Wednesday, December 29, 2010

January to October 1967

We are back from our UK trip and into our normal routine. Things are going fairly well and we are expanding rapidly. Motel 6 has purchased three properties and built nineteen, and fourteen more are in some state of development. We have projects from Hawaii to Fort Wayne Indiana.

Hawaii was getting a lot of attention. It would have a higher room rate because of the construction and operational costs. Minimum wage States-side was $1.25 - in Hawaii, it was $2.50. Our rate there would be $8.00 in lieu of $6.00. In February the construction was nearing completion, so I needed to go check things out and set up the schedules for operational personnel, furniture and supplies. I took Margaret with me on this trip - it was short - one day to travel , day two for business, day three personal and day four travel home. This property was our first high-rise, with the 2 lower basement floors for parking and eight upper floors for office, lobby, manager's apartment and eighty units with an elevator.


With the business taken care of, day three was our day. We used it taking a motorcycle and completely circling the island of Oahu. The map showed a road which turned into a stone creek dry bed and lots of existing mud holes. Our day was (1) being pummeled with wild surf (on a private beach) (2) dumping us and the motorcycle in the biggest mud hole ever, and (3) stopping at a beach park, showering the mud off us and our clothes and (4) in the sun for an extended period of time getting a serious over-tan. We did complete the trip and I have not ridden a motorcycle since.

Motel 6's Biggest problem was lack of money, which always left them short, unable to pay bills promptly for construction, furnishings and equipment on the new motels. . Bills were running 90 to 120 days behind. The owners Paul Greene and Bill Becker expected Operations to make up their short fall on their construction costs - $150,000 to $200,000 per project. We could have handled four or five motels a year, but no way on eight or ten. My position was "slow down or obtain larger construction loans". Slowing down and improving our credit rating would have qualified us for larger loans.

I think it's time to go back and tell of events leading up to this point. After building the first nine motels and buying one existing (total ten), we came to a squeeking halt on construction. We were unable to prove our program was profitable, our lenders were waiting for us to prove we were a strong money-backer. On the other hand some of our suppliers that I had gotten to know well were very impressed with the idea of them and us buying existing motels and franchising others. They wanted to furnish the money if I would run and promote them. They were going to called Best 6 Inns - an upgraded Motel 6. The first location would have on Motel Drive in Fresno. I gave notice to Paul and Bill and they wanted to know why would I consider leaving them. I told them I had to take of my future. The statement made by both owners was "there are only three people we are interested in and you are one of the three. You will get your million". I agreed to stay based on this promise.

We mentioned that Operations was doing very well - we had generated $958,000 cash flow for the prior year and it was growing. In July 1967 Bill and Paul began trying to raise money. They did a sell-and-lease back on two original motels and they began working with Trans-American Corp, and with some of their stock company clients, i.e. Citi and Associates. As a result of our success, TransAmerica asked for my help in inspection, finding their problems and recommending changes and directions to make these properties profitable. They were aware of my success with Kirkeby-Natus problem properties. I spent about half of my time the next month or so on this and got very close with these people. There were four west coast properties involved. While this was going on I learned through my contacts that Bill and Paul were in serious negotiations with Citi on a sell-out. I asked for a meeting with them and inquired where I fitted into this picture and what I was to receive from this sale. The answer? "My job. I would receive no money as I had not made an investment".

One of Trans-America problem properties was a very nice 150 unit full service hotel in Palm Springs, and they told me that if I could come up with financial backing, they would sell it to us at a very good price. In the meantime we had been approached by the orthodontist that Margaret had worked for who said he was connected with a group that had resources and were looking to invest. On learning of this project, they expressed an interest in proceeding. I advised my contact and we began working on a deal. But unfortunately it is a small world, and one of Dr. Kuhns potential investor-partners (who incidentally was the campaign manager for Ronald Reagan when he ran for the Governorship of California) happened to go to a party, attended by representatives of Citi and Bill Becker. He had a bit too much to drink and bragged about stealing the 'head man' from Motel 6 for his project! The 'you know what' hit the proverbial fan! Citi threatened to call off the deal with Bill and Paul and provided enough pressure to Trans-America so they called off the deal with us. Nothing was ever said to me by Bill or Paul, but needless to say there was trouble brewing ahead!
Margaret and I had made plans that Fall to go to Montreal for Expo 67 (Margaret is on the boat above heading for the island where the expo was located) and also for me to meet Gordon and Irene for the first time. It was a pleasure/business trip, for after Montreal we drove back west inspecting the last three motels nearing completion and opening shortly. It was a great trip and we stopped by the office on the way up to our house. It was almost closing time. Barbara (my secretary) was crying, others avoided eye contact, and a letter of termination was on my desk..........

