The Modern Hotelier #145: Southwest & Spirit Shakeup, Hotels Design for Bleisure & Ride the Cruise Wave | March Hot Topics with Grey Raines
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Steve Carran: Welcome to another episode of the Modern Hotelier. We're excited to bring you this month's look back on hospitality hot topics for March. Today, we are joined by Grey Raines from Raines Company. Thanks for joining us, Grey. How are you doing today?
Grey Raines: Good. Glad to be here. Just coming off of a Hunter conference and, excited to spend a few minutes with you.
Steve Carran: Awesome. We're happy to have you. So for those that might not be familiar with Raines Company, can you give us a little overview of what you all do?
Grey Raines: Absolutely. Raines Company is a fully integrated management, investment, and development company, headquartered in Florence, South Carolina. We have offices in Charleston and Dallas as well. We represent about 63 properties, A lot of hard brands, Courtyard, Hilton Garden Inn, Residence Inn. And then Woven by Raines is our leadership team on the management side, that's focused on curated, independent, luxury, soft branded assets, and we have about seven of those in the portfolio and growing rapidly.
Steve Carran: That is great. Well, we're going to dive right in here. The first topic that we're going to talk about, which I feel like this is a topic we almost talk about on a pretty regular basis, hotels are still struggling with staffing shortages. nearly 65 percent of hotels across the U. S. continue to report staffing shortages.
The most mentioned shortages we're seeing are housekeeping. 38 percent of hotels have shortages there, followed by front desk, 26 percent of hotels are having shortages there. And then culinary positions and maintenance positions are the next two. Great. I'm going to start with you. what are you seeing with, the staffing shortages?
Grey Raines: it is affecting us. I mean, some markets certainly more than others, but, for us, it's a deeper dive back into culturally, what can we do better within the hospitality world? I mean, we've done ourselves a disservice really since, since we got started, as an industry and that we're seven days a week, 365 days a year, it's looking back.
And for us, we're finding a lot of, success on more flexible hours. really looking at the schedule to make sure that we're bringing a quality of life back for our folks. So a big focus there then pay raises are certainly, certainly something that our hotel, all of our properties are looking for better ways to, to be successful, keeping people working with us, a big focus on retention.
Cause we know training new folks is a tough, costly endeavor, but it is a problem and it's something that, we all have to face as an industry. David, your thoughts?
David Millili: Yeah, no, I couldn't have said it any better. I mean, we've, as Steve said, we've talked about it for, it seems like two, three years now, exactly what you said, really just creating flexibility. I kind of harp on this whole concept of making hospitality a career, not a job and making it where people have kind of this path to where they know that, Hey, I can move up and I can achieve certain things and status.
And, it's a great industry as we've had many guests say, you've got everything rolled into a hotel sales, marketing, finance, operations. So, I'm hoping that, it gets better. And I'm hoping that with the adoption of some of these, employee and guest improving technologies that it just kind of.
Alleviate some of the weight too, that we're, experiencing on, the issues. So one of our favorite topics is always talking about traveling and planes. Steve knows I love boarding. The boarding process is my favorite. So Southwest has ended free bags and we've got spirit moving into some premium services.
So, I'll stay neutral on this one, but Steve, what are your thoughts when you read about this?
Steve Carran: Am I living in an alternate universe here? this is, this was, I was shocked by kind of both the, well, more for Spirit than Southwest. Southwest, I feel like, is moving in the direction of every other airline. kind of more nickel and diming you. moving away from the free bags now. they're assigning seats.
So moving more towards a traditional airline, which I'm curious to see how this will work out. I'm not a Southwest guy, but I know the people that are, huge into Southwest and they love it. but I was shocked by Spirit moving towards a more premium. Airline, if you would have asked me a year ago where Spirit is going to be in 2025, I probably would have said bankrupt.
since that's where they were heading, they tried to do the merger with Frontier. That didn't work out. It felt like they were trying to do, anything. To merge with another company and now they're moving towards a premium airline. So one thing that I'm really interested to see, they are redesigning their loyalty program and entering into alliances with other airline carriers.
