Jason Reader—my former COO at Remington and now COO of Davidson Hospitality—joined me for a candid, wide-ranging conversation that pulls no punches.

We cover:

  • Why Jason ultimately decided to leave Remington after my departure in Q2 2025

  • What it’s really like stepping into a COO role in the middle of one of the hardest budget seasons in recent memory

  • Why third-party hotel management is more commoditized than ever—and how great operators still differentiate

  • Jason’s leadership philosophy: hungry, humble, people-first

AI, Power, and the Future of Hospitality

I also want to share a piece of research that’s been shaping how I think about AI written by the preeminent minds in AI: Eric Schmidt (Former Google CEO); Alexandr Wang (Head of AI at Meta); Dan Hendrycks (prominent AI safety expert).

The white paper, Superintelligence Strategy, was written from a national-security lens in 2025, but its implications for business—and hospitality in particular—are profound. I’ve provided a link to the full publication which is 41 pages in total.

Here are my thoughts on “What should Hospitality take from this AI literature?”

1. Establish AI Governance Before Scaling AI

Why it matters:
The paper warns that loss of control happens gradually—not through one big mistake, but through many “reasonable” automation decisions.

Actions:

  • Create an AI Steering Committee (Ops, IT, Finance, Legal).

  • Define where AI is allowed to decide autonomously vs. where humans must approve (pricing floors, comping, labor cuts).

  • Require human-in-the-loop controls for revenue, procurement, and guest-facing decisions.

  • Maintain the ability to override or shut down AI systems quickly.

Hospitality example:
AI can recommend labor cuts—but a human must approve reductions that impact service scores or brand standards.

2. Treat Your Data Like a Strategic Asset (Not a Vendor Input)

Why it matters:
The paper emphasizes information security as a first-order risk. In hospitality, data leakage = lost advantage.

Actions:

  • Inventory all data flowing into AI tools (PMS, POS, CRM, RevPAR history, payroll).

  • Ensure contracts prohibit vendors from training models on your data.

  • Segregate owner-level data, brand data, and property-level data.

  • Use private or tenant-isolated AI environments for sensitive workflows.

Hospitality example:
Your pricing logic, labor optimization models, and procurement benchmarks should not become your competitor’s advantage via shared AI platforms.

3. Avoid “Black Box” AI in Core Operations

Why it matters:
The white paper stresses that systems operating beyond human understanding increase catastrophic risk.

Actions:

  • Prefer AI systems that explain recommendations (why rates moved, why labor changed).

  • Require audit logs for:

    • Pricing changes

    • Vendor selections

    • Marketing spend reallocations

  • Test AI outputs against brand standards and service metrics, not just margins.

Hospitality example:
If RevPAR improves but guest satisfaction collapses, the AI failed—even if EBITDA rises short-term.

4. Build AI Redundancy & Vendor Optionality

Why it matters:
The paper warns against over-centralization and dependency—once systems are embedded, they’re hard to unwind.

Actions:

  • Never allow one AI vendor to control:

    • Revenue + labor + procurement simultaneously

  • Maintain manual fallback playbooks for:

    • Rate setting

    • Labor scheduling

    • Vendor ordering

  • Avoid proprietary lock-ins that prevent switching providers.

Hospitality example:
An AI-driven procurement platform should never be the only way you can place emergency orders.

5. Use AI Aggressively Where Risk Is Asymmetric

Why it matters:
The paper differentiates between low-risk and high-risk AI domains. Hoteliers should do the same.

Best near-term AI use cases:

  • Demand forecasting

  • Dynamic pricing recommendations (with guardrails)

  • Procurement benchmarking

  • Invoice auditing & fraud detection

  • Predictive maintenance

  • Marketing attribution & personalization

Delay or tightly govern:

  • Automated comping/refunds

  • AI-driven workforce reductions without human review

6. Train Leaders, Not Just Teams

Why it matters:
AI risk is managerial, not technical. The paper emphasizes decision-making quality at the top.

Actions:

  • Require GM, Regional Ops, and Asset Managers to:

    • Understand AI limitations

    • Spot hallucinations or incentive misalignment

  • Run AI “fire drills”:
    “What happens if this system fails at 6pm on a sold-out night?”

Cheers to 2026 being the Best Yet!!

-Sloan

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