.008 the middle of the of the 0:20:28.667 --> 0:20:30.230 the hallway for four hours. 0:20:31.550 --> 0:20:32.992 I remember this gentleman 0:20:33.032 --> 0:20:34.854 was building a hotel in my area. 0:20:35.315 --> 0:20:36.536 It's a beach area, but it's not, 0:20:36.596 --> 0:20:37.115 it's New York, 0:20:37.215 --> 0:20:38.257 but it's not a place you 0:20:38.277 --> 0:20:39.858 would build a $50 million hotel. 0:20:40.579 --> 0:20:42.121 And I was having second thoughts, right? 0:20:42.141 --> 0:20:43.541 He's my friend, whatever he owns, 0:20:43.582 --> 0:20:44.522 big restaurants, whatever. 0:20:45.003 --> 0:20:47.625 And he brought me in pre before, before, 0:20:47.645 --> 0:20:48.926 um, you know, it was just, 0:20:49.067 --> 0:20:50.068 it was basically concrete. 0:20:50.088 --> 0:20:50.528 Um, 0:20:50.888 --> 0:20:51.048 Um, 0:20:51.569 --> 0:20:54.311 and I'm walking through and I'm walking, 0:20:54.352 --> 0:20:55.491 I see one kitchen and I see 0:20:55.511 --> 0:20:56.752 the housekeeping cart or 0:20:56.792 --> 0:20:58.634 the housekeeping areas. 0:20:59.035 --> 0:20:59.875 And I'm seeing the ramps and 0:20:59.895 --> 0:21:00.556 I'm seeing everything. 0:21:00.816 --> 0:21:01.797 And I get teary eyed. 0:21:02.537 --> 0:21:04.159 And he goes, why are you so emotional? 0:21:04.179 --> 0:21:05.338 I said, because dude, you did it. 0:21:06.400 --> 0:21:07.520 He go, what do you mean? 0:21:07.800 --> 0:21:08.602 You didn't see anything. 0:21:08.642 --> 0:21:08.961 I said, no, 0:21:09.001 --> 0:21:10.123 I saw everything I need to say. 0:21:10.502 --> 0:21:10.942 You did it. 0:21:11.443 --> 0:21:13.144 Because if I'm a housekeeper 0:21:13.164 --> 0:21:14.625 or I'm the general manager, 0:21:14.965 --> 0:21:15.547 you were thinking, 0:21:15.567 --> 0:21:16.287 I don't know how you did it, 0:21:16.467 --> 0:21:17.347 but you were thinking for me. 0:21:17.587 --> 0:21:18.648 So I don't care what it looks like, 0:21:18.828 --> 0:21:19.849 you know, pink to purple. 0:21:21.295 --> 0:21:22.736 From an operational standpoint, 0:21:22.796 --> 0:21:23.176 you did it. 0:21:23.297 --> 0:21:24.237 Now, marketing, 0:21:24.637 --> 0:21:25.778 and I know you guys are great marketers, 0:21:25.798 --> 0:21:26.318 you'll be fine. 0:21:26.598 --> 0:21:27.638 And I knew at that moment, 0:21:27.679 --> 0:21:28.500 I started changing my tune 0:21:28.519 --> 0:21:29.200 and telling everybody it's 0:21:29.240 --> 0:21:30.121 going to be a successful hotel. 0:21:30.461 --> 0:21:31.301 And it's a rock star. 0:21:31.402 --> 0:21:31.582 Yeah. 0:21:31.781 --> 0:21:33.482 Because he developed it the right way. 0:21:33.923 --> 0:21:35.284 And it's the way you look at everything. 0:21:35.304 --> 0:21:36.325 It's the way you look at hiring. 0:21:36.365 --> 0:21:37.605 It's the way you treat your staff. 0:21:38.086 --> 0:21:38.445 All that. 0:21:38.826 --> 0:21:39.247 Absolutely. 0:21:39.946 --> 0:21:40.968 So, Steve, 0:21:41.087 --> 0:21:42.628 you're involved in all parts of 0:21:42.709 --> 0:21:45.590 the project from iteration 0:21:45.671 --> 0:21:47.432 through asset management, et cetera, 0:21:47.471 --> 0:21:47.913 et cetera. 0:21:47.972 --> 0:21:49.113 But I'm curious, 0:21:49.413 --> 0:21:50.054 we talked about this 0:21:50.094 --> 0:21:50.855 example of building a 0:21:50.875 --> 0:21:51.875 convention center hotel, 0:21:51.914 --> 0:21:52.836 but it's not just like you 0:21:52.895 --> 0:21:54.497 knock on the door of the mayor and go, 0:21:54.517 --> 0:21:55.837 hey, I'd like to do this. 0:21:55.998 --> 0:21:58.259 How do you create these relationships, 0:21:58.380 --> 0:21:59.400 find deals, 0:21:59.460 --> 0:22:01.781 and then get them over the finish line? 0:22:03.347 --> 0:22:05.732 Yeah, that's a whole big question. 0:22:06.914 --> 0:22:07.135 Look, 0:22:07.616 --> 0:22:10.521 going out and making the right 0:22:10.602 --> 0:22:11.624 connections and just 0:22:11.684 --> 0:22:12.926 letting people know we're 0:22:12.987 --> 0:22:14.990 here is very important. 