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In this episode of the Real Finds podcast, Gordon Lamphere sits down with Stephen Wendell, CEO of Mountain Shore Properties, to discuss his real estate journey and insights into the industry. Stephen, influenced by his family’s long history in real estate, shares the lessons he’s learned navigating the complex markets of Philadelphia, with a particular focus on the hospitality industry. Their conversation touches on key aspects of real estate investing, including branding, site selection, and future trends in hospitality.

Stephen’s Real Estate Roots: A Family Affair

Stephen Wendell grew up surrounded by real estate. With his family deeply embedded in the industry, it was only natural that he followed suit. His early exposure to real estate not only sparked his interest but provided him with invaluable insights into the industry’s inner workings. However, as Stephen notes, his journey wasn’t a straight line. Like many, he faced the typical ups and downs but learned to leverage his family’s experience and connections to establish his career. This gave him a head start in understanding the intricate dynamics of real estate, particularly in the Philadelphia market.

The Philadelphia Market: Unique Challenges and Opportunities

Philadelphia presents both unique challenges and opportunities for real estate investors. According to Stephen, the city’s zoning laws and regulations are often complex, making it more difficult to find properties with optimal development potential. Philadelphia’s older building infrastructure also requires investors to think creatively about redevelopment and adaptive reuse. However, these challenges create opportunities for those willing to navigate the complexities.

Stephen highlights that understanding local markets and municipal regulations is crucial for success in real estate, particularly in areas like Philadelphia, where zoning and historical preservation can dictate the pace and scope of development.

The Evolution of Hospitality

The conversation naturally steered toward the hospitality industry, a sector where Stephen and his company have made significant strides. The pandemic changed the face of hospitality, pushing hoteliers and investors to rethink how they operate. Stephen emphasizes the need for real estate investors in hospitality to stay attuned to evolving guest expectations. He notes that today’s travelers are looking for more than just a place to sleep—they want experiences.

To stay competitive, hotels are incorporating lifestyle elements that merge leisure and work. Whether it’s creating co-working spaces within hotels or offering curated local experiences, hospitality is about more than just rooms. Stephen points out that the industry is evolving rapidly, and those who can anticipate trends, such as the rise of wellness tourism and eco-friendly accommodations, will be best positioned for long-term success.

College Towns: Stable Investment Opportunities

One key point that Stephen makes is the appeal of college towns as stable investment opportunities, particularly for hospitality. College towns tend to have a consistent demand for hotels, driven by a steady influx of students, parents, visiting academics, and alumni. This consistent demand provides a buffer against economic downturns, making college towns a safer bet for investors looking for long-term stability.

Stephen explains that the transient nature of these towns, with graduation and turnover, creates a reliable flow of guests year-round. Hotels in college towns often benefit from events like homecoming weekends, graduations, and university conferences, which provide steady occupancy rates.

Site Selection: The Importance of Walkability

When selecting sites for his hospitality projects, Stephen emphasizes the importance of walkability. He believes that a hotel’s location can make or break its success. Guests are increasingly looking for accommodations that allow them to easily explore their surroundings on foot, whether that’s for business or leisure.

In addition to walkability, Stephen looks for properties in emerging neighborhoods or areas undergoing revitalization. These neighborhoods often have lower property costs and, with the right investment, can become highly desirable locations.

Branding: A Critical Component for Success

Another crucial element of Stephen’s strategy is branding. In today’s competitive real estate and hospitality markets, strong branding can set a property apart from the competition. Stephen stresses that branding is not just about a name or logo—it’s about creating an identity that resonates with guests and fosters loyalty.

Stephen’s approach to branding extends to the design and experience offered at his properties. He believes that successful branding should evoke a sense of place, offer unique experiences, and connect emotionally with guests. A well-branded property can command higher rates and create long-term customer loyalty, even in a saturated market.

Applying Hospitality Principles Across Asset Classes

Stephen and Gordon also discuss the broader application of hospitality principles across other asset classes, such as office buildings and residential properties. The concept of blending hospitality into these traditional asset classes, through amenities and services that enhance tenant or resident experience, is gaining traction.

By incorporating hospitality elements—such as concierge services, fitness centers, and communal spaces—real estate developers can create more attractive and competitive properties. This shift toward offering more lifestyle-oriented experiences in office and residential buildings is a growing trend that both Stephen and Gordon see continuing into the future.

The Future of Hospitality: Lifestyle and Technology

Looking ahead, Stephen believes that the future of hospitality will focus on lifestyle experiences that blend leisure, work, and wellness. Technology will also play a significant role, but Stephen stresses that the human element must not be lost. While automation and AI can streamline processes and enhance convenience, the hospitality industry is fundamentally about human connection and service.

Stephen envisions a future where hotels and other hospitality properties seamlessly integrate cutting-edge technology with personalized service to create memorable experiences for guests. From contactless check-ins to personalized room settings, technology can enhance the guest experience, but it should never replace the personal touch that defines true hospitality.

Conclusion

The conversation with Stephen Wendell offers a wealth of insights into the evolving real estate and hospitality markets. From the complexities of the Philadelphia market to the stability offered by college towns and the importance of branding, Stephen’s experiences and strategies provide valuable lessons for real estate investors. As the hospitality industry continues to evolve, those who can adapt and innovate, while maintaining a focus on experience and service, will thrive.