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AAHOA MEMBERS RECENTLY testified in support of New Jersey Assembly Bill 1958, which would make changes to the New Jersey Franchise Practices Act that could benefit the hospitality industry. The association's support for specific parts of the bill is at the center of a division between AAHOA and two major hotel companies over franchise reform. On March 22, 30 AAHOA members attended a hearing of the New Jersey Assembly Commerce and Economic Development Committee during which the bill was passed out of the committee. Several of the members also testified, according to AAHOA. AAHOA members own 45.4 percent of New Jersey hotels, representing 46,124 rooms, the association said. "As the largest hotel owners association, representing the exclusive interests of America's hotel owners, AAHOA showed up in New Jersey to testify in support of amendments to the legislation to improve the franchise model," said Nishant "Neal" Patel, AAHOA chairman. Last May, a contingent of AAHOA members testified in favor of the bill in front of the New Jersey Assembly Judiciary Committee, particularly the aspects of the bill that match AAHOA's 12 Points of Fair Franchising. Specifically, the franchise reform changes supported by AAHOA include restricting non-competes for longer than six months; prohibiting requiring a relocation or capital investment greater than $25,000 more than once every five years unless hotel franchisers can establish a return on the investment; requiring a franchiser that receives "any rebate, commission, kickback, services, other consideration or anything of value" to fully disclose them to the franchisee and turn them over to the franchisee; putting restrictions on mandatory sourcing of goods or resources; and prohibiting suspending, restricting or preventing access to franchise services.

AAHOA'S NEXT ANNUAL conference and tradeshow, set for April 11 to 14 in Los Angeles, already has set a record for the number of booths sold. It will be the largest conference in 34 years, AAHOA said. The association has sold 81,900 square feet of exhibit space for the upcoming AAHOA Convention & Trade Show, exceeding the 77,500 square feet sold for the 2019 conference, which was previously the record holder. In addition, as of Feb. 8, AAHOA has nearly doubled the registration total of lifetime members compared to AAHOACON22, and the organization is still on pace to exceed 2019 registration totals of more than 8,000 attendees "I've been in the exhibition business for a long time, and I'm so impressed to see the enthusiasm, excitement, and response from vendors who are looking to do business with AAHOA Members," said Dennis Smith, AAHOA vice president of business development. "Our team is thrilled to reach this historical milestone, with the ultimate goal of connecting as many AAHOA Members as possible with the product and service providers who can help them make money, save money, protect their investments, and better serve their guests." AAHOA's 20,000 members spend $50 billion with suppliers attending the event each year. "I always look forward to the industry's Super Bowl event, and this year, as I conclude my term as AAHOA Chairman, I'm proud of the work our association has done to prepare for the event and connect even more vendors directly with decision makers," said Nishant "Neal" Patel, AAHOA chairman. "AAHOA Members spend billions of dollars each year with suppliers, and AAHOA plays an important role in connecting hoteliers directly with those who can help them run a better, more profitable, and more efficient business - AAHOACON is where deals are made."

AAHOA RECENTLY CHOSE Bookit N Go, a travel tech startup, as its strategic booking partner. The company, led by Aman Mohindra as CEO, will use its advanced online travel platform to drive bookings for AAHOA member hotels, offering the lowest flat commissions, AAHOA and Bookit N Go said in a joint statement. "We look forward to collaborating with Bookit N Go as a strategic booking partner," said Miraj Patel, AAHOA's chairman. "This partnership represents a paradigm shift in how hotel bookings are handled with a focus on putting money back in the pockets of AAHOA Members. This partnership provides a booking engine partner invested in our members' success as we continue to focus on how we can help AAHOA Members save on their bottom lines." The partnership shows Bookit N Go's focus on improving the travel and hospitality sectors, the statement added. By providing AAHOA member hotels with a strategic booking solution, the company aims to drive value and growth for all stakeholders.

