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November 2024 | Volume 25 #231
Indian Americans
rising up
The Indian diaspora in the U.S. has become prominent
in the country’s culture
A holiday for all
More non-Indians are learning about Diwali
and families are adding their own traditions
15
BWH Hotels going
the distance
Annual conference focuses on
growth, introduces ‘glamping’ project
Hotel companies in the news include: Peachtree Group, citizenM
The Voice of Asian American Hoteliers
Happy Diwali
From all of us at IHG® Hotels & Resorts, we wish you a joyful
and festive Diwali, and a peaceful and prosperous year ahead.
May the warmth and brightness of the Diwali lights shine on
you all year long.
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6,000+ global destinations.
One loyalty program.
©2024 IHG Hotels & Resorts. All rights reserved. Most hotels are independently owned and operated.
Lina Patel, director of strategic franchise
initiatives at Red Roof, and others explain the
rising influence of Indian Americans in U.S.
society.
Cover Story
News
Franchise Relations
Design
Product Feature
24 | Indian Americans rising up
The Indian diaspora in the U.S. has become
prominent in the country’s culture
6 | NYC Council passes Safe Hotels Act
despite industry pushback
The controversial bill was introduced by
Councilwoman Julie Menin on July 18
8 | AAHOA opposes L.A.’s proposed
minimum wage hike for hotel workers
The association claims the city is
overlooking the challenges and margins of
smaller hotels
10 | CBRE: U.S. RevPAR to rise 1.2 percent
in 2024, 2 percent in H2
RevPAR in 57 of the 65 U.S. markets tracked
by CBRE hit pre-pandemic
levels in H1 2024
12 | HAMA: Demand, wage growth and
ADR increase lead industry concerns
About 58 percent of respondents plan to
make brand or management changes
Survey: 90 percent of travel related
workers increase travel and spending
The study found that about 90 percent of
employers reported higher travel spending
14 | Choice relaunches Radisson
Individuals in Americas
The launch marks the company's expansion
into upscale segments
15 | AAHOA’s North Texas charity golf
tournament raises $60k for local causes
The final tournament of 2024 will be in
Daytona Beach, Florida
16 | WTTC: Indigenous tourism to
contribute $67 billion by 2034
The council launched the ‘Together in
Travel’ initiative to support SMEs in
global tourism
20 | BWH Hotels going the distance
Annual conference focuses on growth,
introduces ‘glamping’ project
22 | CitizenM opens largest-ever hotel in
Boston
The company, led by founder Robin Chadha,
operates 15 U.S. hotels
36 | Control, Alt, Delete
Hotels choose easy installation and upgrade
potential in PMS
Gujarati translation of top stories begins
on page 38
On the cover
17 | Peachtree breaks ground on AC/ Moxy
dual brand in Dallas
The development is slated to open summer
2026
18 | Wyndham debuts ‘Accelerator Circle’
for diverse hoteliers
The first session will begin this fall for BOLD
and WOtR franchisees
Miraj Patel named Businessperson of the
Year by IACCGH
Patel, AAHOA’s chairman, is the youngest
recipient in the chamber's history
19 | Taj’s Tata passes away
Modi: Tata provided steady leadership to one
of India’s oldest business houses
COMING
NEXT ISSUE:
Election ’24 results and
consequences
Contents
06
08
12
16
18
22
www.asianhospitality.com
November 2024 | Issue 231
07
ISSN 1938-8837
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The big trust fall
ating on politicians is an age-old American tradition. I
recently received a stinging reminder of why that is the
case.
We have to trust them with important jobs based on
their assurances that they’ll get the job done, only to be
let down over and over again. They say one thing, they make promises,
then they fail to come through.
Yeah, I’m a little bitter about that right now.
Recently, a politician and his staff made promises to me directly and
they failed to come through on those assurances of help. I won’t identify
them in print, but if you meet me in person, ask and I will tell you.
In the meantime, by the time this goes to print, Election 2024 will be
over, or maybe we’ll still be waiting for final results. At least the hard
part is done.
Here’s the thing, though: Neither candidate will fulfill each promise
they have made to their constituents. Each one, for example, have said
they will cut taxes even though doing so is likely to increase the national
debt.
So, why do we let them do this to us?
Maybe it’s because we all know what we want without caring what our
politicians can actually do for us. Of course they lie to us to get our vote,
in their case telling the truth simply doesn’t pay.
On the other hand, if they didn’t, what would we be able to complain
about later?
