The Tim Ferriss Show - #320: The Art of Hospitality: An Interview With Entrepreneur and Hotelier Liz Lambert

Episode Date: June 14, 2018

Liz Lambert (@thelizlambert) first purchased a seedy motel on South Congress Avenue 23 years ago, and she transformed it into Hotel San José, which has become known today as the quintessenti...al "Austin" hotel. The success of Hotel San José, which sparked a revitalization in the city's now thriving South Congress district, led her to launch Bunkhouse Group, a hospitality company founded on the pillars of design, music, and community-driven experiences.In the course of chronicling her experiences with the residents of Hotel San José on video camera, she ended up making the Last Days of the San José, a documentary that casts a fascinating light on human relationships in gentrification and urban renewal. You can check out the trailer here, click here to be notified when streaming becomes available, or get a copy of the DVD here.Enjoy!This podcast is brought to you by Soothe.com, the world's largest on-demand massage service. Because I've been broken so many times, I have body work done at least twice a week, and I have a high bar for this stuff. I do not accept mediocrity, and I wouldn't expect you to, either.After much personal testing, I can affirm that Soothe delivers a hand-selected, licensed, and experienced massage therapist to you in the comfort of your own home, hotel, or office in as little as an hour. I was amazed at the quality of service and convenience. Think of it as Uber for massages, available in fifty cities worldwide. Download the app at Soothe.com and use code TIM25 to get $25 off your first massage.This podcast is also brought to you by Peloton, which has become a staple of my daily routine. I picked up this bike after seeing the success of my friend Kevin Rose, and I've been enjoying it more than I ever imagined. Peloton is an indoor cycling bike that brings live studio classes right to your home. No worrying about fitting classes into your busy schedule or making it to a studio with a crazy commute.New classes are added every day, and this includes options led by elite NYC instructors in your own living room. You can even live stream studio classes taught by the world's best instructors, or find your favorite class on demand.Peloton is offering listeners to this show a special offer. Visit onepeloton.com and enter the code TIM at checkout to receive $100 off accessories with your Peloton bike purchase. This is a great way to get in your workouts, or an incredible gift. Again, that's onepeloton.com and enter the code TIM.***If you enjoy the podcast, would you please consider leaving a short review on Apple Podcasts/iTunes? It takes less than 60 seconds, and it really makes a difference in helping to convince hard-to-get guests. I also love reading the reviews!For show notes and past guests, please visit tim.blog/podcast.Sign up for Tim’s email newsletter (“5-Bullet Friday”) at tim.blog/friday.For transcripts of episodes, go to tim.blog/transcripts.Interested in sponsoring the podcast? Please fill out the form at tim.blog/sponsor.Discover Tim’s books: tim.blog/books.Follow Tim:Twitter: twitter.com/tferriss Instagram: instagram.com/timferrissFacebook: facebook.com/timferriss YouTube: youtube.com/timferrissPast guests on The Tim Ferriss Show include Jerry Seinfeld, Hugh Jackman, Dr. Jane Goodall, LeBron James, Kevin Hart, Doris Kearns Goodwin, Jamie Foxx, Matthew McConaughey, Esther Perel, Elizabeth Gilbert, Terry Crews, Sia, Yuval Noah Harari, Malcolm Gladwell, Madeleine Albright, Cheryl Strayed, Jim Collins, Mary Karr, Maria Popova, Sam Harris, Michael Phelps, Bob Iger, Edward Norton, Arnold Schwarzenegger, Neil Strauss, Ken Burns, Maria Sharapova, Marc Andreessen, Neil Gaiman, Neil de Grasse Tyson, Jocko Willink, Daniel Ek, Kelly Slater, Dr. Peter Attia, Seth Godin, Howard Marks, Dr. Brené Brown, Eric Schmidt, Michael Lewis, Joe Gebbia, Michael Pollan, Dr. Jordan Peterson, Vince Vaughn, Brian Koppelman, Ramit Sethi, Dax Shepard, Tony Robbins, Jim Dethmer, Dan Harris, Ray Dalio, Naval Ravikant, Vitalik Buterin, Elizabeth Lesser, Amanda Palmer, Katie Haun, Sir Richard Branson, Chuck Palahniuk, Arianna Huffington, Reid Hoffman, Bill Burr, Whitney Cummings, Rick Rubin, Dr. Vivek Murthy, Darren Aronofsky, and many more.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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Starting point is 00:02:40 that's very limited, I share it first with Five Bullet Friday subscribers. So check it out, tim.blog forward slash Friday. If you listen to this podcast, it's very likely that you'd dig it a lot and you can, of course, easily subscribe any time. So easy peasy. Again, that's tim.blog forward slash Friday. And thanks for checking it out. If the spirit moves you. Hello, boys and girls. This is Tim Ferriss and welcome to another episode of The Tim Ferriss Show, where it is always my job to deconstruct world-class performers of various types and across many disciplines. And today we have Liz Lambert on the show. Liz, thanks so much for taking the time. So happy to be here. I'm thrilled to have you finally in front of me, and I'm going to give people a little bit of context. So who is Liz Lambert? Liz Lambert, at the Liz Lambert, at Instagram and Twitter,
Starting point is 00:03:35 first purchased a seedy motel on South Congress Avenue 23 years ago and transformed it into Hotel San Jose, which has become known today as the quintessential Austin hotel. The success of Hotel San Jose, which sparked a revitalization in the city's now thriving South Congress District, which we'll definitely talk about, led her to launch Bunkhouse Group, a hospitality company founded on the pillars of design, music, and community-driven experiences. Since then, she's expanded Bunkhouse's unique hotel portfolio to include El Cosmico, which has been recommended to me about a thousand times, the community lodging concept in Marfa, also a place worth talking about, the iconic Austin Motel, a renovated motor court hotel, and Hotel St. Cecilia, where I was just
Starting point is 00:04:15 two nights ago, in fact, a 14-room secluded estate in Austin, Hotel Havana, depending on where you are, the historic property on San Antonio's Riverwalk, and most recently has added Bunkhouse's first international hotel, Hotel San Cristobal Baja in Todos Santos, Mexico, and the first non-Texas property, domestically the Phoenix Hotel, to their hotel portfolio. Lambert and Bunkhouse also operate Joe's Coffee, the popular Austin coffee shop, which I frequent myself. And that currently includes three locations and an east side event space fair market also located in Austin. They've really gave you a full... Oh, we're covering all the bases.
Starting point is 00:04:54 Langer, it's fourth Austin Hotel. The Magdalena is currently in development and is slated to open on South Congress in 2020. Maybe 2019, we'll see. Maybe 2019. Wow. Ahead of schedule. schedule that's unusual i would imagine it's a moving target and there's so many places that we could start with this and we have some mutual friends uh which which makes me always a bit more comfortable and excited to jump into
Starting point is 00:05:20 things but i thought we would begin with the last days of San Jose. Now, this is a documentary, and I hold you fully accountable for keeping me up way past my bedtime. Oh, awesome. You signed. That's good. I've watched most of it. I haven't seen all of it, I'll be honest, because I had to go to bed last night at some point. There's a surprise ending. I can't.
Starting point is 00:05:42 Not really. Well, it's a documentary on Hotel San Jose's origins. And I thought I would share a note from my assistant. So my assistant doesn't add notes to much of my prep documentation at all. And this is her note. Quote, I've watched most of the documentary on and off throughout the day. Just listen to her talk to the humanity of people that Sanose tells you everything important you need to know about her and i wasn't sure quite what that meant it was seemed a bit cryptic and uh i have to say a very impressed with the doc b you must have captured so much footage and you did a really nice job of editing for emotional impact i was that wasn't me by the way okay i didn't edit and i never could have edited that and i never would have been in the
Starting point is 00:06:32 doc had it been my your choice could you tell people who don't know and i imagine that's a lot of people a lot of people yeah i never released it the doc, and why didn't you release it? I was trying to find it online so I could push it out to people. You know, it's terrible. Every year, this is one of those things, every year it's on my list to do, and I can never quite. So this is a documentary, and I'll tell you why I talked about it, why I never did. This is a documentary that I did when I first bought the San Jose, which I used to be a lawyer. It was sort of a change of career inadvertently.
Starting point is 00:07:08 And I bought an old motel down on South Congress. I have terrible Austin allergies today, so sorry about that. That's okay. We were chatting that this is audio verite. Yeah, truthfully. I bought it in the mid-90s. I bought an old motel down in South Congress. I was a lawyer at the time, and I basically just walked up to the door,
Starting point is 00:07:32 knocked on the door, and there was a Taiwanese couple there that owned the motel. And at the time, there was nothing on South Congress, which is, as you know, a very popular area in Austin. Super hot spot, cool area, very hip. There wasn't a car on the street back then i mean honestly and um they were about to put the motel on the market and i sort of you know i told them don't do that yet let me see if i can do something about it i ended up buying the san jose not knowing anything about what i was doing for five hundred thousand dollars my mother co-signed a note and suddenly they handed me the keys and i was on my way and i knew nothing about
Starting point is 00:08:12 running a hotel or a motel or anything knew nothing about business really now paint a picture for people as to the clientele and what was this kind of the state of affairs because people think south congress now and they're like oh cool I can have fancy Japanese food and I can go have some mezcal it was dicey I mean people didn't go down there at night there were no businesses on the street
Starting point is 00:08:35 the Continental Club was there and had been there since 1957 and it remained but really there was no place to eat the first Schlotzky's was actually on South Congress. Really tiny place. But there was nothing down there. And I had moved back into the neighborhood.
Starting point is 00:08:53 But I would go to the Continental Club a lot. So I sat in a bar still there. And I watched the San Jose across the street, which was an old motor court built in the 30s. Spanish colonial revival style. Painted seafoam green at the time. And it looked like it was empty, but it was really because there were people, it was full all the time. But it was 30 bucks, 25 to 30 bucks a night. And nobody really had luggage or cars. And nobody really came out during the day. So it looked very quiet. But at night it was teeming with life. And it was, you know, it was junkies and prostitutes.
Starting point is 00:09:32 But a lot of good people, too, that were just down on their luck for one reason or another couldn't pay a deposit, first and last month's deposit. Or somehow something in life had happened that dislodged them. But, you know, they could get a hotel room for either a couple of nights or some people live there there were residents that live there permanently but they just paid by the day or by the week i have so many questions i could do an hour just on this dock and it's not obviously because i have anything to gain financially from pushing the dock because it's not even available. So I was going to tell you why it's not available. Yeah. Okay. So I shot the doc, which was following, as an undergraduate, I was a creative writing major with a concentration in
Starting point is 00:10:14 poetry. So just for background for folks, and this is my nonlinear style, I apologize. Where did you grow up and where did you do your undergrad? Yeah. I grew up in West Texas and I did my undergrad. I started at TCU in Fort Worth. I had a brief stint at Stanford and then I finished at UT. It's a way of seeing the world there. And creative writing. And humanities. And humanities.
