Category Archives: Career

Being unique

Being unique and embracing it, is many times one of the keys to joy, peace, fulfillment and also success. Many people want to copy or duplicate another person because they see that person achieving some popularity or notoriety and think if they imitate that person, they will have the same success. Success usually comes from the uniqueness of the individual that sets them apart from the crowd. In reality we should all celebrate our own uniqueness and not try to change the thing that makes us different.

Over the weekend we were flipping through the channels and landed on the history of the Carpenters music group. I am big Doobie, CCR and Three Dog Night guy which were all in prominence at the same time (late 60’s -mid 70’s) with the Carpenters. They were all competing for the same listener but the styles could not be any more different. The three groups mentioned above were the hard charging rock groups whereas the Carpenters were love songs and easy listening.

The one thing they all had in common was a unique sound that could not be duplicated. There was only one of them and they all succeeded greatly at the same time. When the Carpenters came on the music scene, everyone just moved over a little and made room. The result was a music success.

Some of the greatest sales people I have ever known were not you would expect. So many times people think of salesmen or saleswomen as over bearing and loud. I find the greatest sales people to be the ones that are reserved and thorough in how they approach business. They are also honest, likable and trustworthy.

My point is never try to be someone else. You lose the qualities that make you, you. Embrace the uniqueness that belongs to only you. No one else has what you have. Be thankful that you are different because that is what you can build a life on. KT

When making a big decision

When making a big decision, the first question you should be honest with yourself about is whether or not it will change your life if the decision turns out to be wrong. If the consequences of failure are life changing, one should be very careful to weigh the options.

I will give you a perfect example. Last year I bought an old truck and while I hoped it would be a good buy, I knew that if I got it home and found it full of rust or the engine blew up, it would not change our lifestyle. That is a simple example of a very important point. We all buy and sell things and change jobs and basically make decisions all the time but we don’t always really think the big ones through.

I was part of selling a company one time that for me didn’t turn out well. I had all the great ideas and good reasons why I should do it but I failed to ask myself that one simple question. Will it change my life if it fails? Before we sold the company I was happy, stress-free, content and very pleased with where the company was going. After we sold the company, I remember one day thinking about how much I wished I could go back. I couldn’t because it was already done. Some decisions are life changing and for me, that was a life changing decision that I took too lightly. Had I closed my eyes ask myself, “if this fails will we still be ok,” I probably would have made a different decision.

Before you make a big decision, look at your existing life, your children, your home, your peace, your bank account, your joy and your contentment. If you are in a good place now, look big decisions head on and be honest with yourself. I have made two big decisions in business that I dearly wished I could take back. Sometimes you don’t realize how blessed you are until you make a decision that changes your life and you cannot go back.

I believe with all my heart that the Holy Spirit of God lives and resides within my heart and all I have to do is ask him what I should do. In both of those business decisions, I did not fully and openly ask God what I should do. It was what I wanted to do and I was afraid if I really ask him, he would say no.

So the point. Before you make big life decisions, be honest with yourself and be honest with God and make the decision in advance that you are ok if God leads you to go forward or walk away. KT

Going to work

I got up this morning and was getting ready for work and was thinking about all the things I needed to do and the calls I needed to make and people I needed to talk with. There was a slight sense of dread because some of the calls were going to be difficult and the clients were not going to be happy. It is funny how when a broker (like us) doesn’t sell someone’s hotel for what they invested in it, it is always the broker’s fault and never the owners fault. These type deals are rarely hotels that they bought through us but instead they bought them from someone else and now we get the blame for it. Ha. It is like some people we all know that never make a mistake themselves because it is always someone else’s fault. Ever meet someone like this?

I have gotten off subject. This morning when I got up and got dressed for work and all the thoughts were going through my head, I stopped and realized that one day I won’t have the option of going to work. One day I will not be getting ready for work. One day I won’t go to the office and have things to take care of. One day the work will go on without me and one day the younger folks will be the ones leading the business.

Then I realized what a gift today was because I get to go to work. I get to be busy with life. I get to be involved. I get to work around people I like. I get to have a place to go. I get to still earn an income. I get to still play a meaningful role in our business. What a gift.

Maybe today when you got up, you wished you could sleep a little longer and wished you didn’t have to leave the house. Maybe today you didn’t realized what a joy and gift it is to still be needed at work. Many times the greatest joys in life is realizing the simple things that we already have. KT

Watching the waves come in – February 2016

Have you ever been standing on the beach watching the waves get bigger and bigger and hear the wind starting to howl and feel the rain start to pour? Financially speaking, I believe that is where we are today in this economic cycle.

I remember January of 2008 like it happened yesterday. The slowing economic cycle had already started a few months before and by January, news organizations began to circulate reports that a financial storm was beginning to brew. Many people at the time thought it would blow over and be a gentle economic change and wouldn’t last long. By April of 2008, mild concern had turned into serious concern and by July 2008, serious concern had turned into anxiety..By September 2008, real economic fear was from Wall Street to Main Street. That financial cycle saw many companies close their doors, people laid off and a wave of home foreclosures not seen since the great depression.

Today, I feel like I am standing on a similar beach (metaphor) watching the waves get bigger and hoping that all I need is a light rain jacket to weather the storm. Many of the financial indicators in 2008 are present today like the stock market, interest rates, oil and a new election year. I honestly believe that this next economic cycle will not be as deep and long as the last but at the same time we should all be aware and prepared.

When I am asked, “what should we do?” I think the answer is to stay the course and be conscious of the financial aspects of your life. You can’t change the US economic but you can choose to save more and borrow less. For those of you in sales like us, I say put your selling shoes on and do your best work on every sales call. While I hope the financial ripples will subside and be gentle, we should all be alert that a financial slow down seems to be brewing. KT

Predicting Hotel Market Trends

I have been a hotel broker for 26 years and have been through many market cycles. I can state with absolute certainly that I do not know how to time market trends. When I think about this, I remember the movie Rudy, starring Sean Astin, when he was in the church praying he would get into Notre Dame. The priest comes and sits down with him and after being asked for his intervention said the following, “Son, in 35 years of religious study, I have only come up with two hard incontrovertible facts – there is a God, and I am not him.”

When someone in the hotel real estate business tells you they know the market trends, they don’t. There are many examples of late that we can point to this truth, but I will focus on one – the Shale oil markets. 18 months ago in June of 2014, the per-barrel price of Crude oil was $105. Today, oil is hovering at $30 per barrel. Oil has lost 70% of its value and many of the lodging markets that supported the demand have collapsed.

In early 2014, I was asked to value some mid-market hotels located in these areas. My value was based on a 20 cap and the price per room was still $270k per room. I called the owner and told him his hotels were simply unsaleable using standard financial methodology. The owner had every argument why they should sell at an 8 cap on trailing numbers and I told him he needed to hire a smarter broker than me. In early 2014, people were buying used camping trailers in Georgia and shipping them to the Dakotas and West Texas, and selling them for 3x the price just to house the oil workers.

No one in our business saw this significant shift happening. At the time there were estimates that certain Shale oil productions limits would last 25 to 30 years. Many lenders, hotel investors, and operators were building hotels as fast they could get the permits approved. Even today, there are hotels still under construction that were started last year and are yet to come on line.

If you look at this example of oil, CMBS maturities that are barreling (no pun intended) down the tunnel, 100+ bps increase in long term debt, the current pricing on lodging stocks, and we all should come away with one hard incontrovertible fact: we cannot read and predict the hotel real estate future with any meaningful level of certainty. KT