MSU Spartans Win Hotel “Shark Tank”

Competition enlivens the North America Hotel Investment Conference

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. December 02, 2013

December 2, 2013 - East Lansing, MI - It was sweet validation of The School of Hospitality Business's focus on the business of hospitality - and on the foundations of hotel development and investment.

A team of four undergraduates from The School of Hospitality Business at Michigan State University and one MBA student representative competed with two other teams at the inaugural North America Hotel Investment Conference in Chicago in a “Hotel Shark Tank.” Each team (the other two were from New York University and DePaul University) pitched a detailed hotel brand concept for millennials to a panel of “sharks,” some of the sharpest hotel investment minds in the industry.

The teams reported to a standing-room-only crowd at Hyatt Chicago Magnificent Mile in Chicago on November 21, and included the financials, feasibility, management and operations plans, the expense and revenue projections, market share and location of their “brand.” After the three outstanding presentations (which had the crowd of hotel investment and asset management leaders riveted), the students waited until the next day for the announcement of the winning team. And it was a Spartan victory!

Chelsea Hallman (BA '08, MBA '14), Nevena Divic (BA '14), TJ McDermott (BA '14), Chase Reinis (BA '15), and Dan Dyer (BA '14) prepared for a number of weeks for the Hotel Shark Tank, and made their presentation cleverly dressed and in the roles of typical millennials (fitness instructor, IT expert, asset manager, and the like). The four undergraduates are members of The School's Real Estate Investment Club, and the team was ably coached in their efforts by Dr. A.J. Singh, director of The School's Real Estate Investment Management Specialization, in which each student is enrolled. Their “pitch” to the sharks was “Exposure,” a hotel brand by millennials, for millennials.

Nevena Divic, president of the Real Estate Investment Club, as well as The School's Hospitality Association, explains:

Exposure Hotels is a brand focused on building a community. It is the Midwestern boutique, geared towards millennials with the energy and social scene that excites them. Exposure is not a typical, cookie cutter hotel covered in dry wall. It is a brand of hotels that stimulates your senses with unique and intriguing design. One step into the lobby and you will pick up on the unique fragrance of our brand, freshly roasted coffee beans from the coffee shop. Your eyes will be stimulated by the exposed brick walls, architectural beams, textured wallpaper, subtle earthy colors, and the comfortable and inviting furniture will make you feel at home.

Exposure is the social scene of the city; it's where the locals, along with the guests, come to hang out. At an Exposure Hotel you will feel right at home, as well as part of the community.

“All attending NATHIC honestly recognize that the other two teams from NYU and DePaul are worthy of respect, and were tough competitors.” says Dr. Singh. “But I am so very proud of our students, who applied their knowledge from courses in hospitality operations and management (financial management, sales and marketing, consumer behavior, and revenue management), and combined it with their specialized knowledge in hospitality business real estate investment management to create a bankable business plan to deliver value for 'owners.'”

In addition, he explained, “The Specialization's professional and skills-based enrichment courses, such as Dale Carnegie training, Real Estate Investment Management workshops, short courses, and even its internship requirement all contributed to the finesse of their overall presentation. They were thoroughly comfortable onstage and presented their ideas with finesse and aplomb.”

Additional coaching came from Drs. Ray Schmidgall, Jeff Beck, Bonnie Knutson, and Ron Cichy in The School, and from alumni and industry coaches Jim Anhut (MBA '85), senior vice president, design & quality, The Americas, for IHG and Mike Kitchen (BA '09), corporate director of acquisitions for Aparium Hotel Group. Both are members of The School's Real Estate Advisory Council.

“We also value our partnership with Jones Lang LaSalle, HVS, and the SHARE center at STR Global as providers of research data for the project,” says Dr. Singh.

Clearly, all the coaching, feedback, resources, mentoring, long hours, and professional development experiences helped the team - the only one, by the way, to make its presentation without the use of notes!

“The team members had certainly done their homework,” said Dean James F. Rainey, director of academic programs in The School. I was thoroughly impressed with their ideas and presentation style. In fact, Exposure hotels COULD work in the real world.”

The team members themselves were equally proud and excited. "It was a wonderful opportunity to work with The School of Hospitality Business for the Hotel Shark Tank competition,” says alumnus Chelsea Hallman. “As an MBA student, working with the undergraduate students was a true pleasure; they impressed me in a number of areas, but especially in their MSU work ethic, financial analysis, and presentation ability! I can't wait to see The School repeat as Shark Tank champions next year!"

Nevena maintains that the experience was a sort of personal triumph as well as a team victory. “I learned so much this past month and a half on developing a brand,” she says. “A lot of hours of work, research, and brainstorming were dedicated to this project. Additionally, I challenged myself to be creative and think outside the box. The ultimate challenge for me was getting up in front of the five sharks and the 250 audience members and selling Exposure Hotels. In the end I am incredibly proud of my efforts, my hard work, and that of my team members.”

The Hotel Shark Tank was just one of many valuable sessions at NATHIC, presented by Hotel Management magazine, Questex Hospitality+Travel, and the International Hotel Investment Forum (IHIF). The IHIF presents a series of conferences around the world. Now in its fifth year, the two-day event, previously held in Washington, has been re-energized with a new venue, enhanced agenda, a hospitality real estate showcase with top brokers, and, of course the hotel shark tank. The conference combined general sessions, breakout discussions, and keynote speakers who focused on a wide range of critical issues related to hotel development, ownership, and management including financing, segment analysis, buying and selling hotels, franchising, operations, design, and technology. NATHIC attendees included hotel owners, developers, operators, lenders, consultants, and brand executives.

“The School is proud to partner to present NATHIC,” says Dr. Ron Cichy (BA '72, MBA '77), School director, who gave opening remarks at the conference on November 21. “It has been a pleasure to work with Questex's VP of Global Events Marilyn McHugh and Nick Diligente, business development manager.”

In his welcome remarks Dr. Cichy noted The School's efforts over the years to prepare students to meet the needs of the global industry. After the competition he said, “This week, the students have demonstrated their ability to do just that.”

WE ARE THE SCHOOL™

“WE” represents the tens of thousands of relationships among students, faculty, alumni, and industry partners. “THE” reflects our 87-year foundation of preparing the hospitality industry's managers and operators. Today The School also emphasizes real estate and thinking like the owner throughout the curriculum, for all our students.

About The School of Hospitality Business at Michigan State University Michigan State University: Creating Knowledge and Transforming Lives Recognized as the top-ranked hospitality business school, The School has a unique, industry-specific position within Michigan State University's Broad College of Business. Celebrating its 87th anniversary year in 2013, The School has almost 10,000 graduates worldwide, including a number of leading academicians and industry executives who have earned both undergraduate and graduate degrees. Founded in 1927, The School offers an exceptionally well-crafted curriculum, taught by innovative professors who are leading textbook authors, sought-after consultants, and respected researchers.