Starting point is 00:10:38 Yeah. So I had a lot with a concentration in poetry. So I had a lot of friends who were writers or who, you know, I wrote a lot of friends who were writers or who, you know, I wrote a lot at the time, even back then, whether it was journaling or poetry or whatever it was. And friends would encourage me to write down. I stopped my law job at some point when I knew I was in over my head or in a good way over my head at the San Jose,
Starting point is 00:11:02 but I needed to do something with the motel. I couldn't continue on at $30 a night with people stealing sheets and bleeding on sheets and burning sheets. You name it. But people kept encouraging me to write down things that happened during the day. Because I would tell stories at dinner. I'd go to dinner with friends and it would be absolutely absurd or crazy. Within the first five or 10 minutes, you see quite a few examples. Yeah. So I, um, I didn't have time to write it down because I was literally like, you know, the, the place, the place had been
Starting point is 00:11:37 redone in the seventies, I think was the last time. So it had shag carpet still. So you can imagine as you tried to vacuum that shag carpet, what it was like. I mean, there were definitely people. It was definitely a place where you did drugs. It was definitely a place where you had whatever homeless pet you might have. I mean, it was just like, and there was that housekeeper that had been at the motel before I bought it. There were a husband and wife, the Sues, who were awesome people, but they were the only employees besides Mr. Wu, who I swear to God was like two years older than God and almost blind,
Starting point is 00:12:12 and he was a housekeeper. So like the state of the rooms when we got there were just, I mean, a thing to behold. And I cleaned rooms for quite a while. So I was so busy that I wasn't writing things down. There was no journaling. There was no that kind of thing. But I did find a camera. It was right when those little pocket cameras came out.
Starting point is 00:12:34 There was a little Sony PC7. And I got one of those. So I just started talking to people. People knew the camera was there. I put it up. The front desk had a little glass thing that you slid money through and I just duct taped it to the front for a while. And then when I would go out
Starting point is 00:12:50 to knock on doors or kick people out or collect money, because it wasn't like you came and paid on a daily basis. I had to chase down money. And so I would just take it with me. When I was done, I was really lucky at the time that I had a friend who was at AFI in cinematography.
Starting point is 00:13:10 What is AFI? American Film Institute. Got it. Her name is Jen Lane, and she just now is a producer of the new Queer Eye. No, no kidding. It's been really super popular, yeah. And she was one of my good friends, and then she had a friend named Uta Brisewitz, who is a producer now as well, but a very well-known cinematographer
Starting point is 00:13:30 before she became a producer. She shot the first three seasons of The Wire, and that's why The Wire looks like it does. So they were both in film school. And they came down, and I said, you guys come help me shoot, because they were both directors of photography, what we're studying. They were awesome because not only did they shoot some B-roll, and then when I was ready to shut the motel down, they shot the last three weeks.
Starting point is 00:13:56 But Uta also encouraged me. You said audio verite. That's exactly what she told me. I was really worried about a big microphone and stuff but nobody would have talked to me right you know like she was like and don't worry about your film style just talk to people and the story is compelling enough and that was those were words of wisdom and as long as you could hear it right you know it was going to be okay you didn't need a huge microphone to stick in somebody's face just make sure it was audible enough so you have this you have some incredible footage
Starting point is 00:14:33 and i mean you really do capture i'm searching for a word besides humanity because it seems too high concept maybe for for for what i'm trying to convey, but you, you captured the, the vulnerability and the sincerity of so many different types of people of all different colors of all different types who are completely marginalized, discarded, these sort of invisible people. And I watched this and I was having just a bitch of a day yesterday and I was feeling sorry for myself. And I was talking to friends and we were commiserating about various things. And I've had a, what I would consider in my life, a bit of a hailstorm of a week. And then I watched this and I was just like, you asshole. God, you should get down on your knees every day and just thank God that you have the bed that you have to sleep in, that you have the food that you have to eat.
Starting point is 00:15:35 It was really humbling. And you're holding this footage. You have these stars to be helping you. Why not put it out? I got busy. I mean, here's the thing. I will help you put this thing out. Let's do that.
Starting point is 00:15:51 I would love that. It's the last three years it's been at the top of my list, and I keep having people that say they'll help, and then, you know, everybody's busy, and so it becomes this. I will commit right now publicly that I will help you put it out. I'm so happy about that. Yeah, it's very, as long as you're not expecting like a full-blown red carpet theatrical release.
Starting point is 00:16:13 If you just want it to be available to people. I just want it to be available. So what happened was right when it was done, you'll see the doc ends as I close the door when we close the San Jose. During the documentary, we follow five or six people that are permanent residents at the San Jose. Again, I was just shooting on the fly, kind of keeping a video diary. And so I would turn the camera on myself every once in a while. Even when I began editing and realized I couldn't edit it, I had 90 hours of footage.
Starting point is 00:16:47 I mean, there's so much good stuff in there, but there was no way I was going to be able to tell a story. So another friend of my friend Jen's from AFI, Tina Gazzaro, who works in the business still today, I hired her to edit, but I didn't have her edit until about four or five years into the San Jose being open. And so it was hilarious because she would see people that might have passed through the footage or the documentary,
Starting point is 00:17:15 and they would have no idea who she was. But she spent hours and hours watching them, and she would be like, hey. And they'd be like, you know way too much about me. She did an amazing job and she gave compelling reasons that I should also be a character in the movie. Because it wasn't
Starting point is 00:17:36 just about, it was also about my story and about me living there as part of a community and the struggle I was having. Everybody had a struggle different struggles but you know one of the remarkable things is that um they're all behind me the the folks that live there generally so can i can i pause for a second yep so there are a few like lily pad hops that i want to know more about so first is you went to three places for undergrad folks in creative
Starting point is 00:18:06 writing with an emphasis on poetry why did you go to three places and how on earth do you go from there to law let's start with that um i went to three places because my family were i'm from west texas my my parents met at t, my grandfather played football for TCU, my dad played football for TCU, my oldest brother played football for TCU. Everybody in the kind of cousin group, everybody went, started at TCU. And I got there, and Fort Worth is a lovely place. I'm crazy about Fort Worth these days, but I always knew it wasn't really going to be a fit for me. And once I kind of
Starting point is 00:18:49 got interested in creative writing, the program there wasn't that strong. So my tour of colleges... Yeah, so Stanford you were saying was aspirational, and you went there for summer school. I went there for summer school and then I was accepted as a regular student at Stanford,
Starting point is 00:19:09 and I deferred. There were things going on with my family that I needed to come back to Texas. And once I came back, I... Just in terms, if you're comfortable saying, I mean, just in terms of sickness? Divorce, my parents. Divorce. Yeah. And I was really close to my mom.
Starting point is 00:19:27 And so I felt like I needed to be closer. And I deferred a semester, and then I ended up just going to UT. I always loved Austin. And in the long run, I'm really happy I did. I mean, when I arrived in Austin in the early 80s, it felt like the place was made for me. It just felt like home. What about it? You know, I'm a Texan through and through, but there were a lot of reasons that I didn't really fit comfortably into other parts of Texas.
Starting point is 00:19:57 Yeah. I was gay. At the time, I wasn't even out. And I was a little more creative maybe. I haven't found my place in texas except for west texas and um you know austin it was the state capital the university was huge it was you know this liberal place and a more conservative state and the blueberry and the the blueberry and the tomato soup. And the music was amazing
Starting point is 00:20:27 and there were rivers and lakes and it felt like home. For those people who have never been to Texas and there are certainly lots of international folks listening and they may have the image certainly of the cowboy hat and the boots, but that's about it. When you say Texan through and through in other respects, for you, what does that mean?
Starting point is 00:20:49 I'm from West Texas, and there are a lot of people that grew up in Texas and never even make it to West Texas. It's a big state for you guys who don't know. Although Jeff Bezos, maybe unbeknownst to many people, would be one of those people. Right in the middle of West Texas. It's a good place to launch a rocket ship from. And so, you know, I'm, I think, sixth or seventh generation in the ranching business.
Starting point is 00:21:17 My family still ranches, cow and calf operation. And so there is a certain way Texas, I mean, Texas is like another country for some people. It really is. The Republic of Texas. That's right. And that comes with the good and bad, but for me mostly it's a good thing. A friend of mine asked me when I was young and traveling, he said, if people were to ask you if you were in europe where are you from
Starting point is 00:21:46 i would say west texas he's like that's early on most people wouldn't say that they would say not only you say texas you give the region of texas you're from i'm like well west texas is so different than east texas you know it is a enormous enormous state yeah uh so you end up in austin how does the law come into the picture and why i've well so as as i said i was humanities major which i'm forever thankful for and uh then i doubled down with a concentration in poetry which is you don't you know they're not looking for poets out there i don't think so much um and. So I applied to go to, I could go get my MFA, was really the path I was on. Your graduate degree in writing. Right.
Starting point is 00:22:32 And I applied to one program at Sarah Lawrence and didn't get in. And I was like, okay, what now? I knew that I was going to need a little further education or some other direction. So actually, the first thing I did is I got an internship at Texas Monthly and worked there for, I then went on to work as a paid, I don't even know what it was, paid employee, I guess, at Texas Monthly for about a year and applied to law school during that time. My father always argued that law school education was something I'd never be sorry about, and it was actually the best liberal education you could get. Do you agree with that now?
Starting point is 00:23:14 I do, actually. I was afraid at the time that it would kill every bit of creativity in me, that somehow learning to think logically would dampen my ability to be creative. And I don't think that's true at all. So you finished law school. Mm-hmm. Do you work in the law profession before Hotel San Jose? I did, indeed. So I went straight from law school to the DA's office in Manhattan
Starting point is 00:23:42 and worked there for three and a half years or so and then moved back to Austin and worked at the Attorney General's office. So I was a trial lawyer and again something I'll never be sorry about. I made amazing friends that I'm still in touch with on a regular basis, from a text thread to occasional reunions. But it also taught me how to think in a way that has served me really well in business and just in the world. It teaches you a form of rigor, I think, to be a trial lawyer, to understand all the facts of any situation and to put it together. So understanding the facts then of your situation at the time, if I contrast, contrast isn't the right word, it sounds too judgy. If I look at your path side by side with the paths of other former lawyers I know, which are many. A lot, right?