Perhaps this time around, we can just lower our expectations and be
happy if they do something close to what they say they’ll do. Probably
not, though.
Either way, it’s over now, so maybe we can just get back to being
Americans together. In the end, if we want to get anything done in our
lives, we’re going to have to do it ourselves.
Edward J. Brock, Senior Editor
Editor's Letter
04
www.asianhospitality.com
November 2024 | Issue 231
Genuine Relationships. Real Results.®
Contact Matthew Hostetler, Chief Development Officer, [email protected] / redrooffranchising.com
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O W N E R
8/16/24 3:59 PM
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www.asianhospitality.com
November 2024 | Issue 231
News
06
he New York City Council passed
the controversial Safe Hotels
Act, also known as Intro. 991, on
Oct. 23, despite strong opposition from
industry groups like AAHOA and the
American Hotel & Lodging Association.
The council's Committee on Consumer
and Worker Protection approved the bill,
requiring hotel operators to obtain a
license to operate in New York City.
The associations argued that the
bill, introduced by Councilwoman Julie
Menin on July 18, will have a damaging
impact on New York's hotels and
economy, particularly minority-owned
businesses.
AAHOA said the revisions made
during the legislative process fail to
address industry concerns.
"While we acknowledge the passage of
the Safe Hotels Act and the attempt to
accommodate smaller properties, this
revision still falls short of addressing
our broader concerns with the
legislation. Hoteliers of all sizes deserve
the flexibility to manage their operations
effectively to ensure efÏciency and guest
satisfaction," said Miraj Patel, AAHOA
chairman. "The unintended consequences
of this act will disproportionately affect
minority-owned businesses, stifling
entrepreneurship and innovation in the
hospitality sector."
Provisions of the bill:
Hotel operators must obtain a license
to operate, with a two-year term and a
$350 fee.
Continuous front desk stafÏng is
required.
Large hotels must provide security
coverage while rooms are occupied.
Daily room cleaning is mandatory
unless declined by the guest.
Core staff must be directly employed,
except in hotels with fewer than 100
rooms.
Panic buttons must be provided to core
employees.
Human trafÏcking recognition training
is required for core staff.
Violations of these conditions will
result in penalties.
The associations warn that the act
will increase costs and disrupt hotel
operations.
AAHOA believes the legislation places
significant burdens on the industry by
banning the use of subcontractors for
housekeeping and front desk services.
"This legislation shows a fundamental
misunderstanding of hotel operations,”
said Laura Lee Blake, AAHOA president
and CEO. “By restricting subcontractors,
the Safe Hotels Act disrupts business
models that allow family-owned and
independent hotels to thrive. We urge the
Council to reconsider its impact on the
industry."
Blake said the association remains
committed to advocating for its members
and working with ofÏcials to find better
solutions.
Kevin Carey, interim president and
CEO of AHLA, called the bill’s passage
a result of "special interest power play"
and warned it would harm the city’s hotel
industry and tourism.
“From the start, this rushed and
haphazard legislative process has been
in service of one goal; to deliver
a single special interest victory at
the expense of small and minority-
owned businesses,” Carey said. “The
updated version of the bill – while
including some concessions thanks
to the advocacy efforts of hundreds of
hotels and hospitality professionals
– still unfairly and arbitrarily targets
hotels with 100 or more rooms with
regulations that have nothing to do
with the bill’s stated goal of increasing
health and safety. Instead, this bill will
do material damage to the businesses
and the tax revenue that hotels
generate for the city’s economy and
result in higher costs for travelers.”
Despite initial opposition, the Hotel
Association of New York City expressed
relief at the final version of the bill.
"The adjustments that exempt
small hotels and create a practical
standard for the industry will protect
both employees and guests while
maintaining New York City’s status
as a top travel destination," said Vijay
Dandapani, president and CEO of the
association.
However, the NYC Minority Hotel
Association criticized the bill for lacking
proper consideration of its impact.
“The passage today of Intro 991 by the
New York City Council is an affront to
New York’s independent, particularly
minority-owned, small businesses," said
a spokesperson for the NYC Minority
Hotel Association. "The so-called ‘Safe
Hotels Act’ will do nothing to make
New York safer, but it will force many
smaller, minority-owned and family-
run hotels to close, kill thousands of
jobs, and cause room rates across five
boroughs to skyrocket, eliminating
affordable options for New York City’s
millions of annual tourists and visitors.
This misguided bill will do profound
damage to New York City’s economy and
hospitality industry."
