Hotelier Weekly
May 11, 2023
Legendary Capital
AAHOA News
  
National Travel and Tourism Week (NTTW) is this week, May 7-13. The travel industry plays an indispensable role in driving economic growth, bringing guests from all over the world to stay at hotels, and supporting communities across the country.
 
Take a look at some of the data that showcases how travel moves hospitality and the U.S. forward: 
  • In 2022, direct travel spending totaled $1.2 trillion, powering communities and livelihoods across the nation.
    • According to AAHOA’s Oxford Study, hotel guest ancillary spending totaled $136.5 billion. This includes spending in the local area as well as transportation to and from the destination but excludes spending at AAHOA Member-owned hotels.
  • With an economic output of $2.6 trillion in 2022, travel serves as an essential catalyst for a productive U.S. economy and helps fuel connection and innovation within other industries.
    • According to AAHOA’s Oxford Study, guests staying at AAHOA Member-owned hotels spent $275.4 billion at hotels, local businesses, and transportation.
  • The travel industry’s impact goes beyond direct employment to support a total of 15 million American jobs. Prior to the pandemic, 1 out of 10 jobs depended on travel.
    • According to AAHOA’s Oxford Study, a representative AAHOA property with 100 occupied rooms supports 204 total jobs, including 106 direct jobs and 98 indirect and induced jobs. This impact includes 55 direct jobs at the hotel, with $2.3 million in wages, salaries, and other labor income. 
For more incredible data on how travel and AAHOA Members are a critical component to the economic vitality of America, check out the following resources:
 
  
In a number of ways, Laura Lee Blake, president and CEO of AAHOA, is the perfect person to lead the hotel owners association. Blake grew up in a small town in Iowa, part of a “strong and loving family” in a close-knit, very religious community. That mirrors the upbringing and current lifestyle of many of the group’s nearly 20,000 members and provides a common frame of reference for Blake and the members to start from.
 
“It was just a perfect upbringing,” Blake said. “I see a lot of that in the AAHOA community and how they interact. They have these discussions about how their parents grew up in villages next to each other and I can relate, growing up in a small town in Iowa like that, where we have a lot of similar kinds of connections.”
 
Another major connection Blake has with AAHOA’s Members is being inspired by a parent’s experience in business—often that parent’s feeling of not having a voice or not being heard. In Blake’s case, it was her father, who owned a General Motors franchise in rural Iowa.
  
North Pacific Regional Director Ankit Panchal hosted his first town hall meeting on Thursday, May 4, in Milpitas, CA, where more than 125 attendees gathered to hear from esteemed speaker Assemblymember Alex Lee and Congressman Ro Khanna
 
Assemblymember Lee recognized AAHOA and interacted with members on bills that would benefit hoteliers. One such bill, introduced by Lee earlier this year, is Assembly Bill 2164. If passed, it would allow small enterprises to have funds to get CASp reports and resources to be compliant with ADA standards.
 
“Hospitality has been targeted by frivolous ADA drive-by lawsuits, and bills like this can help protect our assets and our industry,” Panchal said. 
 
Lee also gave an update on Project Room Key as well as updates on several other initiatives to tackle issues related to the displaced community.
 
Furthermore, those in attendance were honored to hear from Congressman Khanna, who gave insight into his work to help hotel owners succeed. 
 
“Congressman Khanna acknowledged AAHOA as a friend. He is very proud of AAHOA Members, acknowledging that many started from small motels and now own big luxury brands,” Panchal said. 
  
May is designated Asian American, Native Hawaiian, and Pacific Islander Heritage Month by presidential proclamation.
 
As an organization that has long represented the interests of Asian Americans in hospitality, today and every day, AAHOA is proud to celebrate the contributions of our nearly 20,000 members who own 60% of the hotels in the nation and contribute $368.4 billion to the nation's annual GDP.
 
Learn more about AAHOA's economic impact via our Oxford Study here.
 