Starting point is 00:24:48 So maybe they say, I don't want to do law, but I'm going to do management consulting. Or I don't want to do law, I'm going to start a company with my friend or go to business school. There aren't many who say, I don't want to do law, I'm going to buy a hotel that's full of drug addicts and prostitutes and so on. So why that particular choice? How did that come to pass? I think partially it was serendipity. I was in the right place at the right time on the right street. What appealed about it to you?
Starting point is 00:25:22 Because for a lot of people, it would have a repellent effect. But for you, it had an attracting effect. Well, if you think about it, I come from the DA's office, and a lot of the work I did was with a lot of the same, I don't know exactly where that concentric circle is but you know a lot of the people i dealt with in new york and in the criminal justice system that whether it was from a police ride along or just looking at the stories of people every day down and out or in with in trouble or you know with when things get crossed in one way or the other in their lives was not something new for me in that way. And I wasn't scared of the junkies and hookers. Like I said, again, there were a lot of really good people there. But we're at a moment in their lives...
Starting point is 00:26:18 Which is really clear in the doc. Yeah. Which is part of the reason why, yeah, it's going to get released. That's right. But there were a lot of people hustling, whether that be a good hustle or a bad hustle. And I'm a big believer in hustling, but there were some pretty good grifters in there as well.
Starting point is 00:26:37 So it wasn't an unfamiliar milieu for me. But I always was interested in design. It's something that i uh had always enjoyed and my brother one of my brothers was um it worked for icf international contract furnishings um kind of like noel and um was i wish i knew no noll. Knoll is a business that probably started in mid-century. It was known for Florence Knoll and issued a lot of classic furniture that you would see. Mies van der Rohe did stuff for Knoll. Got it.
Starting point is 00:27:19 Okay. Design. He was in design, I should say. And so it's a world that I was always fascinated by. And there was really not this clear path. And I've always loved hotels. Did you dislike law? You know, I actually really liked the DA's office. I liked criminal law a lot. There's a line in a Carolyn Forche poem where she says, there's nothing no man won't do to another.
Starting point is 00:27:52 And that's fascinating to me, like why we do what we do and why does our criminal justice system do what it does and respond to the human condition the way it does and what are our rules and laws. I found that fascinating. And I also like like trial work i like talking to a jury i like the i liked the whole uh not just pageant of it but the actual truth-finding mission i like also like um i liked being a lawyer where it wasn't a lot of people think that the DA's office, their whole purpose is to get a conviction or be an arm of the police in one way or the other. And it's not.
Starting point is 00:28:33 It's really to do justice or to do the right thing. And that's an amazingly powerful thing. A lot of people with my politics would have probably gone to the public defender's office. Can you explain why that's the case? Well, because, why is that the case? Why do people with more liberal politics go to the public defender's office? I think that the DA's office is often seen to be in alignment. Like the pit bull.
Starting point is 00:29:02 Yeah, and in alignment with the police. And, you know, you've got to do, you know, to fight the good fight, you've got to be the person that is on the side of justice in the way of making sure that the constitutional principles are upheld. And you're down in the trenches with folks that often are sometimes wrongly accused. And so it tends to separate out that way. But at the time, I really thought when I was in law school and thinking about going to a DA's office, that it made sense to go to the place that had the power. And the prosecutor's office is the place where you can choose to
Starting point is 00:29:45 bring a case or not right i was also the first openly gay person hired at uh manhattan da's office in 1991 yeah crazy 91 plenty of queers there yeah first openly yeah openly and so the first year that i was there we actually actually marched in the Manhattan Gay Pride Parade, like right behind the police department and in front of the fire department. And my girlfriend at the time, she worked at the Minority Task Force on AIDS. So of course, she was like marching with the House of Africa. And they were like having a blast and i was there with the da's office and the police and the fire department she'd be i'd be like come march with us and she's like no hell no i'm having too much fun over here but yeah so that was uh you know and there was a lot of things that i you know you could talk for hours about that and you know what i learned and and um yeah i guess i'm just curious why why stop i mean a lot of people stay in law You could talk for hours about that and what I learned. I guess I'm just curious, why stop?
Starting point is 00:30:50 I mean, a lot of people stay in law for a very, very long time. So you did have this moment. You're at the Continental Club. You see Hotel San Jose across the street. You have this deep interest in design. You have empathy for the people who are mostly not seen, right, indoors during the day there. You have all of that, but you also have this potentially safe career in the legal profession.
Starting point is 00:31:16 So why stop? Well, there were a couple of jumps between there, but so I stopped at the days I was, you had a three-year commitment, and so I stopped about three and a half years in, right before you go on the homicide chart, I think in year four. I came back to Texas. I think if you stay in New York too long, you become a New Yorker. Yes. Speaking of someone raised in Long Island, you have to be careful about that.
Starting point is 00:31:39 You have to be very, very careful. Yeah. Don't let that happen to you. So I came back here and worked at the attorney general's office, and that was a little bit different. I was traveling all over Texas trying cases, and it wasn't as fascinating to me. But I still like being a lawyer. But a couple things happened. A friend of mine died of AIDS-related causes, and that was a real jolt to the system.
Starting point is 00:32:08 It was one of those moments where it was, I felt, you better do what you want to do, and not what you're supposed to do. Or, you know, this is your one life and your one chance. And so I think that probably happens for a lot of people. You face mortality up close for the first time, and that's either you just kind of push it away, or if you really invite it in and grapple with it, I think it's a life-changing thing. So it was for me. It made me, I always wondered about the San Jose down on South Congress,
Starting point is 00:32:44 and I would look at it and kind of dream about it a little bit. But that was the thing that got me out of the chair and across the street and knocking on the door to months of easily the first month, the first day of your experience at San Jose. And I'm struggling with where to go to next because I kind of want to stay there, but, but maybe what, what I can do since it's sitting right here, uh, is talk about Christopher Alexander and certainly the other authors, but I'm curious how you found your footing and your approach to doing what you now do. And so you kind of land there. Right.
Starting point is 00:33:36 Oh my God, you're doing every possible job. I mean, you're using a toothbrush to take some God awful stuff out of a sink. I couldn't even identify what the sludge was. You don't want to know. Yeah, you don't want to know. I mean, syringes. I mean, you're doing every job imaginable.
Starting point is 00:33:53 How do you figure out your playbook? And when does Christopher Alexander, not to overweight the importance of these books, but for those people who are watching, you can see this is a book called A Pattern Language, Towns, Buildings, Construction, which has come up a surprising number of times on this podcast. Has it? It has. Yeah. Interesting. Well, so at the time, I thought that I was going to take the San Jose, which was a 24-room motor court built in the 30s down in South Congress, an area of town that was still pretty abandoned. It was one of those places, not unusual at the time, that there were urban cores that when highways had come in, it had redirected traffic, and the small kind of mom-and-pop stores and urban downtowns were bypassed but there you
Starting point is 00:34:48 know obviously there was a lot of interesting architecture still or buildings uh that that were because they were older or um and built at a time where they were on a really important avenue so congress for those of you guys who don't know, is a main thoroughfare in Austin that leads directly to the state capitol. And at one time, it was the main avenue that went all the way to San Antonio, probably 60 miles to the south. And so it was a major thoroughfare. So there were a lot of old buildings and businesses, historic and otherwise, along the way. So I thought that I would just redo this 24-room motel. What I didn't realize was that it was $30 a night.
Starting point is 00:35:37 My idea was maybe it could be $75 and we could just redo it room by room and then it would be this amazing place close to downtown. I had lots of friends that would, from musicians to creative people to people that were going to visit their friends in the neighborhood that would stay there. Once I started trying to crack that plan a little bit,
Starting point is 00:35:59 I realized it was a marketing nightmare. That most people that were going to pay $60, $75 were on the highway, and they wanted something that they could rely on, like a Motel 6. And if I did lure somebody downtown onto South Congress where there were no other hotels, they weren't going to want to stay next to the crackhead next door. Mom and Pop in their van didn't want to rent next to somebody with an arrest for murder. A warrant out for murder.
Starting point is 00:36:35 So, I mean, it was true. You saw a little bit of the documentary. I did, yeah. The police were around. I remember when the police first came, they would drive around the San Jose because there was a big courtyard that was just a parking lot. And when I first got there, I was like, no, no, don't do that. That looks bad for business.
Starting point is 00:36:50 And by, you know, is there a week? And I was like, can you guys come more often? But so I started to realize that I would go and get new things and kind of try to redo the rooms one by one. And I'd get something new and it would be stolen or I would get, you know, like it just wasn't going to work room by room. I finally realized. Yeah.
Starting point is 00:37:11 There was some footage also. We're like, what happened to the TV? Like the TV is destroyed and like, Oh yeah. The last person who's in here left a gift for the new person. Every one of these is a fucking mess, but they're saying it's a fucking mess.
Starting point is 00:37:22 Let's see what's in here. It's like, Oh, you know, and it is one of those things. It's, it is. If you clean something up in here. It's like, you know, and it is one of those things. It's, it is, if you clean something up,
Starting point is 00:37:27 people are much more like, if you respect people, people are much more likely to respect a place or a thing or a person. And the people that were living there, I mean, it was, you know, the bed,
Starting point is 00:37:38 the mattress was bed springs that were cutting you at night sometimes. So it wasn't like, of course you were going to like throw a TV out the window. It was a cycle. Now I had this place. Now I was trying to keep it afloat. I had to have a plan, and my plan at 24 rooms with not much money wasn't going to work.
Starting point is 00:38:03 And then I started going to banks to see if I could you know I had gotten through school without even taking a math class you know and so now suddenly I needed to understand the basics of business or writing a business plan and I couldn't read a spreadsheet I didn't I couldn't read the financial statement I didn't know what you know all those small numbers meant. And suddenly, it became really important that I learn that skill. And so I went and audited some classes at the business school at University of Texas. It has a great business school. And I took some management and the service industry classes. And I tried to finally work my way through how to do
Starting point is 00:38:41 a business for them. And it was so hard. We do them all the time now. And we, you know, do studies and we do market studies. And, you know, it's a skill that I rely on as we look at different hotels and different markets now. We do it all the time. And it was such a foreign language to me. So then I finally got through a business plan. and I had to go try to convince some banks that they should loan me a bunch of money to redo this motel on South Congress, which at the time, you couldn't convince a lot of locals to even set foot on South Congress at night, much less spend the night down there. So it was a process. So what happened? This is a cliffhanger. I finally got,
Starting point is 00:39:30 I finally took on some partners that believed a bit in the idea, and so they gave me some, they had some track records, so they gave me some legitimacy. How on earth did you convince the first person? So banks are saying, thanks, but no thanks. Yeah, but people were intrigued, though.
