The president and CEO of Pinnacle Hotels USA, Dr. Bharat Lall owns hotels as an affiliate of the Marriott, Hilton, Starwood, and La Quinta corporations. Bharat Lall, MD, currently manages nine hotels and 554 employees.
According to the American Hotel and Lodging Association (AHLA), the hotel industry offers a high number of above-minimum-wage jobs and career advancement opportunities. The organization recently partnered with WageWatch to conduct a survey covering 23 percent of the more than 50,000 hotels in the United States. Based on the responses from leading hotel management corporations and independent companies, almost 40 percent of hotels pay their entire workforce rates that are above minimum wage. The survey also found that around 85 percent of the respondents offer medical insurance to non-exempt employees. In addition to high wages and benefits, it was found that all of the respondents’ minimum-wage employees are eligible for promotion within two years.
AHLA and WageWatch cite the results of the survey in support of arguments against sweeping wage increase initiatives that they say could result in a slowed job market.
An entrepreneur and investor in hotels, Bharat Lall, MD, serves as president and CEO of Pinnacle Hotels. Under Dr. Bharat Lall’s leadership, Pinnacle Hotels has secured affiliation with all major U.S. hotel chains and has built a portfolio of nine hotels with a combined 1,500 rooms.
Hotels and motels can lead to a significant return on capital for savvy investors. The first step for investors is to identify their target niche and select investment property based on this decision. For example, investors may be looking to gain a market share in upscale hotels, which historically have been more resistant to economic changes because of the relative stability of the business travel market. Other investors may be looking to cater to the extended-stay customer, whose purchasing activity is tied to commerce in the area.
Regardless of niche, hotel investors must carefully analyze economic predictions, such as the hotel’s revenue per available room (RevPAR). Calculated by multiplying average guest rate by occupancy rate, or by dividing total revenue by room count and occupancy days, this data set predicts the property’s income. Investors should also look at risk and return potential, which depend largely on the property’s location and its potential market. Finally, an analysis of current trends in the hotel industry gives investors a general sense of potential investment performance.
Since purchasing his first motel in 1990, Bharat Lall, MD, has been buying and managing hospitality properties for over two decades. Currently serving as the CEO and president of Pinnacle Hotels USA, a San Diego, California-based organization which he founded in 1998, Dr. Bharat Lall regularly stays up-to-date on different trends and changes within the hospitality and travel industries.
Like most other industries, the hospitality and travel trades regularly see changes and fluctuations, and already experts within the field are predicting traveling trends for 2015. Most are foreseeing a greater demand for cost-effective travel and the increased use of mobile devices. According to the president of Hotwire, Henrik Kjellberg, travelers are turning to their mobile devices more often for their bookings and travel plans. Because the use of social and digital travel planning is expected to grow into 2015, mobile users will likely be drawn to those travel vendors who offer discounts for booking through a mobile device.
Experts also predict that an increased number of travelers will be looking to save money in 2015; due to this, advance bookings may rise since many companies within the hospitality industry reward the practice with various discounts and sales. Additionally, travelers may choose travel packages more often and seek out discounts that are being offered for booking through specific means.
Bharat Lall, MD, has distinguished himself in the hotel industry as owner of Pinnacle Hotels. Dr. Bharat Lall founded the company in 1998 and has since managed successful properties in both California and Texas.
Both STR Global and Tourism Economics, recognized authorities in trend aalysis, expect hotel occupancy to increase by 0.6 percent in 2015. The same experts also suggest that average daily rate (ADR) will increase by more than 4 percent, while revenue per available room (RevPAR) is expected to increase by nearly 5 percent to more than US$76.
STR Global also expects group rates to increase over 2015 and into 2016, based on negotiations currently in process. Experts attribute these increases largely to an expected 2.6 percent increase in demand compared to a 1.2 percent growth in supply. When analyzed in combination with internal records of a hotel’s past and present performance, these trends can help owners and investors make decisions about staffing and future rate increases or decreases.
Bharat Lall, MD, earned his medical degree from the University of Glasgow in Scotland in 1979. After immigrating to the United States, he found an interest outside of medicine. In 1997, he became co-owner of Pinnacle Hotels, located in San Diego, California. Bharat Lall, MD, stays active in his community and belongs to several organizations, one of which is the San Diego Indian American Society.
Founded in 1984, the San Diego Indian American Society undertakes projects that help individuals who live in the United States and India and recognizes service done by people in any field in India and the United States.
In July 2014, the organization held the 31st annual Mahatma Gandhi Memorial lecture and awards ceremony. It honored 23 high school graduates that represented 19 local high schools. The San Diego Indian American Society gave $45,000 in scholarships to these individuals. Each high school nominated these students, and the students in turn wrote essays on Gandhi. Since the organization began the awards ceremony, more than 570 students have received recognition.
The president and CEO of Pinnacle Hotels USA (Pinnacle), Bharat Lall has more than 20 years of experience in the hospitality industry. With properties in California, Ohio, and Texas, Dr. Bharat Lall’s company found success purchasing failing hotels with improvement potential. Today, Bharat Lall, MD, has positioned Pinnacle as the head of full service and high-end select establishments. A major component of Bharat Lall’s success in the industry is his experience in hotel investment.
Hotel investment can be a beneficial and profitable endeavor, but there are several things to keep in mind that set it apart from other types of real estate investment. Before investing in a hotel, consider its location and competition. Strategic locations near shopping malls, airports, or other high-traffic areas can be beneficial unless the competition offers the same or better amenities for a comparable price. Potential investors should also determine how much they are willing to spend on upgrading or adding amenities, especially if a location lacks now-expected features like high-speed Internet and cable television. Because hotel investment is designed to provide regular returns for a number of years, potential investors should also perform extensive diligence before committing funds. From financial diligence to ensure performance metrics and audited balance sheets to digital diligence to confirm relevant web addresses are current, taking time to research every aspect of the investment will reduce the chance of discovering something negative after investing.
With more than 20 years in the hospitality industry, Bharat Lall serves as the president and CEO of Pinnacle Hotels USA (Pinnacle). Starting out, Bharat Lall, MD, and his company invested in failing hotels that could be improved; today, Pinnacle has full service and high-end select establishments across three states. Focused on, among other things, customer service, Dr. Bharat Lall’s company owns and manages nine hotels comprised of 1,500 rooms and 554 employees. Bharat Lall keeps his company competitive by studying and anticipating industry trends.
– Global visitors. An increase in visitors from international markets will help fuel both profit and growth, as international travelers usually stay longer than domestic travelers. An increase in international travelers will also necessitate additional training for hospitality staff to ensure the best experience possible.
– Digital emphasis. An increasingly connected digital world means traditional marketing will fall behind new types of marketing. Whether that means revamping or creating a direct booking website, emphasizing content and social marketing over traditional paid media like newspaper and magazine advertisements, or engaging social media platforms, the industry has many avenues for growth.
– Review websites. Although review websites are nothing new, consumers are relying on them more when choosing a hotel for their trips. Addressing issues as they arise is an important component for the industry’s long-term health.