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service division. Aimbridge has its Dallas headquarters, but Smith wants to shift from a corporate-centric culture to a concentration on the operations of its portfolio of hotels.“ I wanted the spotlight to turn around and everything to be about the hotels,” he said.“ We forgot that we’ re a hotel company and we forgot that the most important job is the general manager of the hotel, not the folks at corporate headquarters.” Furthermore, he’ s made it clear that corporate Aimbridge exists to service Aimbridge’ s properties, because they, ultimately, service the guest.“ If that phone rings and it’ s one of our hotels, you had better answer because you’ re serving them and they’ re serving the guest,” Smith said.
Enacting and inspiring a performance culture was a primary action of Smith’ s. Like some of his hires, Smith
Smith sharing a laugh with an associate at Hyatt Regency Houston Galleria.
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is a long supporter of balanced scorecard, a framework for evaluating a hotel’ s performance that goes beyond its financial achievements to also consider the property’ s success in satisfying customers, operating effectively and innovating. It’ s a management tool long used at Marriottmanaged hotels.“ We didn’ t have goals in place and those goals didn’ t roll up and down the organization,” Smith said.
Beyond cultural and organizational fixes, a major, company-defining pivot by Aimbridge is how it functions as the largest third-party operator in the world. In previous years, Aimbridge could leverage its size to undercut competitors and win management contracts with terms better set for owners. One encounter Smith had on a shuttle bus with other operators illustrated it. Those aboard expressed chagrin,
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telling Smith,“ We walk away if we know you’ re bidding because you’ ll bid lower than anyone else.” It was a defining moment for Smith.
Aimbridge used to incentivize owners on annual contract value, which is the total value of a customer’ s contract on a per-year basis. But with a shorter contract, you might not even get to a third stabilized year, Smith explained. He now prioritizes longer contracts.“ Now, we’ re hearing people say,‘ Gosh, Aimbridge is walking away from deals.’”
GETTING RIGHT The cultural and organizational shifts were succor; Aimbridge’ s heaviest burden was its capital structure. In January 2025, Aimbridge rightsized it through a restructuring agreement that converted more than $ 1.1 billion in debt to equity, infused it with $ 100 million in new capital and made the first-lien lenders majority owners, taking over from Advent International, the majority owner since 2019.
Smith is introspective and reflective about his one-plus year at the helm of Aimbridge and the thorny issues he tackled. He acknowledges a stressful last year, but one that had to be confronted head on to right the ship.“ It was a massive swing,” he said of the debt restructuring.
Smith, neatly coiffed, relaxed, smiling in his San Diego home, is much less fretful today. Worries past allow him to concentrate on the business at hand: running profitable hotels,
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which has been a legacy calling card for Smith. Operations is Smith’ s specialty— and he knows it. He doesn’ t attempt to color outside the lines.“ I worked in development and it’ s not my forte,” he said, heaping praise instead on his lieutenant Jacobs, whom he called“ a great developer.”
Smith found his sweet spot at an early age, working for his uncle’ s hotels in Provo, Utah. That’ s where he fell in love with the business. It’ s also where he got some well-timed, avuncular advice.“ He said,‘ Build out a career plan; tell your boss where you want to be in the future.’” At Smith’ s first role with Marriott, he told his boss he one day wanted to be a regional vice president. He shot too low, it turned out.“ I knew that whatever got me to the next role wasn’ t going to get me to the role after that. I didn’ t want to stop learning,” he said.
FORWARD HO The directive for Aimbridge is clear: continuity and precision growth. Though third-party management companies thrive off strong deal flow— modest right now— Aimbridge is in a position to benefit as Europe becomes more comfortable with the franchise model.( In 2019, Aimbridge merged with Interstate Hotels & Resorts, which gave it credibility and a footprint in the region.) It already has a strong presence on the continent with more than 70 hotels, and that could grow. Europe, Smith said, is setting out on the same franchise
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18 hotelsmag. com Sept / Oct 2025 |