0:22:16.729 --> 0:22:18.430 City managers move around a lot. 0:22:18.450 --> 0:22:20.111 They're a very tight group, right? 0:22:20.371 --> 0:22:21.832 One city manager that we work with, 0:22:22.252 --> 0:22:24.034 he'll be there, finish our project, 0:22:24.054 --> 0:22:25.055 then he moves on to another 0:22:25.075 --> 0:22:26.236 city and we get a call. 0:22:26.635 --> 0:22:28.457 And a lot of it's word of mouth, right? 0:22:29.738 --> 0:22:30.878 I think the first thing I'd 0:22:30.939 --> 0:22:32.079 say is do what you say 0:22:32.099 --> 0:22:33.040 you're going to do and be a 0:22:33.121 --> 0:22:34.321 transparent partner. 0:22:34.521 --> 0:22:35.582 We're a fiduciary to the 0:22:35.622 --> 0:22:36.442 cities we work for. 0:22:36.982 --> 0:22:38.384 We are there to help them out. 0:22:38.684 --> 0:22:39.925 We're also here to make money, 0:22:40.006 --> 0:22:41.487 but we want the city to be 0:22:41.507 --> 0:22:42.708 able to make money as well, right? 0:22:43.307 --> 0:22:43.728 Yeah. 0:22:44.128 --> 0:22:45.849 So making the right connections, 0:22:46.049 --> 0:22:47.269 being honest with your partners, 0:22:47.631 --> 0:22:49.372 being just straight up front. 0:22:49.412 --> 0:22:51.992 We tell we tell cities that the cold, 0:22:52.012 --> 0:22:52.532 hard truth. 0:22:52.614 --> 0:22:52.814 Right. 0:22:52.933 --> 0:22:53.134 I mean, 0:22:53.153 --> 0:22:54.634 this some cities aren't ready for it. 0:22:54.954 --> 0:22:55.954 We just tell them, hey, right. 0:22:56.096 --> 0:22:58.057 We think we think you need to, you know, 0:22:58.676 --> 0:22:59.897 mature a little bit or just 0:23:00.718 --> 0:23:03.319 get get a larger market, etc., 0:23:04.901 --> 0:23:08.502 But it's something that we've always done. 0:23:08.542 --> 0:23:10.005 We're always connected with people. 0:23:10.045 --> 0:23:10.825 We're always talking. 0:23:10.845 --> 0:23:12.946 We get references from architects. 0:23:12.967 --> 0:23:15.769 We get references from anybody. 0:23:15.969 --> 0:23:17.009 The brand could come in and 0:23:17.049 --> 0:23:18.611 just call us up one day and say, hey, 0:23:18.631 --> 0:23:19.672 we've been working with the city. 0:23:20.051 --> 0:23:20.932 And we just sit down and 0:23:20.951 --> 0:23:22.313 we're just honest with people. 0:23:23.594 --> 0:23:24.835 So basically what you're saying, 0:23:25.536 --> 0:23:26.557 the best book you ever read 0:23:26.596 --> 0:23:27.777 was Everything I Learned I 0:23:27.797 --> 0:23:28.458 Learned in Kindergarten. 0:23:29.546 --> 0:23:32.126 Pretty much show up manners, show up. 0:23:33.507 --> 0:23:34.446 You just said that, you know, 0:23:34.567 --> 0:23:36.807 I wish I had neon light over your head, 0:23:36.827 --> 0:23:38.548 say reputation because 0:23:38.587 --> 0:23:40.989 reputation is everything, you know, it's, 0:23:41.608 --> 0:23:43.068 and we move so fast, 0:23:43.148 --> 0:23:44.250 especially in your world 0:23:44.789 --> 0:23:46.849 that it takes one second. 0:23:46.869 --> 0:23:47.671 So do you know a guy? 0:23:47.750 --> 0:23:48.191 Yeah, I do. 0:23:48.211 --> 0:23:48.990 But did it call Steve? 0:23:49.631 --> 0:23:51.231 It's that quick because 0:23:51.711 --> 0:23:52.991 everybody else in that 0:23:53.051 --> 0:23:54.472 person's head has been 0:23:54.772 --> 0:23:56.634 declined before he even says Steve. 0:23:57.054 --> 0:23:57.753 Because they're like, okay, 0:23:57.773 --> 0:23:58.775 I have one or two guys. 0:23:58.875 --> 0:23:59.315 It's Steve. 0:23:59.914 --> 0:24:02.536 And so those little hiccups 0:24:02.556 --> 0:24:03.596 that other people have done, 0:24:03.916 --> 0:24:04.836 Steve hasn't done that. 0:24:04.876 --> 0:24:07.557 So he's top of my list and top of my head. 0:24:07.597 --> 0:24:08.378 And I think that what you 0:24:08.719 --> 0:24:10.058 just said is a lesson to 0:24:10.159 --> 0:24:11.140 every young person coming up. 0:24:11.660 --> 0:24:15.260 You cannot second – you 0:24:15.280 --> 0:24:16.741 can't put your reputation second. 