AAHOA CONVENTION
ADVOCACY OF CHAMPIONS
AAHOA IS A STENTORIAN VOICE IN HOSPITALITY. IT’ S NEVER NEEDED TO BE LOUDER.
By DAVID EISEN
N
EW ORLEANS— The annual AAHOA Convention attracts scores of the association’ s members. It makes eminent sense, then, that the executive brand panel be equally substantial. This year’ s did not disappoint in size, numbering a total of 10 on the dais— all speaking about the state of hospitality, but even more focused on the power and voice of the Asian American hotel owners community that own the majority of hotels in the U. S.— more than 60 % by many estimates.
The association is a huge powerhouse, often flexing its might in Washington, touting issues important to its collective. Now facing the most challenging time since the pandemic, it’ s sounding the klaxon call to its constituents, government officials and its franchise partners and the brands, which depend on and succeed on the backs of their capital.
“ We have headwinds,” said Liam Brown, group president of U. S. & Canada for Marriott International, an understatement within the context of today’ s economic and geo-political climate. Outside the imminent tariff whiplash that will likely make things more expensive, there is already cost challenge threatening hotel owners and operators. Brown ticked off the stillelevated higher interest rate environment, harder debt availability and higher construction costs, which conspire to make it difficult to build new hotels, something that does not sit well with franchisors whose stock prices ebb and flow on their ability to grow through net unit additions. In the absence of ground-up development, Marriott and others have turned to conversions as a way to expand their networks without new sticks and bricks.
It doesn’ t foretell all doom and gloom.“ Even with challenges, there are new opportunities,” implored Brown, then invoking a recurring theme for the panel:“ Remember,” he said,“ we are an industry built on resilience.”
His sentiment was echoed by other panelists. There was Geoff Ballotti, president & CEO, Wyndham Hotels & Resorts, touting“ resiliency” within the limited- and select-service segments, proven during COVID. He said that Wyndham’ s pipeline is at a record level due to the“ smart money” that knows selectservice hotels deliver.“ There is optimism,” he said.“ This, too, shall pass,” a rather frightening phrase that was cited repeatedly during the pandemic.
Tariffs are not COVID, but they have certainly created uncertainty and lack of clarity for business owners large and small.“ Tariffs have created confusion,” said Dan Hansen, the former CEO of Summit Hotel Properties and now head of Americas development and global head of Hyatt Studios, who, like most, are taking a waitand-see approach.“ How do you access the risk?” he asked. Tariffs, he said, not only impact everyday costs for hotel owners, since things become more expensive, tariffs can have a direct impact on travel demand.
Willie Walsh, director general of Iata, recently likened the effect of tariffs on travel to the aftermath of 9 / 11.“ Depending on what the uncertainty eventually is, it’ s probably somewhere near the impact we witnessed following the tragic events of 9 / 11, which was significant in terms of transatlantic traffic, but short-lived, and the market recovered within a few months,” he said at the annual Iata World Cargo Symposium in Dubai.“ I don’ t see it having the same impact as the global financial crisis and certainly nowhere close to what we witnessed during the pandemic.”
A RESILIENT LOT Hansen picked up on the theme of strength.“ We are a resilient and thoughtful group,” he said, imploring the audience to figure out what works and what doesn’ t.“ It’ s your capital; think long term,” he said.
Though the wait-and-see approach is the standard fallback option, Keith Pierce, EVP of Sonesta International Hotels, goes counter, promoting the idea of being proactive.“ Uncertainty creates a stall,” he said.“ Don’ t freeze: There is a long lag even when tariffs take effect. And if they don’ t take effect you’ ll be behind.”
14 hotelsmag. com May / June 2025