Latest / The Modern Hotelier / #309: Think Global, Act Local: Insights from an International Hotelier | with Gonzalo Aguilar
Transcript
- The Modern Hotelier #309: Think Global, Act Local: Insights from an International Hotelier | with Gonzalo Aguilar === David Millili: Welcome to The Modern Hotelier, the most engaged podcast in hospitality. Don't forget to follow, like, subscribe, and let us know in the comments what you think about today's episode. Steve, who do we have on the program today? Steve Carran: Yeah, David, excited for this conversation. We have on Gonzalo Aguilar, the Chief Executive Officer of Europe & Americas from Minor Hotels. Thank you for joining us, Gonzalo. How are we doing today? Gonzalo Aguilar: Great. Thank you. Thank you for the opportunity. David Millili: All right, so we're gonna get started. We're gonna dive into a lightning round. We're gonna get to know your background better, your career, and then jump into some industry thought leadership. How's that sound Gonzalo Aguilar: Perfect David Millili: All right. So when you were young, what did you want to be when you grew up Gonzalo Aguilar: Realistically, I wanted to be a race car driver. David Millili: Okay. All right. What's something that you wish you were better at? Gonzalo Aguilar: Slowing down a bit. David Millili: That's a race car, fast, speed up, slow down, got it. What's a luxury you can't live without? Gonzalo Aguilar: I'd say great bedding, a great pillow. David Millili: That's good. So if you could take a person, dead or alive, to lunch, who would that person be? Gonzalo Aguilar: I think, continuing on from that race car theme, Ayrton Senna probably. David Millili: Okay, great. So if you could have a superpower, what superpower would you like to have? Gonzalo Aguilar: Unlimited energy David Millili: All right. And tell us something that's on your bucket list. Gonzalo Aguilar: I'd love to cycle a stage of the Tour de France David Millili: Sounds cool. Steve Carran: Very cool. So now we're gonna go through your background a little bit, a little about what makes you tick. So you grew up all around the world. You grew up in Saudi Arabia, Jordan, Brazil, Spain, and the US. How did growing up in all those different places really shape you into who you are today? Gonzalo Aguilar: Yeah, you know, my father was a hotelier. The reality is that I was born in the US, left the US when I was seven years old, grew up, as you said, in the Middle East, a little bit all over throughout Europe and the Middle East. I think it really drove my love and my passion for discovering new cultures and really became a citizen of the world. It's probably one of the most difficult questions I have to answer is, "Where are you from?" 'Cause I don't feel that way. I've been a little bit... And as an adult, my wife and I have followed in that same step David Millili: That's great. So you've got degrees from Cornell, Harvard, London School of Economics, political science, The Wharton School. What makes you continue your education and focus on real estate and business? Gonzalo Aguilar: Yeah. So the reality is, when I graduated high school in Jordan, I went back to the US thinking... At that point, I always wanted to be a hotelier, and my father was in the business. At that time, all of the executives in the business had grown up through the sales and marketing discipline in most of the big brands So I went back to the States to study marketing, but ended up choosing not to go into the hotel business on the education side of it, but really learn some different skills. I ended up getting an offer actually to do some work in Europe and left school early, ended up with a finance degree later in my career. The reality is I was looking, when I thought about my degree, at how I could enhance my background. I grew up in hotels. I felt that the hospitality business—I probably had the best education living in hotels since I was seven years old, growing up next to a general manager for almost 30 years. So I really was looking to offset that and actually bring new skill sets to my background. That's how I ended up pursuing those degrees. And then obviously, with doing different courses at Harvard or Cornell, I truly believe in being that lifelong learner and continuing to grow those skill sets and evolve as a leader, as a businessman, and just ask, "What else can I learn? Steve Carran: That's great. That's great. And you mentioned your dad a couple times on this. He was a lifelong Marriott hotelier. He started at the Beverly Hills Hilton as a busboy and built a global Marriott career. He obviously passed down his love of racing to you. He also liked flying, adventure, and travel, and would tell your family, "If we focus on the quality and service, the numbers will come on their own." Aside from the love of racing, what else did he pass down and really inspire you with? Gonzalo Aguilar: Oh, I think when he passed away, he had visited almost 137 countries. Since he was very young, that adventure spirit that he has, we grew up with that, and we've kind of taken that on in different ways, my brother and I over the years. But also, I think it was that love of hospitality. He worked at some time at corporate. Didn't necessarily fit what he wanted to do. He loved being in the hotels and creating those experiences and, you know, I think getting up every day and being excited about what's he gonna break today to rebuild it, and how can we do it better? And, you know, play today in food and beverage and then a little bit on the