The Latino Hotel Association released the 2023 inaugural Latino Hotel and Entrepreneurship Investment (LHEI) Report showcasing data and research detailing Hispanic entrepreneurship, economic and population growth, and specific opportunities and barriers to Latino business ownership within and outside the hospitality industry.
The report advocates for specific policy needs necessary for Latinos to navigate the steps required to own and invest successfully in hotels and demonstrates the importance of Latino ownership to hotel chains seeking franchise owners.
“As advocates for Latino entrepreneurs, we feel an imperative to showcase the explosive growth of the Hispanic population in sheer numbers and economic power and to clearly delineate the opportunities and barriers facing Latinos striving to achieve generational wealth for their families,” said Lynette Montoya, president/CEO, Latino Hotel Association. “Owning a business is the greatest single contributor to household wealth and our goal is to showcase to hotel franchise companies the necessity of recruiting Latinos into hotel ownership and to help provide direction and guidance for Latino entrepreneurs considering an investment in hotel ownership.”
Julie Arrowsmith, president/interim CEO, G6 Hospitality, parent company of the Motel 6 & Studio 6 brands, added, “We are proud supporters of the inaugural Latino Hotel and Entrepreneurship Investment (LHEI) Report and are committed to advocating for greater representation in Latino hotel ownership. Together with the Latino Hotel Association, we are paving the way to help Latinos on the path to not only owning their own business but guiding them to profitability to create a better future for themselves, their families, their communities, and the entire hotel and lodging industry.”
Highlights from LHEI include:
- Closing the opportunity gap in Latino Hotel Ownership. Latinos, through sole or joint ownership, account for 9% of total U.S. accommodation firm ownership, yet Latinos now comprise 19% of the U.S. population and are projected to be responsible for 2/3 of U.S. population growth over the next 25 years. Closing the ownership gap would more than double the number of Latino owned accommodation firms.
- Promoting the power of Hispanic ownership in the accommodation industry. The number of Hispanic accommodation firms increased by 74% vs. an increase of 3% for the total industry in the 2-year study period leading up to the pandemic. Annual payroll for Hispanic-run accommodation firms increased by 67% vs. all companies at 11% and the number of employees for Hispanic-run accommodation firms increased by 61% vs. all companies at only 1.5% during the study period.
- Increasing awareness of hotel ownership opportunities within the Latino business community. Americans are starting new businesses at a record pace since the pandemic with an uptick from 3.5 million new businesses in 2019 to 5.4 million in 2022 emerging from the pandemic. In the decade preceding the pandemic, the number of Hispanic business owners increased 34% compared to an increase of just 1% among non-Hispanic business owners. Almost 5 million Hispanic owned businesses contribute more than $800 billion to the U.S. economy annually and our goal is to increase awareness of hotel ownership as an attractive opportunity for these entrepreneurs.
- Suggesting proposed steps for those in the hospitality industry and for governmental entities that can be taken to raise awareness and to ease the path for Latino entrepreneurs considering lucrative hotel ownership opportunities.
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Source: hotelbusiness.com
