Q & A
Smooth Operator
THE CHIEF OF STONEBRIDGE COMPANIES MOVES UP BY GOING DOWN IN SIZE.
By DAVID EISEN
Rob Smith knows big. Nearly 12 years of his career were spent with Aimbridge Hospitality, the largest third-party management company in the world, the last two as president of the company’ s full-service division. In 2024, he decided to downsize. That’ s when he assumed the position as CEO & president of Stonebridge Companies, which, at more than 160 hotels, is not small by any stretch, but it isn’ t Aimbridge and its thousands.
It’ s a change, sure, but one he has eased into with aplomb. Here, he shares his biggest wins so far, the delicate dance between owners and brands, how best to drive profitability and his expectations for the next 12 months.
HOTELS: You’ re two years into your role as CEO of Stonebridge Companies. What’ s been your biggest win? What’ s been your biggest surprise? Smith: My biggest win was really choosing my current role with Stonebridge. When you make a move like that, you know exactly what you are leaving, but you do not know what you are stepping into until you are in the seat. I joined a company with a great baseline; I just had to integrate the teams and create a new culture.
Over the last two years, we have focused on strengthening the team through a combination of internal promotions and the addition of top talent from across the industry. Today, I believe we have one of the strongest leadership teams in hospitality, and that has positioned us for meaningful growth.
The biggest surprise has been where that growth has come from. In a typical cycle, management company growth is heavily tied to transactions. With transaction activity muted, our growth has been almost entirely driven by management changes to underperforming assets. Owners are looking for operators who can drive results.
HOTELS: Managing hotels is challenging— it’ s maybe never been more challenging than now in the face of higher expenses that are stressing the P & L. How do you make sure you are doing a good job not only generating revenue, but keeping owners more of it? Smith: Managing the middle of the P & L is table stakes. Every operator talks about controlling expenses, but the difference is how you do it. I have spent my career as an operator, both on and above property, and our approach at Stonebridge reflects that. The two highest costs in any hotel are payroll and customer acquisition. Many operators try to improve profitability by taking things away from guests and associates. We focus on guest service and experience, having the most profitable segmentation mix and attracting and retaining the best talent.
HOTELS: There’ s a lot of pressure on margins and profitability. Hotel owners have been squeezed while brand companies have flourished. What has been owners’ chief worry or complaint and how do you balance the relationship between brand and ownership? Smith: Owners want to know that every dollar they are investing in brand programs is generating a return and that they are accretive to brand loyalty and guest acquisition. They also must make sense financially. If the brand is delivering north of 50 % of the hotel’ s business brand direct, then the hotel will be successful, and the owners won’ t question the cost of brand programs. We make sure the brands are aware that we are focused on brand delivery.
HOTELS: The K-shaped economy has shown the almost unfettered success and resilience of the luxury hotel segment. Management companies see that and are looking to grow in the luxury and lifestyle segment. What is the opportunity there? Smith: There is no question that upperupscale and luxury hotels have been some of the strongest performers in our current
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