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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.

AAHOA LEADERS AND members met with the nation's leaders in Washington, D.C., for the association's 2023 Fall National Advocacy Conference on Oct. 24 to 25. Topics covered included Small Business Administration loan limits, the Credit Card Competition Act and the labor shortage. The AAHOA contingent met with more than 200 offices and 70 members of Congress as part of the conference. Keynote speakers for the event were Reps. Beth Van Duyne, Republican from Texas; Rich McCormick, Republican from Georgia; and Shri Thanedar, Democrat from Michigan. "Advocacy at the state, local, and federal level is a pillar upon which AAHOA stands," said Bharat Patel, AAHOA chairman. "Representing such a large portion of the hotel industry, it is through our voice that we strive to shape and fortify policies that help pave the way to our industry's success."

PINAL PATEL WAS elected secretary of AAHOA in the culmination of 2024 AAHOA Convention & Trade Show held this week in Orlando. New members of the association's board of directors also were elected and new industry partners were announced. Pinal, of Goodlettsville, Tennessee, defeated H.K. "Hare Krishna" Patel for the secretary position. He was born in Bardoli, India, and his family moved to the U.S. in 1984 when he was 2, according to AAHOA. They lived in Nashville, Tennessee, Pinal said his parents did not speak any English when they brought him and his 1-year-old brother to America. Pinal's parents bought their first independent hotel in 1991, and he is a second-generation hotelier even after graduating flight school at Embry Riddle in Daytona Beach, Florida, before buying his first franchise property. Previously, he has served as an AAHOA ambassador and as AAHOA's director at large Eastern Division. "Hard work definitely pays off," Patel said. "I'm going to make sure we do what's right for the association and for the members. I promise to all my supporters, my family, and my fellow members that I will not let you down. I will do what's best for the association's interests."

BEST WESTERN HOTELS & Resorts is the most recent large hotel company to meet with AAHOA leaders over the association's 12 Points of Fair Franchising. The two parties discussed their ongoing relationship and the needs of the industry. Members of the Best Western team included Larry Cuculic, president and CEO; John Kelly, board chairman; Danny Lafayette, board vice-chairman; Phil Payne, board secretary-treasurer; and board directors Mike Merchant, Ishwar Naran, Viral "Victor" Patel and Stephen Wahrlich, according to AAHOA. Best Western has a portfolio of 19 brands, and approximately 4,500 hotels across all chain scale segments, and it joins G6 Hospitality, parent company for the Motel 6 and Studio 6 brands, in reviewing the 12 points. "Best Western Hotels & Resorts has been a longtime partner of AAHOA - a span of time that includes more than three decades - and we always welcome the opportunity to continue the dialogue for the betterment and prosperity of the entire industry," said Nishant "Neal" Patel, AAHOA chairman. "Our recent meeting underscores how open communication, collaboration, and partnership are key to maintaining a fruitful relationship that benefits both organizations and, ultimately, the industry as a whole."

AAHOA'S NEWEST PROJECT aimed at promoting women in hospitality is the "ElevateHER Women's Initiative to Highlight and Support Women Hoteliers and Leaders in the Industry." The initiative, launched Tuesday, will offer networking and educational opportunities for women hoteliers and hospitality industry professionals. As part of ElevateHER, AAHOA is hosting the Women Hoteliers ElevateHER Conference on Oct. 26 to 27 in Cincinnati. The conference will focus on bringing together AAHOA's community of women hoteliers for education, inspiration, and empowerment. "AAHOA has been proud to celebrate the important work women are doing at every level of hospitality, and this initiative further underscores our commitment to the women of AAHOA and elevating their contributions to the industry," said Laura Lee Blake, AAHOA's first full-time female president and CEO appointed in May. "While there's still much work to be done, AAHOA recognizes the significant strides women have made to be seen at industry events, heard in the boardroom, and valued in the workplace. ElevateHER celebrates these accomplishments and will further drive our association's work around elevating and supporting women in the industry."

THE AMERICAN FRANCHISE business model is in trouble, according to a recent survey commissioned by AAHOA. The survey was inspired by a webinar AAHOA co-sponsored to gather public comment on the state of franchising for the Federal Trade Commission. The survey found that only 5 percent of the franchisee respondents are satisfied that their current franchise agreements provide fair terms representing a balanced relationship between themselves and their franchiser. Also, 72.6 percent of respondents would "possibly" or "probably" terminate their current franchised business within the next year if they could do so without penalty. "Franchising is in dire straits unless changes are made," said Laura Lee Blake, AAHOA president and CEO. "Franchising is still a powerful tool for economic mobility for America's small-business owners, including AAHOA Members. But franchising only works when both franchisors and franchisees are committed to its success, which requires transparency, fairness, and sustainable business practices. As this survey shows, there is much room for improvement when it comes to relationships that allow our small-business owners to thrive." Blake recently wrote an editorial supporting AAHOA's 12 Points of Fair Franchising and its promotion of a proposed New Jersey law that would reform that state's franchising regulations in ways similar to the 12 points. Several large hotel companies, including Choice Hotels International and Marriott International, protested AAHOA's recent annual convention in protest to its position on franchise reform The survey was conducted among owners of hotels, restaurants, retail stores and other small businesses that had participated in the FTC webinar. It was co-sponsored by the American Association of Franchisees and Dealers, and the Coalition of Franchisee Associations, conducted the survey after a recent webinar with FTC Chair Lina Khan. The FTC is soliciting comments through June 8 about issues that affect franc

