Episode Transcript
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(00:00):
iHeartMedia presents CEOs you should know withme today is Gray Rains. He's CEO
of Rains Company. Welcome to CEOsyou should know. Greg glad to be
here today. Thank you for havingme. So let's start out by explaining
to people who don't know what isRain's company. The Rains Company is a
fully integrated development, management and investmentcompany based in Florence, South Carolina,
(00:22):
with an office here in Mount Pleasant, South Carolina. And specifically you do
hospitality right absolutely. We have fiftyseven hotel properties throughout the Southeast, seven
here in the Charleston market. Weprovide management services through two arms of the
management service. We have core brandswith brands such as Hilton, Garden End
Courtyard, Spring Hill Residence in andthen Woven by Rains, which is our
(00:47):
focused group on independent luxury and softbranded assets such as the Foundry Hotel in
Asheville, North Carolina, or HotelFlorence and Florence, South Carolina. Along
with that, we have a fullservice development arm that show really from sticks
to bricks we can identify sites todelivering a finished hospitality project. We have
(01:08):
several of those active currently throughout theSoutheast. And then our investment arm.
It structures the individual investments for eachproject and we raise the capital that's needed
to make these projects successful. Now, over the last years, so you've
effectively doubled the size of your holdingsafter merging with HP Hotels. So please
(01:29):
tell us how that's changed the waythat you do business. How has that
affected your business? It's been fantastic. You know, the acquisition of HP
Hotels was not just an acquisition ofcontracts, but it was bringing on just
top quality people. We acquired someof the best people in hospitality. HP
had always had a focused on focuson third party management, which provides services
(01:51):
to other owners in the industry thatneed help or expertise in operating their hotel
assets. So with that position,it's an enabled us to double in size
and then to continue to find theright selective group of partners to work with
to grow our company and offer ourservices for other CEOs and entrepreneurs who are
(02:14):
listening and trying to scale up theirbusiness. What are some of the challenges
that you've faced in upscaling. Yeah, I mean I think that it's making
sure that the team, it's communication. Really, I mean, we've had
a concerted effort this year and ourcommunication top to bottom. I think that
as you grow in the number ofpeople and bringing those teams together, you've
(02:36):
got to make sure you're communicating.You've got to make sure that everybody understands
the finished goal. You start withthe end and then work backwards. So
for us, it's about bringing together, you know, a group of twenty
folks into an existing organization and makingthat as seamless as possible. Now,
we were talking off the air thatyou know, some of the challenges that
(02:58):
you've faced from starting with COVID,and I'm sure there were challenges before that,
but most recently COVID and then nowwith inflation hitting hard, unrest in
the Middle East, and many otherfactors affecting consumer spending, what's the short
term forecast for the hospitality industry We'vegot, you know, we've had a
great start to the year. Ayear election year is always up and down
(03:22):
historically, so we've prepared for that. But you know, we have seen
a great start to the year,especially here in the Charleston market. We've
seen a lot of folks here totravel, a lot of tourism, and
we are excited about this year.It's just going to certainly be interesting to
see how the election plate pans outand where we will find those touch points
(03:44):
to be successful. Now, inthe hospitality industry, how much of it
is affected by the consumers discretionary spending, and how much is affected by business
spending. So it's really market bymarket. I mean the markets that are
heavy leisure we certainly have to payattention to, you know, savings going
down and credit card usage going up. But you know, having a great
market with a strong CVB that's veryactive, and especially the Charleston market,
(04:11):
it's just phenomenal. I mean,tourism just continues to grow year every year.
We do our best to capture asmuch of it as possible. Yeah,
now you're you're headquartered in Florence,but you've just opened a new regional
office here in Mount Pleasant. Whatwas the thinking behind opening that Maultpleasant location.
