Nish Patel, Founder, Beacon IMG

In an interview with Invest:, Nish Patel, founder of Beacon IMG, discussed why the firm has paused new U.S. hotel development, how labor and operating costs are reshaping strategy, and why disciplined site selection matters more than ever. “Guests want to be near dining, retail, and entertainment. Proximity to those amenities supports performance and strengthens the value proposition,” Patel said.

How have changes in the hospitality market and its intersection with real estate shaped your investment and operating strategies over the past year?

We have not opened a new hotel in about four years. The last one we opened was in 2021, and that period forced a lot of reflection. Development has become incredibly expensive in the United States, and it is not just construction costs. The labor side of operations has become a major factor, too.

The issue is not that it is impossible to find people. The real challenge is building and keeping a strong team over time. We have been fortunate to maintain our culture and retain key people, and we do not want to put that at risk by expanding in an environment where costs and staffing pressures can erode consistency.

Because of that, we have decided to pause any future hotel development in the United States for now. Our focus is on operating what we have as well as we can and protecting the culture that has helped us perform through different cycles.

How would you describe the current mix of business, leisure, and group travel, and what does that mean for hotel performance in your markets?

We operate in strong markets in the Southeast, including Charlotte, and we have been fortunate in terms of demand. In our markets, the mix is generally about 50-50 between leisure and business travel, depending on the specific location and what is happening locally.

What has changed is the consumer side of leisure travel. After the pandemic, travel was strong, but over the last couple of years, it has become more expensive for people to take trips. That affects discretionary leisure travel, especially when inflation and higher costs are hitting everyday budgets. Leisure is still there, but affordability matters.

On the business side, travel was down for a period, and now it is coming back. From an operator’s perspective, that return is important. If business travel continues to recover while consumers regain more flexibility, that supports overall performance.

How are select-service and extended-stay hotels performing in today’s environment, and how do those segments fit into your strategy?

Extended stay is a good place to be right now. We have one extended-stay property, and it performs really well. That product type can be more resilient because guests are often in-market for longer periods, whether for projects, relocations, medical needs, or corporate assignments.

Select service is more complicated than people assume. The challenge is that the costs to operate an extended-stay hotel versus a full-service hotel are not as different as many would expect. Labor is still labor, and keeping good people is still hard. Even if the service model is lighter, expectations remain high, and staffing a reliable team is expensive.

That is one reason we are focused on operations instead of expansion. When costs are high across the board, you have to be realistic about what kind of returns you can achieve and where you can execute consistently.

What strategies have helped you retain your culture and build long-term teams?

We have been fortunate because many of our team members have been with us for a long time. In hospitality, turnover is often the norm, but we have people who have stayed with us for years, including one person who has been with us for nearly 19 years. That kind of continuity is rare, and it speaks to the people we have and how they lead.

For us, leadership is the starting point. We try to hire the right leaders so they can hire the right people. When you have strong leadership, you reduce unnecessary turnover because expectations are clear and people are developed properly.

We also have not had to rely on contract labor to clean rooms or handle core operational needs for about three years. We still hear about companies that depend on contract labor to fill gaps, and we have avoided that because our teams have been stable. That is a credit to our people and the way they manage day-to-day.

Fairness matters. Compensation is important, but it is also how you treat people. Hospitality is a relationship business. We cannot expect our team members to deliver great service if we do not treat them the same way internally.

Where do you see the biggest opportunities to leverage technology to improve efficiency and strengthen the guest experience?

When it comes to guest experience, I do not think technology can replace human interaction. People still want that personal connection, especially in hospitality. A warm welcome and real interaction still matter.

Technology is most useful on the back-of-house side. Revenue management tools can help manage rates, length of stay, and demand patterns. We are affiliated with brands like Hyatt and Hilton, and they have implemented systems that automatically adjust rates.

Even so, I do not trust those systems enough to run on autopilot. We have someone who checks behind the automated tools and makes corrections as needed. Technology can be valuable, but it still needs oversight from people who understand the market.

How does surrounding retail and dining activity influence your properties and your approach to local economic growth?

All of our properties are located in high barrier-to-entry markets, and that is intentional. Two are in university areas, one is in downtown Charlotte, one in South Beach, and one in SouthPark across from the main mall.

These locations work because the surrounding environment is part of the experience. Guests want to be near dining, retail, and entertainment. Proximity to those amenities supports performance and strengthens the value proposition.

High barrier-to-entry markets also protect against supply shocks. In a location where it is difficult to build new hotels, competitors cannot simply enter and compete on price. That supports long-term rate integrity and occupancy.

Looking ahead three to five years, what are your top priorities?

Construction costs are so high right now that it will be difficult for new hotels to be built over the next five years, and potentially longer. That has major implications for supply.

Our focus is to operate as efficiently as possible and drive valuations by driving profitability to the bottom line. That comes from managing rates and occupancy intelligently and controlling costs without sacrificing the guest experience. If new supply remains limited, we should be positioned to perform well.

Are there any broader trends or issues you want to highlight?

One issue that stands out is civic leadership. Charlotte has grown significantly, but I do not think we have the same kind of local business leadership presence that we had in past eras. We used to have leaders who were deeply tied to the community and lived here.

Today, many major employers are in the market, but their top executives do not necessarily live here or feel as connected to the long-term future of the city. We need leaders who are invested in driving what comes next.

At the local level, I would like to see more focus on what is best for the community day-to-day. Charlotte is a strong market with real momentum, but long-term success requires leadership that is committed to the city and accountable to the community’s needs.