This month, Spire began its newest client relationship with State Bank of Texas. This community bank with $1.25 billion in assets is family-owned and -operated, much like our agency. Which is exactly why it’s a relationship we can bank on for years to come. So, EVP of Client Service & Planning, Mike Stopper, has deposited our newest Spire on Spotify playlist, inspired by State Bank of Texas, called Vol. 14: Bank On It.
State Bank of Texas (SBT) was founded in 1987 and is one of the country’s best-performing community banks. It has carved a unique niche in the banking industry as America’s largest lender to the hospitality industry. SBT is the product and vision of Chan Patel, immigrant and famed Dallas hotelier who opened his first hotel in 1976. Since 2004, its growth has orchestrated by a team led by his son, Sushil as President, his younger son Rajan (CLO), and Janna Blackwell Hayes (CFO and COO).
Like so many other industries, the hospitality industry was greatly affected by COVID-19. But the leisure market is already rebounding, and business travel is beginning once again as trade shows begin to open up.
So, what does the hospitality industry look like? There are 54,200+ hotel properties in the U.S., generating over $194 billion a year, according to the American Hotel and Lodging Association. That accounts for over 5 million guestrooms, filled by more than 1.1 billion guests annually in the U.S.
The average room rate is $120.01. Hotel occupancy in the U.S. for 2021 is expected to average 52.5%, an increase of only 8.5 points from 2020. This would bring room revenue in 2021 to just 85% of 2019’s total.
According to IBISWorld, the states with the highest number of hotel and motel businesses in the U.S. are California (5,735), Texas (5,259), and Florida (3,388). The number of businesses in the hotel and motel industry in the U.S. has grown 0.1% per year on average over the five years between 2016 to 2021.
Hotels support millions of jobs across the country and are central to getting our economy back on track. Prior to the pandemic, hotels supported one in 25 American jobs—2.3 million direct hotel operations jobs and 8.3 million hotel-supported in total—and contribute $660 billion to U.S. GDP.
Hotels will add 200,000 direct hotel operations jobs in 2021, but will remain nearly 500,000 jobs below the industry’s pre-pandemic employment level of 2.3 million employees. The highest costs for business in the hotel and motel industry in the U.S. as a percentage of revenue are wages (32.3%), purchases (21.4%), and rent & utilities (1.9%).
As our homage to hospitality continues, let’s check in with Mike Stopper’s new Spire on Spotify playlist!
Stopper, what is the name of your album?
Spire’s newest playlist is called Vol. 14: Bank On It. We’re incredibly excited about working with State Bank of Texas. They’ve been a family-run financial institution that countless hospitality lenders have turned to for nearly four decades. When the bank is funding hotels, they are financing the American Dream. When you look in the dictionary, “bank on” means “something or someone you can rely on.” In this case, I believe the term pertains to both our lender and borrower.
How would you describe this mix?
Much like how hotels come in all shapes and sizes, this mix is similar. It’s a well-rounded playlist of classic rock, metal, hip-hop, funk, country, and R&B that all work together.
What was the inspiration behind it?
Each of the songs has to do with money or hotels. It’s pretty easy to come up with a list of songs about money. But songs about hotels are a little more difficult. Sure, we can quickly come up with “Hotel California” by the Eagles. But when you dig a little deeper, there are some great tracks with “hotel” in the title, or the songs about famous hotels, like “Copacabana” by Barry Manilow.
What is your favorite song, and why?
It would have to be “Moneytalk” by the metal band AC/DC. It opens with classic AC/DC guitar, then leads into the catchy chorus, “Come on, come on, love me for the money. Come on, come on, listen to the moneytalk.” The song was originally released in September 1990 on the album The Razors Edge. It is the band’s highest charting single to date in the U.S., peaking at #23 on the Billboard Hot 100.
If your playlist was a brand, what would it be and why?
Frette, a circa-1860 Italian company that has supplied linens to everyone from the Italian royal family to nearly every luxury hotel around the world, is seen by many as the finest hotel fabric brand in the world. Nothing feels more luxurious than staying at a hotel with freshly pressed linens on a big, comfy bed.
Any specific memory that comes to mind when you listen?
Growing up in the late 70s and early 80s, we would periodically stay at a Holiday Inn Holidome during our family road trips. These family-friendly hotels feature an enormous climate-controlled lobby that housed tiki bars, shuffleboard, miniature golf, and some of the country’s first indoor swimming pools. They were truly magical at the time.
What makes your playlist unique?
State Bank of Texas has carved out a very unique space in banking by specializing in hospitality lending. Likewise, the combination of “money” and “hotel” songs are pretty unique in how well they work together. It’s cool to have a mix of everything from Elvis Presley to Pitbull and Steve Miller Band to The Rolling Stones.
Thanks, Stopper, for your hospitality and for banking this newest playlist. Stay tuned to the Spire Blog and Spotify Channel for the release of our newest album soon.