The Greater Washington area has a long history of influential business leaders powering the growth of our region and the strength of their communities. On December 5, the Washington Business Hall of Fame will welcome five such leaders to receive our region’s signature lifetime business achievement award. The Hall of Fame brings these visionaries (the best in business) to the table with the next generation of leaders (the next in business), through an experience that connects and inspires us all.
The 2023 Hall of Fame Laureates are no strangers to media coverage. If you live in the Washington region, chances are you’ve seen their names in headlines for years. What you may not have witnessed is these trailblazers telling their stories in their own words. That’s what this series brings you – the insights, lessons and life advice that these Laureates have to offer based on a lifetime of success.
Washington’s best in business:
Thomas J. Baltimore, Jr.
Thomas J. Baltimore, Jr. serves as Chairman and CEO of Park Hotels & Resorts. He served most recently as President and CEO of RLJ Lodging Trust and as a member of its board of trustees from RLJ’s IPO in 2011 until May 11, 2016, when he joined Park Hotels & Resorts. Previously, Mr. Baltimore held senior positions with Hilton Hotels Corporation, Marriott Corporation and Host Marriott Services Corporation. He currently serves as Director of Comcast Corporation and American Express Company. His full Hall of Fame Laureate biography is available here.
Read on to learn about the decisions Baltimore made to successfully navigate a hospitality company through the COVID-19 pandemic, the guiding principles he recommends to students and what he considers to be the “secret sauce of life.”
THOMAS J. BALTIMORE, JR.
CHAIRMAN & CEO
What is the hardest job you have ever done?
Thomas J. Baltimore, Jr.: Being the Chairman and CEO of a publicly traded lodging real estate company (Park Hotels & Resorts) during a global pandemic that was not eligible for government support. The company suspended operations at 85% of our hotel rooms nationally, decimating revenue in a business with high operating leverage and continuing fixed costs. In the first quarter earnings results from 2020, Park reported a net loss of $689 million. The company later suspended dividend payments to shareholders, cut capital expenses and raised three bond offerings to pay off debt and push out maturities on other debt. In March 2020, I waived my salary for the balance of the year. The moves - and these are just a few of them - were drastic, but necessary. People were understandably panicked and fearful. The stress was unprecedented.
The time was nigh for serious perseverance. Those immediate moves were intended to slow the bleeding and buy time for the development of COVID vaccines and therapies and a hoped-for return to more normal economic conditions. My way through, as an executive, was to rely on the strong team I had assembled and the support and input of Park's board. None of it was easy.
I learned during this time that to keep a team together during a crisis, it is important to remain calm and steady. You must remain laser-focused on key priorities. In navigating through adversity, you learn a lot about yourself. If you plant a seed in the ground, it gets germinated and it grows in dark places. The ability to navigate through tough times is a great example of perseverance, which I've always believed is the secret sauce of life.
Did you have a mentor? If so, who was it, and how did they impact your career trajectory?
Thomas J. Baltimore, Jr. Two mentors stand out: Bill McCarten, former Senior Executive of the Marriott Corporation and currently the Chairman of DiamondRock Hospitality, was an early mentor to me. He took an interest in my career and selected me for a key business development role that changed the trajectory of my career. We remain close after 30+ years.
Robert L. Johnson, Chairman & Co-Founder of RLJ Lodging Trust, is someone I met while at Hilton Hotels and to whom I am eternally grateful. I was a rising executive, and he a sitting board member. We joined forces to buy a portfolio of seven hotels from Hilton for $100 million in 1999 and then launched a private hotel investment company, RLJ Development. We later started a private equity firm and eventually rolled up two PE funds and took the company public (RLJ Lodging Trust) in 2011. The company is still operating today, and we remain very close friends.
“In navigating through adversity, you learn a lot about yourself. ... The ability to navigate through tough times is a great example of perseverance, which I’ve always believed is the secret sauce to life.”
What is one thing you want the Greater Washington business community to know about your company?
Thomas J. Baltimore, Jr.: That I am fortunate to be surrounded by an extraordinary team of women and men who are committed to excellence and creating shareholder value.
If you could choose one person to have dinner with, living or dead, who would it be and why?
Thomas J. Baltimore, Jr.: Nelson Mandela, former president of South Africa. He was wrongly imprisoned for 27 years before becoming the first president elected in a fully representative Democratic election. He showed incredible grace and humility and was never bitter toward his captors. He later brought his nation together and led with purpose.
What should students be doing today to help prepare them for a successful tomorrow?
Thomas J. Baltimore, Jr.: A few guiding principles for students to consider are:
Adopting a mindset of continuous learning, especially related to advances in technology.
Learning collaboration as a value and skillset – no one succeeds alone.
Learning through their strengths and leveraging their talents.
Seeking tolerance and understanding.
Developing complex thinking skills.
If you had to pitch a new business concept today, what would it be and why?
Thomas J. Baltimore, Jr.: I would seek a business concept focusing on solving a problem or providing a better service, essentially becoming a disruptor. I would be laser-focused on customer needs. Amazon is a great example of this: the company is obsessed with meeting and exceeding customer needs.
You’re invited to support Thomas J. Baltimore, Jr.’s induction into the Washington Business Hall of Fame. All proceeds benefit Junior Achievement of Greater Washington’s work to prepare local students to be ready for the future.