Guest Blog – Crowdfunding and cash sources from LODGING LEADERS

LODGING LEADERS

Mass

Mass Appeal: Crowdfunding for hotel development mines new sources of cash

When it launched five years ago, crowdfunding for real estate development was a hot topic, especially among hotel developers seeking new ways to pay for their projects.

Though it’s not creating the same level of buzz as it did when it first became a federally sanctioned option in 2014, crowdfunding remains a viable tool in attracting a wide range of investors and sourcing new streams of cash.

Basically, crowdfunding is a campaign for small amounts of money from a large number of people. It is friends and family financing gone viral.

We talk to hotel developers who are using the alternative financing method to raise cash for their projects.

The projects are vastly different, as are the fundraisers’ goals, and target investors.

One is a boutique property in a resort market, and the developer plans to raise the entire construction cost via crowdfunding. The other is a midscale branded hotel in a technology park, and the firm is selling shares to close a funding gap.

Featured in today’s report is Nathan Kivi, founder of HotelierCo, an online fundraising company targeting hotel development; and Bhavik Dani, founder of EquityRoots, another fintech venture that’s raising capital for one project while about to break ground on another.

We also explain the evolution of crowdfunding, and why the federal government gave the technology its nod of approval as part of a national economic recovery program.

Anyone considering raising money for a project over the internet, or investing money via an online program, should first consult a professional adviser.

Resources and Links

For more information on crowdfunding visit:

The SEC study mentioned in this report is titled “Capital Raising in the U.S.: An Analysis of the Market for Unregistered Securities Offerings, 2009‐2017” and can be accessed here.

 

John J Hogan, CHA CMHS CHE CHO

Hotelier, Speaker, Educator, Author, Expert Witness

John@Hoganhospitality.com    Office 480-436-0283   Cell 602-799-5375

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Click below for a fascinating look at one of the most successful of all American Hospitality businesses

Howard Johnson’s, Host of the Bygone Ways

For more than seven decades American roads were dotted with the familiar orange roof and blue cupola of the ubiquitous Howard Johnson’s restaurants and Motor Lodges.  The company’s founder and namesake was a grade school dropout who became a franchising pioneer and introduced the restaurant industry to centralized purchasing.  Johnson repeated his formula with motor lodges, creating one of the world’s largest hotel chains.

In 1965 Howard Johnson’s sales exceeded the combined sales of McDonald’s, Burger King, and Kentucky Fried Chicken.  By 1979 the “Host of the Highways” had become the largest hospitality company in America, with more than 1,000 restaurants and 500 motor lodges.  But the company saw a decline of its rule over the roadways in the 1970s after a series of events destroyed the company’s earnings.
cover photo courtesy Ben Schumin

 

https://sometimes-interesting.com/2017/10/06/howard-johnsons-host-of-the-bygone-ways/ 

 

Howard Johnson first became locally famous for his ice cream.  He claimed the secret recipe came from his mother, while other accounts suggests it came from William G. Hallbauer, a retiring German immigrant who had been selling ice cream from his horse and cart in the area at the turn of the century.  The ‘secret’ was to double the amount of normal butterfat, and to use only natural ingredients.  This created a premium ice cream that was an immediate sensation and earned Howard $60,000 in revenue from his first beachfront stand.

An image accompanying a 1948 newpaper article shows Howard Johnson's 28 flavors at the time.An image accompanying a 1948 newpaper article shows Howard Johnson’s 28 flavors at the time (source).

Additional flavors were added – 28 in all – as well as “frankforts,” a premium hot dog sandwich developed by Howard that was grilled in butter.  Johnson clipped the frankfurters at both ends and notched them lengthwise.  He used only the highest quality meats grilled in a creamy butter, and for buns he used lightly buttered and toasted fresh rolls.

By 1928 Howard Johnson was grossing $240,000 from his store and small network of beachfront ice cream and frankfort vendors.

[ Howard Johnson’s original 28 ice cream flavors:  Banana, Black Raspberry, Burgundy Cherry, Butter Pecan, Buttercrunch, Butterscotch, Caramel Fudge, Chocolate, Chocolate Chip, Coconut, Coffee, Frozen Pudding, Fruit Salad, Fudge Ripple, Lemon Stick, Macaroon, Maple Walnut, Mocha Chip, Orange-Pineapple, Peach, Peanut Brittle, Pecan Brittle, Peppermint Stick, Pineapple, Pistachio, Strawberry, Strawberry Ripple, Vanilla.

