Mullen’s Button talks investment strategy, personal growth

NEWTOWN SQUARE, Pennsylvania – In 2021, Hyatt Hotels Corp. acquired Apple Leisure Group (ALG) for $2.7 billion in cash from affiliates of KKR and KSL Capital Partners. For Hyatt, the deal represented an asset-light way to double its global resorts footprint.

It also meant a new chapter for Mullen Real Estate Capital, which asset manages roughly 20 properties, including multiples under ALG's Dreams and Secrets brands, among others.

Here, Katherine Button, Mullen’s vice president, Asset Management and Investments, talks with Hotel Investment Today about what’s ahead for the Mullen investment and management businesses – and also what it’s like to be one of the few women executives in the room at investment conferences.

Hotel Investment Today (HIT): How would you describe Mullen's relationship with Apple Leisure Group since Hyatt acquired it?

Katherine Button (KB): We have an excellent and longstanding relationship with ALG, and we are excited to see them continue to evolve under Hyatt’s skillful leadership. Of course, we look forward to continuing to grow the relationship with ALG/Hyatt, but we also partner with other brands where their platforms provide a better fit for an asset, such as our relationship with Accor for our Carton House, a Fairmont hotel just outside of Dublin, Ireland.

Mullen Real Estate Capital's Secrets Cap Cana in the Dominican Republic

HIT: How active is M&A in your space (luxury resorts in Latin America, the Caribbean and Mexico)?

KB: The region’s strong cash flow in 2021 and 2022 caught the eye of many investment groups. However, traditional geopolitical investment risks and rising interest rates coupled with increased base costs such as utilities, labor, insurance and shipping for supplies, have slowed capital investment. Many investors struggle to differentiate among the various islands, which can make picking a great opportunity more complicated.

HIT: What is the size of Mullen’s pipeline and how active is its deal pace?

KB: We have multiple great opportunities in the pipeline in a variety of markets, and the pace is quite good given the various sources of opportunities that come to us. We’re fortunate to have the Mullen family’s reputation and many years of relationships in our target markets that give us access to both on-market and off-market opportunities.

HIT: What are your expectations for second half of the year? How aggressive do you expect to be on acquisitions?

KB: We expect to invest in one or two large resorts prior to the end of 2023 with various others in 2024 and beyond.

HIT: Will Mullen be moving into other segments of the business? If so, which ones and why?

KB: For now, we’re focusing on what we know and do best: luxury all-inclusive investments in the Caribbean, Latin America and Mexico.

HIT: How will Mullen be capitalizing its growth?

KB: We currently have a private equity platform which will be our main vehicle for placement in 2023 and beyond.

HIT: What are the company’s top priorities today?

KB: We are actively, but selectively, placing capital in opportunities that fit our target profile, while also proactively asset managing our sizeable portfolio. We hired a few key members to our team recently and will continue to scale our team as we acquire more assets in the coming years. Within the portfolio, we’re focused on a mix of commercial strategies to drive the top line, but also have a special focus on cost controls given what has happened to labor, supply and utility expenses.

HIT: Let’s wrap up by talking a bit about your background, including how you landed at Mullen.

KB: I’ve been incredibly fortunate in my career to work with some of the best and brightest in the business, starting with the PricewaterhouseCoopers Hospitality & Leisure team nearly 20 years ago. From there, I dove headfirst into hotel asset management and investment roles with some of the most well-respected companies in the business, including Crow Holdings, Sage Hospitality and Hilton.

Changing and improving also comes from within – we need to have the confidence to own our seat at the table, but also remain humble and ready to learn.

Katherine Button

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In 2017, I launched my own consulting company based in Puerto Rico, where I gained invaluable entrepreneurship experience and fortified my Spanish language capabilities. It was this diverse skill set in asset oversight and investments that caught the attention of the Mullen family in late 2020, just as Jeff Mullen launched Mullen Real Estate Capital to oversee the family’s then-portfolio of 12 hotels and variety of other real estate holdings in the Americas, Caribbean, and Europe.

I’m a proud Michigan State alum (Go Green!) and am active on the MSU Hospitality Business Real Estate Advisory Council. I also earned my MBA from the IE Business School in Madrid, Spain.

HIT: What has your experience as a woman executive in this space been like?

KB: There are advantages and disadvantages to being a woman executive in real estate investments. On one hand, it’s pretty easy to spot me at the investment conferences, though I wish that wasn’t so much the case. As I’ve grown in my career, I’ve been very fortunate to find many excellent executives – both women and men – who have been great mentors.

Changing and improving also comes from within – we need to have the confidence to own our seat at the table, but also remain humble and ready to learn. We need to take the initiative to grab a coffee with a mentor or phone an industry friend to keep the connections alive, while also remembering to recommend those from underrepresented groups the next time a recruiter friend calls with an interesting opportunity.

HIT: What advice do you have for other women trying to move into a role like yours? How well is the industry doing at created opportunities like yours for women?

KB: Always keep learning and achieving. Take on those tough tasks with vigor, and ask for the opportunities, along with feedback if you don’t get the opportunity you wanted. Not every door will open to you, but when the right one does, you have to be ready. While the industry has taken great strides to create opportunities for all, there is still progress to be made, starting from the university level.

We recognize that having diverse voices, perspectives, and experiences at the table benefits the industry as a whole. So, it’s crucial that we all take responsibility for advocating for greater representation of underrepresented groups and supporting each other’s advancement. By doing so, we together will promote an even more inclusive and equitable industry.