0:24:17.528 --> 0:24:18.030 Absolutely. 0:24:18.271 --> 0:24:20.077 And I'll tell you, we very often 0:24:20.680 --> 0:24:22.401 We don't like to respond to RFQs. 0:24:22.421 --> 0:24:23.740 If it goes out to RFQ, 0:24:23.760 --> 0:24:25.122 it's probably not for us. 0:24:26.122 --> 0:24:28.042 But many times we'll kind of 0:24:28.103 --> 0:24:30.182 send in a non-responsive response. 0:24:30.442 --> 0:24:31.304 We just tell them, hey, 0:24:31.784 --> 0:24:32.763 you asked these questions, 0:24:32.824 --> 0:24:33.765 but here's the questions 0:24:33.785 --> 0:24:34.724 that we think you really 0:24:34.744 --> 0:24:35.625 should be thinking about. 0:24:36.065 --> 0:24:36.986 And we'd love to have a 0:24:37.046 --> 0:24:37.986 conversation with you. 0:24:38.405 --> 0:24:40.106 And if you don't find somebody you love, 0:24:40.626 --> 0:24:41.267 give us a shout. 0:24:41.547 --> 0:24:42.968 Because we're never the 0:24:43.008 --> 0:24:44.647 first developer that a city calls. 0:24:45.167 --> 0:24:46.909 They've called three or four. 0:24:47.169 --> 0:24:47.729 In Irving, 0:24:47.868 --> 0:24:49.509 when we built the Las Colinas Westin, 0:24:50.463 --> 0:24:51.384 I think we were the fifth 0:24:51.423 --> 0:24:52.845 developer over 15 years 0:24:53.265 --> 0:24:54.684 before they could actually get it done. 0:24:55.345 --> 0:24:56.385 Yeah, listen, 0:24:56.986 --> 0:24:57.865 sometimes you have to be 0:24:57.905 --> 0:24:59.346 number 23 before people 0:24:59.386 --> 0:25:00.426 call you for a GM job. 0:25:00.987 --> 0:25:02.428 Yeah, yeah. 0:25:03.167 --> 0:25:03.928 But it doesn't matter 0:25:03.948 --> 0:25:06.409 because once you're in and you kick ass, 0:25:06.788 --> 0:25:08.489 that's really all people say about it. 0:25:08.509 --> 0:25:10.750 You said RFQ, is that request for quote? 0:25:10.789 --> 0:25:12.250 Yeah, request for qualifications. 0:25:12.371 --> 0:25:14.050 Qualifications, all right. 0:25:14.090 --> 0:25:14.691 No, no, that's all right. 0:25:14.711 --> 0:25:16.011 We just like to try to educate people. 0:25:16.051 --> 0:25:16.432 In this case, 0:25:16.451 --> 0:25:17.692 you've now just educated me 0:25:17.751 --> 0:25:18.732 because I'm not familiar 0:25:19.073 --> 0:25:19.813 with that one as well. 0:25:20.252 --> 0:25:23.134 But I like that approach, though, 0:25:23.234 --> 0:25:24.676 because a lot of times 0:25:24.757 --> 0:25:26.357 organizations just put out 0:25:26.518 --> 0:25:28.380 things without having the 0:25:28.460 --> 0:25:29.359 depth of knowledge and 0:25:29.380 --> 0:25:30.340 understanding as to what 0:25:30.381 --> 0:25:31.362 they really need to be 0:25:31.781 --> 0:25:32.823 transmitting to folks. 0:25:32.883 --> 0:25:34.183 So just saying, hey, 0:25:34.964 --> 0:25:36.006 I'd rather focus on this is 0:25:36.026 --> 0:25:36.506 probably smart. 0:25:36.705 --> 0:25:38.448 Yeah, and it's hard, right? 0:25:38.807 --> 0:25:39.648 Everybody's busy. 0:25:40.269 --> 0:25:41.769 There's procurement people at a city. 0:25:41.809 --> 0:25:43.111 They're tasked to put this out. 0:25:43.332 --> 0:25:44.132 They go online. 0:25:44.172 --> 0:25:45.713 They try to find the best one they can. 0:25:47.356 --> 0:25:49.657 And hopefully we're able to 0:25:49.678 --> 0:25:50.557 have a conversation with 0:25:50.577 --> 0:25:51.679 somebody at that point and 0:25:51.798 --> 0:25:53.318 help educate them on the 0:25:53.479 --> 0:25:54.759 really the important five 0:25:54.839 --> 0:25:55.779 questions to ask. 0:25:56.140 --> 0:25:57.101 And if they do that, 0:25:57.340 --> 0:25:58.401 then they'll get a group of 0:25:58.441 --> 0:25:59.521 people that are like, hey, 0:25:59.541 --> 0:26:00.461 they're serious people. 0:26:00.501 --> 0:26:01.342 Let's let's talk to them. 0:26:01.521 --> 0:26:03.143 I'm sorry. 0:26:03.323 --> 0:26:03.702 No, go ahead. 0:26:03.722 --> 0:26:04.083 Go ahead. 