My counterpart, the other managing partnerin the company, David Tart,
has been a long time resident ofMount Pleasant, been in the Charleston area
(04:33):
for well over twenty five years,and we've had a presence here really since
twenty thirteen. It was just niceto make it official with the building and
constructing and development of a new officeright here at the base of the bridge
of Mount Pleasant. Sure. Doyou have any other plans in the works
to expand further Absolutely, Yeah,we're working on that every day. We
(04:54):
have multiple development projects underway. We'reunderwriting management opportunities throughout the Southeast. One
that we're really excited about is partneringwith the Shepherd Hotel Group to deliver the
second Shepherd in conjunction with Carolina Lifein Columbia, South Carolina, which is
just an amazing mission. The Lifeprogram at Carolina to help students with special
(05:16):
needs in down syndrome, to beable to give them a place to grow
and build a career is just goingto be fantastic. So we're excited,
particularly excited about that project. Now, you've support many charitable organizations through many
different aspects, So talk about yourcharitable work a little bit. Yeah,
you know, that's one where weare very active in the communities that we're
(05:41):
involved in. We want to bea great corporate citizen. We're very active
with several different charities and it meansa lot to us. I mean,
when you can change the communities you'rein, change the perspective for any potential
or future associates. It means theworld. I mean, you've got to
be given back to continue to grow. So let's talk about you personally a
(06:02):
little bit gray. What motivated youto get into the hospitality industry to begin
with? So, I'm fourth generation. It's a family business. Just to
watch my it started with my greatgrandmother and to watch my father, my
grandfather grow the business, it inspiredme to be a part of it.
And I love the hospitality business.It's people first, and it's experienced driven,
(06:27):
and it's given me a place tobe creative but also make a living.
So I'm very fortunate, and astough as it's been, getting through
the pandemic and challenges that we face, it's still something I'm excited to wake
up every day to do. Whatwould you say the biggest challenges you face
today are, you know, inflation, I think that that's really the biggest
(06:48):
thing, you know, rapid wagegrowth, you know, dealing with municipalities
that don't necessarily support development or understanddevelopment. It's certainly construction costs part of
our part of our day to daygrind, making sure the costs come in
(07:08):
and that the projects are worth doing. Yeah, and you know, and
It's interesting that you brought up zoningand local governments because the country's pretty divided
right now, you know, amongthe political lines. But something I think
both signs agree on is there's azoning problem not only that affects hospitality,
(07:29):
but it affects housing in all differentaspects of local economies, and it seems
like the local governments aren't in tunewith how much that these zoning laws affect
their local economy. As I tellpeople all the time, elections have consequences,
and we have to pay very closeattention to who's being elected and what
they really stand for. I mean, especially especially in our local communities.
(07:54):
We've got to know that we've gotpeople that have a long term focus on
the health of the communities that we'rein. Yeah. Now, do you
find that not only here in Charlestonbut elsewhere that there's a pushback when you're
trying to develop a new hotel.There is, I mean, you know,
and unfortunately sometimes you have to payfor past sins of other developers.
