Why Relationships Still Matter More Than Rates
By Mike "Woody"
Woodward
Hospitality has always been a relationship business. We say that about our guests, our associates, and our partners, but the same principle applies to the financial side of the business, too.
Whether you're talking about hotel owners and operators,
or borrowers and lenders, the strength of those relationships can determine
whether a deal thrives or stalls.
Relationships Build Alignment
When owners and operators are aligned, everyone wins.
That kind of alignment doesn't happen by accident. It comes from trust and
consistency over time.
At HVMG, we believe performance starts with partnership.
When both sides understand each other's goals, challenges, and risk tolerance,
we can make better, faster, and smarter decisions. Instead of reacting to
market changes, we can anticipate them.
That's the difference between a transactional
relationship and a true partnership. One checks boxes; the other solves
problems before they start.
The Hidden Power of Relationship Lending
The same principle holds true with lenders. In a volatile
market, relationship lending has become one of the most underrated advantages
an owner can have.
It's not just about getting the best rate. It's about
having a lender who knows your history and trusts your judgment. When that
relationship is strong, you can have real conversations about debt coverage
ratios, short-term cash flow pressure, or the timing of renovations.
Those conversations matter. A lender who knows how you
operate is much more likely to give you flexibility when you need it, which in
turn gives you the breathing room to run the business the right way: paying
vendors on time, taking care of your people, and protecting the guest
experience.
Owners who built those trusted relationships during the
good years are the ones in the best position to succeed now.
Trust Drives Performance
When there's trust, everyone's focus stays on the same
goal: maximizing asset value. Owners aren't left wondering whether their
management company is doing "enough," and operators aren't stuck waiting for
marching orders.
That shared confidence allows for a proactive strategy,
such as adjusting rate in advance of market shifts, right-sizing expenses, or
finding creative ways to steal share from the competition.
It's easy to talk about alignment, but it takes time and
integrity to build it. It also requires scale discipline. A management companyan't sustain deep, meaningful relationships with every owner while managing
hundreds of hotels. That's why HVMG has stayed intentionally sized: big enough
to have depth and resources, but small enough to know every partner personally.
The Relationship Dividend
Over time, relationships pay dividends that no algorithm
can replicate. You see it when an owner calls because they know we'll answer.
You see it when a lender extends terms because they trust how the asset is
being managed. And you see it when teams on property push harder, not because
they're told to, but because they believe in the partnership.
At the end of the day, rates, ratios, and RevPAR will
fluctuate. Relationships are what carry us through the cycles. They are the
foundation of every successful transaction, every turnaround, and every
long-term win.
In hospitality and in finance, relationships still matter
more than rates.