room side and a little bit... You know, that was his passion. He loved just being creative and working with the associates and the guests. And really, you know, as we moved throughout the world, one of the other things is he always embedded himself in the community. He always became part of that local community and many times, whether it was in Amman, Jordan, or in Saudi Arabia, and he opened the Warsaw Marriott back in the day. He really took that to heart and became very much a local in spirit. And he always taught us that we had to be part of that local community, and that's something that we continue to believe today. Steve Carran: That's great. And I have to ask, it's World Cup season. I understand you're following pretty closely, and I believe you're a fan of Spain. Give me your prediction, who's winning the World Cup this year? Gonzalo Aguilar: Yeah. So let me correct you. I would say from a team perspective, I'll support Spain, but the reality is my heart's with Uruguay, and unfortunately today we have Spain against Uruguay, so I'm a little bit torn. But yeah, I go back to my roots when it comes to football, and Celeste is my team. So the Uruguay team is my team. Unfortunately, I would not predict that they're gonna win, but it's been an interesting tournament so far. I think that's gonna be a very difficult prediction to make. I'm not ready to do that today. Steve Carran: All right. I just wanted to put you on the record and put you on the spot here. So, it's been a fun tournament so far, especially rooting for the US on our side. I— Gonzalo Aguilar: Yeah, absolutely. They've done well. Steve Carran: We'll see what happens. Gonzalo Aguilar: That's my wife's team for sure, so she's all over that. Steve Carran: Yes, exciting. Headed into the knockout round, so we'll see how it goes. So now we're gonna dive into your career, really how you got to where you are today. So your career started as a restaurant manager, actually in the Denver Marriott Tech Center in Colorado, an area I'm very familiar with, and you worked your way up all the way to GM in Miami. What did those early days working up to that GM role teach you that you still take with you today? Gonzalo Aguilar: Again, as you mentioned, I started on the hotel side of it. Not all the executives today in the hospitality industry actually came up through that side of the business, right? And yeah, I would tell you that what I carry still today is that passion. I love being in the hotels. I love visiting hotels. I love talking with our team members. I think understanding how they're operating in the hotel and where we can support them, that's my passion. That's how I grew up. It's shifting back from being a brand or a platform, a hospitality platform, to really that hotelier spirit of taking care of the teams, the guests, and curating those experiences for our guests that my entire career has trained in me. And I still carry that very close to my heart. Steve Carran: That's great. David Millili: Yeah, so from there, from Miami, you're GM in Costa Rica, Virgin Islands, Brazil. What did you learn from those global experiences that, you know, help you today as a CEO? Gonzalo Aguilar: Yeah, I think having a global view, especially coming from the background I did that was very much standardized, especially back in the day when it was one or two brands that you were dealing with. We were very standardized. You know, it's not always easy to think global and act local. And I think that's one of the things that I learned very much in my career, that the way you do things in the US is not the way you're gonna necessarily do them in Costa Rica or in Ecuador or in Brazil. And adapting is an absolute necessity. But at the core of it, it's really around how you build that culture and incorporate that culture, understanding the local culture as well. So I think that's what those types of experiences really brought to the surface for me and gave me that ability to transition quickly. Never say, "Well, this is just how we do it." Well, it's not always gonna work that way, so we definitely had to evolve and think out of the box at times and really learn from the local expertise as well. Steve Carran: Well said. Well said. So from there you went to the corporate side where you worked at Marriott Corporate for almost 14 years, and you worked your way up to the Chief Operating Officer over Europe. And a year and a half ago you came to Minor Hotels. What made you come to Minor Hotels? Gonzalo Aguilar: Yeah, I thought after 30-plus years with Marriott, I loved the company. It did a lot for myself and my family. But it was time to continue to learn and grow, and this opportunity arose. I was inspired by the vision that Minor had for where to take the business. And I thought it would be great and interesting to be part of that and see how I can contribute. And, you know, I think my background with where our strategy is, my background was a bit of a natural fit. You know, my first real corporate job was actually when we did the integration of AC Hotels in Spain, so I understood the Spanish market and the Spanish culture and how the operating platforms worked in Spain. But my asset-light background working with Marriott gave me a different view of historically where Minor had operated, especially here in Europe and the Americas, which was very much an asset-heavy model. So I think it was the right fit and a great opportunity for me. David Millili: And for those who aren't familiar, can you tell us more about Minor Hotels? Gonzalo