THE LOS ANGELES City Council declared Wednesday, Sept. 4, as "AAHOA Day," recognizing association members' role as entrepreneurs, job creators and contributors in the Greater Los Angeles Area. More than 100 AAHOA members attended the council meeting, where Councilmembers John Lee and Traci Park paid tribute to the contributions of local hoteliers to the city's development. "It is an honor to see our work recognized by the L.A. City Council," said Miraj Patel, AAHOA's chairman. "AAHOA Members have consistently engaged in advocacy that supports the hotel industry, and we are grateful for this acknowledgment of our efforts. I commend Greater Los Angeles area regional director Naresh Bhakta and Northeast Los Angeles Hotel Owners Association president Ray Patel for their hard work and dedication in leading these efforts, and all the AAHOA Members who joined for this special event." The recognition highlights the association's recent efforts to address challenges in the hotel industry, including revising the proposed "Hotel Land Use and Replacement Housing Requirements" and transforming a mandatory homeless voucher program into a voluntary one, AAHOA said in a statement said. The association also advocated for a carve-out for limited-service hotels in the proposed minimum wage hike.

In our exclusive Leadership Series interview, Pat Pacious, president and CEO of Choice Hotels International, reflects on his organization's relationship with AAHOA, his opposition to the proposed New Jersey State legislation on fair franchising and why Asian hoteliers are still important to the company. In the end, he said, it's about keeping state governments out of a dialogue that should be held between franchisers and their franchisees regarding subjects such as selling loyalty points and revenue from preferred vender programs. Pacious also discussed other key topics in the conflict between AAHOA and several large hotel companies, including Choice as well as Marriott International. Also in the interview, held at Choice's recent 67th Owner & Franchisee Convention in Las Vegas, Pacious discusses topics addressed at the convention, such as Choice's recent acquisition of Radisson Hotels Americas. He also comments on the company's offering to current and future franchisees and the importance of Asian American owners. 'This is not about fair franchising' In February, Choice announced it would "pause its partnership" with AAHOA, according to an alert to AAHOA members. AAHOA said Choice's decision came in response to AAHOA's 12 Points of Fair Franchising and its public support for New Jersey Assembly Bill A1958, which would make changes to the New Jersey Franchise Practices Act. Prior to Choice's action, Marriott had announced it was withdrawing its support for AAHOA for the same reason, and both companies chose not to attend the 2023 AAHOA Conference and Trade Show in Los Angeles in early April. Other companies, including Hilton and IHG Hotels & Resorts, also did not attend.

CHOICE HOTELS INTERNATIONAL has become the second hotel company to withdraw its support for AAHOA over the association's 12 Points of Fair Franchising. Specific reasons for the split remain unclear, but AAHOA said it was due to the association's "united front behind fair franchising principles." Like Marriott International in January, Choice has informed AAHOA it will not participate in the upcoming AAHOA Convention & Trade Show, according to a LinkedIn.com post from Laura Lee Blake, AAHOA's president and CEO, as well as a member alert from Nishant "Neal" Patel, AAHOA chairman. "As a result of AAHOA's united front behind fair franchising principles, and for doing exactly what this organization was created to do, I'm writing to inform you that Choice Hotels International has chosen to pause its partnership with AAHOA, including to not attend the industry's upcoming largest convention and trade show," said both alerts. "AAHOA has enjoyed a successful, long-term relationship with Choice, and we're disappointed to hear that because of AAHOA's support for increased fairness and transparency, and for wanting to engage in dialogue on tough issues, Choice no longer wants to be involved."

MARRIOTT INTERNATIONAL IS withdrawing its support for AAHOA in opposition to the association's 12 Points of Fair Franchising, according to an alert to AAHOA members. Indications of the split began in July, when a letter to this effect was circulated but not confirmed, and AAHOA said its efforts to make the situation right in the meantime have failed. The AAHOA member alert also said Marriott had expressed opposition to AAHOA's support for legislation proposed last year in the New Jersey legislature that would strengthen protections for franchise businesses in the state, including hotels. In its alert, attributed to Neal Patel, chairman of AAHOA, said most hotel franchisers did not take issue with the association's support for the New Jersey legislation nor the 12 Points. "Many of our other hotel brand partners have taken an open-minded and collaborative approach to fair franchising. We appreciate their willingness to work together to ensure better outcomes for AAHOA members, the industry, and hotel customers," Patel said. "However, we wanted to inform you that Marriott International - one of our longtime brand partners - has decided to take a different position."