MORE DETAILS HERE
https://sometimes-interesting.com/2017/10/06/howard-johnsons-host-of-the-bygone-ways/ 

Howard D. Johnson personally ensured quality by testing every item before it went on the menu.

Howard-Deering-Johnson-press-photo-1962-age-65                  Howard Johnson's, "Landmark for Hungry Americans" ad

 

 

Comments and suggestions for future articles are always welcome john@hoganhospitality.com 

 

John J Hogan, CHA CMHS CHE CHO

Hotelier, Speaker, Educator, Author, Expert Witness

John@Hoganhospitality.com    Office 480-436-0283   Cell 602-799-5375

How the World’s Largest Hotels have changed – Guest Blog

I have always admired Ellsworth Statler and am pleased to post this as a guest blog.

John J Hogan, CHA CMHS CHE CHO    John@Hoganhospitality.com

The Inside Inn Was the World’s Largest Hotel During the 1904 St. Louis World’s Fair—Then It Was Torn Down
By Mark Young -October 30, 2018

Ellsworth Statler, the legendary American hotelier, was a visionary who applied late 19th and early 20th century advances in technology and modern business systems to hotel operations. In applying these modern efficiencies while simultaneously maintaining the comforts and elegance that customers expected, Statler helped create the most successful American hotel chain of the first half of the 20th century.

Before hotels, Statler operated dining rooms and restaurants. When the Louisiana Purchase Exposition and World’s Fair—better known as the 1904 St. Louis World’s Fair—was announced, his interest was piqued. Fair organizers were worried that the existing hotels in St. Louis would be overwhelmed with visitors. Even with the construction of many new hotels to serve the fairgoers, there was a fear that the scarcity of accommodations might negatively impact the fair and city. Nervous fair organizers approached Statler, who had successfully operated a large temporary hotel at the 1901 Pan American Exposition in Buffalo, New York.

They asked if he would be able to construct and manage a large temporary hotel for the exposition. Statler offered to build a structure that would house fairgoers and provide dining facilities inside the fairgrounds. That hotel—the only one within the fairgrounds —was appropriately called the “Inside Inn.” Although a temporary structure, it was described as the “largest hotel ever built in the history of the world.” It occupied the equivalent of four city blocks and ranged from two to four stories high. Incredibly for the time, the Inside Inn contained 2,257 rooms, 500 with private baths and another 500 with bath/shower combinations; for guests in the remaining rooms, there were common facilities. There were 156 bellboys—as they were called then—to assist the guests. The room rates started at $1.50.

The Inside Inn was the largest hotel in the world at the time it was built. To accommodate its many guests, the Inside Inn had 156 bell boys. Ellsworth Statler’s hospitality experience led him to create Statler Hotels, one of the United States’ earliest hotel chains.

The wood structure used a fireproof material called Sackett Patent Board, plastered over with green fire-retardant burlap wallpaper. Fireproof burlap was used on the ceilings and floors to add extra safety and comfort. The outside of the structure was given a whitewashed plaster appearance with Moorish turrets to look like most of the fair’s other structures.

The kitchen was said to be the largest in the world. For the month of June 1904, it used 12,270 dozen eggs, 1,180 bushels of potatoes, 401,618 pounds of meat, 244 barrels of flour, 9,605 pounds of butter, 8,824 gallons of milk, and 6,014 pounds of coffee. The dining room had the capacity to serve over 2,000 guests with the option of an American or European dining plan. Statler first hired male waiters but later switched to female waiters, finding them more courteous and dependable. The food was described as good and reasonably priced.

Thanks to Statler, the tourists visiting the 1904 World’s Fair were assured of a clean, safe hotel with dining facilities that ran smoothly. The fair ran from May through November. In the end, Ellsworth Statler made a tidy profit of over $360,000—not bad, considering the average American worker earned between $200 and $400 per year in 1904. At the close of the fair, the Inside Inn, like most other fair structures, was demolished and sold for scrap.

Mark Young
Mark Young, Ph.D., is director of the Hospitality Industry Archives at the Conrad N. Hilton College of Hotel & Restaurant Management, University of Houston.
John J Hogan, CHA CMHS CHE CHO   

John@Hoganhospitality.com       Office 480-436-0283   Cell 602-799-5375

Hotelier, Speaker, Educator, Author, Expert Witness

  •   Principal, HoganHospitality.com    Workshops, Consulting, Expert Witness Services    
  •  Co-Founder & CLO, HospitalityEducators.com, Resources in Customer Services, Training, Marketing and Sales, Profitability 
  •  Visit  johnjhogan.com for Coaching and Development

GUEST BLOG Lodging Leader Podcast #005 | What Makes a Leader with John Hogan

Please join Lodging Leaders Podcast founder Jonathan Albano with this link:

http://lodgingleaders.com/005-what-makes-a-leader-with-john-hogan/

John J. Hogan, CHA CMHS CHE CHO is a career business professional and educator who has held senior leadership with responsibility in several organizations involving operational, academic and entrepreneurial enterprise. He has demonstrated competencies as a strong leader, relationship builder, problem solver and mentor and is frequently invited to speak at franchise meetings, management company and hospitality association industry events. He also acts as an expert witness in both research and testimony in hospitality industry related cases.

