Armaan Patel, founder of Los Angeles-based AGA Hotels, is set to attend Hotec Operations, an annual conference presented by Questex Hospitality, the parent company of Hotel Management. At the conference—scheduled this year for June 12-15 at the JW Marriott Scottsdale Camelback Inn Resort & Spa in Scottsdale, Ariz.—buyers meet one-on-one with hospitality-focused suppliers to learn about new products and services and to keep up to date on emerging trends.
Any number of entrepreneurs have launched hotel businesses, but starting one while still in high school is decidedly less common. Patel, a second-generation hotelier, founded his company in 2019 when he was in the 10th grade at Cerritos High School in Cerritos, Calif. His idea was to solve some of the challenges branded hotels faced in Los Angeles. “A lot of people were tired of paying those high royalties,” he said. At the same time, he felt the city had a lack of “reliable” hotel brands, and began considering what a next-generation brand would look like.
As a minor, Patel was limited in what he could do in the business world. As such, he partnered with a 21-year-old cousin, Yash Desai, to handle the legalities of creating a brand from scratch. “We wanted to test it out and see how well we can do it,” Patel said. The cousins filed the necessary paperwork and trademarks and started looking for hoteliers who would accept the company's franchising model—just as the pandemic hit and kept the student home from school. "My cousin and I started by going to properties with a professional sales team to advertise our franchise day after day," he said. "After calling numerous locations, traveling across state borders, and asking for almost 250 properties, one night, my cousin and I talked to an owner on the phone about how our company could help him and his property out. The next day, we received another call from the owner: 'We have a deal.'"
They closed the deal in 2020, and after a renovation the Erth Inn by AGA officially opened in Maywood, Calif., as the company's first hotel. The property soon "broke all-time records in revenue," Patel added, which he credits, at least partially, to the company’s low royalty fees. These, depending on the room count and brand, can range from $24 to $40 per room. “It's pretty affordable,” he said, noting that he doesn’t mind keeping the rates low as the brand picks up steam.
The Power of Marketing
As a brand, AGA focuses on boutique hotels, which Patel sees a need for in the Los Angeles market. “A lot of hotels are boutique, but they need that little bit of assistance [from] the brand side,” he said. AGA can boost a hotel’s exposure via blogs, articles and social media sites like Facebook, LinkedIn and Instagram, Patel said. “A lot of hotels are missing the marketing aspect of how powerful our social media is now in this generation. I believe it's at the top of anything.” Social media is more valuable than TV commercials, he added, with so many people across multiple generations using social media every day. AGA now has 23 hotels in its portfolio and Patel is finding more assets by cold-calling hoteliers with promising properties.
Last year, Patel was named Outstanding Young Professional Hotelier of the year at the AAHOA annual convention in Baltimore, making him, at age 18, the youngest in the group's history to be awarded the honor. The Chapman University freshman recognizes the sacrifices he has made in order to achieve this level of success at such a young age. While his peers are partying, he has been focused on growing his business. “Now I'm 19 and I see the results,” he said. “It's worth it.”
Patel was interested in attending Hotec Operations after hearing about the event through the proverbial grapevine. “I’m really interested in a one-on-one meeting,” he said. “I love meeting new people and [making] new connections, which is probably the best part of hospitality.” He is especially eager to connect with hoteliers who have more experience, he added. “Usually, I'm the youngest in the room. … It's great to have other individuals mentor me and help me out and give me advice [about] what they went through.”
Hotec Operations will take place June 12-15 at the JW Marriott Scottsdale Camelback Inn Resort & Spa in Scottsdale, Ariz. Applications are open for buyers and suppliers.