So I'm really curious to see how this pans out. but who knows? maybe I'll be a huge spirit guy moving forward. great. What do you think about this?
Grey Raines: things that seem impossible. I agree a hundred percent with you, but, it's always disappointing when you see someone that could be a disruptor could do something different within an industry and they just simply fall right in line and, what a way to be an afterthought, you know, I, constantly look for an industry that needs to be disrupted and that is the airline industry.
it's not a great experience. There's no customer focused, attention given at all. And now it's disappointing to see. I would prefer to see someone like JSX is a perfect example of someone that is really doing it a little differently and I would prefer to see a company move in that direction.
And I'm concerned that Southwest will lose the loyalty that they're, they've built, worked so hard to build and that, They'll just become another afterthought So David, your thoughts.
David Millili: exactly what you said. I mean, I think that they're going to become one of many. and Steve was saying the people who are diehard Southwest people, they are diehard Southwest people. They love the boarding process. They like not having a seat. They know how to get a Costco gift card for 500 worth of Southwest for 470.
Trust me. My wife's friend is one of these people and knows how to kind of gain that system. So I think they're going to, find themselves, like you both said, one of many and not that airline that everybody talked about as being different. 
Grey Raines: Well, as we're moving on hotels, updating designs for bleezer travelers, where do we think we're moving there? I certainly think it's a big focus for us, especially in our curated, properties that it's not just simply, a lay a normal layout. For any of our properties, it's constantly looking at our guests, seeing how they are traveling and truly knowing our guests.
I think that we're spending more and more time understanding the demographics for each of our properties and the markets they're in. And with that, it's, we're having a lot of fun Being more creative with the FF& E layouts, our lobby layouts. We're doing a independent property in Columbia, South Carolina, right now, that it's going to serve us a lot of our state house, our legislature, and just how we've laid out the lobby space and the public space and how it flows to the restaurant, but it creates a lot of intimate, environment within the public space that allows meetings to take place that.
The feedback we were given is what a lot of those politicians are looking for. We're, there to give it to them. So your thoughts, David?
David Millili: Yes, I think what I'm noticing and as I'm talking to people is that even the brands I was on a call yesterday, I won't name the brand, but they're designing hotels where they're looking at as a micro room and kind of this expanded exactly what you said. Lobby where people want to gather. They want to feel like they're not, people are working remotely now, so they want to feel this kind of sense of community.
And, yeah. From a personal experience, I was just in Amsterdam and because of the size of our group, I know people get upset. We stayed at an Airbnb, but I found myself, there was a hotel had a very good kind of cool lobby just a block away that I was going over there to kind of work, just to feel like the energy and feel people.
Moving around. So many are trying it. And I think it's a move that's going to keep going because there's so many of us that travel for work, Steve. That's
Steve Carran: I agree. I mean, I was just traveling in Orlando and obviously, had to do some work in my hotel room and things like that. And it honestly, it wasn't very comfortable. I had this little desk and I was just staring at a wall. so what, In this article, they're talking about kind of reevaluating those traditional hotel room layouts, having a workspace that's comfortable and it's not this uncomfortable chair and you got this little desk where it's, hard to move around and get work done.
but I also love that they're talking about kind of reinventing the lobby. It's not just a place where you're checking into David and Grey, you kind of both touched on this, but it's more of a sense of community, where it is encouraging people to interact with each other. David, you and I got to go to the Mining Exchange Hotel in Colorado Springs for their opening, and that's the first thing I thought of when I read this about the lobbies, because that lobby was the most Energetic lobby I have ever been in.
Like you walk into the hotel and you feel the energy of the hotel. It was not the first time I felt like that, but the one that really stood out to me and it was, it hit me in the face right when I walked in the hotel. So I love this. Bleisure travel. I'm a big fan. I, do it a lot. So, I'm, glad hotels are, finally coming around for this.
David Millili: another topic now is hotels are the riding the cruise ship wave. And we just had Scott Eddie. On the podcast, and he basically kind of, he kind of gave us the kind of what I always call Captain obvious that a cruise ship is really just a floating hotel at the end of the day. and most of the people that run are responsible for those cruise ships are a lot of like ex hoteliers and now in the cruise ship industry.
