By contributing to AAHOA PAC, hoteliers are advocating for their industry
Living in a battleground state, Chintan Patel knows he’ll see political advertisements whenever he turns on the television this fall. But Patel, a hotel owner and consultant, isn’t just sitting back and watching the political debates play out; he’s among the AAHOA Members trying to shape them for the good of the industry.
Patel, based in Cary, NC, is the principal of Arris Hospitality, which owns and operates seven hotels, and is the founder of Hospitality Consultants. He said he’s donated to AAHOA’s Political Action Committee each year since 2018, recognizing in U.S. elections, the candidate with the larger bankroll has a considerable edge, and only the winners get to enact public policy.
For the past two years, Patel has donated $5,000 to AAHOA PAC, the maximum allowed by the Federal Election Commission. He noted that during AAHOA’s frequent visits to Capitol Hill, the association touts its strength in numbers, with its 20,000 hoteliers owning 60% of hotels in the United States. When it comes to campaign contributions, however, AAHOA Members sometimes punch below their weight, he said.
AAHOA’S PAC IS OUR VOICE
According to Open Secrets, which tracks political contributions, AAHOA PAC had donated $345,400 to political candidates and parties this year through July 15, ranking 10th in the hospitality industry. Meanwhile, Airbnb Inc., which is lobbying to avoid the burdensome regulations placed on hotels, ranks eighth in the industry with $400,781 in contributions this year, as of this writing.
For AAHOA to amplify the voices of its members, the association needs hoteliers to step into the policy arena, and that means opening their checkbooks. “The last two years, I’ve made sure to donate the max, mainly because others don’t, so I try to make up for them,” Patel said. “If members want to make a difference, they have to get involved, and this is the first step. If they don’t get involved, their voices will not be heard.”
Formed in 1998, AAHOA PAC made its first political contributions in 2004, sending $4,000 to then-U.S. Rep. Bobby Jindal (R-LA) and $1,000 to the late Sen. Harry Reid (D-NV). Since then, AAHOA PAC has donated more than $1 million to politicians on both sides of the aisle, seeking to elect candidates who will prioritize the needs of hoteliers and other small-business owners.
AAHOA President & CEO Laura Lee Blake said the PAC is the association’s main vehicle for advancing the legislative interests of members, and there’s a lot at stake in every election cycle. As an example, she pointed to the Loans in Our Neighborhoods (LIONS) Act, introduced into the House of Representatives by Rep. Shri Thanedar (D-MI) in February.
That bill, which AAHOA supports, would double the maximum amount for section 7(a) loans from the Small Business Administration to $10 million, providing greater financial support to small businesses. Although it has some bipartisan support, the legislation is stuck in committee.
At the same time, AAHOA and its PAC are fighting against the Biden administration’s new overtime rule, which would expand eligibility for overtime pay to all workers making less than $58,656 a year, up from the current $35,568. The new earnings threshold would take effect in January and would be raised every three years, substantially increasing labor costs for hoteliers.
Republicans are seeking to block that Department of Labor rule, with Rep. Tim Walberg of Michigan and Sen. Mike Braun of Indiana leading the charge.
With those issues and more up for debate, AAHOA PAC needs members to put skin in the game, Blake said.
“Money talks, and AAHOA’s PAC is our voice,” she said. “We need a strong PAC to support the elected officials who will be our champions. It is a blessing to give to the PAC and see the changes AAHOA is making. With a strong PAC, we can get our industry on track to accomplish important things. That is why I give $5,000. I want to be part of an exciting change that helps our members.”
A SEAT AT THE TABLE
Donors to AAHOA PAC can have confidence their money is being spent wisely, according to AAHOA’s Senior Director of Government Affairs, Daniel New. AAHOA has implemented a points system to score candidates according to their positions on issues affecting hoteliers. Members also may suggest candidates at the local, state, or national level whom they believe are worthy of donations, and the Government Affairs Committee will vet those candidates thoroughly, he said.
“There’s been so much focus on the presidential race this year, but there are so many other important races happening in Congress and on the state and local levels that also will impact our members,” New said. “AAHOA PAC supports those candidates who are willing to listen to us, to make sure our voice is heard, and will carry our message to their colleagues.”
Danny Gaekwad, a prominent hotelier and real estate developer based in Ocala, FL, said he’s contributed to AAHOA PAC for many years, understanding political engagement “is a long process.” He said AAHOA PAC’s push for liability protections from frivolous lawsuits and to have Airbnb properties held to the same business standards as hotels are especially important for hoteliers.
“There’s an old saying in politics that if you don’t have a seat at the table, you’re on the menu, and a lot of people don’t wake up until they’re on the menu,” said Gaekwad, a past chairman of the Government Affairs Committee.
Montu Patel, CEO of New Hope, PA-based Innovative Hospitality Management, said he views his contributions to AAHOA PAC “as a long-term insurance policy on our business, making sure over time, the right regulations and legislation are put in place to ensure that our hotels are viable businesses in the future.”
Patel, whose company owns and operates 11 hotels, said he wants changes to federal immigration policies that would alleviate the stubborn labor shortage plaguing hotels. On the local level, he’s concerned about regulations that would limit the duration of guests’ hotel stays, which would be a blow to operators of extended-stay properties.
In addition to donating to AAHOA PAC, Patel encouraged members to stay engaged with their local representatives through emails, letters, phone calls, and AAHOA’s visits to Capitol Hill and state capitals. Members also should invite elected officials to tour their hotels and see the impact their businesses are making on local communities, he said.
“We need to focus on continuing to increase our voice so we’re not forgotten,” said Patel, an AAHOA Ambassador for the Mid Atlantic region. “We have an opportunity to take back the reins of hotel-related legislation by working with our legislators and helping craft responsible legislation that allows us to continue to succeed in this sector.”
THE ISSUES THAT MATTER
Imesh Vaidya, CEO of Albuquerque, NM-based Premier Hospitality, said state and local increases to the minimum wage, including Denver’s rate of $18.29 per hour, are posing a threat to small businesses. Similarly, state efforts to give all workers paid sick and family leave would place financial and administrative burdens on hoteliers, he said.
Those issues illustrate why it’s vital for AAHOA Members to donate to the PAC and pay attention to state and local political races, said Vaidya, whose company owns and operates nine hotels.
“You have to be at the table to present both sides of any story, which, unfortunately, requires funds,” he said. “It’s important we let local and national legislators know some of these policies aren’t feasible for most small businesses.”
G.J. Zala, CEO of Bakersfield, CA-based Hill House Hospitality, said AAHOA PAC has been an effective advocate for hoteliers large and small, which is why he continues to contribute. Zala, whose company owns and operates four hotels, said the association’s push for human-trafficking awareness and prevention is among its success stories.
“AAHOA is doing great work for every hotelier, and members are benefiting,” he said. “But without contributions to the PAC, how can we be effective at lobbying?”
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