Friday, December 24, 2010

I'm never going to survive this man!!!!

That really was my thought for a while. Looking back on my life, I had led a very routine, orderly existence. Pretty well going to be and getting up the same time each day, eating meals about the same time, watching favorite TV shows on certain nights, etc. I can remember staying up late one week-night to watch a Montreal Canadian/Chicago Blackhawk hockey final that ran into overtime, and being exhausted the next day at work because of the two hours shortage of sleep (all in my head of course I realize now).

And now my life is one of constant change, meals when they are grabbed, sometimes missed all together, and nights with little or no sleep at all. Dick never stopped until the job was finished - and if it took you into the next day's work, so be it. That's how we put together the first class at the Motel school. I would go by his office after working with Dr. Kuhn and we would start preparing the complete lesson, the test papers, the slides for the presentation, and setting the whole thing so that Dick and Verne could conduct the class the next day. We did this for the two weeks of the class.


But we did settle into our little studio apartment on the hill and together were very happy.
And Katrina and I got to know each other better and start the foundation of our friendship. The above trip to Disneyland was a case in point on how Dick operated though. We had worked our usual day on a Friday and that evening driven with Katrina down to one of the Motel 6's close to Disneyland. We took Katrina out to dinner and then settled her in a room and Dick and I headed for the office to straighten out a major mess with the books. Not only had the manager not been able to balance his books in something like five or six days, but he had made no deposits either. We had to go back to when he WAS in balance and reconstruct the week's business from there, arriving at the end of each day's balanced report with an amount he needed for the deposit. He pulled the money from cupboards, under the counter and the refrigerator!. And interesting night - and it was the NIGHT. We got the whole mess sorted something like 6am, just in time to freshen up, nap for about an hour and then take Katrina out to breakfast and on to a day at Disneyland!
Being the CEO of Motel 6 did have its perks though. Motel 6 opened a motel in Hawaii, so of course Dick had to go and set up the opening and install the managers, etc. I was able to get the time off and accompany him and we spent four days and three nights that were wonderful. Actually the first and fourth day were taken up with travel, and the second day we devoted to business, but the one free day, we rented a motorcycle and drove around the island of Oahu. This was in 1967 and the road wasn't complete around the island - there was a portion that basically ran along the beach/rocky area. The whole day turned out to be one big adventure. First we stopped at a beach, changed into bathing suits and tried to swim in the water - BUT we soon learned why Hawaii is popular for surfing. The waves were HUGE and strong. We both went in the water, were sucked out and then tossed back on the beach. Ah well, maybe we had better look for calmer waters, so still wet and with our clothes bundled, we continued, coming to where the road just ran out. We thought we could see where it started again, so decided we could make it. Bouncing, slipping, splashing our way - when suddenly the bike goes one way, we go another and our clothes go flying. Now we and the bike were wet and muddy, along with our clothes. We made it to a calmer beach which fortunately had a shower area, so we were able to get ourselves cleaned up and continued on our trip, past the vast pineapple fields (I always thought they grew on trees!!!) and back to the motel. Most of the trip was done in our bathing suits waiting for our clothes to dry. Both Dick and I are fortunate to have olive skins which do not burn as easy, but we both had too much sun that day and were not feeling our greatest the next day. On the plane going home, Dick suddenly said he wasn't feeling too good and was going to the bathroom. He had no sooner left his seat, when I heard a crash and I jumped up to see two attendants looking at the space behind the last seat and the galley/rest room area. I ran back, took one look at Dick passed out on the floor and promptly passed out myself and landed on top of him! You can't say I'm not the sympathetic type!

Yes Life was different - nothing was the same, all routine had gone out the window, I learned to adapt to no sleep and at times no food, but I loved it (once I got over the shock) and loved the man. Life was good...............

Friday, December 3, 2010

Things are going well at Motel 6

and we are opening new locations. Margaret is helping me as needed (for free). They re-arranged the offices and we have larger quarters. We (meaning Operations) have our own entrance and reception area, and Jim my assistant has his own office.

We had a week with Katrina prior to school starting. I picked her up in Fresno and we drove to Santa Barbara. She is just short of being 16 and I let her practice her driving on the back road in the West Valley. She did quite well, so I came into Santa Barbara via the San Marcos pass (old road). This road is very winding with a lot of switch backs, so I thought it would be good experience. We took it slow and Katrina did fine through the first four, but #5 she froze and didn't straighten the wheel. The road straightened out, but we didn't - so up the wall, and we rolled over on its side. A brand new Ford Galaxie. I was able to get it upright and we drove off. Only light scratches, and both Katrina and I were fine!