Background:

John has been a part of the hospitality industry his entire adult life. He started out as a teenager at a seasonal summer resort in Vermont and shares that his emotion towards the spirit of hospitality was very profound from the beginning. John studied hospitality at University of Massachusetts and over the last 40 years has worked with companies of all sizes ranging from smaller family owned large to large independents, to niched, to corporate and franchises. He feels it is an exciting, never boring, always changing industry.

Resources & Links:

For book recommendations, go to:

https://hoganhospitality.wordpress.com

Leadership:

John decided to take on his first leadership role because it felt right to him. In his experience, he learned that one can’t be afraid to make mistakes – because you’re going to. It’s about making mistakes but not the same mistakes. It’s about knowing a good amount about everything but not needing to know everything while learning how to delegate because you CAN’T do it all alone. It is important to TRUST others and give them the tools they need for the overall success of the company.

So, what makes an effective leader? According to John, “Management is doing things right whereas leadership is doing the right things.” Leaders know how to take you through to the next level.

Are leaders born or made?

What are the common pitfalls hoteliers face today and how can they be avoided?

In working with local businesses and CVB’s. How does one drive reservations there?

Improving ADR:

How can Hoteliers increase their spend for guests?

What was a defining moment in your career?

What are some personal habits contributing to your success?

 

Hospitality Educators was created by John and his partner Kathleen in 2010 as a membership site.  It is a resource site. Parting advice: Keep your enthusiasm. Keep your focus. Enjoy what it is you do and regularly figure out how you can get 10% better this month. Within the year you will 100% be there!

Thanks for Listening!

Thanks so much for joining us again this week. If you have some feedback you’d like to share, leave a note in the comment section below!

If you enjoyed this episode, please share it using the social media buttons at the bottom of the post.

Also, please leave an honest review for The Lodging Leaders Podcast on iTunes! Ratings and reviews are extremely helpful and greatly appreciated! They really do matter in the rankings of the show, and I read each and every one of them.

And if you haven’t done so already, don’t forget to subscribe to the show on iTunes. It’s FREE. All it means is that you’ll automatically be notified when the next episode is released. There are options for subscribing on Apple and Android devices!

Until the next …

John J Hogan, CHA CMHS CHE CHO    John@Hoganhospitality.com

Office 480-436-0283   Cell 602-799-5375

Hotelier, Speaker, Educator, Author, Expert Witness 

Insights of 10 Hospitality Professionals: Mentors and Counselors Come in All Sizes and Shapes

For those of us who have been in hospitality for more than 15 years or attended hotel school, the name Tony Marshall has familiarity to us in the area of hospitality law. His reputation as an effective communicator and keynote speaker introduced many of us to understanding what reasonable care meant and his unique brand of humor made him one of the industry’s most recognized names in the last 25 years of the 20th century.

Marshall passed away 10 years ago (December 2006), yet his work and memory linger with many. If one does an internet search on his name[1], the business side of his legacy remains evident.

This column is different, in that I asked the industry for some personal insights on Tony and how he affected them. I personally knew Tony in several ways: we both worked in the same small hotel (Bonnie Oaks Resort in Fairlee, VT) about 20 years apart and one of his best friends was Professor Steve Fletcher who was the department chair of the Hotel & Restaurant program at my alma mater, the University of Massachusetts. While Tony was almost always boisterous in public, I saw first-hand his human side when he was encouraging Steve Fletcher in the mid-1990s as he and his family were dealing with the final stages of Lou Gehrig disease.

