While Storm deals with long-range capital and value-add properties, Capps spoke of taking flag hotels and making them independent. “But we have to make sure we don't miss on the analysis,” Capps said. “In certain locations it makes sense to go independent.”

McCaslin added, “In deflagging, we look at location drivers and capital. It's all analysis driven. We look at the standards implemented by the hotel—from the linens to the trash. It all goes into the final cost and what you think you can do. Sometimes the cost is less as an independent hotel.”

“I knew a buyer who wanted a hotel that was losing its brand and was losing its value,” said Silberstein. “The buyer could have it at 50% of replacement cost and make it an independent hotel. Eighteen months later it was a closed independent hotel. There are values, but many times they are values for a reason.”

Dimond said his company has held properties for as long as 20 years and as few as a year and a day. “We try to hold for a long time,” he said. “But if an early exit opportunity comes up, we'll take it.

“We like the length of the hold period. We're running the five to seven years our investors have set, but we still have to make sure we're hitting the cycle right,” said Capps.

Storm added, “The ability to turn around a failing hotel property determines the holding period. In some cases we're looking at a six-month window. You have to determine the opportunities and the thresholds.”

When it came to product improvement plans, there was no shortage of opinions.

“In the negotiation conversation between owner and brand, we never want to have an adversarial relationship with the brand,” said Capps.

Dimond said, “What's important are the guest spacing items. But when we get to the point of minimal or no return, that's when it's time to push back.”

“There can be a disparity,” said McCaslin. “If you want to be part of a brand, you have to be sure the customer gets what the brand promises. If not, you should be able to communicate that to the brand.”

Storm related, “You should be a good franchisee and increase guest satisfaction. From a timing standpoint, work first with what's most important and go backwards from there.”

“It's a collaborative effort,” said Silberstein. “PIPs are the most highly negotiated item. What we focus on are items that really affect our guests. The focus of PIPs, what we share with the brand, is the guest. The notion of just checking off boxes is not something we aspire to do.”

Silberstein said he relies on a deep bench of architects and designers to help leverage a brand. “Those disciplines at the beginning of the relationship are important. There's only one thing more difficult than a trial—and that's a retrial.”

Storm said his deals are mostly independent and that leveraging a brand takes money. “It's spending dollars to keep in a competitive position, to get ahead and to reposition,” he added.

“Avoiding the hiccups is key,” said Capps. “You've got to open at the right time and get everyone on board with the brand so it isn't confusing.”

Dimand said you have to know where your strengths lie in order to leverage a brand properly. “What skills does your team possess? Some things are beyond your means. You have to be honest with yourself.”