Family is an important part of most people’s lives. To some, it’s the most important aspect of their life. For Mit Shah, family is life. And he holds it close to vest.
Shah learned business skills from his father—and mentor—when he was 10. He took a small chore of filling the Pepsi machine in his father’s independent roadside motel, learned the basics of supply and demand, and built a business in Noble Investment Group where employees have a stake in the game and share a pot of proceeds.
He also learned interpersonal skills from his father at a young age and realized the importance of surrounding yourself with passionate people who enjoy being part of a team.
Today, the CEO of the privately held, Atlanta-based hospitality organization with investment, management and development arms, is teaching those same skills to his 13-year-old son.
Forging the future
Shah grew up in the hotel business, but not the way some others did. When he was 10-years-old, his father, a “serial entrepreneur,” bought his first motel. One day little Mit wanted to go to the local jamboree, and right when he worked up enough courage to ask his father for some money, a guest was complaining there was no Pepsi in the vending machine.
From that point forward, Shah’s father, Bart, trusted him to manage the vending machines on property. They went to a local bank and opened an account in Mit’s name. Whatever profits came from the Pepsi machine, Mit got 50%. A week later he learned where to buy soda for less sales tax. And soon after, when the first Sam’s Club opened in Winston Salem, North Carolina, Mit began buying in bulk.
Mit spent his teen years doing odd jobs around the two additional hotels and a handful of apartment complexes his father invested in. “I worked the 7 (a.m.)-to-3 (p.m.) morning shift because that’s where my parents were every Saturday and Sunday,” he said. “We were cleaning rooms, folding laundry, checking the pH level in the pool. That was my indoctrination in the business. I learned very, very early not just about the people who work in each operation, but how important it is for the character of the people to work for the betterment of the whole. I learned that at the same time my parents learned that—the way people work. I’ve replicated that with a lot of really talented senior leaders that I’ve made owners in and partners in the company.”
Growing Noble
At Noble, team members are extremely talented and have a great work ethic, Shah said. Instead of a bonus program, they want a stake in the company. They are a true part of how Noble makes money, so they put profits in a pot and share the wealth.
“That’s the real connection to why the company was named ‘Noble’ in 1993,” Shah said. “My dad has always used that word around the house in terms of how you act and how you make decisions. It was a very natural way for us in how we behave. He said, ‘Don’t ever forget that.’ I saw it live and up close and personal. Those who know my father know him as that kind of man.”
Noble stopped making investments in May 2008, just four months before the global financial crash. Shah said nobody on his team had a crystal ball, but they were smart enough to see some trends, and they came to him with suggestions. He trusted their judgment and they turned out to be right.
In May 2010, Noble bought the Courtyard by Marriott in Charleston, North Carolina, and then laid low until a peak investment season ripened this year. The company did 10 deals in May 2011 alone.
“We will make mistakes, but those decisions are going to be made for the best intentions of our key stakeholders,” Shah said. “I remember on September 12, 2001, the guys came in with scorecards and said, ‘How are we going to take care of people stranded in our hotels?’ We make those decisions with the right things in mind.”
Personal life
Shah has been married to his wife, a family practitioner, for 16 years. He credits her with giving him not only personal happiness but time to build Noble. They have a boy and a girl. His son, 13, already has a Charles Schwab investment account.
“He’s been playing fantasy football so he gets the whole idea of researching players and the whole trading piece,” Shah said. “So we just sat down with my financial guy and now he’s going to take over his own portfolio. He understands it’s (US)$8.95 to trade every single one. Whatever profit he makes he’s going to get 20%. You see the gears start turning.”
He prides himself on mentoring younger employees at Noble. Shah hosts “Coffee with Mit” one morning per month, during which different employees from around the organization sign up for an informal chat with their CEO.
“(Mentoring) is one of the things I enjoy doing,” Shah said. “I believe it’s a responsibility for people who run an organization to have others that they can help, that they can teach and lend experience.”
There also are a large group of hoteliers Shah has known for some time who come to him for guidance and counseling. He speaks with importance about reaching out, talking to leaders and trying to understand things you may not know. He tells people to determine an aspiration group.
“One of the greatest things I can look back and say I did was spend a lot of time building friendships in our business,” he said. “That kind of helped shape how we built Noble.”