Bio
Dave Pollin is the Co-Founder and Co-President of The Buccini/Pollin Group (“BPG”), coheadquartered in Washington, DC and Wilmington, DE. He also serves as Chairman of PM Hotel Group, the hotel management affiliate of BPG. Mr. Pollin leads the firms’ hotel acquisition, development and capital markets efforts.
The Buccini/Pollin Group has acquired and developed over $5 billion of properties in every real estate asset class throughout the United States since its founding in 1993. BPG is the developer, owner and operator of over 40 hotels, seven million square feet of office space, 15 major residential communities, numerous retail properties, and multiple sports/entertainment venues.
Among BPG’s affiliates, PM Hotel Group manages 50+ hotels and over $500mm of managed revenue across the United States, ranking it in the Top 20 of independent hotel management firms. BPGS Construction is based in Wilmington, Delaware and has 100 associates focused on general contracting, tenant improvements and owner representation services. BPG 360 develops and manages office projects for BPG, while Reside BPG oversees BPG’s multi-family residential efforts. The principals of BPG are also co-founders and owners of Major League Soccer’s Philadelphia Union, having developed and constructed Talen Energy Stadium, the team’s home field in Chester, Pennsylvania.
Mr. Pollin’s current affiliations include: Cornell University School of Hotel Administration’s Dean’s Advisory Board; Vice President of the Economic Club of Washington; Trustee of the Federal City Council; Trustee of The Holton Arms School in Bethesda, Maryland; Canopy by Hilton’s Owner Advisory Council; and Revere Bank’s Washington, DC Advisory Board. In years past, Mr. Pollin served on Cornell University Council; Starwood Hotels & Resorts North American Owner’s Advisory Council; Owner Advisory Council of Hilton’s Embassy Suites brand; founding board member of Monument Bank of Maryland; Co-Founder and President of the Board of Starlight Children’s Foundation MidAtlantic; and Regional Chair of the Northeast US Region of the Young Presidents Organization. Prior to co-founding The Buccini/Pollin Group and PM Hotel Group, Mr. Pollin was a consultant with Laventhol & Horwath and worked in operations with Westin and Sheraton. David Pollin graduated from Cornell University’s School of Hotel Administration.
Show Notes
Current Role
- The roles at Buccini/Pollin and PM Hotel Group [00:00:00]
Dave Pollin describes his current roles at Buccini/Pollin and PM Hotel Group, including his focus on strategy and division of responsibilities with his partners. - Dave’s time allocation and priorities [00:01:10]
Dave explains how he divides his time into different chunks, including external thinking, overseeing the board, asset management, and community involvement.
Origins & Education
- Dave’s family background and influences [00:04:27]
Dave shares the story of his grandfather’s journey from Russia to the US and the work ethic that inspired him, as well as the influence of his father and uncle in entrepreneurship. - The Formation of PM Hotel Group [00:10:35]
Dave Pollin discusses his interest in the hotel industry and his decision to attend Cornell’s hotel school.
Laventhal & Horvath
- Job Search After Graduation [00:13:46]
Dave Pollin talks about the challenges of finding a job in the hospitality industry during a tough economic environment.
Buccini/Pollin & PM Hotel Group
- Starting PM Hotel Group [00:17:25]
Dave Pollin explains how he and his partner, Rob Buccini, decided to start their own company and the process of choosing a location for their business. - The introduction of the first hotel project [00:20:51]
Dave discusses the decision to start the first hotel project in the metro area and the importance of credibility and connections to capital. - The role of community banks in new businesses [00:21:56]
Emphasizes the crucial role of community banks in supporting new businesses and entrepreneurs, highlighting the importance of character and community in addition to financial considerations. - The struggle and success of the first hotel [00:23:05]
Dave Pollin shares the challenges faced during the construction and opening of the first hotel, including doubts and financial difficulties, as well as the subsequent success of the second hotel.