[1] Remembering Tony Marshall, The Messenger of “Reasonable Care …http://www.hotel-online.com/News/PR2007_1st/Mar07_TMarshall.html


Thank you to Hotel Online, which originally shared this story on 1/4/17   https://hotel-online.com/press_releases/release/mentors-and-counselors-come-in-all-sizes-and-shapes 

Enjoy these examples of how Tony impacted others:

Doug Kennedy Kennedy Training Network www.KennedyTrainingNetwork.com Hollywood, FL 954.558.4777 doug.kennedy@kennedytrainingnetwork.com   

I will never forget the day I met Tony Marshall. At the time he was the Dean of the FIU School of Hospitality Management and also wrote a column for Hotel & Motel Management magazine. I was a 20 something entrepreneur with not much more than a wild dream to start a hotel training company.   A mentor of mine told me to reach out to prominent people in the industry to ask for advice, so I wrote a letter to Dr. Marshall. 

 A few days later I called his office. At the time most executives had gatekeepers and it was very hard to reach someone directly, but not Tony! He took my call on the first try. I asked if he might have a few moments in the near future to meet with me and he said “How about right now? Come on down.” I jumped in my car and drove down to his office on campus. 

I was SO nervous meeting such a prominent figure, but Tony right away made me feel at ease by joking around. When he came out into the waiting area I extended my hand but instead he grabbed my tie, turned it around to look at the label and said “Not bad, but you need to start buying better ties if you are going to make it in a hospitality career!” (This is advice that served me well I should add.)

Tony took nearly an hour out of his busy schedule to hear about my vision and review my carefully constructed business. After giving a long and thoughtful look, he responded that he did not think my business plan was going to be successful, as he thought I first needed more career experience. He then picked up the phone and after a brief chat handed it to me – it was a chance to interview for a job as the Director of Training for the Caribbean Hotel Association! Although it was a great opportunity, I turned down the job interview offer and thanked Tony for his advice, even though I was disappointed. On the way out he said encouragingly, “You are not the first person I told their plan wouldn’t work, and about 1 in 10 prove me wrong. Good luck in doing that young man!” 

About 10 years later when I had 45 employees working for my hotel training company I had another meeting with Tony to remind him that I proved him wrong, and he was very happy that I had done so!  Tony was a true hospitality superstar in every way.


Howard Feiertag, CHA CMP CHME Instructor at Virginia Tech and Higher Education Consultant Roanoke, VA (540) 231-9459 (mobile)  howardf@vt.edu  

Howard and Tony wrote feature columns in HMM for more than 20 years and they often appeared at the same brand, association or management company programs.   Tony had more than 400 columns over a 25 year period. Howard continues to publish his messages today and has more than 500 columns to date.

Tony was the best contributing editor of all the business trade publications as he was doing a monthly column for Hotel Motel Management magazine. He was always very articulate and humorous with his writings as well as with his speeches which he made frequently for the hotel industry. 

A wonderful person who is very much missed from all who knew him in our industry.


Rocco M. Angelo Associate Dean & E.M. Statler Professor Alumni Relations 

Florida International University, North Miami, FL 305.919.4500 angelor@fiu.com

Where do I begin with stories about Anthony Glade Marshall?

First Tony worked for me, then I for him as a faculty member at FIU’s School of Hotel Food and Travel Services, as it was known at first. When he became Dean of the School I was made Associate Dean & Chair. When he retired from FIU and joined the Educational Institute of the American Hotel & Lodging Association, publishers of my textbook, he became my publisher. Our business association and friendship spanned almost 35 years.

Shortly after Tony graduated from the University of Syracuse Law school, he was hired by the accounting and consulting firm Laventhol Horwath (L & H) where I was the manager of the hospitality consulting division in the New York City office. Some of the consulting assignments had a legal dimension that Tony was expected to address. It was one of my duties to familiarize him with the consulting practice by involving him in various assignments for which I was responsible. Our experiences together could fill a book; a cost study of the food service at a 1000 bed mental hospital, a study of food service at a University where we experienced a drug bust in the dormitory where we were quartered, among others.

As the L&H consulting business expanded so did the staff. In order to find the best and the brightest young candidates, we sent our consultants to the major hotel schools. Although I am a Cornell alumnus, I assigned Tony to the Cornell Hotel School and arranged for him to lecture in a class. Tony had established already his famous speaking style and I suggested to Dean Robert Beck that he sit in on the lecture. Dean Beck had to be out of town so he asked Assistant Dean Gerald Lattin to attend the class. Thus began the series of events that would bring Tony to Florida International University when Gerald Lattin became the founding Dean of the hospitality school and hired Tony to be his assistant.


Skip Stearns Co-Founder and Principal, Hotel Experts. LLC    http://www.thehotelexpertsllc.com/ Greater Boston Area 603-778-0110 Skip@THEHOTELEXPERTSLLC.com

Skip was a career hotelier with Dunfey (now Omni Hotels) before he and his brother Steve co-founded the Hotel Experts, LLC in 2002. The group works with experienced hotel experts (associate offices in six states) providing hospitality and hotel consulting, litigation support and impartial hotel expert witness research, reports and testimony.