So it's an education piece and it'stime that we're willing to spend with any
(08:18):
of the town councils or the municipalitiesto Educate them on the quality of projects
that we bring to any community,and then the impact that has, whether
that's property taxes, our jobs,or any of the positives that we see
with our hospitality projects. If there'sany influencers listening, council members or you
know, anybody that has an influenceon local government, So what's the main
(08:41):
message you would like to convey tothem today if they're listening about the impact
on communities of your business, putnational politics aside. Don't let Washington push
to impact your community. I thinkso many times people get caught up in
national initiatives that that really, whenit filters down, have very little impact
(09:01):
to your town councils, to yourcity councils. Really focus on the problems
and the solutions for your community.Change your community, you can change the
world. Well that's great advice.What advice do you have for other entrepreneurs
who want to start their own company. I think the biggest thing is just,
you know, look for those creativeopportunities, find a path. And
(09:24):
I think so many times everybody wantsto be all things at all times,
and I think instead focus on onething, be great at it, and
just continue to do something that you'repassionate about. Now. Another thing that
we had talked about off the airwas, you know, there was a
time right after the pandemic where therewas a shortage of workers in this country,
(09:45):
and I mean it was there wasa serious shortage of workers in the
country. You said that you've seenimprovement in that. Are there any available
opportunities in the Rains company right nowfor people that would like to get into
the hospitality industry? Absolutely, rainscodedot com we are looking for the best
in the brightest every day. Wehave multiple career path opportunities, not just
(10:09):
at the property level, but alsowith our corporate team. And that's one
thing we love about hospitality. There'sso many different avenues, whether that's operations,
sales, revenue management, accounting,there's just a lot of opportunities within
the hospitality world and we like towe're always looking for the best in the
brightest. Well. As you said, I mean, there's so many different
(10:30):
opportunities and so many different aspects toyour business. If you could name one,
what would your favorite aspect be?And I don't mean to put you
on the spot here, but maybeyou do have a favorite, maybe you
don't. I'm a people person,So I love dealing with the folks that
whether that's our guest or our associates. I like to be out about with
our folks and driving just the bestexperience at any of our hotel projects.
(10:54):
Now, what would you like peopleto know about the Rains Company that we
haven't necessarily discussed already. You knowthat we're community minded, community focus.
Sometimes we get attention to how muchwe've grown are the landscape that we cover,
but the impact and the focus wehave on each of our communities is
very important to us. Well,absolutely well. I certainly appreciate your time
(11:16):
today, Gray, and thanks fortaking the time to come in and discuss
the Rains Company and explain the importantwork that you're doing not only here in
the Low Country and throughout South Carolina, but throughout the United States. Thank
you so much, Thank you forhaving me. Yeah, Gray Rain,
CEO of the Rains Company. Iappreciate you time, sir, and have
(11:39):
a wonderful day you too. Thankyou. You've been listening to iHeart Radio
CEOs you should know heard every Tuesdayand Saturday morning right here on this iHeart
Radio station.
iHeartMedia presents CEOs you should know withme today is Gray Rains. He's CEO
of Rains Company. Welcome to CEOsyou should know. Greg glad to be
here today. Thank you for havingme. So let's start out by explaining
to people who don't know what isRain's company. The Rains Company is a
fully integrated development, management and investmentcompany based in Florence, South Carolina,
(00:22):
with an office here in Mount Pleasant, South Carolina. And specifically you do
hospitality right absolutely. We have fiftyseven hotel properties throughout the Southeast, seven
here in the Charleston market. Weprovide management services through two arms of the
management service. We have core brandswith brands such as Hilton, Garden End
Courtyard, Spring Hill Residence in andthen Woven by Rains, which is our
(00:47):
focused group on independent luxury and softbranded assets such as the Foundry Hotel in
Asheville, North Carolina, or HotelFlorence and Florence, South Carolina. Along
with that, we have a fullservice development arm that show really from sticks
to bricks we can identify sites todelivering a finished hospitality project. We have
(01:08):
several of those active currently throughout theSoutheast. And then our investment arm.
