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‘Ambition and curiosity’ drive this young REIT manager

Sam Hudson is part of a new wave of asset managers who sees hotels through a different lens. His introduction to hotels came seven years ago at Ashford Hospitality Trust, where he hired on as a financial analyst, quickly ascending to director of asset management. Earlier he worked for a defense contractor. Now, at Irving, Texas-based CorePoint Lodging, the 33-year-old tends a portfolio of about 70 Wyndham properties as a senior director of asset management.

Sam Hudson: "Today, a lot of REITs are hiring people with different backgrounds — finance or even engineering, because engineers have the analytical and intellectual capacity needed."
Sam Hudson: “Today, a lot of REITs are hiring people with different backgrounds — finance or even engineering, because engineers have the analytical and intellectual capacity needed.”

HOTELS: How are you disrupting your field? How effectively do you think the industry has been responding to disruption? 

Sam Hudson: CorePoint is the first publicly traded midscale hotel REIT. We do things a little differently. Asset management teams at other REITs might be responsible for 15 to 20 hotels, but here we have a pretty light overhead model, so each asset manager has about 70 hotels. That keeps corporate overhead lower. As for the industry, I think it’s still struggling to respond to the growth of online travel agencies and Airbnb. Some of the brands have been testing member-only rates, and that seems to be effective at increasing brand loyalty.

H: What trends are you observing among hotel REITs/asset managers, and where do you see them going in the future? Any fads?

SH: On the old asset management career track, you were in operations, then maybe a GM, then a regional manager. But being a GM for 20 years doesn’t mean you’ve developed the expertise to manage assets. Today, a lot of REITs are hiring people with different backgrounds — finance or even engineering, because engineers have the analytical and intellectual capacity needed.

Fads? Five or six years ago every hotel seemed to want to set up a Facebook or Instagram page and post frequently. Now I think more hotels are using those spaces to engage with customers instead.

H: Have you seen any evolution in the types of careers the hotel industry offers?

SH: The emergence of revenue management jobs is number one, followed by e-commerce. Those two positions didn’t really exist 20 years before; now they are a critical part of the business.

H: What’s the appeal for anyone getting into the hotel business today?

SH: What makes the industry great is you are only limited by your own ambition and curiosity. I have some friends who don’t have college degrees, but they started in entry-level positions and are now managers. That upward mobility is something we need people to know about. Also, I love working in the travel industry, and if you can afford to do it, I think it’s one of those things that satisfies that top self-actualization need on Maslow’s hierarchy.

H: Do you think glass ceilings and old boys’ networks remain intact, or is that changing?

SH: I think things are changing, but too slowly. The only thing I can do is be conscious of my own privilege and bias, and focus on diversity and inclusion.

H: What are the needs of next-gen leaders compared to the current generation?

SH: While it doesn’t mean that we’re less dedicated, the expectation is to have more work/life balance.

H: What about the business keeps you up at night?

SH: The labor market — just from the perspective of rising wages and turnover. An engaged and tenured property team is usually the number one predictor of success for a hotel — and we’re constantly dealing with higher wages and turnover. A cashier at Whole Foods is making US$15 an hour. If you compare that with housekeeping wages, I don’t know why anyone would want to make beds all day.

H: To what do you most attribute your career success and growth?

SH: Being willing and eager to take on additional responsibilities and projects, and always being curious. Lot of REITs operate with fairly small headcounts, so these things matter.

H: What would you tell people entering the industry now?

SH: Know something about sales, revenue and e-commerce. You have to diversify your experience. Also, this is a very small industry, so make sure you’re always kind and humble.

H: Describe the things that you try to do every day, and why do you do them.

SH: I try to do something active outside every day — I’m a runner, I play soccer, I garden, and I volunteer on conservation projects — you have to have your own interests outside work, or your life isn’t balanced.

H: Where do you find inspiration?

SH: I like to get outside — I find inspiration in nature, and I’m interested in ecology and native plants. Both my parents are entrepreneurs, so I do get a lot of inspiration from them. Also from my current boss, John Cantele, executive vice president of asset management at CorePoint. When he walks into a property he knows not only the GM, but other staff, including the maintenance person. He makes everyone feel empowered and appreciated. And Sloan Dean, COO at Remington Hotels, is one of the most naturally intelligent people I’ve ever known, and he combines that with incredible passion.

H: What do you see ahead for asset managers in the coming year?

SH: I expect muted revenue growth and a challenging year ahead — expenses and wages will continue to outpace revenue growth, creating profit pressure.

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