At an age when most budding hoteliers are gaining publicity to the business by way of lessons, internships, and summer time jobs, Armaan Patel is managing a portfolio of greater than 25 lodges within the Los Angeles space as CEO of AGA Necessities. He’s additionally rising AGA Motels—a lodge model he cofounded together with his cousin, Yash Desai, 4 years in the past, when he was solely 16.
Patel, who can be a pupil at Chapman College—primarily to please his mom—not too long ago shared with LODGING particulars of this already exceptional journey, one which started as an thought in the course of the pandemic shutdown.
From NBA Goals to Hospitality
Patel is the son of a hotelier, Nitin Patel, who constructed a Tremendous 8 the 12 months Armaan was born. Nevertheless, the youthful Patel, who had first dreamed of a profession within the NBA, stated he was neither groomed for nor gifted his personal foray into the hospitality business. “My two sisters and I didn’t work within the lodge like different youngsters of homeowners, however we did obtain informal publicity due to our household’s property and going to improvement websites with our father,” he stated. It was possible this publicity that sensitized him to the challenges confronted by many hoteliers in the course of the COVID-19 pandemic. “I noticed firsthand how the hospitality business was struggling, with many lodges shutting down or dealing with powerful instances,” he recalled. “This disaster sparked my want to create a brand new model that would breathe recent life into the sector and assist these in want.”
Launching the Model
The imaginative and prescient he shared together with his cousin and his father targeted on Gen Z vacationers searching for journey and connections by offering distinctive components to reinforce the visitor expertise. It additionally sought to lighten the load of homeowners overwhelmed by licensing charges and restrictions.
Along with a particular design, the model was initially geared to economic system properties with fewer than 100 items and included a licensing mannequin usual to work intently with hoteliers with out reducing into their income. “We cost an easy flat charge throughout most of our manufacturers, overlaying advertising and marketing, system prices, and—most significantly for franchisees—completely no hidden charges.”
Desai and Patel acquired a major quantity of assist on this endeavor, together with an expert gross sales crew and a advertising and marketing agency. Patel stated his father, too, provided priceless recommendation and helped cowl the price of securing logos, which offered authorized safety and was important for establishing the model’s identification.
The primary Erth Inn by AGA opened in 2020. Previously a Scottish Inn, it was renovated to include the AGA model design components.
Success was swift. “Inside simply three months, the lodge was breaking all-time efficiency information. That success confirmed we had a profitable technique,” stated Patel, including, “What made this journey much more exceptional was that all of it occurred whereas I used to be nonetheless in class in the course of the pandemic, attending lessons from residence.”
Planning for Extra Success
Though Patel’s unique thought was rooted within the economic system sector, the envisioned model now spans all market segments—from economic system to higher midscale to life-style lodges. “The objective is to implement distinctive components that make every property stand out in oversaturated markets. The main target isn’t simply on becoming right into a market tier however on crafting one thing distinctive that resonates with friends, making a memorable identification and lasting affect,” he defined.
Patel touched on the significance to his model of location, design, and maybe most of all, being tuned into their key demographic and able to adapt to their altering tastes. Places, he stated, are chosen based mostly on “how nicely they align with the pursuits and existence of this vibrant demographic”—that’s, younger or young-at-heart vacationers.
Patel famous that the ambiance of AGA properties will at all times try to be “full of life and welcoming, stuffed with fashionable, Instagram-worthy areas that encourage friends to chill out and join with each other.” As well as, “to remain on prime of ever-changing design preferences within the hospitality business, we’ve partnered with top-tier inside designers,” he stated.
In step with a classy and alluring ambiance are what he referred to as “choices that transcend typical lodge facilities to assist create memorable experiences” by way of onsite actions reminiscent of completely satisfied hours and engagement with native tradition, occasions, and companies.
Managing to Succeed: AGA Necessities
Though Patel is pleased with the AGA model’s differentiators, he stated it’s clear to him that nothing is extra necessary to the long-term success of a model than efficient administration. “Buying and growing a lodge are necessary steps, however with out robust administration, the complete operation can fall brief. It’s the administration that ensures clean operations and distinctive visitor experiences, and in the end drives profitability.”
It is for that reason, he maintained, that he created AGA Necessities, which manages and operates a portfolio of 25-plus lodges—all of that are completely family-owned, with no involvement from exterior buyers. Its company crew consists of greater than 18 professionals throughout key departments reminiscent of operations, improvement, human sources, and gross sales.
Seeking to the Future
Patel stated he loves enjoying golf, however is in no hurry to retire to the hyperlinks life any time quickly. “It appears my father’s early affect formed the trail I’ve adopted, and since then, my drive has solely grown stronger, fueled by the objective of mastering the intricacies of this ever-evolving business,” he stated. “What I really love concerning the hospitality business is the distinctive alternative it offers to attach with friends from all around the nation, every with their very own tales and causes for touring. There’s one thing extremely rewarding about participating with individuals, understanding their experiences, and studying what introduced them to our lodges.”
Patel, who not too long ago turned the youngest hotelier approved to handle Marriott lodges, has large plans for AGA. “Considered one of my key ambitions is to firmly set up AGA Motels as a model that embodies our core values of innovation, excellence, and visitor satisfaction. Alongside this, I’m targeted on increasing the AGA Necessities portfolio to incorporate greater than 50 lodges, not simply within the U.S. however worldwide, bringing our imaginative and prescient to a worldwide stage.”
Past enterprise progress, the 20-year-old stated he needs to encourage younger individuals like himself to counterpoint themselves and the business by contemplating careers in hospitality. “Considered one of my deepest motivations is to encourage and contain extra younger individuals within the hospitality business. Too typically, the youthful technology hesitates to pursue careers on this subject because of the apprehensions or misconceptions handed down by older generations. I wish to change that narrative to point out them that the business gives immense alternatives for creativity, management, and progress. By inspiring the youth, we are able to have a brand new wave of expertise that may take hospitality into the long run with recent views and daring concepts.”
Studying from Errors: Younger CEO Overviews A few of His Valued Classes
AGA Necessities CEO Armaan Patel has skilled a stumble or two throughout his brief however spectacular hospitality profession. Nevertheless, he claimed he values the teachings discovered: “I firmly imagine that there are not any true missteps—until you repeat them. The bottom line is to take every expertise, study from it, and make sure you don’t make the identical mistake twice.”
A few of the issues he’s discovered embody:
- The significance of doing due diligence earlier than closing the deal so there are not any surprises;
- Ensuring to have your lender in place, prepared to maneuver swiftly;
- Having a well-prepared crew in place to take over; and
- Ensuring to have a dependable administration firm in place.
“What I’ve discovered is that errors may be highly effective academics, and the important thing to long-term success on this business is embracing these classes, refining your method, and constructing a robust, succesful crew to assist each new enterprise,” he concluded.