It structures the individual investments for eachproject and we raise the capital that's needed
to make these projects successful. Now, over the last years, so you've
effectively doubled the size of your holdingsafter merging with HP Hotels. So please
(01:29):
tell us how that's changed the waythat you do business. How has that
affected your business? It's been fantastic. You know, the acquisition of HP
Hotels was not just an acquisition ofcontracts, but it was bringing on just
top quality people. We acquired someof the best people in hospitality. HP
had always had a focused on focuson third party management, which provides services
(01:51):
to other owners in the industry thatneed help or expertise in operating their hotel
assets. So with that position,it's an enabled us to double in size
and then to continue to find theright selective group of partners to work with
to grow our company and offer ourservices for other CEOs and entrepreneurs who are
(02:14):
listening and trying to scale up theirbusiness. What are some of the challenges
that you've faced in upscaling. Yeah, I mean I think that it's making
sure that the team, it's communication. Really, I mean, we've had
a concerted effort this year and ourcommunication top to bottom. I think that
as you grow in the number ofpeople and bringing those teams together, you've
(02:36):
got to make sure you're communicating.You've got to make sure that everybody understands
the finished goal. You start withthe end and then work backwards. So
for us, it's about bringing together, you know, a group of twenty
folks into an existing organization and makingthat as seamless as possible. Now,
we were talking off the air thatyou know, some of the challenges that
(02:58):
you've faced from starting with COVID,and I'm sure there were challenges before that,
but most recently COVID and then nowwith inflation hitting hard, unrest in
the Middle East, and many otherfactors affecting consumer spending, what's the short
term forecast for the hospitality industry We'vegot, you know, we've had a
great start to the year. Ayear election year is always up and down
(03:22):
historically, so we've prepared for that. But you know, we have seen
a great start to the year,especially here in the Charleston market. We've
seen a lot of folks here totravel, a lot of tourism, and
we are excited about this year.It's just going to certainly be interesting to
see how the election plate pans outand where we will find those touch points
(03:44):
to be successful. Now, inthe hospitality industry, how much of it
is affected by the consumers discretionary spending, and how much is affected by business
spending. So it's really market bymarket. I mean the markets that are
heavy leisure we certainly have to payattention to, you know, savings going
down and credit card usage going up. But you know, having a great
market with a strong CVB that's veryactive, and especially the Charleston market,
(04:11):
it's just phenomenal. I mean,tourism just continues to grow year every year.
We do our best to capture asmuch of it as possible. Yeah,
now you're you're headquartered in Florence,but you've just opened a new regional
office here in Mount Pleasant. Whatwas the thinking behind opening that Maultpleasant location.
My counterpart, the other managing partnerin the company, David Tart,
has been a long time resident ofMount Pleasant, been in the Charleston area
(04:33):
for well over twenty five years,and we've had a presence here really since
twenty thirteen. It was just niceto make it official with the building and
constructing and development of a new officeright here at the base of the bridge
of Mount Pleasant. Sure. Doyou have any other plans in the works
to expand further Absolutely, Yeah,we're working on that every day. We
(04:54):
have multiple development projects underway. We'reunderwriting management opportunities throughout the Southeast. One
that we're really excited about is partneringwith the Shepherd Hotel Group to deliver the
second Shepherd in conjunction with Carolina Lifein Columbia, South Carolina, which is
just an amazing mission. The Lifeprogram at Carolina to help students with special
(05:16):
needs in down syndrome, to beable to give them a place to grow
and build a career is just goingto be fantastic. So we're excited,
particularly excited about that project. Now, you've support many charitable organizations through many
different aspects, So talk about yourcharitable work a little bit. Yeah,
you know, that's one where weare very active in the communities that we're
(05:41):
involved in. We want to bea great corporate citizen. We're very active
with several different charities and it meansa lot to us. I mean,
when you can change the communities you'rein, change the perspective for any potential
or future associates. It means theworld. I mean, you've got to
be given back to continue to grow. So let's talk about you personally a
(06:02):
little bit gray. What motivated youto get into the hospitality industry to begin
with? So, I'm fourth generation. It's a family business. Just to
watch my it started with my greatgrandmother and to watch my father, my
grandfather grow the business, it inspiredme to be a part of it.
And I love the hospitality business.It's people first, and it's experienced driven,
(06:27):
and it's given me a place tobe creative but also make a living.