You can also check out this website for more information and educational resources for AAPI Month.
Charter Communications Operating, LLC
AAHOA Advocacy in Action
 

AAHOA is continuously striving to stay the foremost advocate and resource for America's hotel owners. Through the educational resources we provide our members, specifically those which focus on Franchise Advocacy, hotel owners continue to gain a better understanding of their rights as Franchisees. Along with the iconic 12 Points of Fair Franchising, AAHOA's best-practice approach to designing, developing, and implementing best-in-class, mutually beneficial franchise systems, AAHOA is introducing the 4 Core Pillars of Franchise Advocacy.

The 4 Core Pillars:

  1. Mandated Vendors: Brands should not mandate specific vendors when there are multiple vendors selling goods of comparable quality at comparable prices.
  2. Rebates: Brands should disclose all vendor "rebates," which can also be called "discounts," "refunds," or "allowances," and should be returned to Franchisees through appropriate accounts.
  3. Loyalty Programs: Brands should reasonably compensate Franchisees when the brand sells loyalty points for cash and then allows travelers to stay at hotels owned by Franchisees.
  4. New Fees: Brands should not unilaterally or arbitrarily impose new fees on Franchisees that were not disclosed in the official Franchise Disclosure Document (FDD) without the approval of the Franchisees or a properly elected Franchise Advisory Council (FAC).
On Tuesday, May 2, 2023, AAHOA, AAFD, and CFA co-hosted the webinar, “Is Franchising Fair? Franchisee Conversations with FTC Chair, Lina Khan.” A reporter with an investigative news organization, The Capitol Forum, recently covered this webinar where FTC Chair Lina Khan paid close attention to concerns from franchisees about franchisors.
 
FTC Chair Lina Khan said it was “really interesting and troubling” to hear some of the concerns raised by franchisees and their representatives about franchisors. Noting franchisee complaints about franchisor “mystery fees,” Khan said the agency could expand a proposed rulemaking on consumer-oriented junk fees to include business-to-business fees.
 
In opening remarks, Khan said her main goal was to hear from franchisees at the event organized by the Asian American Hotel Owners Association (AAHOA), the American Association of Franchisees and Dealers, and the Coalition of Franchisee Associations (AAHOA release).
 
She said franchisee requests for “transparency and fairness” were squarely within the FTC’s mandate. The agency is tasked with “making sure that dominant firms are not using their power in unlawful ways that lock out small businesses and entrepreneurs,” she said, noting a recent Request for Information on the franchisee-franchisor relationship.
 
You can also check out what attendees had to say after the FTC webinar with this post-webinar survey snapshot
Red Roof Inn
Member Testimonial
  
"Oh, it's been fantastic. Even though I'm a physician, I grew up in the industry, about 50 years when my family first came and got into the hotel business, but I don't think anybody could have ever dreamt that this organization would grow to this size with this kind of energy and enthusiasm."
 
-Dr. Kamal Morar, AAHOACON23 Attendee
AAHOA Education
  
On Tuesday, May 2, The American Association of Franchisees and Dealers (AAFD), the Coalition of Franchise Associations (CFA), and AAHOA jointly hosted a call for webinar attendees to listen in on a discussion with the Federal Trade Commission.
 
AAHOA had the privilege of being joined by the Honorable Lina Khan, Chair at the Federal Trade Commission, and the Honorable Rebecca Kelly Slaughter, Commissioner at the Federal Trade Commission. Additionally, each of the three hosting organizations' leadership made statements and asked questions of our guests.
 
Nearly 1,000 registrants tuned in. It was an excellent opportunity for current and future franchisees to hear from FTC leadership on how they have focused attention on using the FTC’s authority to improve oversight and education within the franchise industry.
 
