Sure, it’s a tough time to be in the hotel business, but some companies, such as Dallas-based Aimbridge Hospitality, believe they’re well-positioned to ride out the storm and emerge on top. Aimbridge is a hotel hybrid that invests in most (47 of 57) of the assets it manages. And, despite the depressed hotel climate, Aimbridge is still growing: It opened six properties in the past 12 months, and three more are scheduled to open before the end of the year.

While its portfolio includes a wide range of major brands, Aimbridge has been particularly bullish on Starwood’s new Aloft Hotel brand, opening six properties with two more under development. We were able to chat recently with Aimbridge President & CEO Dave Johnson to learn the secrets of the company’s success.

How has Aimbridge been able to stay ahead of its competitors in this environment?
While the principals at most of the companies we compete with are deal guys or financial guys, my partner Les (Bentley) and I are operators at heart.

What difference does that make?
Three years ago, everyone thought they were geniuses because they were making money. We’ve been through several downturns in our careers so this time we got a jump much quicker than some of our competitors and the brands. It’s an opportunity to tighten the belt and employ the Jack Welch methodology of cutting the weakest players on your team.

What else have you done to help your properties prosper in these times?
We’re adding resources in sales and marketing with a lot of emphasis on direct sales. We also shifted some resources; for example, the one market that continues to grow is government business so we shifted resources to take advantage of that. We also locked in some base business, like airline crews and training and project business, that was too low-rated for us in the upcycle.

Where do you see opportunities in this phase of the cycle?
When I look at history, the individuals and organizations who did very well were those that built their wealth in the downturn, not in the upcycle. So we’re in the midst of raising a sponsor fund that will enable us to capitalize on the situation, although I don’t see the window of opportunity opening until sometime in 2010.

Why 2010?
I don’t believe, as some prognosticators do, that we’re going to have negative RevPAR in 2010. It will be flat to slightly up, not because things are going to get a lot better but because it was so bad this year that year-over-year comparisons will be favorable. Also, you’ll have a lot more assets that will have to be sold. Today, people still have options. They’re either praying things get better or exhausting reserves to cover debt or the bank is working with them. NOIs have been impacted dramatically and banks aren’t getting paid and there are lots of problems with CMBS. This thing is going to start to unwind and when it does, you’ll find opportunity.

As distressed properties become available, what can be Aimbridge’s role?
We like to be investors, typically minority investors with anywhere between five and 20 percent of the equity. So looking at this distress, we see an opportunity to put ourselves in line to be the solution, the acquirer of the real estate. Due diligence is great, but there is no better due diligence than in running an asset.

What does your team look for when it walks into a distressed property to assume management?
First question is will this be the team that will take us to the finish line or do we need to change certain elements of the team? The second consideration is quality of the asset and its reputation in the marketplace. Does it need capital? If it’s brand-affiliated, there’s a lot of knowledge to be learned from the brand. How does it feel about this asset? What are the quality scores? Is the relationship with the brand where it needs to be? A lot of the brands look at this as win-win. We have strong relationship with all the brands, and part of that is because my partner and I came from the brand business with Wyndham.