Hi John:

What a great idea! I did not know Tony personally, but like many hoteliers of our time, I looked forward to every issue of H&MM. 

“At Your Risk” was usually the first place I turned to find the topic of the current issue, and the last article I read because I always enjoy saving the best for last.  

Tony’s experiences, lessons, humor and communications skills were fantastically relevant in an era when risk management was phenomenally undervalued. As hotel experts who focus on safety and security today, we find his column and textbooks still relevant, and wishing that more operators were familiar with Tony’s fabulous educational rants.


Al Hodge Implementation Project Lead at ADP Orlando, FL alhodge129@gmail.com  https://www.linkedin.com/in/al-hodge-4bb92a12  

Al was on the staff of the AH&LA Educational Institute for more than 20 years, servicing military education and major hotel brands in sales and support services.

Yes, I have a couple of Tony Marshall stories.

Tony was always more than just the President of EI – he genuinely cared about each member of his team.

After finishing the work at hand, he would draw us into his office for discussions on books and authors, ranging from the Harry Potter books to CS Lewis the author and he would, as usual, argue which were the better ones and why!

Many of the conversations we had were about life as opposed to work, which made me appreciate him as a human being.


Robert Rauch, CHA Chief Executive Officer RAR Hospitality San Diego, CA 858-239-1800 rauch@hotelguru.com www.rarhospitality.com   

John, I was a student at FIU when Tony Marshall was both Associate Dean of Hotel and Restaurant Management and Professor of Hospitality Law.

He convinced me to sign up and transfer from the University of Illinois in 1974 and was arguably my most influential professor through both undergraduate and graduate school though I had many great professors. He literally “lit the classroom on fire” to show us how quickly a restaurant can be destroyed by not taking “reasonable care” when serving table-side with a burner.

 His exams were difficult and required rigorous study. I learned so much from his class that despite not being an attorney, I taught Hospitality Law earlier in my teaching career, my long time parallel universe to being a hotelier. 

In my 40+ years in the hotel industry, there has not been one person who I have met who could more effectively capture an audience better than Tony Marshall. Many years ago, I almost had the guts to tell him, “Tony, I wish you did not smoke.” I always worried that he would get lung cancer. He will be missed for years and years.

 Bob


William D. Frye, Ph.D., CHE, CHO, CHIA Associate Professor and Program Coordinator – College of Hospitality & Tourism Management at Niagara University, New York                     Niagara University, New York 716-984-8274       wfrye@niagara.edu   

One of the classes Frye teaches is hospitality law @ Niagara.

He commented that “…YES I knew him, but not close. We interacted on several occasions and while we did not have a friendship, (more professional acquaintances), he was a GIANT of a man without a doubt.”


Steve Belmonte, CHA   CEO Vimana Franchise Systems, LLC Windermere, FL                      (407) 654-5540 Steve@VimanaFS.com www.VimanaFS.com    

As a former chairman of the Educational Institute and a long-time involved member of the AH&LA, I knew Tony Marshall very well. He had a genuine passion for what he did and had a grounded belief in the power of education. 

Tony and I would often discuss an issue which remains prevalent today. We, in the hospitality industry, do not get our fair share of the bright young people out there; they are simply going to other industries. So many young people look at the hospitality industry as a dead-end job.

I would like to propose this. A formal college education may not be in the stars for everyone for various reasons, however, the hotel and restaurant industries are the last of the giant industries in which a formal education is not a prerequisite for success. A man or woman can achieve enormous success through hard work and perseverance.

What we need to do more as an industry is to tell our story to the young people. The owners, general managers and hospitality executives need to let the young people know they were not born with a silver spoon in their mouth. A substantial number of successful hospitality people today started at the very bottom and worked their way up.

Many, many general managers crossed over from management into ownership at some point. That is an incredible and motivating story to tell. If you need an example, look no further than myself. I did not graduate from college. I started on Mannheim Road in Chicago at the age of 16 as a desk clerk for $2.20 an hour. I moved up to assistant manager, eventually director of food & beverage, then as the youngest general manager in the history of Holiday Inn when I become the general manager of the Holiday Inn O’Hare Airport. Through hard work, creative marketing and building solid relationships with my employees, I continued to grow and eventually became president and CEO of one of the top ten management companies in the nation and then president and CEO of the Ramada brand and now currently CEO and owner of Vimana Franchise Systems which owns the Centerstone Hotel brand, the Key West Inn brand, and the Independent Collection by Vimana.