Starting point is 00:39:52 So I could get, you know, remember, I was a lawyer. And so I was really selling it. And there was a change afoot in Austin. You could feel it in the air. People were starting to return to that neighborhood. It was a time that it was in the mid-90s, and there was starting to be some urban infill downtown. And so I was right on the edge of that being not completely implausible. But it didn't help that I had absolutely zero experience running a business. I mean,
Starting point is 00:40:23 that's what really got the banks. They're like, what? I'm like, no, I can do it, I promise. You look at my poetry resume. Exactly. So it took a local bank at the end of the day, a guy named Eddie Saffody, who was at, it's now Prosperity Bank. It was Liberty at the time, basically, to underwrite it.
Starting point is 00:40:46 But it also was remarkably inexpensive, the work we did in the bigger picture. It's something that we would never get away with now. But I was there all day, every day. I was really lucky to have Lake Fledo, the architecture firm out of San Antonio, now also out of Austin, to be my partners and believe in the project as well. So I hate to bother you with just halting the story and jumping into the nitty-gritty, but these are such important inflection points.
Starting point is 00:41:19 If you don't get the money, ostensibly not good things proceed from there. So we're talking about liberty and then prosperity, both good words. How do you convince that person? How did you convince them? What was the conversation where they're like, okay. I mean, I also applied for an SBA loan and it finally got, it was partially funded by the SBA. So that was great.
Starting point is 00:41:44 I have a business partner now that I'm still in business with who is a great guy and had a lot of experience in business. And his wife had brought him the Proforma for the San Jose. How did she get it? From a friend of a friend, basically. It got passed around somehow. So you were just. Yeah, totally. Just in case.
Starting point is 00:42:04 Let me get these into circulation. Exactly. Again, I didn't know what I was doing, right? I didn't know. So it was just who knew who. And she brought it home and wanted to invest. And he still has the copy of it because when it showed that we would get
Starting point is 00:42:19 $110 a night in year three or so, he wrote in the margin of the pro forma, no way. He totally didn't believe. But I don't know how. I'm tenacious, and I don't know how I finally convinced the bank. Again, they did take a leap. I'm sure there was some kind of personal guarantee that I didn't even know what a personal guarantee was at the time.
Starting point is 00:42:50 I'm like, sure, take it. Take my blood. I mean, at that point, I thought about selling the San Jose. It probably took two years to really close. About in 95, we closed in 97 of 1997 to start renovations. So it had taken all that time. I quit my law job just to go try to find money to do some kind of renovation. And in the meantime, we decided to...
Starting point is 00:43:16 So just so I'm clear, you were doing your law job simultaneous with running the San Jose up to that point? In the beginning. And then at some point, I realized I had to go work behind the front desk, and I quit my law job, which was crazy, too. You know, I have to give it, you know, my mother's been gone for about five years now, but I can't believe that they didn't think that was the craziest fucking thing I'd ever done.
Starting point is 00:43:43 I mean, like making no money. My father would have pointed out that it was just at the point I became a really good trial lawyer that I just jumped ship, you know? Which I guess, you know, I don't know. Even in hindsight, I don't know. But I felt compelled in some way. Again, I'm really dogged and really, you know, I'm going to follow it down once I decided that's what I wanted to do. But I've got to say, there were nights, I don't know why is it always nights,
Starting point is 00:44:15 that I laid awake and really thought about selling the San Jose. Probably two or three times I got really serious about it. I thought there's no way I'm ever going to be able to do this. It's too hard. And I just somehow powered through. Why didn't you sell it? Who would have bought it, right? Good answer. That is a fair answer. So you finally get the money, you close for renovations. What do you do? is there anything that you did that you no longer do were there things that you did where you're like oh that actually became part of my palette as an artist so to speak yes and yes and no to both i mean there there are ways that um it was extremely inefficient um that nobody would ever let me do what I did then now.
Starting point is 00:45:07 But I was learning on the job. It was also really low risk. I mean, when you think about it, in the hotel business, you look at the price you pay per key. When you talk about selling or buying a hotel. Per key. Yeah, per key. Meaning per key. Per key per room.
Starting point is 00:45:22 Per key. Yeah, per key. Meaning per key. Per key per room. Per room. So the general notion is when you're talking about what a hotel is selling for, what you're into it for, what you can develop it for, whether it's a good deal, you take the total price of the project from the land, all the soft costs, all the hard costs, all the working capital, everything you have in it to get the doors open, all the furnitures, fixtures, equipment, put that in a bucket and then divide it by the number of rooms. And that gives you the price per key of what the hotel costs, if that makes sense. It does. So we were into the San Jose at the day we opened the doors for $100,000 per key, which is super inexpensive. Inexpensive?
Starting point is 00:46:11 Inexpensive. Okay, got it. At the end of the day. So it was low risk. I mean, and I was on the front lines. I'm sure, again, I had a personal guarantee, and I was there every day working like crazy. And Lake Flato, the architecture firm that I've worked with repeatedly since, they were also there every day. And so, again, the question was, are there things that I did then that I would never do again?
Starting point is 00:46:40 And then are there things that I did then that became part of my palette yes and in looking back on it I think what I did intuitively there is something that we do as an organization on a regular basis now whenever we're looking at a hotel and that is to say that I was interested in what the neighborhood wanted and needed. The place had been there since the 30s in this South Austin neighborhood. And so I wanted to look around and look at the hotels that are most interesting to me are part of a neighborhood or part of a community. There's places, when I was growing up, my granddad, who was a rancher, didn't have an office, so he would go to the local hotel and sit in the lobby and do business deals and get his shoes boot shined, get his hair cut. You could do that in the lobby of a hotel. It was a place where people met,
Starting point is 00:47:43 whether you were from out of town or you were a local, oftentimes, you know, like a real cornerstone of the community, or a real important place to meet for the community. So, those were the kinds of things that interested me the most. So, one of the first things I asked is, how do we serve this neighborhood? And South Austin. You know, one of, obviously, the first things I asked is how do we serve this neighborhood and South Austin? And, you know, one of, obviously, the first things, we were directly across the street from the Continental Club.
Starting point is 00:48:10 So what do musicians need? Because at the time, musicians were some of our most frequent guests when we were $30 a night because, you know, they were coming through town in a van, and they were looking for a cheap hotel, and a lot of times they might be wasted enough that they didn't notice how bad the bed was with carpet or anything else. And we also had people that were spilling out of the Continental Club, sometimes late at night. And the neighborhood was starting to change, and people were starting to buy homes downtown again, or in Travis Heights.
Starting point is 00:48:49 We also started a coffee shop that opened, my brother and I did, months before the San Jose opened. And that, again, was a need of the community. So you were looking to fill the need. That's what drove it. It wasn't, we want to make a coffee shop. It is, what do people need? People need a coffee shop. Let's do a coffee shop. wasn't we want to make a coffee shop. It is what do people need? People need a coffee shop. Let's do a coffee shop. More than
Starting point is 00:49:07 that, we needed a coffee shop. This is a really I want to underscore this because it comes up so frequently in people who ultimately succeed in some capacity in entrepreneurship is it so often starts with scratching their own itch.
Starting point is 00:49:24 And at least that way you know you have a market of one. It's not complete speculation, so not to interrupt. When you think of a pattern language and you think of Christopher Alexander, what I was doing intuitively... This gigantic book
Starting point is 00:49:42 that those on audio can't see. It's big you bludgeon a badger with it but um the what i was doing intuitively was uh a lot of what and for those of you who don't know christopher alexander is uh is a writer and a thinker about architecture and about how we build. And more than that. But for me, he wrote a book called A Timeless Way of Building. Which I have not read. And he wrote A Pattern Language, which was basically his idea was looking at all the old villages and towns and communities throughout the world
Starting point is 00:50:29 that have been there for centuries. And his point was that people figure out how to build intuitively, more so than current at the time and probably today, current architects today, who are responding to how a thing looks rather than how it functions and he's his argument is or his thesis is that we know intuitively you know where to put a fireplace or a hallway or you know a hub and spoke model in a small community because it's it's those ways of building that make a place feel more whole and, uh,
Starting point is 00:51:08 more complete and makes you as a person feel, uh, more whole and complete. It's sort of, he calls it, I think he calls it the quality without a name. Yes. I was,
Starting point is 00:51:19 so could the quality without a name, what does that mean? What does it refer to? Well, you know, those places that you've been to, the buildings you've been in or places you've been in, where it just feels right. And it feels calming rather than agitating.
Starting point is 00:51:37 It feels like you are part of something in a bigger sense. And I think part of that would be, you know, today we, people design things today. This happens all the time that they've never even been to the place where the Tuscan village in the suburbs is going to be put. You know, like, his argument is that you look around you and you see how things are built in the place you are. And you don't bring building materials that would never exist in a place.
Starting point is 00:52:13 You look at the ways of doing things that have been done for a long time and that way you become the fabric of the place itself. Yeah, this book is so simultaneously intimidating and fascinating. I mean, I just turned to a random page That way you become the fabric of the place itself. Yeah, this book is so simultaneously intimidating. It is. And fascinating.
Starting point is 00:52:28 I mean, I just turned to a random page, 599. Activity pockets. And there's a diagram with the average number of people, area of 150 people to 300, oh wait, no, P must mean something else, 300 something square feet. And it's looking at the placement of umbrellas in what looks like an Italian pavilion. And there's another section, yeah, a pocket of activity, which bulges into the square with a picture from Italy. And then there's a separate section. I was actually looking at this because I had a cabin construction project
Starting point is 00:53:00 not too long ago. And there's a section on the integration of outside and inside. Right. Well, okay, so I don't think that the book actually is, I think you're reading it in the right way, meaning you should not sit down and read that book from cover to cover. Oh my God. I mean, it really is something that his, you know, he became
Starting point is 00:53:19 and he's still around today, but he became software, what would you say it is, designer of software. His idea is about patterns. And so patterns are a thing that happens over and over again, you see, in the natural order of things. So if you're talking about an Italian plaza where the umbrellas are, think in your head how many times you've seen that. Well, there's a reason. People on the ground designed that themselves because that's where human activity went to. When we were doing El
Starting point is 00:53:51 Cosmico, which is... You describe that because El Cosmico has probably been recommended to me by Texans more than any other hotel. And then there are Austinites who do staycations at some of your places. But describe El Cosmico, because when I did the introduction, how did I describe it? But I think the community lodging concept. So when you were designing El Cosmico, I don't mean to interrupt, but...