Recently, hundreds of hotel
professionals gathered at City Hall to
protest the bill, warning of its negative
effects on NYC hotels, subcontractors,
and small businesses.
NYC Council passes Safe Hotels Act
despite industry pushback
The controversial bill was introduced by Councilwoman Julie Menin on July 18.
The New York City Council passed the Safe Hotels
Act on Oct. 23, requiring hotel operators to obtain
a license, despite opposition from industry groups
like AAHOA and the American Hotel & Lodging
Association.
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www.asianhospitality.com
November 2024 | Issue 231
News
08
AHOA opposes the Los Angeles City
Council's recent proposal to raise
hotel worker wages to $30 per hour,
plus $8 for healthcare, citing a flawed
economic impact study that misjudges the
industry's ability to absorb the increase.
AAHOA members, including a delegation
of women hoteliers, testified before the
council, warning of the proposal’s impact
on smaller, independent hotels, the
association said in a statement.
AAHOA Vice Chairman Kamalesh “KP”
Patel, a California hotelier, testified on Oct.
16, addressing the hospitality industry's
ongoing labor challenges.
"I have a very serious concern about
the study presentation. The study is
majorly flawed," Patel said. "There is zero
understanding of the differences between
hotels—high-end, full-service and limited-
service. These people are asking for their
fair shake. We are asking to be heard
properly. Limited-service properties do
not offer the same services as full-service
hotels and should not be treated the same."
An outside consultant, Berkeley
Economic Advising and Research,
conducted the study and local workers
unions used it to renew their push for
increased pay, according to the Los
Angeles Times.
“This report confirms what we’ve been
saying for years: essential airport workers
like my coworkers and me need and
deserve to be paid a true living wage,” said
Jovan Houston, an LAX customer service
agent and SEIU-United Service Workers
West executive board member, according
to the Times quoting a news release by the
coalition.
AAHOA argues that the study overlooks
the unique challenges of smaller, limited-
service hotels, ignoring their tight margins
and operational constraints. A sudden
wage increase to $30 per hour, plus
healthcare costs, could result in layoffs,
service cuts or closures, AAHOA said.
"This proposal would create severe
unintended consequences for small
and independent hotels, which are the
backbone of our industry," said Miraj Patel,
AAHOA chairman. "While we support
fair wages for all employees, we urge the
city council to collaborate with industry
stakeholders to find a balanced solution
that sustains both workers and small
businesses. I also want to thank Greater
Los Angeles area regional director Naresh
“ND” Bhakta for his leadership in opposing
this proposal."
AAHOA President and CEO Laura Lee
Blake echoed these concerns, calling for a
collaborative approach.
"The hotel industry, especially
small, family-owned properties, is
still recovering from the pandemic’s
economic impact,” Blake said. “Imposing
such a significant wage increase without
consulting the industry will jeopardize
jobs and businesses. We are ready to
work with the council to explore more
sustainable ways to improve worker
compensation."
The Hotel Association of Los Angeles
also opposed the wage hike.
“Our hotels are committed to ensuring
employees are compensated and trained
appropriately, and we applaud the city’s
attention to this issue. However, the
proposed Hotel Worker Minimum Wage
Ordinance is misguided and its economic
impact analysis utterly incomplete,” it
said in a statement. “The city’s proposed
wage increase would be unaffordable and
create tremendous uncertainty for hotel
operators as they consider stafÏng levels,
service to guests, and construction and
renovation projects.”
In recognition of AAHOA’s role
as entrepreneurs, job creators and
contributors to Greater Los Angeles, the
council designated Sept. 4 as "AAHOA Day."
More than 100 AAHOA members
attended the LA city council meeting,
where Councilmembers John Lee and
Traci Park honored local hoteliers for
their contributions to the city's growth.
Following the presentation, Mayor
Karen Bass met with AAHOA members,
commending their efforts that led to the
creation of AAHOA Day.
AAHOA opposes L.A.’s proposed
minimum wage hike for hotel workers
The association claims the city is overlooking the challenges and margins of
smaller hotels
AAHOA opposed the Los Angeles City Council’s proposal to raise hotel worker wages to $30 per hour,
plus $8 for healthcare, citing a flawed economic impact study that misjudges the industry’s ability to
absorb the increase.
News
10
www.asianhospitality.com
November 2024 | Issue 231
.S. RevPAR is expected to
grow by 1.2 percent this year,
down from the previously
forecasted 2 percent, according
to CBRE. Despite lower full-year
projections, second-half growth
is set to improve, with a 2 percent
increase compared to 0.5 percent in
the first half.