Aguilar: So Minor Hotels was founded in Thailand and is part of Minor International, which is a much broader business with a whole Minor Foods component, as well as Minor's Lifestyle and several other aspects of our business. But Minor Hotels was initially probably a franchisee in the initial days, and then our founder, Bill Heinicke, launched Anantara, which was the founding brand for Minor Hotels, and really grew that brand throughout Asia in the luxury space. Minor has grown over the years, acquiring other platforms. In 2013, I believe, Minor acquired Tivoli Hotels in Portugal, which gave them their first footprint in Europe, and then acquired NH Hotels in Spain in 2018. So it's been a coming together of several different brands, as well as some joint ventures throughout Africa with Elewana and our tented camps, as well as the Wolseley Hospitality Group in the UK, which they acquired as well. So they've grown over the years, and the reality is in 2025, we first unified all of these different brands under Minor Hotels and created actually minorhotels.com to bring that platform all together for all of our customers from around the world. Steve Carran: That's great. It's a great story. So now we're gonna dive into the industry thoughts, kind of the thought leadership section of the podcast. So one thing that's been interesting to see over the evolution of Minor Hotels is its growth model. You're moving from a more asset-heavy position towards a more asset-light strategy. How would you describe this evolution and what does it mean for owners and investors? Gonzalo Aguilar: It's been a journey. And again, in different parts of the world, we operate more on the asset-light model. NH Hotels historically was an asset-heavy owner-lease, 80-plus percent of our portfolio. So together we have a heavy asset footprint. Our strategy was really to figure out how do we balance that a bit. In different parts of the world, growth through buying an asset or leasing an asset doesn't make a lot of sense from a corporate perspective and from a business perspective. So we started to really look at how do we balance that and how do we really drive growth at a faster pace without having to always leverage our balance sheet. So we have shifted to an asset-light strategy. We'll still look at assets. We'll still look at potential strategic leases in certain markets. But we do believe that we have a great value proposition with our brands and our platform to really push into that asset-light model. And I think when you think about what it offers to the owners, we still carry that owner mentality, that owner mindset, with us. We know we don't create brands and brand standards that don't make business sense and are impossible to maintain. We truly try to put ourselves in the owner's shoes before we're asking for any types of investments. So I think that is one of the attributes that we have that really differentiates us from some of our competitors. Again, we will partner. We find the right model for every project that will ensure value creation for every stakeholder, including us. And as I said, I think we have some great brands and some great attributes that really work in the asset-light model and give our owners access to a broader platform, but with a much more flexible model and approach from the brand side. David Millili: So I guess diving deeper into that, as Minor Hotels expands globally, how's the group using its broader brand portfolio to address different segments, destinations, and, you know, staying on that owner's needs topic? Gonzalo Aguilar: In the last year we've launched four new brands, so we understand we've had partners that were interested in growing with us but necessarily didn't have the right project that fit with one of our brands. We also had identified some opportunities in our brand structure where we had some gaps. So when you think about our NH Hotels, our NH Collection, Avani, and Anantara, these are well-established brands already, especially internationally. But what we found was that these are hard brands. The first thing we identified was really that we had the gap of being able to approach those independent hotels that have that strong identity but are looking for the platform or support from a distribution perspective or from a loyalty platform. And we created our Colbert Collection, which is named after our famous French brasserie in London with our Wolseley Hospitality Group, and we exported that. We opened our first one last month in Florence, Italy. We'll open a second one hopefully later this year or Q1 of next year in London on Piccadilly. This is really a brand that, again, those independent hotels can sign into and really bring the power of Minor but continue to build and have their own identity. In addition, we added our Minor Reserve Collection, which is really meant to be something unique and special in the luxury space, but again embracing that individuality of every hotel that we have. We'll open our first one on the Adriatic. We'll brand it early next year, actually, and we're looking forward to that one coming on board. We also launched our Wolseley Hotel brand, which again is named after the iconic restaurant on Piccadilly in London. We announced earlier in the year our first one opening in New York City. We look to open that next year with our partners there, and I think it will be a great addition to the city and a great launch for our brand. Again, it fits something very unique. It's a hard brand, but it brings to life that British hospitality