As I said, business was good and growing. About three/four weeks before Christmas I was on a return flight (I don't recall from where) and I was listening to the stereo music. "I'll be home for Christmas" was on and I began to think about me and my family. Our family always got together some time for Christmas. I thought about Margaret not being home for Christmas for nine years. It got to me. When I got back to the office I said to Margaret, "I know we can't afford it, but you are 'going home for Christmas". She wanted to write and advise her family, but I wanted it to be a surprise.

We arrived London 9am Friday morning (Christmas was on the Sunday). We rented an auto and proceeded to Llandudno, Wales - approx. 240 miles north west. I could write a book on this trip alone - maybe some other time. We arrived approx. 9pm. Margaret's mother was home and her father came in about 10 minutes later. We had a short visit then he took me to his pub to meet his friends, and seeing as we were there we might as well have a beer. Jolly, jolly. We only had the one. The pub closed at 11pm.
We spent Christmas and a few more days touring the area and showing me the sights and visiting relatives to show me off! I was a big man - a Welsh man is approx. 5'4" to 5'7" and weights 135 to 160 lb. The above photo was taken on the Orme - boy the wind could blow there.


We took a 'memory lane' ride with Margaret's mother and father - the above was taken outside the Church they were married in.

To backtrack a bit - as you know John, Margaret's first husband, was our employee and left us on the break-up. He went to San Francisco and obtained a job with TWA and became a leader of a plane service crew. This crew was good enough that TWA sent the crew to London to demonstrate and train their crews over there. As a result he had visited Margaret's parents just a few weeks prior to our visit. John did well,married a stewardess with TWA and raised a family, retiring in the Bay Area.
Back to our trip. The next stop was Southport, England for a visit with Mair and Norman (Margaret's sister and brother in law). The above photo is taken in front of their house. We had a nice visit, got to know each other and after a couple of days we continued our trip on to Lincoln, where her brother Gerald, wife Kitty and family lived. The following photo was taken in their living room.
Lincoln is where Sherwood Forest is located and no, I didn't meet Robin, nor any of his Merry Men. Gerald was home recovering from an illness. He was doing well, & we enjoyed the family of two sons and a daughter

A couple of days there and off to London (this is Margaret at the Tower of London) for three days. Margaret's cousin and her husband Peter came into town one evening and we all went out to dinner. The rest of the time was seeing what London had to offer which was far more than we could see in three days. A lot of it had to wait for future visits.
We flew over Ireland on the way back. The weather was clear with light clouds and we got some great view from 30,000 feet.

There is so much to share about this trip, and I know I have only touched on it here. This was my first year not to be at my home for Christmas, but I was accepted into a new home and enjoyed it very much. May you always have a home to go for Christmas and love each other very much.


A little add on: Driving in Great Britain 1966: (1) the vehicles were built funny (!) - driver sat on the right side, you shift gears with your left hand, and look left for the rear view mirror. when overtaking a vehicle, to me some vehicles had no drivers (sitting on the wrong side for me). (2) you drove on the wrong side of the road. Entered roundabouts (traffic circles) the wrong way, left side and turn right. They did not believe in stop signs or traffic lights - just roundabouts - LOTS OF THEM. (3) Parking was allowed either side of street in either direction. This was even in downtown London with four lane street. If you could get there, you could park there. (4) I never saw a house with a garage (may have been), so even ones that owned a car parked on the street. Thank God only about 1/3 owned autos or the street would have been blocked. The streets in the residental areas were narrow - approx. 20 feet wide, so you to had to weave through the parked vehicles. The rules were first come had the rightaway. The problem was they applied this to the open full speed highway. If they wanted to pass and you were approaching, they would pull out to pass, and you were expected to slow down and if necessary pull off the road to let them pass. I was forced over onto the shoulder several times. (5) I assumed they thought world war II was still going on! At that time they covered the top 3/4 of the headlights for the blackouts. Now they drove with parking lights only in all cities where there were street lights. In between towns the lead car or truck would use headlights but no one following behind.
Today is different - they still drive on the left side of the road and sit on the right of the car, but otherwise the rules are more like ours.
I have to say that riding in a taxi in London was a hair-raising experience too.

One last story - we were driving from Southport to Lincoln, so to help us out Mair had obtained a route guide from the Auto Club for us to use. About halfway there, we entered this town. We checked the instructions and it told us to veer right where the old well USED TO BE! Thank you Auto Club.