Insights from your AAHOA Officers on the state of the industry, the growth AAHOA has seen during the past year, and the constant need for new leaders to step up
Just ahead of the AAHOACON kickoff each year, we take the opportunity to sit down with the current AAHOA Officers to gather their insights on the current state of hospitality and AAHOA as a whole, while learning more about their direct involvement in helping push the association and industry forward. Read on to learn more about where the industry is headed and how AAHOA will help shape that future for the better.
Bharat Patel, CHO, CHIA, Chairman
WHAT AAHOA ACCOMPLISHMENT DURING THE PAST YEAR ARE YOU MOST PROUD OF?
We did a lot of work this past year to boost AAHOA’s advocacy efforts – on the federal, state, and local levels, which has renewed the faith of the membership in the association. There’s a reengagement, if you will. We also held more than 55 town halls and 25 regionals. We’re the voice of hotel owners, and that’s a big goal to live up to, but it’s one I felt we met this past year.
HOW CAN AAHOA SHAPE THE CAREER TRAJECTORIES OF ITS MEMBERS?
Professional development and education are two of our core pillars, and we spend a lot of energy focusing on equipping our members for the challenges of this new economy. In February, we held our HYPE event, which is tailored specifically for young professionals, and we have HerOwnership events specifically for women hotel owners as well.
This is one of the few industries where you can start at the bottom and really work your way up to the top. Really, the only requirements are being presentable, eager, and showing up to work on time. Everything else can be taught. It’s an easy entry that doesn’t have a high educational barrier. But, because of that, it’s vital that AAHOA provide as many education and training opportunities as possible for our members and their staff.
WHAT SHOULD HOTELIERS BE MOST CONCERNED ABOUT IN THE NEXT FEW YEARS?
I think it’s a trifecta; rising interest rates and labor costs, along with skyrocketing insurance premiums, are going to be the key difficulties we’ll face for the foreseeable future.
We are continuing to experience problems with obtaining insurance, and once we receive coverage, the premiums are so high that it’s significantly affecting cash flow. Next is the cost and available pool of labor. We will always need people, but we can do a better job of leveraging technology to be more efficient and need fewer people. Third is rising interest rates. The days of borrowing a couple million dollars at 4%, 5%, or 6% are gone. Today’s higher interest rates drastically affect our bottom line, which means it’s harder to pay market wages, which then destroys our labor pool.
COULD YOU TALK ABOUT WHAT FIRST PROMPTED YOU TO RUN FOR A POSITION AS AAHOA OFFICER?
Ultimately, I thought I could make a difference, and I believe we all owe it to the industry, our families, and ourselves to put in the time to help make our industry the best it can be. Many people join AAHOA because of the need for professional growth. But, by stepping up to lead within AAHOA, you are making a personal investment in yourself. I’m a different person now than I was when I started serving in the best way possible.
Miraj S. Patel, MBA, CHO, CHIA Vice Chairman
WHAT AAHOA ACCOMPLISHMENT DURING THE PAST YEAR ARE YOU MOST PROUD OF?
In the past year, we’ve worked incredibly hard to engage on membership’s interests, understand their problems, and get a feel of where the industry is going and where AAHOA needs to be to help our members. We’ve re-engaged the membership through events and open forums, so we now have a roadmap, and I have a better understanding of their needs as I prepare for my year as Chairman to evolve and enhance the lodging industry for the better.
HOW CAN AAHOA USE ITS KNOWLEDGE AND RESOURCES TO PREPARE ITSELF TO CONTINUE TO LEAD THE INDUSTRY?
Focusing on strategy to lay the foundation for a better tomorrow that reflects the aspirations, needs, and challenges of today is going to help project AAHOA’s growth trajectory. We have to focus on tomorrow instead of the past. The past helps us build on strategies, but if we aren’t strategic, we’re not going to accomplish much.
COULD YOU ELABORATE ON ANY SPECIFIC SUCCESS STORIES RELATED TO THE ASSOCIATION’S ENHANCED ADVOCACY EFFORTS THAT PARTICULARLY STAND OUT TO YOU?
On the state level, I’m really proud we were able to create much stronger relationships with our state associations around the country. While we did that, we engaged the interests of the membership as well, asking, “What can we do on the local level?” Federally, we’ve regrouped and refocused to make sure we’re ahead of the game, but we are placing much more of a priority on local and state issues than before.
WHAT SHOULD HOTELIERS BE MOST CONCERNED ABOUT IN THE NEXT FEW YEARS?
At the end of the day, the biggest concerns about future growth are decreasing profitability and NOI. Are we going to make money? We need to address the problems with brand partners and we have to work together to ensure NOI is there. From the franchising perspective, the biggest problems I see are brand dilution, as well as a lack of innovation and forward-thinking technology solutions. Disruptors like Airbnb, Vrbo, and OTAs continue to chip away at profitability.
IS THE LABOR SHORTAGE SOMETHING HOTEL LEADERS SIMPLY NEED TO ACCEPT AS AN UNCHANGEABLE REALITY?
The cost of hospitality labor represents a pressing challenge for hoteliers – even pre-COVID. We have to think outside of the box to maintain financial viability while ensuring a high level of service. And there’s other aspects in there, including recruitment and retention, are a problem, so we need industry-wide innovations.
HOW IS AAHOA FULFILLING ITS VISION TO BE THE FOREMOST ADVOCATE AND RESOURCE FOR HOTEL OWNERS?
Implementing the correct agenda items to advocate for is how we solve problems, including continued advocacy, which has been a much bigger focus for AAHOA recently, and it’s yielding positive results. But I also want members to feel more empowered to connect with their legislators, so our nation’s lawmakers truly understand our industry’s unique needs.