and, let's say, that British elegance. But it's a bit of a lifestyle. It's heavy on food and beverage, very much focused on... We'll have a members club. That British elegance, but with a little bit of lifestyle and a little bit of noise to it. Steve Carran: That's great. Sounds like a lot of growth happening. And speaking of that, how does Minor Hotels approach market entry in North America, particularly when it comes to adapting global brand standards to local demand and also owner expectations and conversion opportunities? Gonzalo Aguilar: Yeah. We're operating in all different parts of the world. So I think adapting to that local mentality is necessary, and I think it's something that we've done successfully already. I don't see that as a challenge at all. I think obviously the operating models and some of the contract models in the US may be slightly different, but we also embrace that local expertise. We have team members already based in the US that understand the market in depth and support that growth. I think as we look at the US, the US and Canada are absolutely a priority for us to grow in. I think there's true value. Many of our US outbound travelers that go into Asia or here into Europe recognize our brands. They know our brands already. But I think we're being very strategic on how we want to grow in the US. I think we're looking for the right owners, the right assets, the right markets. Those high-value markets like Miami and New York City are key entryways for us to gain visibility. As I mentioned, we signed our Wolseley Hotel New York, which will open next year. We also have an Anantara signed in Miami that is a greenfield project. It will take a little bit longer, but it's coming. As well as entering Turks and Caicos in the Caribbean, which will again give us more exposure to that US traveler who frequents those markets. So we're being very selective. I think our approach is to really target those high-quality, high-impact opportunities where we can position Minor as a global operator of really some luxury, upper-upscale, true-quality brands. I think that's probably our niche in the US. It's such a competitive market. European operators have it's not easy for us to penetrate, right? David Millili: So I guess maybe if we could dive a little bit deeper there and really talk about which markets or assets are the most attractive for the group at this stage? Gonzalo Aguilar: Again, I think if we're looking at those gateway cities, New York, Miami, Chicago, some of those great urban settings that fit into that luxury upper-upscale segment where we can differentiate ourselves. I would also say that markets where you're looking for a distinct resort experience, something very unique, could be thinking in the mountains in Colorado, Montana, Wyoming, or the beaches in the Keys. These types of locations, I think our Anantara brand would excel. Our brands are very much, and it's driven by our founder, focused on experiences, and we really want to bring unique experiences to our members. We've been able to do that in different markets around the world, and we think that finding some unique experiences for our Minor Discovery members to have in the US is where we would really want to focus. Steve Carran: We'd love to see you in Colorado. Come on out. So with management and franchise agreements becoming increasingly important, how is Minor Hotels expanding its contract models for more flexibility to owners while still protecting that brand consistency and long-term value? Gonzalo Aguilar: Yeah. Again, I think the reality of the industry, management has been around for quite some time. Franchising, obviously in the US, has been a key growth strategy in most segments. I think luxury's on its way as well. But I think the reality is we have brands to fit every opportunity that an owner's looking to work with us on. We want to be true to our brand and, as I said, I think we approach every opportunity pragmatically and with clear business sense on how do we create value for both parties. I think finding those terms that are market standard isn't the difficult side of it, but at the same time we're ultra-creative in saying, "Okay, we know who we are. We know our footprint in the US may not be as big as some of the others, but the reality is we have some other dynamic and flexible manners that could potentially be a better fit for some of our owners." So I think we also need to be realistic and clear on who, how, and where we want to grow in the US, and I think having that right fit makes it very easy. Steve Carran: And last question from us, Gonzalo. We have a lot of hoteliers that listen to this podcast. Your background, obviously you started in hotels, now you're more on the corporate side. What advice do you have to hoteliers that may be interested in joining the corporate side from the hotel side? Gonzalo Aguilar: I would tell them, "Stay where you're at." But the reality is I think it's always... You know, what happened to me, I became a GM at a very young age, and I enjoyed that tremendously, but wanted to continue to learn and grow. I think what I would tell them is to broaden their skill sets. Think about... The reality of the way the world is, I think that's changing every day, and I couldn't even tell you what to start to focus on today because tomorrow may be something different. But the way that the business has evolved, it's become much more specialized. Different parts of our business are so specialized today that I'm fortunate to have a very skilled