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HEI Hotels is a hotel owner/operator whose investors are primarily university endowments. According to HEI CEO Gary Mendell, the company plans to continue with its current capital strategy and so will be looking to raise funds from its university capital base again in the future.
An investment in HEI could damage your university’s reputation. Trial transcripts from a recent court case (in which HEI was found guilty of retaliation and willfully breaking the law) air a whole lot of HEI’s dirty laundry, including statements that describe in detail how they communicate to investors, and how the larger investors hold a lot more sway than everybody else.
STAY TUNED for glimpses of the transcript that reveal a cut-throat culture in which workforces are cut to maximize profit, and even senior level executives are tossed out with the trash.
“We actually went to our largest investor and had a meeting with him for three hours going through the deal. Potentially we needed verbal approval, even though legally he didn’t have a right, to approve of us buying it.” click here to read the entire section.
“And so this is to the broad audience of all 15 investors. Again, you can see the tone of my letters. You know, one letter talked about, you know, buyer spread narrowing and we see great opportunities coming up. And then you see me in the next letter saying six to 24 month. So I’m starting to psychologically move the investors from right away to six to 24 months.” click here to read the entire section.