0:26:04.682 --> 0:26:04.923 You know, 0:26:04.943 --> 0:26:06.084 you said something that's very important. 0:26:06.104 --> 0:26:06.683 I want to back up. 0:26:06.723 --> 0:26:07.384 You said busy. 0:26:07.443 --> 0:26:07.644 Right. 0:26:08.204 --> 0:26:09.525 When people say, well, you're busy. 0:26:09.545 --> 0:26:10.125 That's why we're in the court. 0:26:10.184 --> 0:26:11.185 It's like everybody's busy. 0:26:11.246 --> 0:26:11.405 Right. 0:26:12.086 --> 0:26:13.406 So I'm no busier than you. 0:26:13.467 --> 0:26:14.267 I'm no busier than Glenn. 0:26:14.426 --> 0:26:15.548 Every single person is busy. 0:26:15.607 --> 0:26:17.107 And some people are busier 0:26:17.127 --> 0:26:18.709 in their head than they are, you know, 0:26:18.729 --> 0:26:19.669 doing anything else. 0:26:19.709 --> 0:26:20.849 But people are busy. 0:26:21.589 --> 0:26:23.250 And so that's why I think of 0:26:23.310 --> 0:26:24.730 it like rolling under a 0:26:24.790 --> 0:26:25.832 garage before it closes. 0:26:26.731 --> 0:26:27.893 This thing, everybody's busy. 0:26:28.413 --> 0:26:30.153 And so when you have to hit something, 0:26:30.574 --> 0:26:31.894 hit it thoroughly, 0:26:32.474 --> 0:26:35.175 thought out quickly and move on. 0:26:36.007 --> 0:26:38.548 But don't – like people don't have time. 0:26:38.567 --> 0:26:39.628 Like you said, 0:26:39.888 --> 0:26:41.148 these are the questions that 0:26:41.229 --> 0:26:43.049 I think you should be asking. 0:26:43.410 --> 0:26:44.369 No harm, no foul. 0:26:44.711 --> 0:26:45.770 We're here if you need us. 0:26:46.131 --> 0:26:46.451 Thank you. 0:26:46.611 --> 0:26:48.152 You did their job for that. 0:26:48.711 --> 0:26:49.752 They're like, oh, you know what? 0:26:49.772 --> 0:26:50.413 I didn't think about that. 0:26:50.873 --> 0:26:52.193 Not like, hey, you know, 0:26:52.213 --> 0:26:55.095 I see you have an RFP or RFQ, 0:26:55.154 --> 0:26:56.635 but if you don't find anybody, 0:26:56.715 --> 0:26:57.096 we're here. 0:26:57.895 --> 0:26:59.237 That's two different worlds. 0:26:59.596 --> 0:27:00.357 That is the difference 0:27:00.397 --> 0:27:01.678 between getting the project 0:27:01.798 --> 0:27:02.959 and not getting the project. 0:27:03.199 --> 0:27:04.000 And even though that was a 0:27:04.079 --> 0:27:05.099 quick thing you said and 0:27:05.160 --> 0:27:07.142 kind of just intuitively you say that, 0:27:07.582 --> 0:27:09.282 that is literally, that could be a book. 0:27:09.442 --> 0:27:10.663 That moment could be a book. 0:27:11.523 --> 0:27:12.064 Yeah, yeah. 0:27:12.204 --> 0:27:13.644 And we understand 0:27:14.486 --> 0:27:15.606 municipalities are tough. 0:27:15.747 --> 0:27:17.347 I mean, politics is tough, right? 0:27:17.788 --> 0:27:19.169 We try to not get involved 0:27:19.209 --> 0:27:19.848 in the politics. 0:27:19.888 --> 0:27:22.109 We just try to give them our opinion, 0:27:22.290 --> 0:27:22.931 tell them, hey, 0:27:22.971 --> 0:27:23.931 this is what we're trying to do. 0:27:24.791 --> 0:27:26.133 We're trying to do this on your behalf. 0:27:26.573 --> 0:27:27.453 We don't want to get mixed 0:27:27.554 --> 0:27:28.954 up into who wants a hotel, 0:27:28.994 --> 0:27:30.695 who doesn't want a hotel, et cetera. 0:27:30.875 --> 0:27:31.096 Right. 0:27:31.576 --> 0:27:32.436 It's the mindset. 0:27:32.497 --> 0:27:33.478 Whether you're selling 0:27:33.498 --> 0:27:35.019 lemonade or you're doing hotels, 0:27:35.578 --> 0:27:36.660 what you just said, 0:27:36.779 --> 0:27:38.280 you did a little homework 0:27:38.300 --> 0:27:40.843 for them and you were very, you know, 0:27:40.883 --> 0:27:41.542 not aggressive. 0:27:41.742 --> 0:27:42.144 We're here. 0:27:42.544 --> 0:27:44.065 And they see that you did some homework. 0:27:44.144 --> 0:27:45.125 So they appreciate. 