Successful hotel investment isn’t just about understanding the numbers. The best investors consider the nuance of guest experience, operational efficiency and the long-term value of flexibility.
In the latest episode of Matt Talks Hospitality, Mews CEO, Matt Welle, was joined by Joe Pettigrew, Group CCO from L+R Hotels. The two hospitality leaders explored what it takes to invest wisely in today’s market, discussing everything from choosing between franchise and management models to the untapped power of technology in transforming guest experiences.
Here are some of the highlights from their conversation.
Building the investment thesis
The approach to evaluating a hotel investment should start with a clear sense of strategic intent – an investment thesis. What are you trying to achieve with this asset? Is it to drive yield and cash flow quickly, or are you playing a long-term game with asset appreciation?
That thesis determines the location, type of asset, and whether it will be flagged under a brand or run independently, a decision that should always be grounded in financial discipline. Scrutinize projections – especially the Net Operating Income (NOI) – from every angle. Whether working with a hard brand, a soft brand, or an independent setup, data-backed performance expectations are invaluable.
Joe laid out the typical process for him and his team at L+R. First, hotel brands will present their case for flagging with them.
[They tell us] this is we how we think your property will perform, and this is a full P&L (profit and loss) that goes all the way down to the NOI. And then we would also do the same with management companies. We’ll say: if this was a franchise and we hired a third-party management company to run this, give me your best estimate at how my P&L will look when you run this hotel. And then you compare the two numbers. We would take all of those as a reference and then, given our experience of owning and managing hotels throughout our career, we would then make the best decision using those references. But ultimately, it would be our projection that we would use.
Freedom, flexibility and the tech trade-off
One of the biggest factors in the brand vs independent debate is technology. With a hard brand, the tech stack is largely non-negotiable. You’re being given a set of tools, whether you like them or not. In contrast, soft brands and independent properties typically have far more freedom to choose and customize.
Technology decisions become especially critical when the property needs to deliver a distinctive guest experience. As Joe explained, If we’re looking at an asset that really needs to deliver something truly unique and different, technology plays a much bigger role. If you were buying a hostel, we would look at a technology stack very differently to a commodity hotel in a city center or a luxury resort. Even among independents, the tech approach needs to adapt to the context.
It’s a sentiment echoed by many modern hoteliers: flexibility is increasingly viewed as a competitive advantage. Whether it’s selecting a best-in-class property management system or assembling a tailored tech stack, being able to adapt systems to a specific vision or guest demographic can be a key investment differentiator.
AI’s growing role on the frontline
When it comes to AI, many investors and operators are still testing the waters. Joe described how L+R has been experimenting primarily with large language models (LLMs) to improve reputation management and guest engagement on websites. In short, it’s helping to analyze online feedback and draft responses, and they’ve tested a chatbot that is “much better” than older versions of the technology.
While AI-powered revenue management systems are becoming more common, Joe points out that not every tool labeled ‘AI’ is genuinely intelligent. A lot of what was previously called machine learning is now rebranded as AI, which highlights the need for hoteliers and investors to look past the buzzwords.
Ironing out simple guest experience issues
Despite advances, there are still gaps in the way that so many hotels use technology – especially in areas that directly impact guest comfort and convenience. First up, the humble ironing board.
Every traveler suffers from crinkled clothing. A suit ahead of a business meeting, a dress for wedding, or even just a nice shirt to wear out. But it’s not the absence of an in-room ironing board or a steamer that bugs Joe: it’s the process of getting one.
In order for me to get that ironing board, I have to call the front desk, wait ten minutes for somebody to actually pick up the phone, and then say I need an ironing board. Then it takes half an hour or sometimes it doesn’t show up and you have to call them again. Why can’t there be something like Deliveroo for the room? Why can’t I just hit ‘I want iron and ironing board’ and it gives me instant feedback that says: We got your request, and someone is on their way.
In other words, a minor task becomes a source of stress. It’s a fixable problem, yet many hotels are still making guests wait on hold for basic requests.
Breaking the reception desk mentality
Checking in to a hotel should be personal and personable. Arrivals should be a little like visiting a distant relative: it may be a new environment, but you’re welcomed, shown around, and made to feel at home. Contrast that with today’s typical check-in: ID checks, credit card authorizations, signatures and transactional interactions.
There’s no reason this has to be the norm. The very first hotel to use Mews – The Emblem in Prague – was built without a reception desk back in 2013. Hosts with tablets welcome guests, offer water and make the arrival process feel warm and human.
The reception desk, for many hoteliers, has become more of a psychological anchor than a practical necessity. It stands in the way of hospitality, a barrier that forces guests to line up and wait to be acknowledged. With the right technology, the whole experience can be reimagined. The tools are out there, but implementing them requires a focused vision, energy, and most importantly, the freedom to execute.
This brings us back to the brand vs independent debate. In branded hotels, this kind of transformation is often impossible unless it aligns with the broader chain’s initiatives. That leaves independent hotels and forward-thinking investors as the true pioneers.
The investor’s role in driving innovation
Innovation in hospitality doesn’t just come from great ideas – it comes from people willing to take calculated risks. You need an investor willing to back an independent asset and build a differentiated tech ecosystem.
It’s a balancing act to combine operational discipline with creative boldness. But as guest expectations evolve and competition intensifies, that blend of vision and pragmatism may be the key to unlocking future value in hospitality investments.
The difference between good and great hospitality often comes down to those first moments: the arrival, the welcome, the ease of getting what you need. Technology should enable that, not get in the way.
In a world where the check-in experience can feel more like airport security than a warm welcome, perhaps the best investment strategy is simply this: bring hospitality back to the heart of the hotel.
About Mews
Mews is the leading platform for the new era of hospitality. Powering over 12,500 customers across more than 85 countries, Mews Hospitality Cloud is designed to streamline operations for modern hoteliers, transform the guest experience and create more profitable businesses. Customers include BWH Hotels, Strawberry, The Social Hub and Airelles Collection. Mews was named Best PMS (2024, 2025) and listed among the Best Places to Work in Hotel Tech (2021, 2022, 2024, 2025) by Hotel Tech Report. Mews has raised $410 million from investors including Growth Equity at Goldman Sachs Alternatives, Kinnevik and Tiger Global to transform hospitality.
www.mews.com