Love for the industry, passion, hard work, will take you to places you could not imagine. The hotel and restaurant industry is alive and well. We just need more leaders to get out and tell their story.


    This hospitality law book is one of the most used in hotel schools in the US. It is co-authored by UMASS professor Norman Cournoyer (my undergraduate advisor), Anthony Marshall and Karen Morris who has the final story about Tony.

Karen Morris Professor of Law at Monroe Community College Judge, Brighton Town Court https://www.linkedin.com/in/karen-morris-7281041b    

Tony Marshall was one-of-a kind. A consummate story teller and presenter, his style was nothing short of flamboyant, mesmerizing, great fun, and very effective. Audience members did not soon forget his message. Here’s one of my favorite examples. 

Tony was everyone’s favorite speaker at annual conferences of the Council on Hotel Restaurant and Institutional Education (CHRIE), a national gathering of Hospitality Professors to explore new developments in the field. One year the title of Tony’s presentation was reported in the conference program as, “Don’t Mow Your Lawn on Friday Afternoon.” Attendees scratched their heads – what could he possibly be planning to discuss?? After much buzz, the date and time for the speech arrived. With curiosity peaked, the audience was in his palm before he even began. 

Turns out, the topic was exactly what the title described. He was concerned that professors have a bad reputation because their job is viewed by many as cushy with sweetheart hours. He knew the reputation was not accurate. While the hours are indeed long for the research portion of the job, they are somewhat flexible which can be misleading. Tony, as a true admirer of both the hospitality field and hospitality education, sought to avoid any taint to either. The speech discouraged any action that would smirch either profession, including conduct by practitioners that suggests an abundance of leisure time that makes on-looking neighbors envious. Save those household chores for weekends and evenings.

I have long admired Tony’s commitment to advancing the field of hospitality evidenced so exquisitely in that speech. Love you Tony!  


 

Marshall’s professional contributions to the industry continue to be noted with an annual award given at the Hospitality Law Conference held each year in Houston, this year April 24-26, 2017. http://hospitalitylawyer.com/conference-awards/

The Anthony G. Marshall Hospitality Law Award is given in recognition of pioneering and lasting contributions to the field of hospitality law. HospitalityLawyer.com Founder, Stephen Barth, says, “We honor Anthony Marshall for his pioneering and continued contributions to the field of hospitality law. He was the first to define reasonable care in a way that the average hotel manager, who is not a lawyer, could understand.”


Closing thought:

Tony proved he could communicate to hoteliers effectively through his writings and workshops, but he wanted to prove to the industry and academia that professors could actually run profitable hospitality businesses.

It was for this reason, Tony shared with me one time, that he actively sought the Presidency and leadership role of the AH&LA Educational Institute.   During his time there from the 1990s through 2005, his leadership significantly reduced EI’s debt, increased the revenue stream and created new and updated products by actively working with industry both domestically and internationally.

The number of people who specifically remember him diminishes with time, yet Marshall left a legacy that continues to positively impact us.  His active mentoring and supporting others, whether they were students, business team mates, brand executives or personal friends, made a difference.

I recall one of his favorite sayings was “You’re a good man (woman), and he’d use your name!”

Thank you for your lessons and wisdom, Tony, and you were a very good man!


All rights reserved by John Hogan and this column may be included in an upcoming book on hotel management. This article may not be reproduced without the expressed permission of the author.

The opinions expressed in this article are those of the author and do not necessarily reflect the views of this publication.

Tags: tony marshallanthony marshallanthony marshall award

About John J. Hogan

John J. Hogan   John J. Hogan, CHA CMHS CHE CHO[2] is a successful hospitality executive, educator, author and consultant and is a frequent keynote speaker and seminar leader at many hospitality industry events. He is Co-Founder and Chief Learning Officer of HospitalityEducators.com, which was founded in 2010 as a solutions center for hotel owners and managers. He is also the Principal of HoganHospitality.com, which offers hotel expert witness services and hospitality consulting.

He is currently working with his partner Kathleen Hogan and others on several new projects including the HOTELIERMASTERMIND series, an eBook series with Howard Feiertag on hotel sales, two new web sites and a fresh set of Keynote and Workshop programs, hospitality services and columns.


[2] Certified Hotel Administrator (CHA), Certified Master Hotel Supplier (CMHS), Certified Hospitality Educator (CHE), Certified Hotel Owner (CHO)

Contact: John Hogan John@HoganHospitality.com / 602-799-5375

Do you know what is very likely your biggest problem area in your hotel?