0:27:45.766 --> 0:27:46.606 When somebody sends me 0:27:46.646 --> 0:27:48.307 something that has a logo of mine on it, 0:27:48.768 --> 0:27:51.150 I call them and then I call the cat. 0:27:51.789 --> 0:27:53.490 um yeah I was gonna say I 0:27:53.510 --> 0:27:54.270 catch this one of course 0:27:54.351 --> 0:27:55.932 sorry yeah thank you for 0:27:55.951 --> 0:27:57.113 confirming it was a cat in 0:27:57.133 --> 0:27:59.433 appearance um and so so you 0:27:59.453 --> 0:28:00.454 just did the work for like 0:28:00.474 --> 0:28:01.275 if somebody sends me 0:28:01.315 --> 0:28:02.516 something with a logo on it 0:28:02.915 --> 0:28:04.156 I am going to respond 0:28:04.176 --> 0:28:04.957 because I have an 0:28:05.017 --> 0:28:06.938 obligation now that you did 0:28:06.978 --> 0:28:08.199 work like you sent me 0:28:08.259 --> 0:28:09.138 something with my logo on 0:28:09.179 --> 0:28:10.960 it or whatever so I think 0:28:10.980 --> 0:28:11.820 that that is a really 0:28:11.861 --> 0:28:13.101 important lesson so again I 0:28:13.121 --> 0:28:14.521 didn't mean to derail it but yeah 0:28:14.721 --> 0:28:15.542 You didn't derail it. 0:28:15.663 --> 0:28:16.845 I see what you said. 0:28:17.144 --> 0:28:17.925 I see what you said. 0:28:17.965 --> 0:28:18.907 And I'll also ask, 0:28:19.387 --> 0:28:20.229 so what are some of those 0:28:20.328 --> 0:28:22.092 questions that should be 0:28:22.251 --> 0:28:23.073 asked that aren't being 0:28:23.113 --> 0:28:23.973 asked by jurisdictions? 0:28:24.615 --> 0:28:26.297 Boy, so, you know, 0:28:26.317 --> 0:28:28.559 a city will come out and, you know, 0:28:29.655 --> 0:28:31.817 there's a reason why a town 0:28:32.076 --> 0:28:33.096 doesn't have a full service 0:28:33.116 --> 0:28:34.916 hotel just built by developer, right? 0:28:35.218 --> 0:28:36.538 The numbers on its own just 0:28:36.678 --> 0:28:38.778 don't make sense for that city. 0:28:39.338 --> 0:28:41.118 So going in and just saying, Hey, 0:28:41.159 --> 0:28:43.059 we want to have, you know, 0:28:43.680 --> 0:28:45.720 a market rate ground lease. 0:28:46.401 --> 0:28:47.161 We want to do this, 0:28:47.221 --> 0:28:48.840 that the other thing we'll 0:28:48.881 --> 0:28:50.662 come back and say, Hey, let me explain, 0:28:50.801 --> 0:28:51.001 you know, 0:28:51.342 --> 0:28:52.521 we're the only country in the 0:28:52.561 --> 0:28:53.682 world that has tax exempt 0:28:53.722 --> 0:28:55.843 bonds and the city or state 0:28:55.883 --> 0:28:56.903 can use those bonds. 0:28:57.103 --> 0:28:59.023 And when you make a project tax exempt, 0:28:59.416 --> 0:29:01.018 You don't pay sales tax. 0:29:01.157 --> 0:29:03.179 You don't pay, on some of our projects, 0:29:03.179 --> 0:29:04.919 $3 million of sales tax on 0:29:04.939 --> 0:29:06.200 the construction. 0:29:06.920 --> 0:29:07.881 Not to mention, 0:29:08.300 --> 0:29:09.661 you don't pay ad valorem tax. 0:29:09.701 --> 0:29:10.541 Maybe that's another half a 0:29:10.582 --> 0:29:11.021 million dollars. 0:29:11.041 --> 0:29:11.501 What is that? 0:29:11.521 --> 0:29:12.903 Ad valorem, property tax, 0:29:12.942 --> 0:29:14.943 like what you would pay on your house. 0:29:15.784 --> 0:29:17.184 But a hotel pays, let's say, 0:29:17.204 --> 0:29:18.065 half a million dollars a year. 0:29:18.404 --> 0:29:20.026 If this project is really 0:29:20.066 --> 0:29:20.846 important to the city and 0:29:20.865 --> 0:29:21.946 it's owned by the city, 0:29:22.866 --> 0:29:24.147 they don't pay any of those taxes. 0:29:24.208 --> 0:29:25.468 And it makes the bottom line 0:29:25.488 --> 0:29:26.848 just work better and better for a city. 0:29:27.696 --> 0:29:29.618 Right, and for anybody coming in, 0:29:29.679 --> 0:29:30.420 such as yourself, 0:29:30.480 --> 0:29:32.521 to help get it over the finish line. 0:29:32.643 --> 0:29:34.505 Yeah, and we're doing it on their behalf, 0:29:34.565 --> 0:29:34.724 right? 