Experts Corner with Michele Mahl
Just when you thought you started to know Alicia, the AJC Design blog is getting creative once again. Instead of an interior designer’s view on the hospitality industry, for the next few months we’ll be featuring experts from all aspects of the industry to give you some new exclusive perspectives. This month, AJC Design talked to Michele Mahl, Hospitality Real Estate Expert.
AJC: The hospitality industry got hit hard during the pandemic. What has the rebound been like? Were there any silver linings that came from this difficult time?
MM: I would say a few silver linings. Destination and drive-to resorts, such as Miami, Florida, did really well. There has definitely a heightened sense of getting out of the house again and going anywhere. People have been happy to get back on the road again.
AJC: Do you think the travel spree is going to continue, given inflation?
MM: Everyone expected a wave of distress since the pandemic but there is so much capital on the sidelines that it’s been booming. What has shocked me has been pricing; people were paying above and beyond but I have been wondering if that income was sustainable. I know the underwriters that I work with have been surprised about how long the spending spree has gone on. Now, there are still a lot of pockets of disposable income. Especially with the billionaires, who aren’t about to change their travel spending habits because of inflation.
AJC: What are the key qualities any hotel broker needs to have?
MM: I would say it would be to know the investor universe, in terms of who’s who. It’s very much a relationship-driven industry, so brokers need to be adept at connecting the dots, and knowing not only who wants to sell but what profile fits with their style of investment property.
AJC: What is the most exciting part of your job or your most exciting deal?
MM: I’d say that it the most exciting deal was the DoubleTree Metropolitan deal in NYC. I loved it because I really enjoyed the client, I was local and didn’t have to travel. It was also great because I was able to exit a closed asset and sell to a converter.
AJC: What has been the most challenging part of your job and how do you handle it?
MM: The biggest challenge today is economic – finding the debt. You can’t sell without debt and interest rates are higher than they have ever been. The other challenge is connecting the dots to find the right buyer and seller at the right time. You always need to know the investor’s needs and especially their timeline.
AJC: Do you have any 2023 projections for the hospitality industry? What trends are you seeing?
MM: 2022 was a soft year with not much activity. People expect to see the same in the first half of 2023 but things will pick up in the second half. When it picks up, people are so optimistic that they are ready to jump on it. Also, I think urban markets may start to see a comeback.
AJC: To top off this interview, we’re going to do a rapid fire of quick questions. We want the insider’s view on the best hotel you’ve ever stayed at? Favorite restaurant in NYC? Best rooftop? Go-to weekend getaway?
MM: So for Best Hotel, I’d go with The Mark Hotel in the Upper East Side and for restaurant, the Jean Georges, which is part of hotel. Other restaurants I frequent in the city include Tea Bar and Bambu. For an outdoor wine spot, I like Wolfer Estates. My go-to weekend getaway is definitely the Hamptons in the summer. I would highly recommend the Topping Rose for an exquisite dining experience.