AAHOA OPPOSED 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." 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.

ATTORNEY LAURA LEE Blake is the president and CEO of AAHOA, succeeding Ken Greene. Previously she was a partner with Connor, Fletcher, and Hedenkamp LLP in Irvine, California. Blake previously worked for AAHOA for nearly 10 years, from 2005 to 2014, according to AAHOA. That was one of the highlights of her career, she said. "I was frequently inspired by the work ethic and business acumen of AAHOA members, and I was surrounded by numerous dedicated board members, executive staff, and team members - many of whom are still my friends today," Blake said. "AAHOA members embody the American dream. They exhibit how success is possible with hard work and an opportunity to grow and expand their businesses under our free enterprise system. There is simply no place like AAHOA to make a real difference for our members, hotel owners, and the industry at large."

GREATER ACCESS TO capital and addressing the severe labor shortage facing the hospitality industry were the major topics to address for AAHOA's Spring National Advocacy Conference last week. It was the final advocacy conference for Nishant "Neal" Patel as AAHOA chairman. "It was an honor to attend my final advocacy conference as chairman. We brought nearly 200 AAHOA leaders to Washington, D.C., to advocate on behalf of our industry and on behalf of AAHOA's 20,000 members," Patel said in a press release. "Creating relationships with our elected officials is a top priority for AAHOA, and we will continue to work on your behalf, strengthening relationships so we can continue to represent the entire hospitality industry with your best interests at heart." The AAHOA reps met with more than 200 elected officials. Their mission included educating those officials on the importance of hotels to their communities and the economy at large. The issues at hand were essentially the same as those addressed during AAHOA's Fall National Advocacy Conference in September. AAHOA's main advocacy objectives include: More access to capital by increasing Small Business Administration loan caps/limits - Currently, SBA 7(a) and 504 loan limits are capped at $5 million, but AAHOA wants that raised to $10 million, which would be the first increase in the cap since 2010. AAHOA said hoteliers' costs of constructing and purchasing properties have risen past that cap over the past decade.

AAHOA'S POLITICAL ACTION Committee raised $1 million in 2024, bringing its total to $1.5 million during the 2023-2024 PAC fundraising period. This reflects AAHOA members' advocacy efforts to ensure hotel owners' voices are heard at all levels of government. The AAHOA PAC supports legislative and regulatory initiatives impacting hotel owners nationwide, the association said in a statement. "Reaching the $1 million mark is a significant achievement, and I want to personally thank our AAHOA members for their contributions and participation in the AAHOA PAC," said Miraj Patel, AAHOA's chairman. "The funds raised will help AAHOA further its mission of advocating for hotel owners and supporting policies that promote growth and protect owner investments."

A LETTER APPEARING to be from Marriott International stating that the company was "re-evaluating" its official relationship with AAHOA over the association's new stance on franchise relations is causing some disruption on social media. Marriott and AAHOA have not responded to repeated requests for comment on the letter, but in an email to members AAHOA Chairman Neal Patel said the letter is a draft and the company and association are still in negotiations. The letter specifically cites AAHOA's request that the company reassess its franchising policies in light of AAHOA's recently released "12 Points of Fair Franchising." Also, it mentions AAHOA's support for New Jersey's proposed Assembly Bill 1958 that would make changes to the New Jersey Franchise Practices Act similar to the guidelines laid out in the 12 Points. "Ultimately, Marriott cannot support, either by endorsement and/or financially, any organization that is in direct opposition to our business model and interests," Marriott said in the letter. "We believe quite strongly that the longstanding relationship between Marriott and AAHOA has proven to be mutually beneficial, and we are deeply saddened that AAHOA has chosen to pivot its stance on these key issues in a way that is decidedly anti-franchising and anti-Marriott (especially since, as the AAHOA leadership shared with us in a recent meeting, neither AAHOA's leaders nor its members have any material issues with Marriott's approach to franchising or to our franchisees)."