0:29:34.765 --> 0:29:35.125 Like, they get... 0:29:37.912 --> 0:29:39.451 They get all the cash flow 0:29:39.471 --> 0:29:42.173 from this project after the 0:29:42.313 --> 0:29:43.313 bonds are paid off. 0:29:43.814 --> 0:29:45.733 And once the bonds are totally paid off, 0:29:46.213 --> 0:29:47.775 every year when they pay off the bonds, 0:29:47.795 --> 0:29:49.355 there's a little money that comes out. 0:29:49.595 --> 0:29:50.714 Those goes to the city. 0:29:50.734 --> 0:29:52.576 That's called excess cash flow. 0:29:52.915 --> 0:29:53.536 They get that. 0:29:53.976 --> 0:29:56.926 Some of these projects are seeing $40, $50, 0:29:56.926 --> 0:29:59.337 $60, $70 million over 30 years. 0:29:59.698 --> 0:30:00.798 And how do you get paid then? 0:30:01.317 --> 0:30:03.359 so we're paid basically kind 0:30:03.380 --> 0:30:04.520 of on the front end side 0:30:04.642 --> 0:30:05.762 with with our our 0:30:05.823 --> 0:30:06.844 development fees and then 0:30:06.884 --> 0:30:09.346 we also get um deferred 0:30:09.405 --> 0:30:10.667 fees once the hotel is 0:30:10.728 --> 0:30:12.108 paying off and it's paying 0:30:12.148 --> 0:30:12.849 the city the city's 0:30:12.869 --> 0:30:13.851 starting to see cash flow 0:30:14.050 --> 0:30:14.912 then we see some of that 0:30:14.932 --> 0:30:17.714 cash flow wow yeah but the 0:30:17.914 --> 0:30:19.016 really interesting thing is 0:30:19.355 --> 0:30:20.958 once all the bonds are paid off 0:30:21.819 --> 0:30:23.441 This hotel is free and clear. 0:30:23.461 --> 0:30:25.001 It's the cities along with 0:30:25.201 --> 0:30:26.123 all the reserves that are 0:30:26.143 --> 0:30:27.143 in there because we're very 0:30:27.202 --> 0:30:28.384 big on reserves. 0:30:29.084 --> 0:30:30.265 I know you talk to folks 0:30:30.305 --> 0:30:32.586 about FF&E and CapEx and 0:30:32.606 --> 0:30:33.027 things like that. 0:30:33.446 --> 0:30:34.548 Your average developer will 0:30:34.627 --> 0:30:37.630 see 4% for reserves, 0:30:37.630 --> 0:30:39.069 4% of cash flow for reserves. 0:30:39.270 --> 0:30:40.711 We do eight because we just 0:30:40.730 --> 0:30:41.612 don't want to have a 0:30:41.652 --> 0:30:42.913 problem because we know 0:30:43.252 --> 0:30:44.032 four is not enough. 0:30:44.773 --> 0:30:45.354 Is it five? 0:30:45.413 --> 0:30:45.894 Is it six? 0:30:45.934 --> 0:30:46.414 Is it seven? 0:30:46.835 --> 0:30:47.516 Right. 0:30:47.615 --> 0:30:47.916 I, I, 0:30:47.997 --> 0:30:49.679 I went to the development project and 0:30:49.719 --> 0:30:51.321 a developer said, Hey man, 0:30:51.342 --> 0:30:52.063 I just bought a boat. 0:30:52.103 --> 0:30:53.684 I got to bring you on the boat. 0:30:53.785 --> 0:30:55.326 And I said, I know the name of the boat. 0:30:55.346 --> 0:30:55.867 He goes, you do? 0:30:55.907 --> 0:30:57.069 I go, yeah, it's called change order. 0:30:58.131 --> 0:30:59.093 Yeah. 0:30:59.252 --> 0:31:01.015 I've, I've, I've seen that boat. 0:31:01.355 --> 0:31:01.415 Ah, 0:31:04.444 --> 0:31:09.386 He also has a jet too, I'm sure. 0:31:09.686 --> 0:31:10.727 That's really hysterical. 0:31:11.127 --> 0:31:11.488 All right. 0:31:12.508 --> 0:31:14.469 I know we have all got to get running. 0:31:14.868 --> 0:31:15.108 Steve, 0:31:15.148 --> 0:31:16.548 what do you want people to take away 0:31:16.769 --> 0:31:18.250 with the message and then 0:31:18.690 --> 0:31:19.730 tell us how to find you? 0:31:20.310 --> 0:31:20.651 Okay. 0:31:21.570 --> 0:31:22.070 Let's see. 0:31:22.652 --> 0:31:23.271 Well, look, 0:31:23.531 --> 0:31:24.932 I think it's just really 0:31:24.971 --> 0:31:26.252 important for us to be able 0:31:26.272 --> 0:31:27.813 to help cities. 0:31:27.833 --> 0:31:28.854 There's a lot of cities out 0:31:28.894 --> 0:31:29.594 there that are listening 0:31:29.693 --> 0:31:30.713 that have dreamed about a 0:31:30.753 --> 0:31:32.115 hotel or a convention center. 0:31:33.432 --> 0:31:34.213 Reach out to us. 0:31:34.473 --> 0:31:35.193 We'll let you know. 0:31:35.875 --> 0:31:37.355 We'll pull together the numbers. 0:31:37.415 --> 0:31:37.977 We'll sit down. 0:31:37.997 --> 0:31:38.876 We'll get a market study. 0:31:38.896 --> 0:31:40.317 It all starts with a market study. 