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Incoming Aimbridge CEO says scale, culture a winning formula

As of January 1, 2021, industry veteran Mike Deitemeyer takes over as president and CEO at Aimbridge Hospitality in the midst of an extended growth phase. After merging with Interstate Hotels & Resorts in 2019, Aimbridge was on track to add 128 hotels to its 1,500-hotel portfolio, spread across 49 states and 20 countries, in 2020. Most recently, Aimbridge assumed management of 31 Jupiter Hotels in the U.K.

Deitemeyer, who served as global president after the Aimbridge-Interstate merger, and before that as Interstate’s president and CEO, briefed us on the company’s transformation and growth.

Mike Deitemeyer
Mike Deitemeyer

HOTELS: How will the corporate structure evolve under your leadership?

MIKE DEITEMEYER: We were thoughtful about how best to shape our leadership and succession strategy to build on both companies’ strengths. As global president, I used this year to get to know Aimbridge executives and unite the team around our shared vision and future goals.

We have implemented two structural changes that will shape our company in new ways for the future. The first was defining and grouping eight separate product categories, or hotel verticals, and establishing our vertical experts in sales, operations and revenue who understand the nuance of each. Our organization now has this deep focus, agility and expertise for every vertical in operating, selling and hiring the right talent for each.

Secondly, we compiled this massive amount of data during our integration. Thanks to our scale, we can harness and analyze hundreds of data points to guide decisions and provide benchmarks, allowing us to optimize hotel performance, speed to market, speed to customers, and overall market knowledge.

H: What role will Aimbridge cofounder and former CEO Dave Johnson play? 

MD: Dave, who will be filling the newly created role of executive chairman, will focus on transformational growth through mergers and acquisitions, capital markets and adjacent spaces. We have known each other for years, and I’m extremely pleased we are on the same team. He is passionate about building organizations, and his talent and strategic efforts will continue to drive significant growth.

H: How do you see the big picture regarding third-party management consolidation? 

MD: Consolidation will continue. The U.S. is a mature market, and third-party companies, including Aimbridge, will grow by acquiring competitors or winning share. We also see more consolidation outside of the U.S., with big brand-side players such as Accor. There are many smaller, provincial hotel managers in the U.K., and I anticipate continued consolidation activity in the region.

H: How does Aimbridge stand apart in a crowded field, and how do you cultivate that? 

D: The priority remains to support our hotels and owners during the pandemic and ensure our associates’ and guests’ health and safety.

Aimbridge’s future and long-term success is all about our people, our culture and resources at scale. My philosophy remains unchanged: When it comes to our people, we double down on talent by hiring the best, providing them with best-in-class tools and systems, and continually develop managers and leaders. Give your associates opportunities for growth and a culture in which exceptional service and great work are expected, recognized and rewarded.

H: Where are you looking to grow internationally as a follow-up to the Jupiter management deal? 

MD: The U.K. and Continental Europe continue to be of strategic importance for Aimbridge. With 160 properties and plenty of growth opportunities in the pipeline, we already have a solid foundation in the region. We will also continue to focus on our North American portfolio with expansion in Canada and a significant Caribbean presence. If and when we enter new markets such as Central and South America or the Middle East, we will be strategic in finding the right partners on the ground with complementary resources and capabilities to ours.

H: What’s your outlook for the COVID winter? 

MD: Ours and the travel industry have been hit particularly hard, and this winter will undoubtedly be tough. Given the timing of the vaccine, I am optimistic overall for 2021. I anticipate the velocity of the recovery will happen on the back end of the year, in the third and fourth quarters, driven mostly by leisure, while corporate and group business will remain choppy for some time.

We maintained most corporate staff to support our owners, hotels and GMs on the front lines through this devastating pandemic, which I absolutely believe was the right decision. Aimbridge continues to be resilient; our team is strong and our resources robust, with a solid balance sheet and a significant pipeline.

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