Do you know how to deal with your biggest point of pain?

Working with a select group of hospitality professionals this past year, we found out the answers to both questions. The Hotelier Mastermind formed in early 2016 to identify and resolve problem areas facing hoteliers today. At it’s core, the Hotelier Mastermind includes John Hogan, Kathleen Hogan, Tim Danyo and Jon Albano.

John and Kathleen are the Co-Founders of HospitalityEducators.com, a hotel consulting resource for hospitality professionals focused on making hotels more profitable. Kathleen is the CEO and John is the Chief Learning Officer. Among other things, Hospitality Educators is the creator and facilitator of the AAHOA Leadership Gold CHO Program. John is a expert witness and industry resource.

Tim is a film maker, an educator, and an entrepreneur, and he’s the Founder and CEO of the video production company ImaginationMedia.tv.

Jon Albano is the Founder and CEO of the LodgingMetrics dashboard for hotels, and host of the the Lodging Leaders podcast. For more than 13 years, Jon defined Membership Services for AAHOA, with more than 15,000 members owning more than 20,000 hotels that total $128 billion in property value. As Vice President of Membership, he oversaw Membership, Education, Public Relations & Communications, and Information Technology departments.

At the beginning of this year, the four of us partnered together to form the Hotelier Mastermind – a carefully selected “think tank” of leading hospitality professionals – to help us identify the biggest challenges hoteliers face today, and utilize the collective intelligence of the group to solve them.

We Talk About …

  • The mastermind process, what a mastermind group is, and the criteria we used to carefully select the right participants to help us.
  • The problem we uncovered of finding and keeping quality hotel associates, how we went about validating it, and what we learned about the cause.
  • How to source top talent
  • How to winnow the list of candidates
  • How to effectively interview
  • How to on-board and orient your new hires
  • How to keep the A Players for the long haul

If you’ve listened to previous Lodging Leaders podcasts, then you know they constantly offer practical, actionable advice to listeners, and The Hotelier Mastermind agreed to share a lot of what was learned for FREE.

Over the next couple of weeks, The Hotelier Mastermind will be sharing a FREE 3-VIDEO TRAINING COURSE, including downloads, and details for upcoming webinars.

We’re going to start sending out the content this coming Monday, October 31, and it won’t be available anyplace else, so go ahead and sign up now…..you won’t be disappointed.

Lessons in Leadership

Lessons in Leadership – By  John J.  Hogan CHA CHMS CHE  CHO

This title is not specifically referring to one company, one brand or one country in the title.

For the past five to seven years, even in a tight economy,  leading developers have been targeting previously under-served countries and the pace has hastened this past 24-36 months. (See this link for specifics)

For this lessons in leadership, I looked to the East for a different perspective and different industry.  While hospitality is not the same as manufacturing, there are parallels in certain people skills.

A former senior managing director of Toyota Motor Corporation and renowned leader of their famous manufacturing system, Masao Nemoto is known throughout the world as a leader in quality control and process optimization. In a sense, he is one of the principal architects of the “Toyota Way.”    His ideas on leadership and quality management are documented, and reveal the profound knowledge Nemoto infused into the day-to-day operations at Toyota, much the same as certain hoteliers such as Statler, Hilton, Wilson,  Johnson, Marriott, Oberoi, Sharp, Carlson, Kerzner, Forte, Ritz and others did in hotels.

Nemoto insisted on a culture of shared responsibility and he believed that critical tasks could not be left to a single business unit, but rather should be a collective responsibility. Nemoto’s point of view says that leaders must lead across the company, not just their own particular area

His beliefs went from the senior leaders all the down to the individual worker on the assembly line, where everyone speaks, insisted Nemoto, not just management. A direct result of this view is the work principle: problems must be solved at the lowest possible level. All employees take responsibility for problem solving, instead of pushing the problems or issues up the line where it likely gets choked in bureaucracy.

In my career, I have worked with and in all sizes of organizations.   I have sat in countless meetings that seem to be stalled with some regularity and have found myself wondering the same things you might be thinking today:  “Are we competing against each other or against the competition?”

