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.