Starting point is 00:54:19 No, that's quite right. El Cosmico is now 21 acres in far west texas which in in the city of marfa town of marfa um considered one of the darkest places in the united states it is um marfa is one of the darkest places it is um also about a mile high about as high as denver and it is uh more clear nights and clear days than your average place. So you – and it's one of the – there's no real – there's very little light because it's such a sparse area of the country. In terms of light pollution. Yeah, so if you think about it, there's two main counties out in far west Texas, Brewster and Presidio.
Starting point is 00:55:10 And there's something like you can fit like 17 Rhode Islands into one of those counties. And I forget what the number is, but the per capita, the acreage per capita per person, that's redundant, but is enormous. Every person has something like four square miles. It's just sparsely populated, not a lot of cloud cover, and not a lot of light pollution. For that reason, my understanding is that astronomers, or amateur astronomers, but with nearly professional grade equipment or professional equipment traveled from all over the country to go specifically to marfa that's true for the new moon and things like that yeah it's a i mean it's incredible you can see the milky way which when i
Starting point is 00:55:55 was growing up we could you could regularly see the milky way and how often do you see it now in places that aren't like marfa or like Baja, California. There's too much light pollution. We just don't see that anymore. And you forget what an amazing feeling that is in the order of things to see another galaxy. So you have 21 acres. Okay, so I digress. There's 21 acres.
Starting point is 00:56:24 We're right on the edge of Marfa. It's a town of about 2,400 people. And I had done a small motel in Marfa, called the Thunderbird, and walked away from it. It was a bad partnership. It wasn't going anywhere. But I did know that I wanted, I was interested in Marfa as a community. Marfa as a community, again, my family ranch is in the region. I'd moved back from New York. I really wanted to spend more time in far west Texas. Marfa was a little bit on fire, if you can say that for a community of 2,400 people. Because Donald Judd,
Starting point is 00:57:04 who is one of the 20th century's most renowned sculptors had made a home in Marfa and it had become an art mecca for a lot of folks
Starting point is 00:57:19 so you have this crazy mix of artists and creative people and ranchers and people that work on the land in this beautiful place that for those of you guys who are from overseas might think of it as the myth of the American West. When you've seen Giant or you've seen movies, westerns, the landscape we're talking about looks a lot like that, just stretching on forever in distant clouds. So El Cosmico, I bought this pasture, basically, that was on the edge of town, and I wanted to build a hotel or a lodging experience of some sort there, and I realized that it needed to be indoors and outdoors because that's one of the reasons you go out there. And I didn't know exactly what I was
Starting point is 00:58:12 going to do again at the time, but realized that old trailers, vintage trailers were a great way to get started putting hotel rooms up quickly. And so I bought a few trailers, and we redid them. And I started falling in love with trailers of that, of the, like, 50s, 60s time period, because those old Spartans and Vagabonds and things like that are made with this beautiful birch interior. It was before they were making Airstreams with, you know, I don't even know what the walls of an interior of an
Starting point is 00:58:46 airstream are, but they, trailers of that vintage had these beautiful wooden interiors. I mean, you felt like you were in the belly of a ship or in a ship's cabin. And they, we finished them with a yacht varnish at the time. And so it was this, it was like these, we put the first few trailers out there, and it was like ships on the desert. And I just fell in love with the whole notion of these kind of nomadic ways of living. And so we got some yurts eventually. We got teepees. We have safari tents. And it became this grand experiment to see how we would use the land.
Starting point is 00:59:29 So all of the rooms were movable. And so we kind of lived our way into it. That comes back to Christopher Alexander and the pattern language. It was really starting to have music festivals and parties there and people living out there to determine what did the place need and how would people use it so we've been talking about the outside inside integration and Christopher Alexander gives some great contrasting photographs for illustrative purposes it seems based on the homework that I've done, at least that you also think a lot about,
Starting point is 01:00:11 well, I'll quote here and the internet misquotes a lot. So you can correct me if I'm wrong, but it's here's, here's the quote. And this is part of a longer conversation, of course, but I hate it when I visit a hotel that hasn't put thought into the products
Starting point is 01:00:24 they place in their room. It's all part of the language of the place and the details that affect the guest experience there so if we if we look at el cosmico or you could choose a different example what are the things that people might notice in inside inside in and outside and outside yeah you know for i think for us at bunkunkhouse, it is a whole experience. Like being at a hotel should be, and you think of some of your favorite hotels, it's not that you liked the bedspread or it was close to the highway. You might have liked both those things. But I think probably the places you like the most are the most immersive.
Starting point is 01:01:04 And I think of it as storytelling in a way. So every hotel that we do has everything from a soundtrack to oftentimes a color or a color scheme that repeats throughout. A smell, an incense usually. Like at the St. Cecilia, we put nagchampa, big sticks of nagchampa in the garden so as you're walking through the courtyard, it's really subtle, but it's something that strikes your senses and it will remind you of the St. Cecilia.
Starting point is 01:01:36 Of all the smells that you could possibly choose, why did you choose that? The St. Cecilia is a small hotel we have further back in the neighborhood off of South Congress. Very good selection of tequila also. I bet. It's only 14 rooms, but the main part of the St. Cecilia is an old Victorian that was built in the 1890s. And then it has some bungalows that are scattered around about an acre, an acre
Starting point is 01:02:05 half of land. And in order for us to do a hotel, for me, there has to be a skeleton, a story that everything is hung upon or proceeds from. And so my business partners at the time, we were looking, the St. Cecilia came up for sale. It wasn't the St. Cecilia, it was just an old Victorian on an acre of land near downtown Austin. And he's like, what's the story here? You know, it's like you had to describe this to somebody. always loved that whole period of rock and roll that was about going to really nice hotels and the super decadence not the throwing the tv out the window but the you know great silver slightly tarnished in the white tablecloth from room service and the contrast of you know dylan taking tea somewhere or you know drinking a bottle of whiskey the stones at nelcott just that there's something so awesome about where elegance kind of meets rock and roll
Starting point is 01:03:13 and so there was this victorian and i felt like that i'd seen a photograph of like maybe it was a stones somewhere in like full-on 1970s awesome clothing. And there was a chauffeur washing a Bentley in the background kind of thing. And so this place where those things met immediately became the St. Cecilia to me. And St. Cecilia was a patron saint of music and poetry. And so if you ask where Nag Champa comes from, it's like that, that smell of Nag Champa is the hippie smell of that time. And putting it in a place as elegant as the St. Cecilia makes perfect sense to me. So many questions.
Starting point is 01:04:02 I would think of myself in general as at least an aspiring minimalist when it comes to certain aspects of design and certainly have very, very limited experience compared to someone like yourself, but have had projects, one in San Francisco before I moved to Austin where this place was stripped down to the studs
Starting point is 01:04:24 and just became an art project. And I've spent a lot of time in Japan, so it was sort of a combination of like a green and green Esalen-type feel plus Japanese. And it's very simple in some respects. And I have a particular dislike of clutter, I guess, even though it's an ongoing battle in my own house.
Starting point is 01:04:44 So I think it was your brother who said the following, and you can correct me if I'm wrong, but let people be the color in the room. Could you expand on that or explain what that means? It was my brother, Lyndon. Some of the best advice ever. I think that you look in hotels at any point, I mean, particularly, you know, last 20, 30 years, I'd look at some place and I'm not giving a bad shout out, but, you know, the loft or something or the indigo, and they think design is fun and whimsical. And it is,
Starting point is 01:05:19 but oh my God, how do you sleep in a place? How do you walk through the hallway? You're just assaulted by so many different patterns and so many different, like what people think is like cool or hip or, you know, now, and it's just like a constant onslaught. Um, and to me, the best hotels or the best places are places that are more calming. Um so doing things through massing or through a pattern where you, you know, take the language of a place and repeat it and repeat it and repeat it. It may be so subtle that people don't really notice. But I think if you give people a place, all of our own lives are so cluttered in so many ways. But if you strip away everything to a certain degree and let the people be the color in the room,
Starting point is 01:06:13 it's infinitely more interesting. I think people feel better about everything that way as well. You know, the San Jose was the first hotel I did. And I kind of think of it as Mexico meets Japan. The San Jose was the first hotel I did. I kind of think of it as Mexico meets Japan. For you guys who don't know, we did a real sort of minimalist job on the place. At the time, we developed a furniture system that would work in the rooms because all the rooms were very different. Over the years, they've been cut up in different ways.
Starting point is 01:06:46 So we needed something where we could use something repeatedly throughout. And we ended up using some pine, loblolly pine, which is a local-ish material from East Texas. And in sort of a Judd-like way, Judd being the Marfa minimalist, although I know he would hate
Starting point is 01:07:08 the word minimalist which I think Judd is very informed by Schindler and I don't know if you know Schindler Schindler is an architect from the 20s that was working in the LA area but very influential and with
Starting point is 01:07:24 a very simplicity and with a very simplicity. And so the San Jose has concrete floors. Where we took out walls, we put in an aggregate so you could see where the walls used to be. Could you explain what that means? Yeah, so when you have old cement or concrete floor, a lot of times when you remove a wall, you'll have a hole in the floor. So what we would do is we'd take a concrete mixed with
Starting point is 01:07:52 rock and fill it in and then sand it. So instead of trying to fit in with the existing floor, you could actually see the remains of the footprint of the dinosaur. Yeah, exactly. And so the San Jose, although it's very simple with just wood and concrete, and some people would think of as cold, there's a ton of plantings, a ton of gardens. It feels really lush and feels sort of like living indoors and outdoors. But we have comment cards, and early on I really paid a lot of attention to comment cards, and I'm sure the staff does now.
Starting point is 01:08:29 But one of my favorite ones that I had up on the wall for a while was somebody had written, this is the most expensive fucking garage I've ever stayed in. So what do you do in response to something like that? Or are you like you know not everyone's gonna get it and that's okay it was really hard at first because not everyone was gonna get it and you have to decide if you want to please everybody or if you just keep doing what you're doing and know that intuitively there is something that you will find your audience and again i was very lucky in life to be in the right place at the right time because
Starting point is 01:09:06 Austin was changing and when we first opened the San Jose now just to not discount your skill set completely I mean you're in the right place at the right time but you've also now how many how many properties do you have I don't know know. Maybe eight, I think. Yeah, yeah. So, I mean, once you're lucky, twice you're good. Eight times? Okay. But continue. Yeah, okay. But at that time, with a first project, you don't know what you don't know, and you don't know.
Starting point is 01:09:36 I have a lot more confidence now. Right. I mean, I had confidence then, but not necessarily as a designer. But I remember when we first opened, we opened in March, which is spring break, but it's also South by Southwest, which is a huge conference. It used to be more music-centric, but now it's tech and film. And a lot of people descend on Austin.
