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Ace president’s mantra: Focus on the customer

Throughout the recent winter months, like everybody else, Ace Hotel Group President Brad Wilson was constantly reforecasting cash flow to understand where the next dollars would come from and how to keep the business in reasonable financial health. But, in the next breath and throughout the thought process, he knew there had to be a balance to make sure he reminded himself he was still in the hotel business that is not purely about cash.

“You have to make good decisions for the long-term side of the business,” he told HOTELS during a late winter interview from his cabin in Joshua Tree, California. “You just have to understand emotionally where people are at – both your customers and your team – and really think about how the communication has to really balance that deep, deep insecurity and angst.”

A few months after the conversation, there is light at the end of the tunnel as one of the hottest lifestyle brands prepares to open an Ace in Brooklyn, New York, with Toronto and Sydney still on track for late 2021. In early May, Ace further reccitated itself by reopening Ace Hotel New York.

Here are some of the highlights from the opened-ended interview with Wilson, who has remained steadfastly positive and said he has been rolling with the punches each and every day. “My big hack to keep morale up was just telling myself, at least I don’t run cruise ships,” he joked. Watch for Part 2 of the Q&A tomorrow.

“Tragedy does bring people together, and actually it helps us find new solutions. And I think it stokes creativity because you really have to think of better and different solutions. You can’t just go back to what you were doing.” – Brad Wilson
“Tragedy does bring people together, and actually it helps us find new solutions. And I think it stokes creativity because you really have to think of better and different solutions. You can’t just go back to what you were doing.” – Brad Wilson

HOTELS: How has the pandemic changed your management style?

Brad Wilson: It require a tremendous amount of patience and balance, because as they say, everything changes… But then you realize, now you have to go back and understand how to really embrace this customer. Because they’re still your customer, right? You still have to provide an experience. That customer still has to come and feel really well taken care of and feel like they enjoyed their stay and it wasn’t just a survival thing.

I watched too many hotels early on in the pandemic deplete too many amenities – not because they really had a COVID risk, but it was just sort of across the board, ‘let’s get things out.’ Some hotel companies removed minibars. Now in my mind, that’s exactly opposite of having any consideration for your customer who doesn’t feel safe wandering around the city to find a snack and a bottle of water. I think in some ways the minibar is more critical during COVID than it ever has been. That’s actually been shown true because minibar revenue per occupied room is way up.

H: How else are you looking at your job differently?

BW: We’ve really focused much more toward communication, inclusiveness and transparency. People just need that for their stability right now. If you don’t at least know there is a plan, even if that plan is going to change, it creates an insecurity. And there is definitely more inclusivity here due to, obviously, the Black Lives Matter and political stuff going on. We realized that we can make a very positive statement because we are actually a very diverse company… Sometimes, you can be inclusive and not realize that you haven’t expanded it broad enough for everybody. So, we’ve been spending a lot of time just talking and sharing those kinds of feelings.

H: Have you been refinancing or sourcing debt?

BW: All the hotels have been sourcing either additional equity or additional debt, or restructuring debts because that’s essential for the next phase of this really. The banks have been incredibly understanding, and really kind of working toward solutions. Hopefully as we come out the other end, people can ride that back up…

There’s both debt and equity out there if you have good projects. We’ve found it harder to buy distressed product. We’ve had a few back and forths, but nothing’s selling at any kind of discount.

Façade of the Ace in Kyoto, Japan
Façade of the Ace in Kyoto, Japan

H: What has surprised you through the pandemic?

BW: On the bad side, it did surprise me how many people we’d get into our hotels and restaurants that didn’t want to wear their masks or PPEs, and really inflict that on the team members. That has been one of my biggest disappointments. You’d like to think that we can all pull together for each other… On the other side, the energy and dedication of the teams has been really amazing.

H: How do you find happiness now?

BW: Instinctively, I tend to be kind of happy. So, I’m good. Happiness also comes a lot from the passion of some of the team members like our F&B director in LA. During the middle of COVID she was constantly working new ideas and expanding and seeing how to make what we can do the best… We’ve actually developed a little internal business called Lovage, which is our café and delivery business rolled out in the Chicago hotel. It’s been really successful as a walk-in coffee shop with delivery, and it also covers guest rooms and room service…

Tragedy does bring people together, and actually it helps us find new solutions. And I think it stokes creativity because you really have to think of better and different solutions. You can’t just go back to what you were doing.

H: How are you drawing on previous experiences to serve you at the moment?

BW: I was in Los Angeles for the Rodney King riots, and for the Northridge earthquake. I was in New York for September 11th. I definitely think prior experience has given me an ability to stay focused and balanced in crisis, to plan on really positive moves, and how to use those things to structure and build. That has certainly been something through this whole thing that I’ve been going back to – how to center and stay calm, and focus on what the right paths are.

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