team around me. But I do think that for a young hotelier who wants to continue to grow and potentially look at corporate, think about some of those skill sets and some of those technical skills and even disciplines that live in that corporate space that are really changing in our industry constantly, the core you have, I always tell people I believe general managers and our hotel property teams are really great leaders, and they know how to deal with people, and you don't want to lose that. But I think at times there are other components of our toolbox of skills that we need to reinforce to step into that corporate world. But don't lose the core of the hospitality business, which is really around the people. Steve Carran: Love that. Love that. Well, Gonzalo, this has been a ton of fun. This is the part of the podcast where we turn the tables and let you ask David and me a question. Gonzalo Aguilar: Well, I guess the question I would ask is, if you were sitting in my chair and wanted to grow Minor in the US, where would you recommend that I start? David Millili: Well, I would say, I mean, I'm a little biased. I'm an ex-hotelier. I was a general manager in the '90s, and I kind of like to hone in on Frank Sinatra and say, "If you can make it in New York, you can make it anywhere." So I would say New York is where, if I was starting something, because I think it's never gonna be easy, and I think probably one of the most difficult places will be New York. I mean, California has a lot of challenges with unions and government issues, but for me, I always think of New York as a great place to start anything. Steve Carran: I'm gonna take the complete opposite approach to you, David. I'm gonna say the Midwest. I'm from Wisconsin originally, and I just think there's so much opportunity in a state like Wisconsin, or Jon's in Michigan, where you talk about experiences. I think the Midwest in the summertime is the most underrated place to be. I think you have great landscapes, you have great culture, you have a lot of nature out there that I don't think a lot of hotels are taking advantage of because they're like, "Oh, it's Wisconsin, it's cold. The weather is bad. You have tough winters." But really, I think the real estate is cheaper there than a market like New York City, so the cost of entry is a lot lower, having a lot less risk to start a hotel there. So that's where I would do it, but again, I'm 100% biased as well. So that was great. Our producer, Jon, has been listening in the whole time, so we're gonna kick it over to him for one more question before we get you out of here. Jon Bumhoffer: Steve, I'm on board with your Midwest comment there. I would agree. I agree, I agree. Yeah. Big surprise over here. This is a question I ask fairly often, but I think you have a really unique perspective being a hotelier in the United States and now also on the corporate side, and then working in Europe a lot as well. What is one common denominator you see among the most successful hoteliers, GMs, and leaders? Is there one or two or a few things that you see most of those successful people doing? And does it differ between Europe and the US, or are there more similarities than differences? Gonzalo Aguilar: Yeah, if I think of the way I look at it, and I use this often with our team members, the most successful general managers I've worked with throughout my career have always been those individuals that really embrace the community. I've seen that from Denver to San Francisco to... I think the hotel business is unique in many ways, and I tell people today, even as a CEO, many times our general managers are much better connected than I am in any one city because they are part of that community. Their hotel, especially if they're in a landmark or in a luxury hotel within markets, they really are so connected with that. I think that's the key to going from a good GM to an exceptional general manager—really knowing your team members, but also knowing your customers and your local community. Being part of that has always... As I said, I think that's global. It doesn't matter if you're in a small city in Italy or if you're in New York City. I think it's the absolute key. That general manager is really an ambassador for their hotel, for their team, and for their brand, but also plays that ambassador role for that destination and that market, and really speaks to the value of the city. Jon Bumhoffer: Yeah, that's a great answer. I wrote down when you said earlier, "Think global, act local." I thought that was really a good way to summarize it. David Millili: Well, that does it for another episode of The Modern Hotelier. This is where you get to let people know, plug away about Minor Hotels, how they can get in touch with you, and if there's anything coming up that you want to talk about, this is your spot. Gonzalo Aguilar: Well, again, thank you. Thank you for the opportunity. It's been great to join you. As I've said, the US and Canada are definitely a key focus for us. We're expanding our footprint. I hope to see some of your listeners at our openings in the next several months. Again, minorhotels.com, you can find our entire portfolio on that site, as well as reach out to our development team and connect with us on any opportunities that you may want to discuss. David Millili: That's great. Well, that does it for The Modern Hotelier, the most engaged podcast in hospitality. Whether you're watching or listening, we appreciate you and hope to be again with you soon. Thanks for joining us.