Starting point is 01:10:02 It's got to be, I don't know the exact size now, but it's got to be 50,000 to 100,000. Yeah, so there's not a hotel room in town. Well, we sort of did a soft opening, which is crazy. What does that mean? Soft opening is where you invite people that might be friendly towards you
Starting point is 01:10:18 or at a very discounted price to a property or a restaurant and let the staff practice on you knowing there's going to be some mistakes um so you did your south opening during south by well right before it was like february 14th and i remember february 14th was the first day that we had in so it was valentine's day had anybody that actually spent the night in the hotel. And I put a banner outside that we sold rooms for $69 for Valentine's Day. And so that was a special. And, I mean, like trying to just get people in the doors was the whole point.
Starting point is 01:10:56 We opened here in Southwest, totally sold out. Crazy, because, of course, we had something in the waste pipe that was going to the street, like an electrical fixture had fallen down into it. So the entire wing of the hotel flooded with sewage. People were running out of the hotel with their stand-up base or whatever. There was no place to put them. All right, so it's in the middle of South by, complete chaos. Everything is stretched to max capacity.
Starting point is 01:11:32 I'm sure that stress is running high for a lot of people who have flown in to perform or whatever. So you have sewage flooding half the hotel. How do you handle that? I don't know. I mean, you know, you have to be on the front lines of it with rubber boots and the whole thing. And again, really, you know, I don't know. It's hospitality. Yeah. I mean, usually people don't know this, but behind the scenes,
Starting point is 01:11:54 a lot of places overbook because they're counting on cancellations. Yeah, it's like airlines. Yeah, exactly. And so hotels, you know, hospitality business is really interesting because hotels really are behind the scenes. Yeah, just like airlines. And just so, you know, a rising tide raises all boats to a certain degree. But you're also going to have to walk somebody sooner or later to another hotel, which means that you're going to pay for their room somewhere else because you've either overbooked or made a mistake or had sewage flood their rooms. But there was no hotels to walk anybody. I don't know how we managed it.
Starting point is 01:12:41 I put it out of my mind now. You've blocked it. But if you try to unblock it, though, is there do you say did you get them to stay they're not sleeping on the street presumably no i think we did get them to stay i think that we went in and cleaned like crazy and disinfected like crazy and remade the rooms all hands on deck completely do you comp the room discount yeah totally you know they say in the service industry a good recovery is going to make a bigger more loyal guest than if you hadn't fucked up at all in the beginning yeah it's very true because you'll tell 10 people if somebody really makes
Starting point is 01:13:19 something right right well i mean that because everybody's all smiles and high fives when everything is going smoothly it's like how how do they handle things and do they own the problem when things go sideways on their watch kind of hard not to own that one wasn't it that is hard not to own that one how dare you flood your own room with sewage uh chip conley chip conley is someone we we both know uh chip if you're if you're listening or somebody passes this along, miss you. We'd love to see you. It's been a long time since I've spent time with Chip, but I've heard you describe him as a mentor. I don't know if that, if you, or I haven't heard you, I've read it, so who knows if it's accurate. But could you describe for folks who don't know the name who is chip and uh what what
Starting point is 01:14:06 have you learned or gleaned or observed from chip oh so much over the years um chip is a mentor to this day i saw him last week um for those of you guys who don't know chip uh started a hotel company called joie de vive that that was based in San Francisco. And he started when he was fresh out of business school, probably early 20s. The Phoenix was his first hotel, which was a motor court, not unlike the San Jose or the Austin Motel, and was a favorite of bands on tour, musicians, that kind of thing. Chip continued to grow a very successful hotel company and decided at some point in his around 50 or so,
Starting point is 01:14:54 I don't know how it was, Chip, when he sold Joie de Vivre. It might have been right afterwards. I remember I was at Chip's, we didn't talk about this, Burning Man camp. I was too. Oh, no kidding. Yes, I totally was. All right, so what was it? Maslitopia?
Starting point is 01:15:06 Yeah. So that's crazy. It's the only time I've ever been to Burning Man. That's really funny. I would have one of the yurts that was the fold up. Air-conditioned yurts. Of course I did. That's wild. All right. So we were at the same camp at Burning Man and just didn't bump into each other.
Starting point is 01:15:21 Or maybe we did. Who knows? At the catered chip food. Which, by the way, I i mean it was such a contrast my first experience not to digress too too far but my first experience at burning man was trying to build a geodesic dome with my friend on the spot that we had put together based on internet instructions when i was in san francisco and then realizing none of it would fit together we ran out of water. The RV we had broke down so the air conditioning didn't work.
Starting point is 01:15:51 It was just absolute survival mode. Adversity. And then I came to chips, and I was like, oh, my God, this is like the four seasons of the salt flats. He did the whole camp with some friends, and basically you could get food at any point you wanted. There was a full-service bar. I had an air-conditioned yurt. And, you know, it was only like six feet across, and it was made out of some kind of building material. It was like fold-up.
Starting point is 01:16:17 The whole thing folded up into a very small package. But it wasn't a bad way, kind of in and out. Yeah, that's so wild. I can't believe we were there at the same time so so he sold the company around 50 ish yeah so joe aviv he's still a very young man by the way if you're listening chip and um he the guys from airbnb tapped him on shoulder and said come help us a little bit and what was helping in an advisory role for a while, he became the head of global hospitality for Airbnb. And along the way, he's written a lot of great business books that we often have our managers read, like Peak.
Starting point is 01:16:56 And the emotional equation, what is that book called? Yeah, you know, well, I'll, if people I'm blanking on the title, but I will tell people that Chip's been on my blog a few times, and if you search How to Become an Effective CEO, Chief Emotions Officer, and my name, or just search Tim Ferriss, Chip Conley,
Starting point is 01:17:20 and that'll pop right up with that book. Right. Chip has written many books and he is often, has done a TED Talk and is often a lecturer on business and just on being a more complete person. And so Chip continued throughout. So the way I met Chip is I cold called him. I bought the San Jose, didn't know what I was doing,
Starting point is 01:17:43 had no idea what I was going to do, and I saw his name like in a trade magazine, and so I called him up. Unbelievably, he called me back in about 30 minutes. Do you leave a voicemail? I think I did. I don't remember exactly. Yeah, I think I did leave a voicemail. I don't know how I got his number.
Starting point is 01:17:58 What would you have said? I have this motel in South Austin, and I just wanted to talk to you about it. Click. Or something like that. Sweet and simple, yeah. Of course, I think he thought I wanted to see if he wanted to consider buying it. But the fact that he called me back was, I have cursed him from that day to this day because now people constantly you know now they email me or some way ask if i could spend a few minutes and for advice and you know there just aren't the
Starting point is 01:18:32 hours in the day but he just pops up in my brain every time like what would have happened had he not called back you know and i don't know but um over the, he was one of the first guests at San Jose. He was passing through. He came to see it after giving advice. I went and met him in San Francisco. He looked at my numbers that I didn't really understand and tried to make sense of them. But I could have had that conversation now much better. And then most recently, we have a hotel in Baja, California, in a little town called Todos Santos, right outside a little town called Todos Santos. That is about 45 minutes from Cabo.
Starting point is 01:19:14 And he's the one that got me into that because he had sold his hotel company and was not, I don't know if he had a non-compete or just not supposed to be in the business. And he was very interested in the community. And so he kind of pointed them in my direction. And now we have a really great hotel there. And Chip lives part of his life in Todos Santos now. What other best practices or principles or do-nots or do's have you picked up from from chip or other people well um actually our head our president now at bunkhouse i worked for chip for 10 years a guy named christian strobel and um you know it's good here's the thing you can be as creative as you want to be
Starting point is 01:20:02 and dream as big as you want and create an incredible experience and programming and everything along those lines. But if you can't keep the lights on, if you can't return money to investors, if you can't keep your employees happy, then you're never going to have a successful business. I mean, you've got to keep the lights on. And you've got to do a little better than keeping the lights on. But I think a lot of people fell in business because they don't have operational rigor. And that can manifest in a lot of different ways. But I think that Chip was influential from early on about operations and how important
Starting point is 01:20:52 not just your guest was, but your employee and your investor as well. Chip is at peak as it relates to Maslow, Maslow's hierarchy of needs, and hence Maslowtopia, as the name of the Burning Man camp, is something that he would apply also to these various stakeholders. So another mutual acquaintance, Larry McGuire of McGuire Mormon Group here, many different restaurants. I texted Larry to ask him, you know, what topics or questions might I want to explore with Liz? And he said, oh, well, there are so many things we could explore. But one of the things he brought up was the question, how do you balance, and I'm paraphrasing here, but it's not that far off. How do you balance the desire to be an artist with the desire to be, say, a business tycoon?
Starting point is 01:21:51 Right. It's a really interesting question. I mean, it's such a balance. I mean, it is. Larry's actually very good at what he does. Larry has several restaurants here in town, and I've known Larry since he was about 16 and started work for my brother. But Larry is one of those rare people that understands both, again, rigor and operations, which is going to be really important at the end
Starting point is 01:22:22 of the day for somebody to have the right experience, and the artistry of creating an experience. To me, if you don't, like, people make hotels, people design hotels, and then they walk away. And so that is always going to get diluted over time. If you don't remain involved in the experience or what your vision was in the first place, then what you created is not just an object. It's a living, breathing thing that has employees, people that work there, that spend their lives there. It has guests that come and go as part of an ever-evolving community.
Starting point is 01:23:08 And it has people that have part of the ownership in the place. So I think your vision is not complete if you just create something and walk away. It is in other genres of art. But in a hotel or in a restaurant, it begins anew every day in a way. And so to create a guest experience that is right for that hotel takes constant vigilance in a way. And that is always going to translate to the bottom line. I mean, we don't market most of our hotels in a certain way, but people market them for us. Instagram is obviously great, and so are a lot of other social media platforms. But we get a fair amount of print as well. And that comes a lot not from us necessarily pitching stories,
Starting point is 01:24:04 but for people becoming real believers in what we do and so i don't know if i'm really answering that question except to say it's a you have to have both things whether it's you doing it or someone else that believes in your vision and you believe in theirs you've got to have both the artistry in the beginning and the good business practice the world in that way. Do you have an idea for, say, how many properties you'd like to have in five years? If you want to scale, if you don't want to scale three years, it doesn't really matter.
Starting point is 01:24:55 I'm just wondering if you have something like that. It's such a crossroads right now, really, about this. You know, the pressure in business, and the bigger your business gets is to grow, grow, grow and then sell it. That seems to be, you know, I wonder if we'll be 30 years from now
Starting point is 01:25:13 and that won't be the thing or if it wasn't 50 years ago. We live in a time where it's about growth and making your business worth as much as you possibly can and then selling it. And to me, it makes no sense in the world to me because I'm a bit of a the journey is a destination kind of person. And so I think that I'm both doing, if I grow at an enormously rapid pace, if I push not only myself but my team to grow as fast as possible, we're not going to do the quality of work that we want to do.
