The
former CEO of Standard International has returned to her legal roots. She
discusses the deal environment, growing revenue and the complexity of F&B.
NEW YORK CITY — Amber Asher, as
general counsel and CEO, has seen many deals and watched markets shift during
the Great Recession and COVID.
It’s safe to say that lender
scrutiny has been one of the biggest changes as the former CEO of Standard
International, now a partner at law firm Helbraun Levey, surveys the deal landscape in
2026. But that doesn’t necessarily mean things are worse. So, what’s improved
from Asher’s perspective?
“What's better is that we’ve
always heard: this hotel is 50% food and beverage. So, that’s too volatile and
that's hard to underwrite because food and beverage is a volatile part of the
business. But now I don’t think lenders think about it in the same way because
it is an integral part of the business,” she said. “There’s more of an appetite
from lenders… who are more willing to invest in things that have ancillary
revenue, not just rooms revenue. That has been a big shift.”
There’s more of an appetite from lenders… who are more willing to invest in things that have ancillary revenue, not just rooms revenue. That has been a big shift.
Amber Asher
Asher began as a real estate
lawyer and later became in-house counsel for several hotel companies, including
Morgans Hotel Group and André Balazs Properties. In 2013, she joined Standard
International as general counsel and was eventually named president, serving as
CEO from October 2021 until 2024, when the company was acquired by Hyatt Hotels
Corp. for up to $335 million. In January of this year, she was named partner
and chair of the hotel group for New York City-based Helbraun Levey, a law firm
for the hospitality industry.
As Standard CEO, Asher led
global growth, expanding from four U.S. hotels to 24 properties worldwide, with
over 30 hotels and seven branded residences in development.
Another change with the overall
lending system, Asher said, is that both owners and operators are focused on
underwriting. Additionally, there’s greater transparency than before.
“Our pro formas are very clear.
We don’t want to go into a deal and overpromise. We really want to understand
the markets we are going into and adjust if we need to,” she said. “In my early
days of being in-house counsel at hotel companies, owners and operators weren’t
as collaborative as we’ve become. Having gone through a recession and then
going through COVID, there were times when we all had to band together.
“There’s more collaboration
happening and there’s more of a need for operators to be transparent on where
their fees are coming from and different things. That’s something that owners
are requiring and that’s something that operators are more willing to do.”
Are there enough
buyers?
As hotel companies increasingly
rely on an asset-light model, they also become reliant on owners to remain
asset-heavy to keep the system working. So, are there enough buyers out there
right now? Asher said yes, citing Trinity Investments’ partnership with
Partners Group and Oaktree Capital Management on a deal for The Standard,
London, in November 2024, given their familiarity with Hyatt.
“A lot of those investors will
be paired with certain brands that they’re comfortable with,” she said. “That’s
opened up another door for properties to trade.”
A lot of these people are in real estate. Hotels are a much sexier type of real estate than office and have a better rate of return. If you pick the right brand, you get the right design and the right location, you can make massive returns... If you can get it right, you can really make a lot of money on these properties.
Amber Asher
Asher said she also sees many
first-time hotel buyers interested in smaller-scale properties or independent
hotels.
“It’s been easier, especially in
the U.S., to raise capital for these smaller hotels,” she said. “There’s
certainly a lot of interest in people doing smaller hotels — 120 keys or below
with a really important food and beverage destination, or spas, like a
countryside retreat with a membership. I’m seeing a lot of that, and I’m seeing
PE money get excited about those things and grow those brands. Then I’m seeing
restaurateurs that want to get into hotels because the margins are a lot
better on the hotel side of the business.”
So who are these new buyers?
“A lot of these people are in
real estate. Hotels are a much sexier type of real estate than office and have
a better rate of return,” Asher said. “If you pick the right brand, you get the
right design and the right location, you can make massive returns... If you can
get it right, you can really make a lot of money on these properties.”
Managing NOI
What isn’t easier these days is
managing tight margins in an environment with moderate RevPAR growth.
“There are a lot of things that
you can’t even control as a branded manager that are creating pressures that
maybe weren’t there before,” Asher said, noting growing costs of labor, for
example. “But labor is so crucial to having the experiences that you want to
have in these lifestyle and luxury hotels. You can’t cut labor and expect to
have the same ADR. It’s the human touch and the human experience is really the
one thing that will not be part of this AI revolution.”
Ultimately, Asher said the way
to relieve pressure on margins is to grow revenue.
“People are much more
disciplined than they were pre-COVID, in terms of operating and owners know a
lot more about what’s going on in the business. But growing the top line and
growing it in a way with more direct business is really what is going to help
through this process.”
If you can do it right or partner with the right group, there’s absolutely real value in it, and it’s going to drive your overall ADR… There’s a halo effect, and it’s very accretive to the top line.
Amber Asher
So how do owners grow their top
line?
“[Being able to raise] ADR helps
a lot,” Asher said. “But people are looking for other revenue sources, whether
it’s partnerships… there’s a lot that people can do.”
Another way to grow the top line
is through F&B.
“Not everyone can do it right,
and that’s what the tricky part is,” Asher said, noting that at its peak,
Standard had $55 million of F&B revenue compared to $50 million for rooms.
“If you can do it right or partner with the right group, there’s absolutely
real value in it, and it’s going to drive your overall ADR… There’s a halo
effect, and it’s very accretive to the top line.”
However, Asher emphasizes that
adding F&B revenue isn’t without its own set of complications.
“The problem is F&B has
always been thought of as a loss leader because there’s a lot of costs
associated with it, or you’re partnering with a chef that maybe isn’t aligned
on the bottom line,” she said. “So, you have to have the right deal and right
structure to make sure everybody’s winning in the process.”
Finding the right partnership
can often be the best case scenario for owners and operators who don’t have
extensive in-house F&B experience, Asher said.
“There’s
a real need from F&B operators and chefs that don’t have access to those
types of platforms that hotels have had in the past,” she said. “So, we’re
really working on bridging those things. There’s a real white space, given the
fact [most of] the bigger lifestyle brands have been consolidated.”