Some companies describe their approach and work environment as a “family,” but Tulsa, Okla.-based Pete and Tina Patel live it in real time, putting their values and professional experience into practice as the founders of Promise Hotels, a privately owned hotel development and hospitality management company. One could argue they are a match made in heaven, with Promise Hotels entering its 28th year, carved from intuition and business smarts.
“Pete and I have a bit of a whirlwind romance story,” Tina recalled. “We met at a wedding, and even though we didn't know each other well, there was an instant connection. After a few days of phone calls, Pete came to visit, and that very night, he proposed. I said yes! We were engaged within a week and married a year and a half later.”
“Funny enough, neither of us initially planned to be in the hotel business,” Pete admitted. “Both of our families were involved in hospitality after immigrating to the U.S., so we both grew up working in hotels. Tina even remembers saying as a teenager that she’d never work in a hotel or marry anyone in the industry–talk about irony.”
Ultimately, it was a natural fit. Pete and Tina realized their skills complemented each other perfectly. Tina excels with the financial and banking side, while Pete shines in operations and development. “We decided to combine our strengths and build something together,” Tina continued. “Our shared drive comes from our childhood experiences and a desire to create generational wealth for our family. We both understand the value of hard work and are committed to building a lasting legacy.”
The couple started their professional family with a Best Western in Sand Springs in 1997 which has since expanded into a firm offering management services and investment opportunities in the mid-scale market. Today, Promise Hotels counts 10 properties as well as solid relationships with franchise brands including Hilton, Hyatt Hotels, Intercontinental Hotels Group and Wyndham Worldwide.
“We're all about community and believe in actively supporting the areas where we operate,” said Tina, whose family immigrated from the U.K. and set down roots in Sedalia, Mo. in the late 70s. Around that time, Pete’s family came from India and established themselves in El Reno, Okla. Both credit those communities for being welcoming and enabling them to establish themselves as hotel owners and managers.
Community and Industry
“Whether it's the Chamber of Commerce, the CVB, hotel associations, or local non-profits, we're involved,” said Pete. “Building those relationships is key to our success. We believe in the power of personal connections. People want to do business with those they know and trust. Our focus is on building those relationships within the community and the industry. It’s important to have a network of colleagues where you can discuss industry issues and learn from each other.”
While the couple sees the Promise commitment to the communities they serve as the backbone of the company, Tina and Pete agree that their compatible work and communication styles have enabled them to build out their company and keep business operations running smoothly. Pete added that this spirit of trust and problem solving in their personal and professional dealings extends to the investors, employees and customers.
“If you take care of those three groups, everything else falls into place,” Pete continued. “The most rewarding part of our work is seeing our employees grow and advance within the company. We've had team members who started in housekeeping and are now area managers. We have another team member that lives in Texas but drives to Tulsa to work for us every other week. We want to continue to provide opportunities for our staff to develop and succeed; it is what truly motivates us.”
The Patels see the new presidential administration as “pro-business,” leading to the start of a productive period where business travel will pick up and labor issues and regulatory pressures affecting the hospitality businesses in the American heartland will improve. Although some worries about labor and immigration may surface among Hispanic employees with the administration, they stress that management has been proactive in allaying their concerns.
As the economy changes, they believe their Tulsa home base is an advantage as the costs of doing business and utilities are much lower. However, as average daily rates are somewhat lower compared to the rest of the country, they are turning their attention to increasing their margins even as the hospitality industry is facing significant challenges, particularly shrinking margins due to increased insurance rates (10 to 100 percent), labor and supply costs.
“If it's costing us more to do business, we have to be able to pass it on to the consumer but provide value so the consumer will be able to say he or she is willing to pay a little more for a room in Tulsa or Oklahoma City than last year,” said Pete, identifying shrinking margins as a primary issue for Promise Hotels. He affirms his goal for the early part of 2025 is to put room rates to be on a par with other parts of the U.S. while exploring ways to keep expenses under control to improve overall margins. “Companies are revisiting cost-saving measures and revenue management strategies, including adjusting menu prices in response to market conditions, such as the recent egg shortage.”
“There's no magic pill, but we are finding savings,” said Tina confidently, acknowledging that room rates in Oklahoma City and Tulsa are among the lowest in the country. “You keep turning every rock (to see what’s there). If it’s pennies, they can turn into dollars. That's what we’re seeing in our company, as we have many times in 2023 and 2024. When times are good, one figures out how to be (less) conservative on spending, and now, as we did after COVID, we are really honing in on our costs in every single area to figure out the margins, and at the same time, how and when we can increase our rates."
Promise Hotels
Headquarters: Tulsa, Okla.
Structure: Hotel owner, operator and developer
Portfolio: 7
Website: www.promisehotels.com
This article was originally published in the February/March edition of Hotel Management magazine. Subscribe here.