Starting point is 01:25:53 And while we might have a higher value in five years as a company, I don't think that the end game is to sell. Larry McGuire, I think, believes the same thing I do, and a lot of people that I look around at, and I'm interested in their careers and their lives, also are people that are interested in what they do from the people they work with day to day. And creating an asset like a hotel that can just get better over time. We live in a time where you have hotels that they're redone every seven years or every five years.
Starting point is 01:26:32 There's a big repositioning or whatever. The most interesting places to me just get better as time goes on and layer upon layer and texture upon texture. And get better not by reinventing themselves every seven years. Right, exactly. What was the second title?
Starting point is 01:26:48 Not a pattern language. Timeless Way of Building. Timeless Way of Building. Yeah. So, you know, can you have a good life and have employees who are invested in that business and also keep an asset and have it, you know, I'm going to digress for a second, but the hotel business as we know it today is a result of a lot of things. But we've come to a time where most hotels are not owned by the management company. So you have a group of owners, and you have a management company that is a brand.
Starting point is 01:27:29 So from the Four Seasons to the Hilton to you name it, the Marriott, whatever it is, or even Ace, those guys over there, great friends of mine, every Ace you look at is owned by a different ownership group. And you can talk all day long about why that is. A lot of times a management company wants to stay asset light because the hotel business is in waves. So you don't want to get caught in a downturn owning a property, et cetera, et cetera. So you mitigate your risk by having – And you're growing a brand.
Starting point is 01:28:07 And that is – that's easier or much easier when you are a Marriott and you're going to be the same everywhere. And you have – and there was a time in hotel business that – or a time in hotels and those of us as consumers of hotels wanted that because before that, you could take a trip across country, and all these hotels were independent, and God knows what you might find, or it might be delightful, or it might be horrible. And there was no way of judging the quality of a place.
Starting point is 01:28:39 And then we got Hilton's and Holiday Inn's, and what was great is that you knew what to expect, you knew the level of service. Well, the cup of Starbucks is the same everywhere you go. Yeah, yeah. And so you can depend on that. I read something from, the other day I was looking at some stuff about why musicians in hotels, why that love story,
Starting point is 01:29:02 and they're interdependent in one way or the other. And somebody was saying, I don't remember, it was probably Keith Moon or somebody who was well-known for just totally trashing hotel rooms. It's like, yeah, it's the fifth, you know, it's the 20th fucking holiday inn, you know, we've woken up in in just as many days, and they all look
Starting point is 01:29:20 the same. Anybody would be mad at it. But, that time began to change with you know what we think of as a boutique hotel or a lifestyle hotel from schrager to chip connelly you know i think you you asked me about what are the next three five years hold what's my plan business-wise or hotel growth-wise. And I feel like I'm at such a crossroads there in trying to determine what's, it's not only what's best for me, it's also what's best for the company, but also the people I work with every day. And so you want to grow because you want to be able to give the people you work with more equity, more of a chance for higher fulfillment, moving into other jobs, just all those things.
Starting point is 01:30:18 I think that we have a natural propensity toward growth. But then the question becomes how fast and how much and what is the end game there? And in this business, I think in this day and age, people just mindlessly want to grow and explode. The bigger you are, the better you are. The more people know about you, the better. But I think that a lot of the qualities that you appreciate in day-to-day living become lost. I think one of the reasons we're successful as a company, internally at least, is because we are like a family in some ways. And so how much can you maintain that as well? I guess the answer is, I don't want to mindlessly grow, I want to thoughtfully grow
Starting point is 01:31:06 and that may not be at the pace that a lot of companies would want you to grow it's also about the end game and I don't think my end game would be to grow really fast and to sell the business which you find a lot of brands want to do now
Starting point is 01:31:22 it sounds also to me just based on what you've been saying, that your philosophical lens through which you view your life, which is the journey is the destination, is a fundamental juxtaposition with what a lot of external pressures would want to impose on the business. Absolutely. It's so true.
Starting point is 01:31:44 It's tricky. No, it's such a balance, and it's a struggle in a way. pressures would want to impose on the business. Absolutely. It's so true. It's tricky. No, it's such a balance, and it's a struggle in a way. It is, but, you know, some of, there are outside pressures, there are inside pressures, but it's a really good question because I'm in the middle of it right now, and I have lots of thoughts about it, but it could go on and on and on. But I do know that I could get hit by a bus tomorrow. And we all could. And you're not going to care about that IPO five years from now. My wife is pregnant.
Starting point is 01:32:22 I'm older, and she's young enough to be pregnant, clearly, and that's a whole other life change. Also, again, when you see, you know, I do really am a big believer in the realization of mortality. I mean, all those things really point me in the direction of living a quality life in relationship to other people. And in those ways, I think you find meaning in a much more real manner than you find meaning in making a lot of money. I agree. I mean, money is supposed to be fuel, in a sense, for transferring it, transmuting that into other things like experiences and so on. Ostensibly, right?
Starting point is 01:33:16 I mean, money is a representation of value. I'm not against money. And it's super important for a business. And it's super important for the people you work with and for and all those things. It's just the means to the end. No, it is. I mean, if we look at – there's a really fascinating book called The Biography of a Dollar or The Biography of a Dollar, which walks through the history of money in some respects, which becomes even more interesting when we start looking at more recent developments like cryptocurrency and so on.
Starting point is 01:33:45 But at the end of the day, at least traditionally speaking, it's a medium of exchange. And so then the question is, in exchange for what? Let me ask just a handful more questions because I think we could have many, many more conversations, and hopefully this isn't the last. We mentioned a few books. Are there any other books that you have gifted often to other people or reread a lot yourself? I love that you asked that question that way
Starting point is 01:34:13 because it really puts it in a different perspective. It's like not what your favorite book is. It's what you've given as a gift, which I thought about a little bit this morning and i mean it's so clear immediate like i didn't have an immediate answer and then i had to think why did i do that but um i think when i was younger and still to this day i sometimes gift a book of poetry by adrian rich called a dream of common language a dream of a Common Language. A Dream of a Common Language. A Common Language. Yeah, which was a book written, she wrote in the late 70s,
Starting point is 01:34:49 and she's a poet that, I was trying to think why was that book so important to me, and it's really funny, when I read Cheryl Strayed's Wild, that was one of the books that was most important to her that she had as she hiked the Pacific Rim. That's right. I totally forgot about that.
Starting point is 01:35:08 I gift a lot Slouching Towards Bethlehem, a book by Joan Didion, which is a collection of essays that I love that book so much. And it's a lot about what the kind of writing Joan Didion is doing. And those essays are both, you know, of the time. There's one that's about John Wayne. There's, you know, about California. But there's also this collection of personal essays she does. One's called On Keeping a Notebook that I go back to again and again, and I share a lot.
Starting point is 01:35:42 There's one called On Keeping a Notebook. On Keeping a Notebook. There's one called On Self-Respect. There's one on morality. But it's an awesome collection of essays, and there are other books by Joan Didion, but that's one I tend to gift the most. You know, the other one I'm sure people mention to you,
Starting point is 01:36:01 I can't imagine they don't, is When Things Fall Apart by Pema Chodron. Has anybody recommended that? That has come up, I think, only once. And Seth, I apologize, I'm misattributing, but he does recommend Pema Chodron, at least one of her audiobooks. But no, this is not a book that has come up a lot. So if you could explain why that book.
Starting point is 01:36:22 So Things Fall Apart, I think, has been important to me. I've given to people in my life because it had an impact on me. But it's, I don't know, I could be wrong, that it was Pima Chodron's first shot across the bow. I mean, it might have been the first book she did. I don't know if that's true or not. But it was really my introduction into Pema Chodron, for those of you who don't know, is a Buddhist monk who became a Buddhist monk, I think, probably 30 years ago.
Starting point is 01:36:56 When she found out her husband was having an affair and he left her, and she was left in this place of what to do about that, and she kind of accidentally found her way into Buddhism. But to me, it really revealed this struggle we have day to day in the face of anything, loss, adversity, all those kinds of things, how we tighten up and struggle, or get angry or we get bitter or we just continue doing the same things over and over that don't necessarily work. Watching TV, movies as an escape, drinking, even exercise sometimes. I mean, whatever it is we're doing and how we always think if we would just get to that next perfect place, it would all be okay. Like if we had the next job or if we moved to this new city or if we just had this relationship, it would all be okay.
Starting point is 01:37:52 And then as it turns out, when you get to that place, lo and behold, on the next horizon, you feel uncomfortable because you need this next thing. And it's really the idea of, again, the journey is a destination. Being able to, on the way to that island, rowing across the ocean, you need to find comfort in being on that boat in the rolling sea. And the idea of impermanency and how, I think anybody who's lived their life with loss or death or anything of the sort understands what a jolt it is to understand that things aren't permanent and that when we do accept the impermanency of things
Starting point is 01:38:38 and learn how to live in the moment or on the roiling sea and live with that discomfort, it's a life changer. And so when things fall apart, I realized just in saying all that, the Joan Didion book, Slouching Towards Bethlehem, is taken from the same poem, the Yeats poem, Slouching Towards Bethlehem. What's it called? Is it Slouching Towards Bethlehem, right? Oh, God, you're far more literate than I am. I'm failing my exam here. We'll definitely put it in.
Starting point is 01:39:10 Things fall apart. The center cannot hold. Anyway. We'll put all of these in the show notes. And we've talked about mortality a few times. I've had quite a bit of revisiting mortality in the last few years with very close friends and even now currently some of the effectively family members. And I have a coin that sits on my kitchen counter which says Memento Mori. Remember you're going to die with iconography on it.
Starting point is 01:39:39 Coincidentally enough, I should give him credit, made by a friend of mine here, Ryan Holiday, who's an author in the Austin area who writes a lot about Stoic philosophy, which is highly compatible with a lot of Buddhist thought and contemplative practice, in my experience, in any case. Do you have a favorite, favorite's a weird word to use here, but a favorite failure or a failure that you feel like taught you a lot or set you up for later success? I've failed so often and I've been successful very often too. a formative favorite failure. And again, yeah, you know, sometimes don't we all feel like we're beating our head against the wall? And you're like, why am I doing that same thing over again? I mean, that's a whole, I think I'm still doing that. That's a whole other subject. But, you know, when I was young, when I was in high school, I was, I was in, there was a thing called Youth in Government.