Kamalesh (KP) Patel, Treasurer
WHAT AAHOA ACCOMPLISHMENT DURING THE PAST YEAR ARE YOU MOST PROUD OF?
Rather than point to one achievement, I’ll say AAHOA has laid a hell of a foundation moving forward. Our efforts to step up our advocacy, fair franchising, labor, and member-focused initiatives, have all increased this past year. It’s almost like we’re rebuilding a football team – putting the pieces in place and watching excitedly as that success starts to happen.
HOW CAN AAHOA SHAPE THE CAREER TRAJECTORIES OF ITS MEMBERS?
AAHOA opens more doors, more network opportunities, more contacts than any other association. Hands down. Nobody can offer you what AAHOA can offer. You want to meet with any major vendor, brand, or elected official? AAHOA can put you in front of them. AAHOA is going to give you the opportunity to become what you want. And if you don’t know what direction you want to go in, we have some incredible mentors. We have countless seminars, sessions, and educational platforms that can equip you for success in the long-term.
WHAT SHOULD HOTELIERS BE MOST CONCERNED ABOUT IN THE NEXT FEW YEARS?
Sometimes we get complacent. What the industry was 20, 30, 40 years ago is not what it is today. Don’t be afraid of using technology. Don’t be afraid of asking questions. Don’t be afraid of learning. The way we used to do business is not how we do it today. Think outside the box, get out of your comfort zone, and see what’s available.
IS THE LABOR SHORTAGE SOMETHING HOTEL LEADERS SIMPLY NEED TO ACCEPT AS AN UNCHANGEABLE REALITY?
We’ve gone through labor shortages before, but it feels more aggressive and prominent now. But the beauty of AAHOA is we’re resilient; we know how to adapt. At my properties, I’ve had difficulties hiring, just like everyone else. So I’ve implemented technologies like a frontdesk kiosk, and that’s going to be a big pathway toward ensuring we can work within the constraints of the current labor market.
HOW IS AAHOA FULFILLING ITS VISION TO BE THE FOREMOST ADVOCATE AND RESOURCE FOR HOTEL OWNERS?
The beauty of AAHOA is it’s for owners by owners. What you’re going through is what I’m going through. Because its leaders are always hoteliers, AAHOA is always going to be advocating on behalf of its members in particular – working with brand partners, for example, to ensure members are protected and their concerns are being heard and addressed. Additionally, we’re working with multiple insurance companies because it’s very challenging for some properties to even get coverage.
WHAT ADVICE WOULD YOU GIVE TO ANYONE WHO HASN’T YET CONSIDERED SERVING A LEADERSHIP ROLE?
Do it. Get involved. Don’t stand on the sidelines saying, “This is somebody else’s problem; somebody will fix it for me.” It’s your business, your industry, your livelihood. This is how you’re going to put food on the table for your family. Be the change you want to see.
Rahul Patel, Secretary
WHAT AAHOA ACCOMPLISHMENT DURING THE PAST YEAR ARE YOU MOST PROUD OF?
We’ve successfully changed the operations platform that AAHOA uses, moving away from a third-party software for association management, and we now have our own in-house software. It’s a project I was proud to lead. We used to spend a lot of money on cookie-cutter software where we couldn’t use certain parts of it or it didn’t fully serve our needs. This allows us to operate more efficiently.
ARE THERE ANY SPECIFIC SUCCESS STORIES RELATED TO AAHOA’S ADVOCACY EFFORTS THAT STAND OUT TO YOU?
AAHOA has been working at the national and local level equally. Where AAHOA once focused much more on the federal level, we’re now developing deeper and more strategic partnerships with state-level associations that will help us more on the state and local levels around the country.
WHAT SHOULD HOTELIERS BE MOST CONCERNED ABOUT IN THE NEXT FEW YEARS?
Interest rates are rising and that’s really scary for many reasons, including refinancing. Also, the insurance market has been very, very difficult. We’re seeing rates go up 30 to 40% in some cases. In addition, we’re continuing to see the ongoing labor shortage, which is driving up costs.
IS THE LABOR SHORTAGE SOMETHING HOTEL LEADERS SIMPLY NEED TO ACCEPT AS AN UNCHANGEABLE REALITY?
I hope we don’t accept it, but even if that’s the reality, we have to find a solution that doesn’t compromise the guest experience. If guests don’t have a good experience, they won’t come back.
HOW IS AAHOA IS FULFILLING ITS VISION TO BE THE FOREMOST ADVOCATE AND RESOURCE FOR HOTEL OWNERS?
AAHOA is the voice of our members. Our aim is to connect with legislators, the brands, the FTC, or anyone who can help us shape the industry’s future. AAHOA provides big-picture guidance, consultation, and advocacy all in the name of creating a better tomorrow.
WHAT FIRST PROMPTED YOU TO RUN FOR A POSITION AS AN AAHOA OFFICER?
I have a passion to serve and first served as an ambassador many years ago because of the unique needs we have in Florida and felt obligated to get involved to try and address some of those issues. I really wanted to serve at the highest level because that’s where I felt I could be most effective.
WHAT ADVICE WOULD YOU GIVE TO ANYONE WHO HASN’T YET CONSIDERED SERVING OHO IN A LEADERSHIP ROLE?
I consider serving at any level to be leadership. As AAHOA Members, we’re all leaders within our own organizations, so it’s the logical next step to share those skills and that drive to lead with AAHOA. Hotel ownership can be a profitable and rewarding venture, and we expect it to be that way forever. But, to protect that profitability, you have to serve. New people bring new ideas and approaches to solve new and existing problems and keep the industry protected.
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