From the courtroom to the halls of Congress, Laura Lee Blake has been representing AAHOA in some capacity for more than a decade now. For the past year she has served as the organization's president and CEO, and recently she sat for Asian Hospitality's Leadership Series to discuss the issues facing the association today. Those issues include the promotion of franchise reform, programs to advance women in the hotel industry and her future plans in her role at AAHOA. Blake's work for the association began well before her current appointment. Making the decision Blake, who is an attorney, worked with AAHOA from 2005 to 2014, then left to return to her law firm in Newport Beach, California. She had just started a trial on a big case when AAHOA offered her the president position.

SALEM, OREGON, RECENTLY changed its plan to use transient lodging tax funds for library funding gaps. AAHOA and the Oregon Restaurant & Lodging Association have been closely monitoring the municipality's attempts to divert the protected revenue from its intended purpose, promoting tourism. Instead, the city will use funds from the American Rescue Plan Act. Hotel taxes diverted from tourism could diminish funding for year-round visitor attraction efforts, AAHOA said in a statement. "AAHOA and ORLA were proactive in ensuring appropriate use of the transient lodging tax in the city of Salem," said Taran Patel, AAHOA's Northwest regional director. "This is a great example of the importance of AAHOA members being active in advocacy at the local levels of government."

AAHOA OFFICERS RECENTLY participated in a White House reception for Asian American, Native Hawaiian, and Pacific Islander Heritage Month. AAHOA Chairman Miraj Patel and Laura Lee Blake, the association's president and CEO, represented the association. President Joe Biden and Vice President Kamala Harris made remarks at the reception held in the Rose Garden, recognizing the AANHPI community, AAHOA said in a statement. "We were honored and privileged to represent AAHOA and our 20,000 members at the historic White House celebration," said Patel. "This event highlights the AA and NHPI communities' remarkable contributions to the U.S., mirroring AAHOA's representation of Asian American entrepreneurship in hospitality for the past 35 years. As we reflect on our rich heritage during AANHPI Month, we honor the incredible legacy of Asian American hoteliers and entrepreneurs who have shaped, and continue to shape, our industry and nation."

JUST OVER ONE year ago, Marriott International severed its support for AAHOA over the association's 12 Points of Fair Franchising and support for franchise reform legislation in New Jersey. At AAHOA's 35th Annual Convention & Trade Show this year in Orlando, Marriott came back, albeit with its status remaining unclear. Also, AAHOA made alterations to the 12 Points aimed at providing more protection for members in the event of the franchiser's acquisition by another company. Also at AAHOACON24, Miraj Patel became the youngest chairman in the history of the association, Pinal Patel became its new secretary and immediate Past Chairman Bharat Patel and AAHOA President & CEO Laura Lee Blake spoke on how the history of the association led to its success.

TWO PROMINENT AAHOA members recently came out in support of Choice Hotels International's continuing efforts to merge with Wyndham Hotels & Resorts, including one who is among Choice's nominations for Wyndham's board of directors. However, AAHOA said it remains concerned about the impact of the deal and released results of a survey of its members that found most opposed the merger. Since Choice first made its offer for Wyndham public in October after Wyndham's initial rejection the two companies have traded barbs trying to convince Wyndham shareholders to support or reject the deal. When Choice earlier this week named its eight nominees for Wyndham's board, among them was Jay Shah, executive chairman at Hersha Hospitality Trust. While Hersha has not replied to two efforts to solicit a comment from Shah about his opinion on Choice's offer, the candidates are expected to support it if elected in Wyndham's 2024 shareholder meeting. Also, in an article in Reuters about the takeover attempt, Mike Leven, who co-founded AAHOA, spoke in favor of the deal.

AAHOA IS URGING hotels to adopt cybersecurity measures to prevent incidents similar to the recent cyberattacks on MGM Resorts International and Caesars Entertainment. Following the ransomware attack on IHG Hotels & Resorts last year, which cost hotel owners between $30,000 and $75,000 each, AAHOA called for clear lines of communication to protect franchisees who bore the brunt of revenue losses from bookings missed due to the disruptions. In July, Choice Hotels International confirmed a data breach impacting guest information in its Radisson Hotels Americas chain, originating from a file-transfer system hack, according to AAHOA and media reports. The association said that most impacted franchisees are small business owners, unable to absorb unexpected booking losses. This challenge is amplified by ongoing issues like staffing shortages, which further hinder their recovery efforts. It further emphasized that with franchisor support, hoteliers can improve the guest experience and reduce the risk of disruptive incidents.