Stay tuned for more exciting events, virtual and live, from AAHOA Education.
dormakaba Canada Inc.
DIRECTV Hospitality
Featured Club Blue Member
  
As North America’s leading hospitality procurement services provider, Avendra offers AAHOA Members competitive pricing from its 800+ supplier contracts. Earn huge savings on engineering, rooms operations, administrative, replacement FF&E, and more! Check out the website or call 866-AVENDRA and start saving today!
Hotel Equities
Karcher North America
Featured Member Benefit
  
All Insurance Underwriters (AIU) is a National Managing General Agency giving AAHOA Members the option to retain current Insurance Agents. We also offer all Commercial General Lines of insurance, together packaged with Worker’s compensation (where applicable) extra savings can be found. Check out the website for more information on AAHOA Member benefits, and fill out a form to contact one of our dedicated team members.
Featured Platinum/Silver Partner
  
At Curve Hospitality, we combine creative design solutions with our ability to manufacture and deliver contract furnishings. Our experienced hospitality interior design team works closely with clients to turn their vision into a marketable commercial product. Visit our website for more information.
Visual Matrix
Alliance Laundry Systems-UniMac
Industry News
Artificial intelligence, instant messaging, robotics, and smart tech are among the newer offerings many hoteliers are turning to in an effort to streamline operations, boost the bottom line, and improve the guest experience.
(Source: VentureBurn)
Three-plus years after the start of the pandemic, the country is grappling with inflation and an uncertain economic future, and securing financing has been added to the list of challenges facing hoteliers expanding their portfolios or entering the industry outright.
(Source: CoStar)
As older workers retire or leave the industry, younger employees are emerging as the predominant demographic, and they bring preferences and habits unlike those that came before.
(Source: HospitalityNet)
Intellihot
Today's Hotelier

MAY ISSUE

The May 2023 issue is out now! This month, we're taking a close look at a wide variety of topics, with a special focus on AAHOA's rising stars including how AAHOA’s young leaders are finding success through talent, work ethic, and drive, the allure of independence for younger hoteliers, and much more

Featured Content

Join thousands of AAHOA Members, brand CEOs, and industry professionals by subscribing to our magazine. Receive every digital issue of Today’s Hotelier as soon as it’s released to the public. Click here to subscribe.

In the Market
  
Truist Securities reports, "Overall U.S. RevPAR was +8.4% y/y for the week ending 5/6/2023, per STR, up from the prior week's result of +5.6%, and above the trailing 10-week average of +7.1%. Vs. 2019, RevPAR was +13.3%, up from the prior week’s result of +12.0%, and above the trailing 10-week average of +12.9%. Last week was a clean comp. We note a slight improvement in w/w RevPAR growth, mainly driven by strong and continued Group customer performance (up 19.3% y/y vs. prior week's +10.9%). Despite the y/y strong performance, we believe there is still continued opportunity for Group demand growth going forward as Group occupancy vs. 2019 was still down 7.5%. Upscale RevPAR: +11.6% y/y and +5.9% vs. 2019; Upper Midscale RevPAR: +9.0% y/y and +12.8% vs. 2019.”
For more, read the full report here, read the China/Europe report here, and read the hotel P&L analyzer here.
  
AAHOA offers a warm welcome to Neera Tanden, current Staff Secretary and Senior Advisor to President Joe Biden, as Domestic Policy Advisor, effective May 26.
 
Upon taking control of the position, Tanden will be one of the highest ranked Indian Americans in government. Tanden will be the first Asian-American to lead any of the three major White House policy councils in history.
 
"We are proud to see the daughter of Indian immigrants ascend to the highest echelons of the United States government," said AAHOA Chairman Bharat Patel. "Many of our members and hoteliers are first- and second- generation Americans themselves, and it is empowering to see such representation. People are policy and we welcome the perspective of an Indian American advising President Biden on such important matters. This appointment of someone who relied on the programs she will oversee is vital."
 
Added AAHOA President and CEO Laura Lee Blake: "The selection of Neera Tanden to serve as Domestic Policy Advisor is a victory for the representation of women and Indian Americans in leadership positions. We look forward to working with the Bien Administration on advocating for the hospitality industry and the small-business owners who compose our membership."