So what are your thoughts on what's going on that side of the business?
Grey Raines: Yeah. I mean, I like to see it. I like to see. us making it easier for the traveler. I mean, there, instead of always seeing someone as a competitor, or they're taking someone out of the hotel space, the reality is cruise ships aren't going anywhere, so let's embrace it. Let's build the partnership. We need it for the hospitality industry in general.
And I encourage, our folks to see, do that on our properties, but also as an industry as a whole, let's find ways to make that travel easy that whether it's the hotel pre or post stay. Be a resource, be an opportunity to create those partnerships. I like seeing it, Steve, your thoughts.
Steve Carran: Yeah, I mean, one of the stats that jumped out to me was North American cruise passenger volume jumped 18 percent last year, while revenue per available room in the U. S. for hotels flattened to 1. 8%. So, that tells me right there that people are all about cruises, and we're seeing hotels get into cruises, right?
Ritz Carlton. Launch their own cruise line. when I was in Orlando at this conference, I had the opportunity to sit at a round table with the gentleman from Virgin Cruises, and he was telling me about how they are growing, how they're expanding their fleet, how they're expanding, how many cruises they're doing a year and not only that, but how they're expanding the experiences on the cruise and I've never been on a cruise.
But he sold me and now I can't wait to go on a virgin cruise because it sounds incredible. So who knows? Maybe, I'll turn into a big cruise guy. but kind of on the other side, not cruises, not hotels. Are we going to see hotels get into private jets? Four Seasons has launched a private jet experience and it was inspired by the HBO series, The White Lotus.
they will be taking 48 guests. To eight destinations beginning in May 2026, they're going to start in Singapore, and then they're going to visit Khoi, Samui, the Maldives, Marrakech, Nevis, Mexico City, and Maui. the price tag starts at 188, 000. Grey, are, you're going to be signing up for this private jet?
Grey Raines: I might be going on the bucket list, but I'm not quite ready to sign up today. I'm not going to be on the first trip, maybe the 10th one, but I, man, you just talk about something that's awesome. And where does, where, does the variation of this flow through? I mean, again, I think that. Making travel easy, making travel unique is something that we have to do.
It can't just be offering a hotel room for the night. Those days are long gone. So how do you layer the amenities and create a different experience than anyone else? Well, let's throw a private jet in the mix. That seems like a pretty good idea. So, I think it's great. It's fun to see. And for those lucky travelers, it will be very cool.
David, your thoughts.
David Millili: Yeah, no, for a guy who's been fortunate enough to sometimes, fly international, be in the front of the plane, I can't imagine what this experience is going to be like. the only thing I really have to say is if you're listening for seasons Grey, Steve and I, know it's going to be tough, but we would volunteer to make sure that the service and the food and the drink is up to standard, so we're more than happy to do a test flight or.
whatever you need of us, you can reach us at our website, themodernhotelier. com. so with all that, we've covered a lot of great stuff. and what we'd really like to end with is, Greg, you telling us what's new with Raines, what's going on? It's 
Grey Raines: Well, we're excited. We just opened the Hilton Garden Inn in Greenville, North Carolina with the ownership group of Clarendon Properties and Co-X Holdings. just a community focused, servicing Eastern, East Carolina University. a very cool design, rooftop bar, great restaurant. We're excited when we can go into a market.
we've always been a company that's approached secondary, tertiary markets aggressively. We love to be the hotel in the market. And we have delivered that with our partners and, we're really thrilled to have that one on board. But no, it's, good to have our development pipeline full. We're busy.
We've got construction projects. We've got acquisitions, for somewhere where we thought we were not going to build any new hotels at the beginning of last year, to have a few under construction and a few more starting shortly, is extremely encouraging. So, it's busy, at Raines, we're excited about our growth.
David Millili: Well, that does it for another episode of the Modern Hotelier. This has been Hospitality Hot Topics. we are proud to be Hospitality's most engaged podcast, so whether you're watching or listening, we appreciate you and we will see you again soon. Thank you. Thanks, Greg.
Grey Raines: Thank you.