AAHOA RELEASED ITS updated resource guide for member franchisees. The updates reflect the current business landscape and the long-term, mutually beneficial relationship between industry franchisors and franchisees. AAHOA's 12 Points of Fair Franchising is officially titled "An Educational Primer: A Best-Practice Approach to Designing, Developing, and Implementing Best-in-class, Mutually Beneficial Franchise Systems." The importance of franchise relations was highlighted last year when several hotel owners filed lawsuits against InterContinental Hotels Group regarding what they call the company's retaliatory actions against franchisees who complain. "Because of the changing business environment post-COVID-19 and the ever-evolving need to educate our members, it was time for AAHOA to revisit the 12 Points and review them carefully to ensure that they're relevant and reflective of industry changes and evolution," said Vinay Patel, AAHOA chairman. "AAHOA created the 12 Points of Fair Franchising Ad Hoc Committee, which was tasked with recommending revisions to the 12 Points of Fair Franchising. With the help, support, and input of the 12 Points of Fair Franchising Ad Hoc Committee and the AAHOA Board of Directors, we're releasing the updated 12 Points of Fair Franchising," he added.

AAHOA IS CONTINUING its advocacy efforts with new meetings with members of Congress. On Sept. 27, representatives from the association met with Sen. John Hickenlooper, Democrat from Colorado, in Washington at his Capitol Hill office. Hickenlooper, who sits on both the Small Business Committee and the Senate Commerce Committee, met with AAHOA to discuss Small Business Administration loan limit increases as well as fairness and transparency in the franchise industry, according to AAHOA. In Hickenlooper's home state of Colorado, 39.5 percent of all hotels in the state are owned by AAHOA members, comprising 520 hotels and 55,861 rooms, according to a recent study for AAHOA by Oxford Economics. Those hotels provide $5 billion in wages and other compensation, along with approximately 54,490 direct jobs and 101,000 total impact jobs in the state. They provide $8.5 billion in contribution to the state's GDP, and $2.3 billion in federal, state and local taxes along with $201 million in total lodging taxes.

ANOTHER LARGE HOTEL company, Red Roof, has met with AAHOA leaders to discuss the association's 12 Points of Fair Franchising. Red Roof executives, including President George Limbert, affirmed their commitment to work with AAHOA on maintaining strong relationships with its franchisees. Along with Limbert, Red Roof's representatives included Matthew Hostetler, chief development officer; and Fouad Malouf, senior vice president franchise operations. The company's portfolio includes 680 properties in the U.S., Brazil and Japan. AAHOA released the 12 Points in April as part of educational offerings, and previously executives with G6 Hospitality and BWH Hotel Group, parent company to Best Western Hotels & Resorts, held similar meetings to discus the points. "Red Roof has been a longtime partner of AAHOA, and we appreciate their commitment to open dialogue for the betterment of our hoteliers and the broader hotel industry," said Nishant "Neal" Patel, AAHOA chairman. "We look forward to continuing our productive and mutually beneficial partnership with Red Roof, including conversations about AAHOA's efforts to educate its members and promote fair franchising across our industry."

PRESIDENT BIDEN'S STATE of the Union address before Congress on March 7 touched on several issues hotel industry associations have been advocating for a while. AAHOA and the American Lodging and Hotel Association both issued responses to the speech and AAHOA held its 2024 Spring National Advocacy Conference during the week of March 14. The issues at hand include the extension of tax credits, handling of junk fees for greater disclosure and transparency and raising the federal minimum wage. During SNAC, more than 200 AAHOA leaders and members spent two days in Washington, D.C. The conference opened with a legislative learning session at the Ronald Reagan Building and International Trade Center, followed by an evening Congressional Reception at the Cannon House Office Building and then a full day of Congressional meetings. "Each year we continue to see the relationships grow between our AAHOA Members and their elected officials," said Laura Lee Blake, AAHOA president and CEO. "Our twice-yearly advocacy conferences are quickly becoming the foundation for shaping and driving national policy, and our members are making it happen."