THE NEW JERSEY legislature is considering legislation that would strengthen protections for franchise businesses in the state, including hotels. AAHOA recently visited the state's capital to express its support for the bill. Assembly Bill 1958 would make changes to the New Jersey Franchise Practices Act that could benefit the hospitality industry, AAHOA said in a statement. Specifically, the changes 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. Several AAHOA representatives attended a hearing at the New Jersey State Assembly on May 12 to support the bill. They included AAHOA's Mid Atlantic Regional Director Mahendra "MZ" Patel, Past Chair Bhavesh Patel and Laura Lee Blake, the association's recently appointed president and CEO.

AAHOA IS OFFERING a free educational webinar, "Essential Training for Hotel Owners: Managing Guest Misconduct and Ensuring Safety," on July 17. The initiative follows the death of an AAHOA member after a confrontation with a guest who was asked to leave the property, AAHOA said in a statement. The association emphasized that hoteliers should assess the risks of handling confrontational situations independently and involve law enforcement when faced with potentially volatile encounters to ensure personal safety. Hemant Mistry, a 59-year-old hotel owner from Oklahoma City, was killed last month at his property.

MIRAJ PATEL OFFICIALLY became AAHOA's chairman as the association's 35th Annual Convention & Trade Show in Orlando ended on Friday. At 26, he is the youngest person to take on the leadership role. However, Patel also is a second-generation hotelier who began his career in hospitality at a young age, growing up in his family's first 30-room independent property. He served as an AAHOA committee member for several years and joined the AAHOA board of directors in 2019 after being elected as young professional director Western Division. "Serving as the youngest chair in the association's history further demonstrates AAHOA's commitment to fostering the growth and success of the next generation," Miraj said. "I'm always encouraging young professionals not to let age determine success. Many times, people may say you're too young, but that is absolutely not true. There are so many folks who are young but still do whatever it takes to find success. If you never try, you'll never know what you're capable of achieving."

NISHANT "NEAL" PATEL assumed the chairmanship of AAHOA Friday as the culmination of the association's 2022 Convention & Trade Show in Baltimore, Maryland. More than 5,000 people attended the show, during which new officers also were elected, certain members were recognized for their service and face-to-face networking came back into style. This year's show came with less time after last year's, which was held in August due to delays from the COVID-19 pandemic. That time difference for planning was not as bad as it may seem, said Vinay Patel, outgoing AAHOA chairman, in a press conference before the show. "We start planning this convention way in advance. So yeah, our gap may be eight months from convention to convention, but this convention probably started literally in June, July or January of last year, so that time frame is still there," Vinay said. "There are always things, you pivot all the time. Especially in today's world of the pandemic. But, I think at the end of the day, the team has done a phenomenal job in putting everything together."

AAHOA's 12 POINTS of Fair Franchising are meant to serve as a template for hotel franchisers to use in how they relate to association members. One of those franchisers, G6 Hospitality, recently responded and let AAHOA leadership know how they're applying the points. G6, parent company of Motel 6 and Studio 6 economy brands, provided an analysis of all the 12 points in which the company provides additional commentary and clarification around the brand's practices related to its franchisees, according to AAHOA. The association released the 12 Points in April as part of educational offerings. Rob Palleschi, CEO of G6 Hospitality, said his company emphasizes open communication and collaboration with its franchisees. "We value our relationship with AAHOA and are committed to open communication and collaboration to support both our owners and our industry," said Rob Palleschi, CEO of G6 Hospitality.

MORE THAN A week after Hurricane Ian devastated parts of Florida, AAHOA is on the ground providing aid and training for members. Hoteliers in affected areas are now in the process of working with insurance companies to repair damages while also taking care of their communities' basic needs. On Sept. 28, Hurricane Ian brought massive flooding from its storm surge in Florida, where at least 119 people died as of Oct. 18, according to NPR. According to AAHOA, 65 percent of hotels in Florida are owned by its members. Rahul Patel, AAHOA's Florida director, owns five properties in the Fort Myers-Sarasota area. He was at his America's Best Value Inn in Fort Myers, Florida, during the hurricane.

REFORMS TO THE distribution of Small Business Administration loans, a new H2-C visa program and expansion of the Earned Income Tax Credit to benefit hotels were the main topics discussed at AAHOA's recent Fall National Advocacy Conference with legislators in Washington. Days later, AAHOA leadership met with Federal Trade Commission Commissioner Alvaro Bedoya to discuss fair franchising concerns. A day of advocacy AAHOA board members and representatives met with more than 100 agency heads and 40 U.S. senators and representatives in Washington to advocate for these and other causes for the hospitality industry.

AS ARTIFICIAL INTELLIGENCE continues to permeate society on every level, there is a place for it in the hotel industry, AAHOA said. AI technology can improve operational efficiency and cut costs, the association said, but it must be developed and used ethically. AAHOA referenced two recent research studies, one conducted by the Conrad N. Hilton College of Global Hospitality Leadership at the University of Houston, and another by Morgan Stanley, to endorse the integration of artificial intelligence into hotels for enhanced guests' experience. The University of Houston's study explored AI's transformative impact on the industry and its acceptance among hotel guests. Meanwhile, Morgan Stanley's research report released on August 18, titled "AI for Hotels: Will the Hotel of the Future Fit in the Palm of Your Hand?" documented the benefits of hoteliers, online travel agencies and hotel brands adopting AI technology early.