Starting point is 01:40:47 And from all over Texas, they did it in other states as well, but you would learn about government by this kind of mock government thing. And it came through the YMCA, and there were like little social clubs and all of that. But Youth in government was something I got involved in probably when I was a sophomore, junior high school. When I was a senior in high school, I ran for youth governor of the state of Texas, which was a big state, but you had to run on a local level, and then you had to run on a local level and then you had to run in a regional level and then you came to state and my grandfather at the time was a rancher um uh and one of the men i admire most um was at the
Starting point is 01:41:35 time older and i think i think at that point he had broken his hip and he was in uh bed bound at home but as i ran for youth governor i would read the paper with him on a pretty regular daily basis, if not every other day, and discuss current events and current issues. And it was an awesome period of time having those discussions with him. And we came here to Austin for the Youth and Government Week. And they do it at the Government Week and they do it they do it at the Capitol and they do it in the chambers so in the Senate and in the in the House of Representatives and it's right after the the the real thing has let out and so you it's you know really awesome because you're in these great big hallways and all that kind of stuff. Anyway, I ran for youth governor. And the night that they were taking the vote, we're staying in a hotel
Starting point is 01:42:29 right over here, not far from here at all, the La Quinta over there. And I was staying in a room with three friends who were there for the party, for sure. I was very serious. They were there to be in Austin. One of them had an older boyfriend who lived here in Austin. So they started drinking in the room. And I knew that we weren. So they started drinking in the room. And I knew that we weren't supposed to be drinking in the room. And so I left the room and went and visited some other friends down the hall. They got caught. And I got called to whoever our supervisor was,
Starting point is 01:43:01 and she said, did you know they were drinking? And I was like, yeah, I knew, and I left. Well, it turns out that the whole thing was running on the honor system. I'm sure I knew that at the time. And because I did not report them, I was kicked out and sent home with them. And by that point, they knew that I had won the election for youth governor of the state of Texas, which meant that, like, in the next year, you were going to go to nationalism, you were going to do all this stuff. But instead, so the morning of the announcement, I went to the next person in line, and I was sent home on a bus with them, sitting with them.
Starting point is 01:43:38 And when my mom went to report to my grandfather what had happened, because he was following play by play, he said, tell liz we're really proud of her and to me that was uh this formative moment of realizing that there were rules and there was authority um and you know the honor system was what this whole system was running on and it was was a system I was, you know, a part cog and wheel in. And I realized that he was really proud of me because I'd grown up with brothers and with, you know, a whole community that really believed that you didn't rat on somebody else. You didn't call somebody out. It was right to remove myself. But I think there was a whole system of belief that i'd grown up
Starting point is 01:44:26 with that it would have been wrong just to run and tell on somebody else and i think it was the first time that i you know over the years and looking back at it i think i learned more from this thing going wrong than i would have learned from it going right and it was about questioning systems and questioning values. Just because somebody says these are the rules and this is what it is, doesn't mean that that's really the rules you need to incorporate. That's a great story. What a lovely experience.
Starting point is 01:45:01 It's also not that particular time in the capital, but with your grandfather, you said, right? That sounds so great. I never had that chance. My grandparents passed, all of them, when I was very young. Really? Yeah. Yeah, I was lucky that way.
Starting point is 01:45:15 Yeah. And we all lived in different states, so even when they were alive, we only got to see them very briefly. Just a few more questions. If you had a gigantic billboard, metaphorically speaking, on which you could put a word, a quote, a question, anything non-commercial, just a message to get out to millions or billions of people, what might you put on that billboard?
Starting point is 01:45:50 We do, over down by the San Jose and the Austin Motel, there is a big billboard, but of course we rent it to advertisers. But on the side of, there are a couple things on the side of Joe's. One is that iconic I love you so much that people take pictures of all the time. It's a longer
Starting point is 01:46:10 story, but on the back side of Joe's there is a quote from Jack Kerouac that says don't break your tenderness. And I love that quote. I think that's a good thing for everybody to remember. Don't break your tenderness. Don't break your tenderness, yeah. I love that. I've thing for everybody to remember. Don't break your tenderness. Don't break your tenderness, yeah.
Starting point is 01:46:25 I love that. I've never actually heard that before. Yeah, I think it's something we all... So this is right on the backside of Joe's on South Congress? Yeah, when you're sitting there, you can see it. It's kind of blue on the corrugated, so it doesn't bounce out. Maybe we need to repaint it, but it's been there since we opened. It's from, I think, Mexico City Blues.
Starting point is 01:46:44 In a very real way, I know you wouldn't take full credit for this, and there were macro forces at work and so on, but the first thing I just thought to myself was, wow, I should go check that out next time I go for a nice walk down south to Congress. I mean, if you had not looked out or perhaps gazed across the street from the continental and taken the san jose upon yourself as a project who knows what that neighborhood would look like i mean you have
Starting point is 01:47:11 played a formative role in making it what it is that's a big that's a big deal it is a big deal i mean it's an interesting we could talk for hours about that too you know i think it's about to change yet again i mean it would have changed and it would have grown, and everything is always changing, and neighborhoods are always changing, but I think we're about to see a whole next wave of South Congress happen. Oh, I agree. I'm excited to see it. Well, Liz, this is so fun, and I'm really glad that we finally had a chance to sit down.
Starting point is 01:47:46 Do you have any requests of the audience, asks of the audience, suggestions of the audience, anything you'd like to say before we wrap up? No, but I'm very excited about getting Last Days of the San Jose out there. Yes, Yes. And we were just chatting in between a brief cut that we made about a handful of things that probably need to be done just in terms of clearing rights, music and so on. So for those people listening, it might not be immediate, but
Starting point is 01:48:18 we did clink tea glasses. So last day's... Sooner than never. Of San Jose, sooner than never. Yes, that is something that I think we're both comfortable committing to. And people can find you at the Liz Lambert on Instagram and Twitter, at Bunkhouse Hotels, Instagram and Twitter, and bunkhousegroup.com. Definitely, if you're in the Austin area, and if you have never been to Austin, for God's sake, take a visit.
Starting point is 01:48:44 It's a very cool town. The self-proclaimed but believable live music capital of the world. And it's been really lovely spending time with you today. You too, as well. It really has been. Thank you. And for everybody listening and watching, potentially, links to everything we've discussed maybe even the doc
Starting point is 01:49:05 we'll see how much progress we make is available on the page with show notes for this episode and every other at tim.blog forward slash podcast and until next time thank you for listening and watching hey guys this is tim again just a few more things before you take off. Number one, this is Five Bullet Friday. Do you want to get a short email from me? Would you enjoy getting a short email from me every Friday that provides a little morsel of fun for the weekend? And Five Bullet Friday is a very short email where I share the coolest things I've found or that I've been pondering over the week. That could include favorite new albums that I've discovered. It could include gizmos and gadgets and all sorts of weird shit that I've somehow dug up in the world of the esoteric as I do. It could include favorite articles that I've read
Starting point is 01:49:58 and that I've shared with my close friends, for instance. And it's very short. It's just a little tiny bite of goodness before you head off for the weekend. So if you want to receive that, check it out. Just go to fourhourworkweek.com. That's fourhourworkweek.com all spelled out and just drop in your email and you will get the very next one. And if you sign up, I hope you enjoy it. This episode is brought to you by Peloton. And I'd heard about Peloton over and over again, but I ended up getting a Peloton bike in the whole system
Starting point is 01:50:30 after I saw my buddy Kevin Rose. I've known him forever. Some of you know. And he showed up at my gate at my house a while back, and he looked fantastic. And I asked him, I said, dude, you look great. What the hell have you been up to? Because he's always doing a weird diet or another,
Starting point is 01:50:47 but it only lasts like a week or two. So he always regresses to the mean after like 75 beers. And he said, I've been doing Peloton five days a week. Now that caught my attention because Kevin does nothing five days a week. And you know, I love you, Kevin, but it really piqued my curiosity, ended up getting a system
Starting point is 01:51:04 and it's become an integral part of my week. I love it, and I really didn't expect to love it at all because I find cycling really boring usually. But Peloton is an indoor cycling bike that brings live studio classes right into your home. You don't have to worry about fitting classes into your schedule or making it to a studio with some type of commute, etc. New classes are added every day, and this includes options led by elite New York City instructors in your own living room. You can even live stream studio classes taught by the world's best instructors or find your own favorite class on demand. And in fact, Kevin and I rarely do live classes, and you can compete with your friends, which is also fun. Kevin, I'm coming after you but
Starting point is 01:51:45 we usually just use classes on demand i really like matt wilpers and his high intensity training sessions that are shorter like 20 minutes and i think kevin's favorite is alex and everyone seems to have their favorite instructor or you can select by music duration and so on each peloton bike includes a 22 inch hd touchscreen performance tracking metrics i think that along with the real-time leaderboard are the main reasons that this caught my attention when cycling never had caught my attention before it's really pretty stunning what they've done with the user interface to keep your attention the belt drive is quiet and it's smaller than you would expect. So it can fit in a living room or an office.
Starting point is 01:52:28 I actually have it in a large closet, believe it or not, and it fits with no problem. So Peloton is offering all of you guys, listeners of the Tim Ferriss Show, a special offer. And it is actually special. Visit OnePeloton, that's O-N-E-P-E-e-l-o-t-o-n one peloton.com and enter the code TIM all caps T-I-M at checkout to receive $100 off accessories with your peloton bike purchase now you might say meh accessories wait I don't need fancy towels or whatever other supplemental bits and pieces no No, the shoes you need. You need the clip-in shoes,
Starting point is 01:53:06 and those are in the accessory category. So this $100 off is a very legit $100 off. So if you want to get in your workouts, if you want a convenient and really entertaining way to do high-intensity interval training or anything else, or you just want to get a fantastic gift for someone, check out Peloton. OnePeloton.com and enter the code Tim. Again, that's O-N-E-P-E-L-O-T-O-N.com and enter the code Tim at checkout to receive $100 off any accessories, including the shoes that you will want to get. Check it out. OnePeloton.com, code Tim.
Starting point is 01:53:46 This episode is brought to you by Soothe.com, the world's largest on-demand massage service. I have been broken so many times over the years that I usually have body work done at least once a week. I have a very, very high bar for this type of thing. And I was very skeptical of Soothe until I tested them, not once, but I would say at least a dozen times around the country in different cities. I do not accept anything less than excellent for any type of soft tissue treatment and would not suggest that you accept anything less than excellent. So I can affirm personally that Soothe delivers a licensed, experienced, and above all effective, in my book, massage therapist in the comfort of your own home, hotel, or office in as little as an hour. So you can think of it as Uber for massages,
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