ATLANTA — Noble Investment Group's recent joint venture with Host Hotels & Resorts was largely driven by thinking about the customer of the future, according to Noble CEO Mit Shah.
During Host's fourth quarter earnings call with analysts in February, the Maryland-based real estate investment trust announced it formed a joint venture with Atlanta-based hotel asset management and development company Noble Investment Group.
Hotel News Now sat down with Noble's Shah at the Hunter Hotel Investment Conference to learn more about the partnership and what's ahead for his company.
"As we think about the future of our industry, one of the things that we all recognize, is that if we found ourselves here in this exact moment in time five years from now, what would seem obvious in that point in time that we should be doing today?" Shah asked.
Both Shah and Host President and CEO Jim Risoleo have strategically thought about just that. Innovation, technology and "next-stage hospitality" were common themes among their conversations, Shah said, and that next phase of customer has already arrived.
"Our thought process was we should take advantage of the opportunities that exist today and then also plan appropriately for the significant opportunities of the future that may not be as evident as they are today," Shah added.
During the COVID-19 pandemic, both CEOs realized the strength of the select-service, extended-stay business. Host wants more involvement in that segment, which made Noble a great fit for a joint venture as it already has a strategic platform in place that Host can invest in, Shah said.
Host has committed $150 million to Noble's next investment fund, called "Noble Fund Five." The fund will focus on investing in select-service, extended-stay, new development, redevelopment, acquisitions and additional partnerships with owners, operators and developers in which Noble will provide capital.
Through this joint venture, Noble will also have first priority to any property sourced through Host's channels that is outside of its luxury and resort strategy as well as Host's data, analytics and technology.
"This allows a real flywheel for the Noble organization, to continue to do things that are exciting and valuable for our business," Shah said.
For more from Hotel News Now's conversation with Mit Shah, watch the video above.