The“ A View from the Top: Shaping the Future of Hospitality” panel, from left, moderator Jagruti Panwala, AAHOA past chairwoman; Greg Juceam, president & CEO, Extended Stay America; Ritesh Agarwal, chairperson, G6 Hospitality; Danny Hughes, president, Americas, Hilton; Liam Brown, group president, U. S. & Canada, Marriott International; Dan Hansen, head of Americas development and global head of Hyatt Studios; Keith Pierce, EVP, Sonesta International Hotels; Larry Cuculic, president & CEO, BWH Hotels; Zack Gharib, president, Red Roof; Geoff Ballotti, President & CEO, Wyndham Hotels & Resorts.
Sonesta is currently in the process of selling 114 hotels owned by its parent company SVC with the express intent to sign new long-term franchise agreements upon sale. The hotels could accrue as much as $ 1 billion.“ There is capital out there; the smart money is investing in the industry,” Pierce said.
One of the fresher and younger faces on the panel was Ritesh Agarwal, chairperson of G6 Hospitality and CEO of Oyo. His appearance at the convention was consequential: In December, Oravel Stays, the parent company of Oyo, completed the half-a-billion-dollar acquisition of G6 Hospitality, the parent company of Motel 6 and Studio 6. Ninety-five percent of G6 franchisees are members of AAHOA, Agarwal said.“ I’ m a huge believer in the midscale and economy industry,” he said, offering the audience a dogmatic approach to the hotel business:“ Revenue is vanity, profit is sanity and cash flow is reality,” he said.
Though AAHOA conventions are a time of celebration, it doesn’ t mean there isn’ t some friction between owners and brands, the former oftentimes irritated by what they perceive as unduly fees and brand standards. It’ s a running theme. Hyatt Studios, which recently opened its first hotel, was created, Hansen said, through the owner prism.“ Owners should hold brands accountable,” he said.
BWH Hotels has no choice. Its structure is that of a member organization, where all proposals are voted on and only adopted if there is a two-thirds majority.“ I have 2,000 bosses,” said Larry Cuculic, president & CEO of BWH Hotels.“ Our brand standards are set by our members, as is our fee structure.”
Extended Stay America is a private company with some 700 hotels. Unlike most on the stage, ESA still operates the majority of them, franchising only 150, so far.“ Nothing aligns brands with owners more than being a manager,” said Greg Juceam, president & CEO of Extended Stay America. ESA operates in the“ affordable” extended-stay segment, which outperformed in the aftermath of COVID and still does, according to Juceam.“ We are exactly where we have always been and running 10 points higher than the overall industry.”
Meanwhile, Hilton, like its counterparts, has pivoted almost exclusively to being an asset-light, fee-based company, focused on growing brands and expanding its franchise base. In order to do so, Danny Hughes, president, Americas for Hilton, said the company heeds the advice and takes direction from the owner community through owner counsels and other such touchpoints.“ We have great brands that people pay a premium for,” he said.
Added Zack Gharib, president of Red Roof,“ Our challenges are big. This is our time as brands to be the strongest for franchisees.”
BE A CHAMPION In order to promote the hotel industry and the concerns of AAHOA members and the broader ownership community, executives, to a man, heralded advocacy. There is perhaps no bigger champion of advocacy within hospitality than Wyndham’ s Ballotti. He touted two Congressional acts aimed to help small businesses tap into debt and reduce tax exposure, two vital things hotel owners need to survive and thrive. 1) The Loans in our Neighborhoods Act, also known as the“ LIONs Act,” is a proposed bill that aims to expand financial support for small businesses by increasing the maximum loan amount available through the SBA’ s 7( a) program. Specifically, it seeks to raise the limit from $ 5 million to $ 10 million and includes a 75 % guaranteed rate on loans up to $ 10 million. 2) The Main Street Tax Certainty Act, which makes permanent the tax deduction for qualified business income. Under current law, the deduction expires after December 31, 2025.
On advocacy, BWH’ s Cuculic implored the audience to use its voice.“ We need to convince politicians to be thoughtful,” he said. Added Hilton’ s Hughes,“ Advocacy is local. Be champions in your own community.”
As the hotel industry and the U. S. continues to hurdle through uneasy times, Hughes left on an optimistic note.“ Don’ t bet against America.”
May / June 2025 hotelsmag. com 15