FOUND Co-Creator Ross Walker Shares Business Insights, Tips for Aspiring Hospitality Entrepreneurs

It’s not every day that someone brings an entire industry to a whole new level of innovation, but Ross Walker of Hawkins Way Capital did just that. He is the co-founder of FOUND, an ingenious and futuristic new travel & co-living lifestyle platform that is changing the face of the hospitality industry. FOUND is a network of hotels and co-living residences created to deliver high-quality experiences at affordable prices.

Walker collaborated with real estate titan Lew Wolff and nightlife mogul John Terzian of The h.wood Group to bring the vision for FOUND to life. The FOUND platform consists of three major sub-brands for travelers, students, and young professionals–FOUND Hotels, FOUND Study, and FOUND Residences. The properties can be found in many major cities, including Chicago, New York, Los Angeles, Washington D.C. and even Waikiki Beach!

Home Business Magazine had the opportunity to catch up with Walker and get the inside scoop on his business journey with FOUND. He was happy to share what inspired him to launch FOUND, how the platform helps entrepreneurs, and what has been the biggest challenge he’s overcome while bringing FOUND to life. He also shares helpful tips for other aspiring entrepreneurs who are looking to get into the thriving hospitality industry!

HBM: Tell us all about FOUND. How did you come up with the idea?

Walker: “First, starting around 2012, the focus was on acquiring real estate assets in desirable urban city locations that could be converted into low-cost high-value community-based housing options for students and schools. We started to realize the same product was attractive not only to students and schools but also to millennials and young professionals who sought social, affordable and flexible stays in these prime city areas.

Basically, this was what is now known as co-living, which is a major trend via increasingly piqued venture capital interest. Given our expansive real estate portfolio and operating track record in the segment profile, it made sense for us to create a consistent branded experience among our own properties and pipeline and that is how FOUND was born. FOUND is mean to be a low-cost high-value lifestyle branded network of short- and long-term stay hospitality properties currently across major U.S. cities.”

HBM: How does FOUND make life easier for creative entrepreneurs, travelers, and students?

Walker: “FOUND properties are always located in top tier locations of major cities and provide consistent, affordable, flexible, boutique stay options. Group travel is made easier by offering select bunked bed rooms that can be rented by the bed, resulting in even more affordability for an individual traveler.

Oftentimes, the real amenities of FOUND are right outside or not too far from your doorstep due to location. FOUND programming is also focused on facilitating social interactions among guests (ie, communal kitchens, on property bar/lounge retail) and finding ways to immerse them into the local neighborhood or city (ie, organized pub crawls and sight seeing). Whereas in a traditional experience, you are likely seeking more privacy.”

Walker: “The biggest accomplishment has been successfully finding / having key real estate assets that can act as beacons for growth in most all of the major cities in the U.S. And this real estate is controlled by an aligned affiliate. Real estate is a substantial barrier to entry when growing such a brand. Even more risky when you are a branded property management company and have to partner with multiple landlords, master lease properties for growth, pay for tenant improvements / loss lead to prove concept, etc.

The biggest challenge or uncertainty we have is deciding how much proprietary developed technology is crucial to the success of FOUND versus using or packaging what is already offered off the shelf to deliver our experience. At the end of the day, today, our belief is that when you sift through the fluff, pricing and location are key. Bells and whistles less so, but we will offer them in line.”

HBM: Where do you hope to see FOUND in the next three years?

Walker: “By three years or so, we expect to earn the right to expand our brand to third party partners. By that time, FOUND’s solid infrastructure and track record can be leveraged further as a real franchise and third party manager value proposition. We would expect to expand beyond the U.S.”

Walker: “While I was at Stanford business school, I met pioneer boutique hotelier, former Airbnb executive Chip Conley and interned for him. I realized that creating unique experiences was my passion and hospitality real estate was what I wanted to pursue. That lead me to hotel and sports mogul Lew Wolff’s real estate company, where I was fortunate to establish a close relationship directly with him. Lew was Managing Partner of the Oakland A’s MLB team, owner of Rosewood Hotels & Resorts, Fairmont Hotels & Resorts, numerous hotel and other real estate assets, etc. The rest is history.”

HBM: What tips do you have for other entrepreneurs who are looking to get into this industry?

Walker: “Be patient, as growing a real estate brand is challenging. Better to take the time to get 1 or 2 right with good partners before accelerating. Be mindful of your property company and operating company structures, as combing the two into one entity could topple your viability. Alignment of the two is important though. Finally, the VC model of pushing growth too early while taking on substantial lease obligation and capital expenditure risk could turn out to be very unsettling.”

Business owners with upcoming trips to Chicago should check out FOUND Chicago River North, which is housed in the fully restored, original Olympia Building. It boasts its own coffee shop (Mason&Mason) and Blind Dragon, an Asian-inspired bar and lounge that features karaoke suites that are perfect for team bonding nights with employees. Entrepreneurs would also love meeting with clients at the in-hotel restaurant Mason, which features delectable dishes like Gnocchi a la Parisienne, lamb chops, and Beef Wellington.