So I'm very fortunate, and astough as it's been, getting through
the pandemic and challenges that we face, it's still something I'm excited to wake
up every day to do. Whatwould you say the biggest challenges you face
today are, you know, inflation, I think that that's really the biggest
(06:48):
thing, you know, rapid wagegrowth, you know, dealing with municipalities
that don't necessarily support development or understanddevelopment. It's certainly construction costs part of
our part of our day to daygrind, making sure the costs come in
(07:08):
and that the projects are worth doing. Yeah, and you know, and
It's interesting that you brought up zoningand local governments because the country's pretty divided
right now, you know, amongthe political lines. But something I think
both signs agree on is there's azoning problem not only that affects hospitality,
(07:29):
but it affects housing in all differentaspects of local economies, and it seems
like the local governments aren't in tunewith how much that these zoning laws affect
their local economy. As I tellpeople all the time, elections have consequences,
and we have to pay very closeattention to who's being elected and what
they really stand for. I mean, especially especially in our local communities.
(07:54):
We've got to know that we've gotpeople that have a long term focus on
the health of the communities that we'rein. Yeah. Now, do you
find that not only here in Charlestonbut elsewhere that there's a pushback when you're
trying to develop a new hotel.There is, I mean, you know,
and unfortunately sometimes you have to payfor past sins of other developers.
So it's an education piece and it'stime that we're willing to spend with any
(08:18):
of the town councils or the municipalitiesto Educate them on the quality of projects
that we bring to any community,and then the impact that has, whether
that's property taxes, our jobs,or any of the positives that we see
with our hospitality projects. If there'sany influencers listening, council members or you
know, anybody that has an influenceon local government, So what's the main
(08:41):
message you would like to convey tothem today if they're listening about the impact
on communities of your business, putnational politics aside. Don't let Washington push
to impact your community. I thinkso many times people get caught up in
national initiatives that that really, whenit filters down, have very little impact
(09:01):
to your town councils, to yourcity councils. Really focus on the problems
and the solutions for your community.Change your community, you can change the
world. Well that's great advice.What advice do you have for other entrepreneurs
who want to start their own company. I think the biggest thing is just,
you know, look for those creativeopportunities, find a path. And
(09:24):
I think so many times everybody wantsto be all things at all times,
and I think instead focus on onething, be great at it, and
just continue to do something that you'repassionate about. Now. Another thing that
we had talked about off the airwas, you know, there was a
time right after the pandemic where therewas a shortage of workers in this country,
(09:45):
and I mean it was there wasa serious shortage of workers in the
country. You said that you've seenimprovement in that. Are there any available
opportunities in the Rains company right nowfor people that would like to get into
the hospitality industry? Absolutely, rainscodedot com we are looking for the best
in the brightest every day. Wehave multiple career path opportunities, not just
(10:09):
at the property level, but alsowith our corporate team. And that's one
thing we love about hospitality. There'sso many different avenues, whether that's operations,
sales, revenue management, accounting,there's just a lot of opportunities within
the hospitality world and we like towe're always looking for the best in the
brightest. Well. As you said, I mean, there's so many different
(10:30):
opportunities and so many different aspects toyour business. If you could name one,
what would your favorite aspect be?And I don't mean to put you
on the spot here, but maybeyou do have a favorite, maybe you
don't. I'm a people person,So I love dealing with the folks that
whether that's our guest or our associates. I like to be out about with
our folks and driving just the bestexperience at any of our hotel projects.
(10:54):
Now, what would you like peopleto know about the Rains Company that we
haven't necessarily discussed already. You knowthat we're community minded, community focus.
Sometimes we get attention to how muchwe've grown are the landscape that we cover,
but the impact and the focus wehave on each of our communities is
very important to us. Well,absolutely well. I certainly appreciate your time
(11:16):
today, Gray, and thanks fortaking the time to come in and discuss
the Rains Company and explain the importantwork that you're doing not only here in
the Low Country and throughout South Carolina, but throughout the United States. Thank
you so much, Thank you forhaving me. Yeah, Gray Rain,
CEO of the Rains Company. Iappreciate you time, sir, and have
(11:39):
a wonderful day you too. Thankyou. You've been listening to iHeart Radio
CEOs you should know heard every Tuesdayand Saturday morning right here on this iHeart
Radio station.
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