0:31:40.357 --> 0:31:41.940 Somebody's got to do a market study first, 0:31:42.000 --> 0:31:42.900 and we really figure it out. 0:31:43.180 --> 0:31:44.020 And then we go in, 0:31:44.080 --> 0:31:46.143 we do some designs very quickly. 0:31:46.522 --> 0:31:48.183 We'll do some pricing. 0:31:48.505 --> 0:31:49.684 We'll go do some bond runs, 0:31:49.724 --> 0:31:50.665 and we can show the city, hey, 0:31:50.685 --> 0:31:51.727 this is what you can expect. 0:31:53.448 --> 0:31:55.069 Do a market study of a small 0:31:55.150 --> 0:31:56.851 convention center near JFK Airport. 0:31:58.208 --> 0:32:00.710 Man, hey, we love hotels and airports, 0:32:00.769 --> 0:32:01.349 but they're tough. 0:32:01.471 --> 0:32:02.711 Airport authorities are 0:32:02.750 --> 0:32:04.252 tough because they're the same way. 0:32:04.413 --> 0:32:05.252 They're trying to figure out 0:32:05.292 --> 0:32:05.854 what they can do. 0:32:06.233 --> 0:32:08.155 What if it was instead of being a JFK, 0:32:08.175 --> 0:32:10.076 it was across the street at 0:32:10.237 --> 0:32:12.338 Aqueduct and the Resorts World Casino? 0:32:14.608 --> 0:32:16.050 There was a plan there at some point. 0:32:16.171 --> 0:32:19.355 I don't know what happened to that one. 0:32:19.394 --> 0:32:20.396 Look, 0:32:21.137 --> 0:32:24.101 we do a lot of hotels for municipalities, 0:32:24.582 --> 0:32:28.227 for counties, for university campuses, 0:32:28.386 --> 0:32:29.509 for hospital campuses. 0:32:32.801 --> 0:32:35.943 If you get involved with the 0:32:36.684 --> 0:32:37.826 casino license that's going 0:32:37.846 --> 0:32:40.386 to happen in New York, let me know. 0:32:40.446 --> 0:32:40.768 Yeah. 0:32:41.127 --> 0:32:42.249 My guess is we're going to 0:32:42.288 --> 0:32:43.489 see Sands open a property 0:32:43.548 --> 0:32:46.491 on the current Nassau Coliseum, 0:32:46.852 --> 0:32:48.153 whatever they're calling it these days, 0:32:48.512 --> 0:32:48.932 property. 0:32:49.313 --> 0:32:49.473 Also- 0:32:50.233 --> 0:32:51.755 yeah go ahead go ahead I was 0:32:51.775 --> 0:32:52.875 gonna say also steve I'm on 0:32:52.894 --> 0:32:53.596 the board of the long 0:32:53.635 --> 0:32:54.336 island hospitality 0:32:54.355 --> 0:32:56.696 association and out in 0:32:56.737 --> 0:32:58.258 ronkonkoma right by 0:32:58.278 --> 0:32:59.238 macarthur airport they're 0:32:59.258 --> 0:33:00.057 talking about getting a 0:33:00.077 --> 0:33:01.078 convention center over 0:33:01.118 --> 0:33:01.959 there and this is one of 0:33:01.999 --> 0:33:02.720 those they've been talking 0:33:02.759 --> 0:33:04.299 about it for 30 years kind 0:33:04.339 --> 0:33:06.421 of scenarios yeah I'd love 0:33:06.461 --> 0:33:07.682 to uh I'd love to see more 0:33:08.541 --> 0:33:09.623 I don't know I don't know 0:33:09.702 --> 0:33:11.482 who's gonna win the license 0:33:11.542 --> 0:33:13.163 but whoever wins the 0:33:13.203 --> 0:33:14.444 license I'll be excited if 0:33:14.484 --> 0:33:15.184 you know what I'm saying 0:33:15.684 --> 0:33:15.944 Yeah, 0:33:15.964 --> 0:33:17.445 I will say that certain companies 0:33:17.506 --> 0:33:18.646 have been very generous 0:33:18.686 --> 0:33:19.586 with supporting things 0:33:19.626 --> 0:33:20.907 within the local communities. 0:33:21.728 --> 0:33:23.670 I happen to have affinity 0:33:23.710 --> 0:33:24.529 for that poker room. 0:33:27.932 --> 0:33:28.392 All right. 0:33:28.872 --> 0:33:30.073 That's a great way to end it, Steve. 0:33:30.113 --> 0:33:31.114 Thanks so much for being here. 0:33:31.413 --> 0:33:32.354 Really appreciate you. 0:33:32.753 --> 0:33:33.414 Have a good one. 0:33:33.954 --> 0:33:35.435 So, Anthony, I thought that's really, 0:33:35.855 --> 0:33:36.415 really cool. 0:33:37.076 --> 0:33:38.498 I love this whole idea of 0:33:38.597 --> 0:33:40.298 working in concert with 0:33:40.378 --> 0:33:41.778 jurisdictions to help build 0:33:41.878 --> 0:33:43.579 your business while helping 0:33:43.619 --> 0:33:44.641 a town be more successful. 0:33:44.901 --> 0:33:45.641 Yeah, absolutely. 0:33:45.661 --> 0:33:48.143 And it's a niche thing. 