RE #213: Bo Aughtry - CEO of Windsor Aughtry Commercial - Deep Dive into Hotel Development

Bo Aughtry, Chairman & CEO of Windsor Aughtry Commercial, entered the real estate business out of college and in 1975 helped found Small and Aughtry, a real estate development and brokerage firm. In 1980, Bo established The Aughtry Company, a commercial real estate development and brokerage firm, and Aughtry Securities Corporation, an NASD Broker/Dealer, serving as president of both. In 1988 the companies merged with Windsor Properties, Inc., then a Greenville-based home-building firm, thereby forming Windsor/Aughtry Company, Inc.

On this episode, Bo discusses lessons learned through many economic cycles and Short Term Rentals as a competitor. Chris and Bo also chat about how WAC develops hotels - selecting markets, sites, construction, and partnering with hotel brands. Enjoy!

Follow Chris on Twitter: https://www.Twitter.com/FortWorthChris
Follow Chris on LinkedIn: https://www.linkedin.com/in/chrispowersjr/
Learn more about Chris Powers & Fort Capital: https://www.FortCapitalLP.com
Follow Fort Capital on LinkedIn: https://www.linkedin.com/company/fort-capital/

Listen & Subscribe on Spotify: https://open.spotify.com/show/7oIeNSaSJ4zkTQOXiedyOr?si=dEM48cSPQ9OIQ1HiD8sjrg

Listen & Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-fort-with-chris-powers/id1410549811

00:08 - Bo’s Background and Career in Real Estate

03:51 - Bo’s Experience During the OPEC Oil Embargo

08:55 - When you think back on the cycles you’ve experienced, could you sense them or did they come unexpetedly?

11:51 - What are the chain of events that happen during an unraveling?

16:16 - Are you sensing anything right now?

Psychology of money - book

23:39 - When the interest rates went to 21% prime, how long did they stay that high and what happened during that period?

27:16 - How did you get into hotel development?

30:33 - How do you select sites when developing a hotel?

34:16 - Who’s your average guests when building in a college town?

37:46 - Do you try to sign contracts with universities?

38:10 - How do you select the brand of hotel?

39:46 - What’s the differentiation of risk between you and the hotel brand?

42:18 - Do you have to follow the specs of the hotel brand or do they give you freedom of design?

44:39 - What’s an affinity program?

45:25 - Who purchases the furniture for the hotel?

48:24 - What does Hilton provide to you beyond a booking system and marketing?

49:47 - Thoughts on Construction

54:33 - Thoughts on AirBnb & STR’s

1:01:38 - Why do you pursue heads-up deals and what matters to you in partnerships?

1:07:54 - If you could go back and tell your 35 year-old self some wisdom, what would it be?