In a recent interview with BizTV, Monty Bennett, Chairman and CEO of the Ashford Group of Companies, demonstrated the bold vision and strategic leadership that define his approach to real estate and hospitality.
As the overseer of Ashford Inc. (AINC), Ashford Hospitality Trust (AHT), and Braemar Hotels & Resorts (BHR), Bennett offered insights into the hotel market, his companies, and his leadership philosophy.
When asked to describe the scope of each business, Bennett explained:
“Braemar Hotels & Resorts — they’re really, really high-end hotels in that REIT [Real Estate Investment Trust].
AHT — that’s all other kinds of hotels, from mid-scale to upper-scale, even some luxury — just a much bigger basket of hotels.”
He continued:
“Ashford Inc. — that’s an operating company. It manages the REITs and has a number of operating businesses related to the hotel industry, such as a water sports business, an audiovisual company, and a property management company.”
His ability to manage such a diverse portfolio underscores his operational strength.
Monty Bennett sees opportunity in the hotel industry’s slow recovery from COVID-19. He noted:
“Right now, if you’re out there buying hotels, generally you’re going to do well. No matter what you focus on — whether it’s a cost containment play, a revenue enhancement play, or sometimes you change the brand, sometimes you change the management — there’s all different kinds of things you can do.
We try to do all of them, or as many as we can, but at this point in the cycle, no matter what you do, you’re going to do well.”
He attributes much of the upside to limited new supply:
“There’s no new construction going on, essentially, in the hotel industry. And whenever these dynamics happen — where there’s no new construction for a period of years — demand catches up to supply, surpasses supply, and you have a period of great economic returns.”
When asked about the full recovery timeline, Bennett offered a candid outlook:
“My guess would be two or three more years until we get to the same economic level that we were in 2019 — which means there’s some good buys out there right now.”
While high expenses and interest rates remain hurdles, Bennett sees a clear path forward.
His commitment to shareholders has also meant personal sacrifice. Discussing compensation cuts made during lean times, Bennett said:
“It’s something that we had to do. We felt like if we’re going to start cutting back, then everybody needs to cut back — including myself, including our board members. And that’s what we all did. Board members cut their compensation back by half. I think over in our trust platform, my compensation there fell by maybe two-thirds or more. And we’re asking our people to tighten their belt, so we need to do the same.”
The Ashford Group’s strength lies in its integrated approach, allowing efficiency and cost control across platforms. As Bennett explained:
“If you look at owning those hotels, we try to be vertically integrated. We’ll do the asset management of those hotels, we’ll do the property management through Remington, and then we have these other operating platforms — such as audiovisual, which is another company that comes in and services our hotels and third-party hotels; Red Water Sports, that comes in and services our hotels and other hotels for those that are on the water and need water sports-type rentals and the like for customers. So we try to do as much vertical integration as we can.”
Bennett’s approach combines agility, integration, and accountability — key elements in steering the Ashford Group through a challenging but opportunity-filled recovery period.