Nemoto’s 10 leadership principles:

  1. Improvement after improvement. Managers should look continually for ways to improve the work of their employees. Advance is a gradual, incremental process. They should create all atmosphere conducive to improvements by others.
  2. Coordinate between divisions.Managers of individual divisions, departments, or subsidiaries must share responsibility.  A corollary of this is that upper management should not assign important tasks to only one division.
  3. Everyone speaks.This rule guides supervisors of quality circles at Toyota, ensuring participation and learning by all members. It has also been generalized to all meetings and the annual planning process. By hearing everyone’s view, upper management can create realistic plans that have the support of those who must implement them–an essential element in quality programs.
  4. Do not scold.This was an alien concept to most managers. At Toyota the policy is for superiors to avoid giving criticism and threatening punitive measures when mistakes are made. This is the only way to ensure that mistakes will be reported immediately and fully so that the root causes (in policies and processes) can be identified and amended. Assigning blame to the reporter clearly discourages reporting of mistakes and makes it harder to find the underlying cause of a mistake, but it is difficult to train managers to take this approach.
  5. Make sure others understand your work.An emphasis on teaching and presentation skills is important because of the need for collaboration. At Toyota, managers are expected to develop their presentation skills and to teach associates about their work so that collaborations will be fuller and more effective.
  6. Send the best employees out for rotation. Toyota has a rotation policy to
    train employees. There is a strong tendency for managers to keep their best employees from rotation, but the company benefits most in the long run by training its best employees.
  7. A command without a deadline is not a command. This rule is used to
    ensure that managers always give a deadline or schedule for work. Employees are instructed to ignore requests that are not accompanied by a deadline. The rationale is that without a deadline, tasks are far less likely to be completed.
  8. Rehearsal is an ideal occasion for training.Managers and supervisors give numerous presentations and reports. In a QC program there are frequent progress reports. Nemoto encouraged managers to focus on the rehearsal of reports and presentations, and to require that they be rehearsed. Rehearsal time is used to teach presentation skills and to explore problems or lack of understanding of the topic. Because it is informal, rehearsal time is better for learning.
  9. Inspection is a failure unless top management takes action.The idea
    behind this is that management must prescribe specific remedies whenever a problem is observed or reported. Delegating this task (with comments like “shape up” or “do your best to solve this problem”) is ineffective. So is failing to take any action once a problem is defined.
  10. Ask subordinates, “What can I do for you?”At Toyota this is called “creating an opportunity to be heard at the top.” In the first year of a quality-control program, managers hold meetings in which employees brief them about progress. Three rules guide these informal meetings:
  • Do not postpone the meetings or subordinates will think their project is not taken seriously.
  • Listen to the process, not just the results, since QCs focus in on the process.
  • Ask the presenters whether you can do anything for them. If they ask for help, be sure to act on the request.

If top management is perceived as willing to help with problems, employees are more optimistic about tackling the problems and will take management’s goals more seriously.

KEYS TO SUCCESS is the umbrella title for our programs, hospitality services and columns. This year’s writings focus o- a variety of topics for hotel owners, managers and professionals including both my “HOW TO” articles, HOSPITALITY CONVERSATIONS™, Lessons from the Field™, Hotel Common- Sense™ and Principles for Success

Hospitality Tip of the Week™

Focus on Continuous Improvement”

“Improvement after improvement, that has been my guiding principle in my more than three decades of service with Toyota Motors and its affiliates.”                    
Masao Nemoto, Former Managing Director, Toyota Motor Corporation

HE logoSuccess does not come by accident or chance.

Contact us for assistance.

John J. Hogan CHA CHE CHO and Kathleen Hogan  MBA CHO are the  co-founders of  HospitalityEducators.com, which was created in 2010 to be a resource for hotel owners and professionals as they sought to improve market share, occupancy, operational efficiency and profitability.

AAEAAQAAAAAAAAL2AAAAJDA0N2IzNDgzLTZkMWEtNGIwZC1hNGZlLWY5ZDgwZDAyNjdhMw  AAEAAQAAAAAAAAInAAAAJDMwNmJlN2UxLTQyYzktNDdjNC05MmRkLTc0ZjQ1ODU0NDRmZA The husband and wife team are transitioning the original membership site concept and evolving the business model today to a focused resource offering consulting, training, and individualized support to both hospitality and other service businesses.   Services include keynote addresses workshops, online support, metrics measurement, marketing and customer service from a group of more than a dozen experienced professionals.   While continuing to serve hospitality, the demand for these types of services is growing and can be personalized.

John Hogan is also the principal of HoganHospitality.com, which provides a range of expert professional services for hotel owners, including professional development for organizations, training, consulting and expert witness services.

Contact information:  Kathleen Hogan  480-436-0283,

John Hogan 602-799-5375 or service@hospitalityeducators.com

 Click    here   for Keynotes and Workshops Available