Interstate Hotels & Resorts’ chief development officer for North America shares insights into the company’s plans to grow domestically and internationally.
PHOENIX—Interstate Hotels & Resorts manages 500 properties around the world, but for a company with an internal rallying cry of “global domination,” there’s always room to grow.
Greg O’Stean, chief development officer for North America at Interstate, sat down with HNN at the 2018 Lodging Conference to talk about his company’s plans for growth. About 80% of its portfolio is in North America, primarily in the United States, he said, but it is growing its presence in the United Kingdom and Russia.
Most of its growth comes from adding individual assets and portfolios as well as the acquisition of management contracts, O’Stean said. Acquiring management contracts has helped it grow in large chunks but his company is also focusing on organic growth.
“Global domination” is the company’s internal rallying cry to remind everyone not to limit themselves on where Interstate can go, he said. The company has moved into some markets and later pulled back after growth didn’t pan out as desired, but it does have its sights set on growing organically in the U.S., Canada, Latin America, the Caribbean, the U.K. and Russia.
“We have enough base established in those markets that we can build on and grow organically,” he said.
Interstate is known as being a full-service, big-box hotel operator, O’Stean said, but it wants to move further into the upper-upscale space. It’s an exciting space, he said, and the economy is still going strong and the market is strong. The company has some upper-upscale hotels in the pipeline, he said, but he couldn’t say more because they are close to signing the deals.
Success breeds success, O’Stean said, and once an operator has a few specific brands or types of hotels up and running, it can show other owners the operator can take on these kinds of properties and prosper, which might lead to them giving the operator a chance with their hotels.
To learn more about Interstate’s growth strategies, watch the video below.