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Crain-S-Cleveland-This-Week.Pdf Focus: Reassessing Look Back: 25 years o ce layouts PAGE 12 CRAINSCLEVELAND.COM I SEPTEMBER 21, 2020 of the Rock Hall PAGE 23 CRAIN’S SPECIAL REPORT | HOTELS IN THE COVID19 ERA Unwanted guest Todd Vanek of Avon ties down birthday balloons on the rooftop of the Ariel Broadway Hotel in downtown Lorain. Vanek is celebrating a friend’s birthday during the hotel’s rooftop sunset series. Owner Radhika Reddy, inset below, is nding creative ways to attract customers. | PHOTOGRAPHS BY LISA DEJONG FOR CRAIN’S CLEVELAND BUSINESS Until COVID-19 checks out, hotels will be in sick bay Think your day has changed? BY MICHELLE JARBOE AND STAN BULLARD Try checking into a hotel On March 6, Radhika Reddy opened a 56- Pandemic precautions are shaking up hotel room hotel in downtown Lorain, in a his- operations in visible — and invisible — ways toric building overlooking the Black River. BY STAN BULLARD cleaned, and sta ers are wiping Eleven days later, she shut the doors. things down. e coronavirus pandemic forced Reddy, a e scene at many hotel front Welcome to a hotel in 2020 as the desks conjures up an image of by- industry grapples with a pandemic longtime economic development consultant gone days and operations on the threatening the livelihood of more and rst-time hotelier, to furlough most of her wrong side of town, when clerks used than a few properties . Travel, espe- to labor behind bulletproof glass in cially for business, has taken a big hit, sta and become her own general manager. setups similar to teller cages. and hotels are undertaking steps big When the Ariel Broadway Hotel reopened in A new version of that is afoot as and little to protect their mask-wear- the hotel industry copes with ing guests and workers . late May, she practically lived at the property for weeks. She greeted guests, took bookings COVID-19. Plexiglass barriers are Insiders estimate the line item for and lled other gaps while searching for ways to cut costs and boost revenues. now commonplace — even at the disinfectant-strength cleaning prod- Ritz-Carlton Cleveland, although a uct is up 20% at hotels, and electro- Now the hotel that Reddy expected to ll from May to October is lucky to have eight or nine spokesman describes it as tastefully static cleaning machines are com- reservations on a weeknight. And weekend bustle is likely to die down as the weather cools. done. monplace. Signs point out how often counters See HOTELS on Page 18 and doorknobs in public areas get See PRECAUTIONS on Page 20 VOL. 41, NO. 34 l COPYRIGHT 2020 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED P001_P018_021_CL_20200921.indd 1 9/18/2020 10:28:36 AM Fifth Third Means Business™ From revenue cycle optimization to working capital management, we know your organization requires unique solutions to meet the specific moments you’re navigating. That’s why, at Fifth Third Bank, we have a team of local experts who understand your organization. Whatever your organizational goals are, we’re here to help you succeed. Let’s build, together. Fifth Third Means Business™ 53.com/CommercialBank Fifth Third Bank, National Association. Member FDIC. SPORTS BUSINESS MAI’s game plan for growth features launch of sports division Cleveland firm has 160 employees in six states and is up to nearly $9 billion in assests under management YB KEVIN KLEPS compete in other cities and states. tion. MTX, Buoncore said, was “like a will provide guidance to athletes as And maybe most important is ca- mini-MAI,” with about $500 million they move on from their playing days. MAI Capital Management’s roots reer transitioning for stars who are in assets under management and a Trax, a former DeMatha Catholic trace back to 1973, when IMG found- fortunate if they’re playing days ex- similar approach and makeup. High School teammate of former er Mark McCormack started a firm to tend to their late 30s. Trax, a two-year starter in basket- Cavs player and general manager manage the finances of athletes. “You’re planning for someone ball who played on two NCAA tour- Danny Ferry, said MLB, NHL and Working with stars in sports and who’s gotta make it from 21 to 90,” nament teams at Old Dominion Uni- coaching clients made up the bulk of entertainment, then, is old hat for Buoncore said. versity, is a former vice president of his business at MTX. Palguta, who Cleveland-based MAI. SFX Sports Group. Trax worked for was heading up MAI’s sports divi- But when BC Investment Partners Buoncore Trax Deal sparks new division the firm when it was owned by David sion, has extensive NFL ties — some acquired McCormack Advisors Inter- Falk, Michael Jordan’s agent, and had that have lasted almost four decades. national in 2007, Rick Buoncore, the — advising