HUNDREDS OF HOSPITALITY professionals gathered at City Hall to oppose Intro 991, the "Safe Hotels Act," highlighting its detrimental effects on NYC hotels, subcontractors, and small businesses. This follows last month's protest, which drew more than 1,500 attendees. Intro 991, despite being framed as a safety measure, imposes costly mandates that threaten the survival of the city's hotels, risking over 265,000 jobs and billions in tax revenue, according to industry associations. Representatives from the American Hotel & Lodging Association and AAHOA were among the protesters. "Intro 991 targets a single industry and will inflict sweeping harm on the hotel sector, the economy, and hotel guests," said Kevin Carey, AHLA's interim president and CEO. "The bill will have devastating, unintended consequences for New York City's tourism and hospitality industries, forcing many hotels and small businesses to close. We urge the city council to reconsider and find real solutions that protect both safety and livelihoods." Since the legislation was introduced in July, AAHOA members have reached out to the council, urging them to reconsider the act. AAHOA Northeast regional director Preyas Patel, past chairwoman Jagruti Panwala, former young professional director Purvi Panwala and AAHOA member Mitesh Ahir addressed the council after the event.

AAHOA recently appointed Viral Patel, Central Midwest regional director, and Nilesh Patel, director at large Eastern Division, to its board of directors for 2024-2025 term. "We are thrilled to welcome Viral Patel and Nilesh Patel to the AAHOA board of directors," said Miraj Patel, AAHOA's chairman. "Their proven leadership and deep-rooted commitment to the hospitality industry make them invaluable additions. Undoubtedly, their expertise will greatly benefit AAHOA and the entire hospitality community as we, the board of directors, continue to advocate for our members as we build tomorrow today." AAHOA recently rebranded its Regional Conferences and Trade Shows as "Hotel Owners Conferences & Trade Shows". The event will focus on initiatives like HerOwnership and HYPE roundtables, fostering connections among industry leaders to promote positive change and empower women and the next generation of leaders.

Stuckey also worked for ShawContract where he directed that company's partnership with AAHOA. He also worked for InterContinental Hotels Group. "[Stuckey] brings substantial experience to his position and a sound strategic vision for the association's important business development work. He has an exceptional understanding of our members and the hospitality industry," said Cecil Staton, AAHOA president and CEO. Now is an important moment in the hospitality industry, Stuckey said. "AAHOA, its members, and industry partners have always been an important part of my hospitality career, including working and consulting directly with members," he said. "Feedback, partnership, growth, and innovation will be my mantra as we look to grow our value and connection with AAHOA members and industry partners, carrying out AAHOA's 2021-2023 Strategic Plan, and continuing down the road to recovery for the entire AAHOA community."

A NEW JERSEY bill that will reform the franchise business model in that state took another step forward today, moving from the Assembly to the Senate, and supporters, including AAHOA, expect it to become law this year. However, the American Hotel & Lodging Association has come out in opposition to the law, saying it would "undermine the foundation of hotel franchising." New Jersey Assembly Bill A1958 would make changes to the New Jersey Franchise Practices Act. AAHOA has been supporting the bill, saying it mirrors several concerns included in its 12 Points of Fair Franchising. Specifically, it would reform rules for mandated vendors, rebates, loyalty programs and new fees, AAHOA said in a statement. "New Jersey has long been a state with a strong entrepreneurial culture that has been welcoming to immigrants, including many AAHOA members," said AAHOA Chairman Bharat Patel. "The state Assembly recognized that and took a step toward making New Jersey a better place for small businesses with today's vote to advance fair franchising principles. New Jersey can be an example to the nation for supporting franchising practices that allow hotel owners to achieve the American dream." AAHOA supports the preference of certified women-owned, minority-owned and veteran-owned businesses to serve as the mandated and preferred vendors for the franchise business model.