THE NAACP OPPORTUNITY AND DIVERSITY REPORT CARD: THE HOTEL AND RESORT INDUSTRY 16
public image of purchaser), thereby increasing the opportunities for a diverse pool of rms, suppliers, and
contractors.”
34
Additionally, rms owned by people of color benet the community by fueling its economy,
which leads to the creation of more jobs, an expanded tax base, community benets, and global
competitiveness.
35
Hotel chains’ supplier diversity programs enable hotels to invest directly in communities of color by
“building family and community assets and assisting them in overcoming the racial wealth gap.”
36
Overall, the lodging industry still needs to develop more effective partnerships with minority vendors and
suppliers to bridge that gap.
Inclusive Business Practices: Ownership
Hotel ownership is consistently cited as the greatest challenge for diversity in the hospitality industry.
37
In 2010, African American- and Latino-owned hotels represented less than 2% of all hotels in the nation.
As previously mentioned, hotel ownership by people of color can spur job creation for other people of
color, particularly at the management level. For instance, Asian Americans own approximately 40% of
the nation’s franchised hotels, produce over 500,000 hotel jobs per year,
38
and have representation as
general managers nearly proportional to their presence in the population.
39
In addition, hotel ownership
creates a strong entrepreneurial network and widens the base of intellectual capital, which results in
generational wealth. On the topic of African American hotel ownership, Michael Roberts states: “[African
Americans] need legacy. We have to have examples of successes in order for us to be able to let the
generations to come know that many of the successes that occurred by African Americans in this country
can be seen and pointed out and can be emulated.”
40
Lack of experience and access to capital are the most signicant barriers to hotel ownership for people
of color.
41
The presidents of afnity associations in the lodging industry emphasize that established
hotels need to do more to level the playing eld of hotel ownership and assist potential hotel owners of
color in overcoming these barriers.
42
Associations have initiated efforts to improve minorities’ knowledge
of the hospitality business by offering seminars, boot camps, and workshops, along with connecting
potential owners with experienced owners. Nonetheless, capital is the key to hotel ownership. Many
lenders, especially in the current economy, prefer to invest in franchisees that have existing or previous
hospitality experience, and many potential hotel owners of color are rst-time buyers.
43
In dealing with
this challenge, afnity associations are reaching out to people of color who own successful franchises in
other arenas, such as fast food restaurants or auto dealerships.
34 Cooper, C. & Russell, S. (2008 July 20-22). Evaluating and articulating the benets of supplier diversity and M/WBE pro-
grams. Presented at Insight Center for Community Economic Development meeting in Kansas City, MO.
35 U.S. Department of Commerce. (2010 July 19). Number of minority-owned businesses increases but economic parity re-
mains elusive. Washington, DC: U.S. Department of Commerce, Minority Business Development Agency. Retrieved from http://
www.mbda.gov/pressroom/press-releases/number-minority-owned-businesses-increases-economic-parity-remains-elusive.
36 Cooper, C. & Russell, S.
37 National Association of Black Hotel Owners, Operators & Developers (NABHOOD); Hispanic Hotel Owners Association
(HHOA); and Asian American Hotel Owners Association (AAHOA), personal interview, August 10 –12, 2010.
38 Asian American Hotel Owners Association. (2010 May 27). New survey showcases unprecedented impact of AAHOA
members. Retrieved from http://www.aahoa.com/AM/Template.cfm?Section=Home&TEMPLATE=/CM/ContentDisplay.
cfm&CONTENTID=4717.
39 Tsering, L. (2004 March 14). Is the industry recruiting racially diverse workforce? India West.
40 Lavandera, E. & Drash, W. (2009 August 24). Two Brothers, No Fears and $1 Billion Empire. CNN. Retrieved from http://
www.cnn.com/2009/LIVING/08/24/black.donald.trumps/index.html.
41 (2005 August 2). Blacks in the hotel business. The Miami Times.
42 National Association of Black Hotel Owners, Operators & Developers (NABHOOD); Hispanic Hotel Owners Association
(HHOA); and Asian American Hotel Owners Association (AAHOA), personal interview, August 10 –12, 2010.
43 Ibid.