athletes, coaches and MAI is closing in on $9 billion in quite a few NBA clients. “Really complementary business- owner of the merged firms, decided agents — remains the same. total assets under management. Trax said he wasn’t looking to sell es,” Trax said. to “downplay” its work with athletes. Athletes, Buoncore said, “need entire- That’s almost 10 times the tally it had MTX, which he founded in 2007 (the The airp is being tasked with further The reason, Bouncore said: Some ly different care than the average client, when Buoncore acquired McCor- same year Buoncore acquired MAI), expanding MAI’s reach in sports and of MAI’s other high-worth clients because the contract that they’re getting mack Advisors International in 2007. but “the people” and similar philoso- entertainment. It’s a market that Trax were concerned that the stars would could be the last money they’ll ever get.” The company has 160 employees, phies drew him to the deal. said is “grossly underserved” because get most of the wealth management The plans are conservative at the a total that has increased by more “How you approach the market “there are only a handful of folks who firm’s attention. start and tend to diversify if the ath- than 60 since 2018, in six states. At and how you service the client is ex- really get it and really understand the Another acquisition, that of MTX lete makes it to his or her second least 120 of those employees are lo- tremely important,” Trax said. mind of an athlete and know how to Wealth Management in 2019, began to contract. Should the big-money cated in Cleveland, where MAI now The new portss division will have service them accordingly.” change that. MTX, a Virginia firm that deals come later in the athlete’s ca- occupies three floors of the IMG about 25 employees. Fifteen of them It’s something MAI should know had a plethora of Major League Base- reer, “then they become like every building at 1360 East 9th St. will spend “the majority of their time all too well, considering the company ball clients, was a natural fit for MAI, other ultra-high-net-worth client we As MAI has grown, it has added of- working solely with professional ath- got its start when McCormack started whose reach in the NFL is so strong have,” Buoncore said. fices that are closer to its high-profile letes,” said Trax, who will continue to handling the business affairs of leg- that at one point it was working with six Still, there are plenty of potential clients. But “the operations, the fi- work in Reston. endary golfer Arnold Palmer. of the last 11 quarterbacks who had complications. nancials, the headquarters, will al- The group will be backed by MAI’s “It’s why our motto is it’s a game been named Super Bowl MVP. There are the friends and family ways be Cleveland,” Buoncore said. vast resources, which include tax, in- plan for life, because it starts when Now, MAI is poised for what Buon- members who might think that they, A “good portion” of MAI’s business vestment, planning, cash manage- they get the contract, getting them core is calling its “coming-out party” too, have struck it rich. There are the is from athletes, who span all of the ment and other services. established, teaching them every- — the launch of MAI Sports + Enter- offers to invest in businesses — at major professional leagues in the U.S. Trax said they’ll focus on six verti- thing there is about spending money, tainment. least 99% of which Buoncore and (The firm, because of U.S. Securities cals: family office and investment -ad saving money and paying taxes,” The new division will be led by Trax said are not good for their cli- and Exchange Commission regula- visory services, business consulting, Buoncore said. MTX founder Steve Trax and John ents. There are duty days, which are tions, can’t disclose its clients.) career transitioning, philanthropic Palguta, who joined McCormack’s taxes levied against athletes and oth- As MAI was expanding, a Reston, initiatives and financial literacy. MAI Kevin Kleps: [email protected], former firm in 1984. The group’s work er pro sports personnel when they Va., firm run by Trax caught its atten- has partnered with a university that (216) 771-5256, @KevinKleps MODERN DOWNTOWN LIVING Schedule your tour today! (844) 345-2469 Now Leasing Studio, 1, 2 & 3 Bedroom Apartments TheMayCleveland.com SEPTEMBER 21, 2020 | CRAIN’S CLEVELAND BUSINESS | 3 P003_CL_20200921.indd 3 9/17/2020 5:06:50 PM MANUFACTURING Team Wendy leaders see acquisition WE WON’T LET as chance to grow legacy globally YOUR LOAN SINK Founder hopes deal encourages investment, research into head protection CALL YOUR LOCAL CREDIT UNION TODAY BY RACHEL ABBEY MCCAFFERTY Team Wendy’s area of expertise is in STILL STRONG, For Dan T.
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