Academic Roots, Hospitality Heights - Gary Brandeis - Defining Hospitality
"If we don't make a profit and we don't invest well, our ability to provide a good experience for our guests is significantly hindered."
Audio Links:
Spotify: https://open.spotify.com/show/0A2XOJvb6mGqEPYJ5bilPX
Apple Podcasts: https://podcasts.apple.com/us/podcast/defining-hospitality-podcast/id1573596386
Gary Brandeis, CEO of Scholar Hotels, joins Dan Ryan to talk about a strategy most hoteliers never even consider: betting everything on college towns. Gary explains why a large public university like Penn State makes for one of the most stable demand drivers in hospitality, and how his company has grown to nearly 1,000 rooms in State College alone. The conversation dives into his real estate investor first, hospitality operator second philosophy, the wild 16 month renovation of the historic Nittany Lion Inn, and his new Regulation A offering that lets everyday fans, not just accredited investors, own a piece of the hotels they love to visit. It is a masterclass in finding your niche, going deep instead of wide, and turning community passion into capital.
Takeaways:
Gary treats his company as a real estate investment firm first and a hospitality company second. He believes if you get the real estate deal right, everything downstream, from staffing to guest experience, gets easier to execute well.
University markets are busy far beyond football weekends. Penn State alone drives demand nearly 11 months a year through move ins, arts festivals, high school campus tours, and the school’s academic calendar.
Gary’s thesis is that income backed by a stable public university deserves a lower cap rate than income from typical hospitality demand drivers. Predictability, not just profitability, is what makes an asset more valuable.
Choosing the right design partner can define a project’s success. Gary credits his relationship with architect Craig Kolatian, someone willing to design to budget and hold him accountable, as central to the Nittany Lion Inn’s transformation.
Regulation A offerings let companies raise capital from non-accredited investors, not just the wealthy few. Gary sees it as a way to let passionate fans of a university actually own a piece of the hotels they already love to stay in.
"If we don't make a profit and we don't invest well, our ability to provide a good experience for our guests is significantly hindered." - Gary Brandeis
Reach out to Dan on LinkedIn or hit reply on the Substack to share what you’re working on.
Impact estimates vary by project. For the most up-to-date figures, please refer to the transcript
Connect with Gary:
Guest’s LinkedIn: https://www.linkedin.com/in/garybrandeis/
Guests Website: https://www.scholarhh.com/
🏨✨ Defining Hospitality is Sponsored by BERMANFALK
Check out their impact page! 🌍🌱 https://www.bermanfalk.com/impact/