Black Briar understands that the hospitality industry is always changing and can present various challenges. Whether you are facing financial challenges, dealing with underperforming properties, or seeking to capitalize on new opportunities, their team of dedicated experts is ready to assist you at every step.

Black Briar Advisors is a uniquely positioned, full-service real estate investment company that specializes in acquiring, financing, and managing distressed hotel and resort assets. Black Briar and its principals have directly managed more than $4.5 billion in real estate transactions, overseeing the acquisition and disposition of over 100 hotel and resort assets.

The following excerpts were taken from a conversation with Stephen Nalley, the Founder and CEO of Black Briar Consulting

Q. What was the series of events that led to the founding of Black Briar Advisors?

Black Briar Advisors was founded because of various economic shocks and global crises that had a big impact on the hospitality industry, specifically on hotel and resort assets.

The terrorist attacks on September 11, 2001, devastated the travel industry. Air travel and tourism revenues dropped, affecting major U.S. cities like New York. Hotels and resorts faced low occupancy rates, including the destroyed Marriott World Trade Center. The economic downturn in 2006 and the financial crisis in 2008 further strained the hospitality industry. Luxury and business-centric hotels suffered, like the Bellagio in Las Vegas. The devastating impact of the coronavirus pandemic in 2020 led to widespread closures and significant layoffs within the travel industry. Notably, esteemed establishments like the Hilton Times Square were forced to shut down indefinitely.

We started Black Briar Advisors because we have a lot of experience owning and operating more than 100 hotels and resorts. We saw first-hand the weaknesses that these crises revealed. Our past businesses were greatly affected by the economic conditions resulting from these events, experiencing decreased values and operational interruptions. This experience provided us with unique insights into the necessity of adaptive strategies in asset management, particularly in distressed situations.

I and the other founders created Black Briar Advisors because we saw a need for experts in restructuring and repositioning struggling hotels and resorts. We wanted to use their industry experience and understanding of crisis impact to provide creative and sustainable solutions for properties affected by future economic shocks. The company specializes in improving troubled properties using new management methods, strategic changes, and sometimes reorganization to make sure they remain successful despite economic challenges.

The sequence of events influenced Black Briar Advisors to become a leading entity in hospitality asset management. We focus on recovery and strategic innovation in response to global economic challenges.

Q. How has the company grown since its inception?

Since its inception, Black Briar Advisors has grown significantly, expanding its services and client base across various regions. The company has profited from economic downturns by using effective strategies to recover properties. This includes a wide range of hotels, from luxury resorts in popular tourist spots to business hotels in city centers, each dealing with different challenges based on their market and customers.

Black Briar Advisors’ growth is also due to its proactive approach to asset management. This approach involves not only addressing current problems but also preparing properties for future success. We have diversified our strategies by including technological integration, market reanalysis, and operational efficiencies, which have been crucial in the fast-changing hospitality sector.

The company’s growth shows that we believe it is important to have specialized knowledge and a dynamic approach to managing distressed assets in the hospitality industry. Black Briar Advisors is a leading company in the sector. We are known for revitalizing properties and providing value to investors, even during tough economic times.

Q. What challenges has Black Briar Advisors faced that have shaped the company into what it is today?

Black Briar Advisors has faced many challenges that have had a big impact on its growth and have helped make it a strong company specializing in the struggling hospitality industry. The challenges have tested the company’s resilience, adaptability, and strategic approaches to managing and revitalizing distressed assets.

1. Economic Fluctuations and Market Instability: Black Briar Advisors has faced challenges due to market volatility and economic downturns. We have developed bespoke solutions to manage distressed assets in the hospitality industry. These experiences have taught us to be agile and respond quickly to protect investments and stakeholder interests

2. Operational and Strategic Challenges: We faced challenges in distressed properties, such as underperformance and outdated business models. We use our expertise and creative thinking to create specific strategies for each property, concentrating on improving operations, analyzing the market, and integrating technology.

3. Regulatory and Compliance Issues: Complying with local laws and regulations across different regions is a major challenge for firms operating internationally. We have invested in legal expertise and compliance strategies to ensure repositioning efforts are within legal frameworks, avoiding potential hurdles.
   

4. Building and Maintaining Stakeholder Trust: Trust is essential in the distressed asset industry. Black Briar Advisors successfully convinced investors to invest in troubled properties through clear communication, reporting on performance, and a proven history of success. Overcoming early skepticism was crucial to gaining support for large-scale projects.

5. Adapting to Technological Advancements: Technology change poses challenges. The company adapted to stay competitive and meet guest and investor expectations by integrating new technologies and leveraging data analytics for insights and decision-making.

These challenges have made Black Briar Advisors a resilient company that can navigate the complex hospitality industry. Growth and success show our ability to learn, refine strategies, and lead the industry.

Q. Can you discuss the remarkable range of distressed asset management services offered by Black Briar Advisors?

Black Briar Advisors offers a comprehensive suite of services focused on transforming distressed hospitality assets. Our expertise spans distressed asset management, hotel and resort management, receivership, repurposing and repositioning, development, and acquisitions. Our team’s extensive experience in owning and managing a large portfolio of hotels allows us to use a very effective approach to improving hospitality assets, making them stand out in the industry for stakeholders who want to maximize their properties’ value and performance.

For more details on their services, you can visit our website here.

Q. Can you share some client success stories?

Black Briar Advisors is very good at making struggling hospitality businesses more successful by making smart changes. This makes the businesses more valuable. In High Point, North Carolina, we bought and improved the Red Lion hotel, then refinanced it for six times the original price. The Plaza Resort & Spa in Daytona was turned from a hotel into a condo hotel through renovations, increasing its value by 400%. The Hilton Appleton in Wisconsin was transformed from a struggling property into a convention hotel with a full convention center, making it more valuable and suitable for big events. These cases show that we are experts in turning challenges into profitable opportunities by enhancing asset value and operational viability.

Q. How has your amazing team contributed to the success of Black Briar Advisors?

Black Briar Advisors’ success is mostly due to our exceptional team. The team’s expertise and dedication have been crucial in repositioning struggling hotel assets. Our skill in carrying out complex projects, such as the Red Lion High Point, Plaza Resort & Spa, and Hilton Appleton, demonstrates our strategic thinking and operational expertise. The team’s expertise in the hospitality industry helps us recognize opportunities, overcome obstacles, and greatly enhance asset value, thereby contributing to the firm’s overall success.

Q. Would you like us to highlight something important happening in your company that we may have missed asking about?

One significant development worth highlighting is the formation of Black Briar Puerto Rico, marking our strategic expansion into the Caribbean. We are committed to using regional opportunities and are skilled at improving struggling hotels in different markets. Black Briar Puerto Rico aims to replicate our successful model in this new location. We aim to renovate properties to better suit the needs of the Caribbean market and increase their economic impact.

Meet the Founder and CEO

Stephen Nalley is an American Real Estate Executive, Entrepreneur, Veteran, Author, and the Founder & CEO of Black Briar Advisors, which is a full service real estate investment company that specializes in the acquisition, repositioning, and turnaround of distressed real estate assets.

Prior to Stephen’s professional career, he served in the United States Army as a Light Infantry Squad Leader with the Army’s Elite 10th Mountain Division and the 2145th in the US Army Reserves.

Stephen earned a Bachelor of Science Degree in Healthcare Administration from the University of North Florida, a Master’s in Business Administration, and a Doctorate in Business Administration from the University of Atlanta, as well as a Law Degree from the University Of Washington School Of Law.

“Black Briar Advisors’ growth is also due to its proactive approach to asset management. This approach involves not only addressing current problems but also preparing properties for future success.”