CBRE’s 2024 Global Midyear
Hotels Outlook attributes these
second-half growth projections to
election-related events in the U.S.,
easier year-over-year comparisons,
rising inbound international visitors,
anticipated interest rate cuts, and a
slight uptick in group and business
travel.
In the first half of 2024, RevPAR in 57
of the 65 U.S. markets tracked by CBRE
returned to pre-pandemic levels. Most
of the eight markets still lagging are
in Northern California and the Upper
Midwest. Major East Coast markets,
including New York, Boston, Washington
D.C., Atlanta and Miami, have surpassed
2019 levels.
Although CBRE anticipated a slowdown,
growth has been more modest than
expected, despite a resilient economy.
Challenges such as record outbound
international travel, weaker consumer
demand, and increased competition from
short-term rentals, cruise lines and other
alternatives have offset the recovery in
inbound travel and the modest rise in
group and business travel.
U.S. outlook
The largest reduction in full-year
RevPAR growth is for resort locations,
now projected to see flat growth
compared to the previously forecasted
1.6 percent increase. While leisure travel
demand remains, more Americans are
vacationing in Europe, Central America
and Latin America, increasingly opting
for cruise lines and short-term rentals,
which erode traditional hotels' market
share.
CBRE's baseline forecast for 2024
predicts GDP growth of 2.6 percent and
average inflation of 2.9 percent. Following
stronger-than-expected GDP growth in
the second quarter, CBRE anticipates
a slowdown in the second half of the
year and into 2025. Softening consumer
spending and increased competition from
lodging alternatives will reduce hotel
demand.
Due to high construction and financing
costs, CBRE expects modest hotel supply
growth of under 1 percent over the next
three years. Rising global wealth and
limited supply growth are projected to
support strong hotel fundamentals in the
long term.
RevPAR is projected to grow at a
compound annual growth rate of
2.5 percent over the next five years,
barring a recession or external shocks
to the global economy. Urban hotels
are expected to outperform, with a
RevPAR CAGR of 3.5 percent, as they
have been the slowest to recover and will
benefit most from increased inbound
international travel.
In August, CBRE lowered its U.S. hotel
forecast, projecting a 1.2 percent RevPAR
increase for 2024, down from the 2
percent estimated in May. The research
group anticipates 2 percent RevPAR
growth in the second half of 2024, up
from 0.5 percent in the first half, driven
by international tourism and election-
related events.
Global markets
The outlook for Northern Latin
America, including Colombia, Costa
Rica, and Mexico, remains strong,
with occupancy in Costa Rica
projected to exceed its 2019 level of
67 percent. Colombia's hospitality
sector is expected to attract more
than 6 million tourists this year,
driven by an improving economy,
lower inflation, interest rate cuts,
and government initiatives. Tourism
in Mexico will also remain robust,
attracting foreign investors and
bolstering the country’s position as
a leading global tourism market.
Europe’s hotel and tourism sectors are
poised for continued expansion, though
at a more modest pace than in recent
years. CBRE projects healthy growth for
key European gateway cities, driven by
an increase in inbound international
travelers and corporate travel.
Luxury and resort locations are
expected to outperform other segments,
reflecting high-income travelers'
preference for personalized experiences
and diminished macroeconomic
headwinds. However, following strong
gains in 2023, RevPAR growth is projected
to decelerate to around 5 percent this year,
primarily due to weakening U.S. demand.
CBRE’s outlook for the Middle East
remains positive, supported by robust
growth in the first half of the year.
During this period, hotel operational
performance improved in nearly all
major cities in the Gulf Cooperation
Council. Tourism-related megaprojects
were announced in Saudi Arabia, and
regulatory changes in the U.A.E. are
expected to boost the hospitality sector.
In the Asia Pacific region, all
hotel markets, except the Maldives,
experienced year-over-year increases
in RevPAR in the first half of the year.
Despite challenges such as stafÏng issues
and aircraft shortages, the region has
seen significant growth in airline travel
this year.
CBRE: U.S. RevPAR to rise 1.2
percent in 2024, 2 percent in H2
RevPAR in 57 of the 65 U.S. markets tracked by CBRE hit pre-pandemic
levels in H1 2024.
U.S. RevPAR is expected to grow by 1.2 percent this year, down from the
earlier forecast of 2 percent, according to CBRE. However, second-half
growth is projected to improve, with a 2 percent increase compared to
0.5 percent in the first half.
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