0:33:48.482 --> 0:33:50.423 You can't play a municipality, right? 0:33:50.864 --> 0:33:52.305 Well, you can only for so long. 0:33:52.625 --> 0:33:54.786 I did a summer stock theater once. 0:33:55.086 --> 0:33:57.548 And also you have to have a long play. 0:33:57.887 --> 0:33:58.907 So you have to know that 0:33:58.948 --> 0:33:59.689 this is going to work. 0:34:00.249 --> 0:34:01.611 because you're getting your fees up front, 0:34:01.631 --> 0:34:02.711 but you're not playing for fees. 0:34:02.731 --> 0:34:03.373 You're playing for the 0:34:03.413 --> 0:34:05.115 cashflow at the back, at the backend. 0:34:05.355 --> 0:34:05.575 Right. 0:34:05.615 --> 0:34:06.655 So you have to make sure, 0:34:06.675 --> 0:34:08.137 so you have to have a 10 year, five year, 0:34:08.137 --> 0:34:09.139 15 year plan, 0:34:09.599 --> 0:34:10.701 and you got to make sure it works. 0:34:10.721 --> 0:34:11.260 Cause if not, 0:34:11.300 --> 0:34:12.001 you're just going to see your 0:34:12.021 --> 0:34:12.583 fees up front. 0:34:12.603 --> 0:34:13.463 And what's the fun of that? 0:34:13.844 --> 0:34:14.465 Yeah. 0:34:14.565 --> 0:34:15.326 So, so, so, 0:34:15.846 --> 0:34:18.387 So you've really got to be a person, 0:34:18.427 --> 0:34:20.447 like he says, that knows that the, 0:34:20.567 --> 0:34:20.847 you know, 0:34:20.927 --> 0:34:22.447 the shelf or the shaving shelves 0:34:22.467 --> 0:34:23.527 is as important as the air 0:34:23.547 --> 0:34:24.688 conditioning system you put in. 0:34:25.369 --> 0:34:26.909 And, you know, I love talking to Steve. 0:34:26.989 --> 0:34:28.250 And I think, Steve, 0:34:28.570 --> 0:34:29.269 you can correct me if I'm 0:34:29.309 --> 0:34:30.050 wrong when we get back, 0:34:30.090 --> 0:34:30.989 when we say goodbye to you 0:34:31.190 --> 0:34:31.831 in the green room. 0:34:31.851 --> 0:34:33.911 But I saw in your eye at the end, 0:34:33.931 --> 0:34:34.612 it's like, wow, 0:34:34.652 --> 0:34:35.731 this was kind of an unusual 0:34:35.751 --> 0:34:37.271 podcast because we don't 0:34:37.291 --> 0:34:39.773 want to just hear what you say, Glenn, 0:34:39.813 --> 0:34:41.733 about the deals and the capital. 0:34:41.773 --> 0:34:42.614 And that's fun. 0:34:43.273 --> 0:34:44.454 And that's interesting to me and you. 0:34:44.675 --> 0:34:46.657 But also, Steve is, you know, 0:34:46.677 --> 0:34:49.139 he's a professor of what he does. 0:34:49.298 --> 0:34:50.179 And these lessons, 0:34:50.219 --> 0:34:51.942 like you ask him what the acronym means. 0:34:52.021 --> 0:34:54.344 And this is what I think our 0:34:54.364 --> 0:34:55.224 podcast is better than 0:34:55.264 --> 0:34:56.184 anybody else's podcast. 0:34:56.264 --> 0:34:58.086 Because you get the information, 0:34:58.367 --> 0:34:59.507 you get it in a way you can learn, 0:34:59.869 --> 0:35:01.250 and it's a little bit entertaining. 0:35:01.650 --> 0:35:02.911 Yeah, I love that. 0:35:02.931 --> 0:35:05.190 That's why over here we're out to educate, 0:35:05.331 --> 0:35:07.211 empower, and entertain each one of you. 0:35:07.231 --> 0:35:07.952 And what better way to do 0:35:07.972 --> 0:35:09.773 that is then to follow us, 0:35:10.152 --> 0:35:11.034 download our podcast 0:35:11.054 --> 0:35:12.213 wherever you get your shows. 0:35:12.233 --> 0:35:14.954 We've got a whole boatload of shows, 0:35:15.114 --> 0:35:17.376 well over 800 and change, 0:35:17.436 --> 0:35:19.336 no vacancy shows alone that 0:35:19.396 --> 0:35:20.436 you could learn from. 0:35:20.456 --> 0:35:21.516 And, of course, if you're listening to us, 0:35:21.637 --> 0:35:22.797 why not follow us on our 0:35:22.838 --> 0:35:24.458 respective social medias and watch us? 0:35:24.838 --> 0:35:25.699 And all shows are, of course, 0:35:25.918 --> 0:35:27.719 at NoVacancyNews.com. 0:35:27.760 --> 0:35:28.900 Thanks so much for being here, everybody. 0:35:28.940 --> 0:35:30.101 Remember, you've got one life, 0:35:30.121 --> 0:35:30.641 so blaze on. 0:35:31.280 --> 0:35:31.905 See you later.