NEW YORK — Just as it’s easier to retain business than gain new business, it’s easier to retain employees than to hire new ones, said James Carroll, president and CEO of Crestline Hotels & Resorts.
In a video interview at the NYU International Hospitality Investment Conference, Carroll said it’s a combination of making sure employees are paid properly, having competitive benefits, recognizing them for the work they’re doing and creating a great culture and work environment.
“Our business is a tough business to do, and so you can't necessarily make the work easier, but you can make a very good environment with a great culture, and so we strive to do that,” he said.
Growing the Portfolio
Crestline’s growth strategy hasn’t changed significantly over the years, Carroll said. It has focused on working with professional multi-unit owners, such as real estate investment trusts, private equity groups and investment funds.
“Those kinds of solid owners that are multi-unit owners work well for us,” he said. “I think we’re able to deliver good results for them.”
The company’s hotel portfolio comprises mostly upper-midscale, upscale and upper-upscale hotels, mostly with Marriott International, Hilton and Hyatt Hotels Corp. brands along with some independents, he said. Crestline manages 126 hotels, resorts and conference centers with almost 18,000 rooms in 29 states and Washington, D.C.
Crestline plans to continue to grow with the owners it has now, Carroll said. Over the last year, about two-thirds to three-quarters of the company’s growth has come from current owners that bring new business to Crestline.
The company has also slowly worked with new ownership groups that fit similar profiles of its current owners, he said.
“The strategy stays pretty much as it is, and it's done well for us,” he said. “We've picked up 16 or so assets in the last 12 months, which is again a good sign of us doing something right.”
Owner/Operator Deals
Carroll said he’s seen a trend in the industry of hotel owner-operators moving toward pure ownership and handling operations off to a third-party manager. Crestline has some experience with those kinds of deals, and they can be challenging to get through.
“Everyone has to know what the goals are,” he said. “The prospective owner has to let go of the operations side, which can be challenging. Then for Crestline, or the management company stepping in, you have to really understand what the culture of that company is and be able to adopt it and adapt to it.”
These types of deals are good for managers as it helps to grow with a portfolio that has continuity to it, he said.
The owner-operators are good developers and owners, Carroll said, adding they know their markets and how to build efficiently. It takes a lot of time and energy to build, and over the years, the attention necessary to manage can take away from their business focus and make it harder to do what they do so well.
“For the right two companies coming together, it can be very, very much a win-win type deal out there, and there's not a lot of those,” he said. “We would love to talk to some groups that are looking to do that and see if we can move forward.”
For more from Crestline Hotels & Resorts President and CEO James Carroll, watch the video above.