Hotel Operations & Management
- The importance of employee retention and culture [00:31:15]
Retention tools, significant checks for employees, investment in culture, and the value of feeling valued. - Collaboration and competition in third-party management [00:33:41]
Collaboration between competing hotels, sharing opportunities, and maintaining a Chinese wall between ownership and operations. - The benefits and challenges of diversifying revenue [00:35:42]
Cyclical nature of the hotel industry, the importance of diversification, and the role of third-party management fees in revenue growth. - The revenue generation process [00:41:45]
Explanation of the three levels of revenue generation in hotels, including hotel sales team, banquet and catering revenue, and food and beverage outlets. - Complexity of revenue management [00:42:55]
Discussion on the complications of revenue management, including factors like demand, external events, online travel agents, and setting rates for different types of guests. - Lifestyle hotels and community engagement [00:44:03]
Exploration of the concept of lifestyle hotels and their success in engaging with the community, as well as the importance of experiential elements in attracting younger generations. - The artistic approach to managing hotels [00:53:01]
Discussion about Toby Bozzuto’s approach to bringing an artistic touch to apartment management, including original artwork and engaging hotel designers for his properties. - Engaging the sense of smell in hotels [00:53:50]
Exploration of the unique smell that hotels aim to create to make guests feel comfortable and energized.
Hotel Investment
- Decision-making process for buying and selling hotels [00:59:03]
Insights into the complex factors considered when deciding whether to buy or sell hotels, including market conditions, loan maturities, and asset reviews. - The challenge of raising capital [01:02:56]
John Coe discusses the difficulties and time-consuming nature of raising capital in real estate development.
Corten
- The origin and purpose of Corten [01:04:22]
Dave Pollin explains the idea behind Corten, a multi-asset class special situations real estate private equity fund, and its shift in focus during COVID-19. - Investment strategies and flexibility of Corten [01:07:48]
Dave discusses the investment flexibility of Corten, including acquiring distressed assets, providing capital for projects, and investing in hotels and residential multifamily properties.
Hotel Capital Markets
- The difficulty of sourcing capital for hotel development [01:13:16]
Discusses the challenges of finding institutional joint venture equity for hotel development and the shift towards alternative sources of capital. - Using TIF financing for hotel development [01:14:37]
John Coe explains the process and benefits of using Tax Increment Financing (TIF) to subsidize hotel development and generate revenue for urban markets. - The impact of labor unions on hotel development [01:16:22]
Discusses the influence of labor unions on hotel projects, including the requirement to sign a card check neutrality agreement and the potential limitations and costs associated with union involvement.
Segmentation
- The luxury and lifestyle space [01:24:30]
Discussion about the transformation of a classic hotel into a high-performing luxury and lifestyle destination, including the creation of a signature restaurant. - Focus on luxury lifestyle [01:25:31]
Exploration of the company’s emphasis on luxury and lifestyle hotels and their passion for growth in this sector.
Corporate Responsibility & Hiring
- Sustainability and corporate responsibility [01:27:19]
Explanation of the company’s commitment to sustainability, energy conservation, and corporate responsibility, including initiatives such as sustainable energy sourcing and waste reduction. - The importance of responsible hiring [01:35:07]
Dave Pollin shares a story about the consequences of not thoroughly interviewing a general manager and emphasizes the importance of allowing team members to hire their own teams.
Personal Philosophies
- Personal priorities: family, work, and giving back [01:37:00]
Dave Pollin discusses his top priorities in life, which include spending time with his family, fulfilling his responsibilities at work, and supporting causes such as education, women’s education, and Jewish causes. - Biggest wins, losses, and surprising events in Dave Pollin’s career [01:40:11]
Dave Pollin reflects on the success of his 2nd hotel deal, the challenges faced during economic downturns, and the unexpected venture into professional soccer ownership with Jay Sugarman. - The future of young people in the real estate industry [01:46:28]
John Coe discusses the various opportunities for young people in the real estate industry, including brokerage, consulting, design, and more. - The multifaceted nature of real estate [01:47:01]
Exploration of the different aspects of the real estate industry, including communication, analytics, architecture, and art. - Challenges and considerations in the real estate industry [01:47:45]
Advice for navigating the real estate industry, including the need to balance short-term decisions with long-term success and the importance of having a clear direction. - Billboard Statement:
- “Put down your phone and pay attention!”
Postscript
- Kevin Dean discusses his three takeaways
- The value of the last name (Pollin) giving him credibility in the DC marketplace to do business
- Dave Pollin starting his own business instead of joining his Father’s or Uncle’s companies and the risks he took in initiating that business
- The complexity of the hotel business with all of the revenue sources and segmentation
- Ownership of Philadelphia Union soccer team and Corten, their private equity firm investing in apartments and hotels
- We discussed the diversity of the Buccini/Pollin portfolio with hotels, private equity, office, apartments, sports businesses, parking and restaurants
