(Corrected on Feb. 14 to correct Joseph Bojanowski's title in the fifth paragraph.)
LOS ANGELES — PM Hotel Group’s recent spate of acquisitions is the result of forward thinking and years of preparation, according to company executives.
“We decided over 10 years ago to build an infrastructure that was scalable,” said Dave Pollin, co-founder and co-president of The Buccini/Pollin Group, which shares many of the same principal owners with hotel management company PM Hotel Group. “That’s a significant investment in people and systems. We have always had resources dedicated toward understanding where we think operations are going to go … so that when we did management company acquisitions, we’d have a competitive advantage.”
In November, PM Hotel Group announced its acquisition of Paramount Management Associates, which added 12 branded hotels, growing the PM portfolio to 70 branded and independent properties across 22 states.
In January, the company announced its acquisition of Washington, D.C.-based lifestyle/micro-hotel developer and operator Modus Hotels.
Both deals filled gaps in PM Hotel Group’s portfolio, according to President Joseph Bojanowski.
The Paramount portfolio contributed “a lot of synergies from a brand perspective, from a talent perspective and from a systems perspective,” Bojanowski said, adding that the company’s portfolio helps PM gain foothold in the Midwest and Maine.
The Modus deal fit PM Hotel Group’s plans to grow its lifestyle hotel portfolio, he said.
“They possessed a specific expertise in independent lifestyle hotels, and our lifestyle portfolio has been growing over the past few years. We were at a point where we needed to evaluate how we could best effect the execution in that segment of our business,” Bojanowski said.
“We will move our lifestyle and independent [hotels] into that,” he said. “Another great add for our ownership groups.”
Ethan Kramer, co-founder and president of Paramount Management Associates, joined PM Hotel Group as chief investment and development officer. Modus will continue to operate as Modus Hotels by PM Hotel Group, with Adam Gollance, former president and CEO of Modus, as CEO of the lifestyle division.
Today’s Hotel Operations Challenges
Growth in the third-party hotel management space comes with challenges, particularly around the labor shortage. But Bojanowski said the company has had success in planning ahead for scaling, as well as boosting efficiency through technology.
“First and foremost [it’s about] finding new talent, retaining new talent,” he said. “Secondly, the platforms we use and the technology we use are designed to bring efficiencies into the operation so that the team members can focus on their primary objective, which is delivering service to the guest.
“Our focus has been to deliver technology in a way that intersects with [guests’] desire to adopt it, and ultimately to deliver service at a level that garners preference and loyalty.”
Larger Real Estate Picture
The hotel industry continues to adapt to new pandemic-influenced behaviors from travelers, for example with extended "bleisure" stays that revolve around flexible work schedules, Pollin said.
Those new behaviors also are reflected in how companies are renting space and how people are living, he said.
“In the office market, we’re seeing a real flight to quality,” Pollin said. “With a lot of associates working remotely, you may need less space. But when people are back together, you still need enough room for them to meet. … It’s not as simple as … taking 20% of office space and giving it back to the landlord.”
Some companies are choosing to renew leases for three years instead of 10, to see where things go, Pollin said.
But the outlook remains hazy.
“If you’re hiring really talented people that are hard to attract and you’re not mentoring them and you’re not teaching about your culture … then they’re going to leave,” he said. “On the other hand, companies that don’t offer a hybrid opportunity aren’t going to be able to attract talent in the first place.”
For more on PM Hotel Group’s strategy for growth, watch HNN's interview with Joseph Bojanowski and Buccini/Pollin Group’s Dave Pollin in the video above.