With a membership of 6,000, and growing by the year, AAHOA has achieved a great deal in the course of a decade

NASHVILLE: Former United States vice president Al Gore’s exhortations to get involved in mainstream policymaking mirror the goals of leaders of the Asian American Hotel Owners Association (AAHOA). But they will, as they always have, tread cautiously and campaign first for issues that directly affect the hospitality industry.

At its annual convention that attracted some 3,000 people to the Gaylord Opryland Hotel in Nashville, Tennessee, on April 24-26, the AAHOA wallowed in its achievements of the past decade — its rising visibility; its 6,000-strong membership; its ownership of 50 percent of the U.S. motel industry and close to 35 percent of the nation’s hospitality industry; its cohesion; its philanthropic work for Gujarat earthquake and 9/11 victims; and the sense of maturity that comes with the recognition that any social, political or interest group can ignore it at its own peril.

“Our interests in government affairs would be our views being addressed on those issues that affect us. Other things would dilute our message,” Mike Amin, 37, the incoming chair of AAHOA told News India-Times. “Our priority is to get back to our local- and state-level alliances as well as alliances with other interest groups like the American Hotel Lodging Association.

Though the recession in the hotel/motel industry started in early 2001 and was compounded by 9/11, those attending, who represented largely the economy and midscale chains, were less affected.

The largely Gujarati-American community that controls a significant segment of the industry is raring to go and already looking at a rebound they hope will take them back to the heydays of the year 2000, when occupancy rates were soaring at more than 63 percent.

From meager beginnings, AAHOA members today own between 17,000 and 18,000 properties, according to the organization’s president, Fred Schwartz. They generate an estimated $40 billion in revenues annually, apart from employing thousands of people, as Gore pointed out in his speech on theng day.

Meanwhile, Randy Smith of Smith Travel Research, a tracking company for the hospitality industry, reported that room revenues had risen... (recently), as occupancy rates were going up. “The week ending April 13 seems really good,” Smith said, “We are confident we will see continuing improvement in occupancy levels.” He, however, expressed concern about 110,000 new rooms under construction. He said the room demand may increase by just 2 percent over the next few months from the new low of 59.5 percent in 2001. In the year 2000, room demand had touched 63 percent.

“We have not seen this kind of level below 60 percent in a few decades,” Smith declared, but added that he was looking at a rebound by the third quarter and very strong numbers by the fourth quarter this year. Despite the positive numbers, room rates were a “real concern,” he said, adding, “We want more increase in room rates to make this industry comfortable.”

Every state has its special problems in the hospitality industry, Amin noted. For instance, in California, AAHOA partnered with various associations to stress the need for higher expenditures on the tourism industry and reason with politicians to water down Prop. 65, on preventing any further antismoking legislation, which, he said, caused frequent and frivolous lawsuits against Indian-American owned properties, costing owners large sums of money.

“It’s in our interest to be locally involved and informed,” Amin said, “But we are going to take our numbers to Washington.”

IMAGES
Asian American Hotel Owners Association (AAHOA) officials, past and present, during the organization’s annual convention at Nashville, Tenn., April 24-26. Front row, from left, Fred Schwartz, president, Mike Amin, chairman, Hitesh Bhakta, vice chairman, Dan Patel, outgoing chairman; and back row, from left, M.P. Rama, treasurer, and Nash Patel, secretary. (Photo: Courtesy, AAHOA)	An AAHOA member addressing anforum on April 26. (Photo: Courtesy, AAHOA)
Former United States vice president Al Gore addressing the Asian-American Hotel Owners Association (AAHOA) annual convention at Nashville, Tenn., on April 24. (Photo: Courtesy, AAHOA)	Author Keshavan Nair addressing a session of the AAHOA annual convention. (Photo: Courtesy, AAHOA)

He said he also wants the industry to be more inclusive and more mainstream. “I will be seeking industry experts to bring views to our various committees so that we can take leadership positions.”

Despite being hit by 9/11, Amin noted, “I hear our numbers are starting to come back, especially in roadside properties. But destination properties and convention properties still have to make a comeback,” he added.

Indian-American hoteliers, who began as “mom-and-pop” operations two decades ago, owning one or two small motels, have graduated to owning a range of properties from motels to Marriotts and Hiltons.

“We have come a tremendously long way,” Dan Patel, the outgoing chair told News India-Times, contending that 9/11 had barely dampened the level of participation. With about 3,000 attendees and 365 vendors displaying their wares in the huge Exhibit Hall, Patel said he does not see the downturn continuing. He also highlighted the AAHOA’s philanthropic activities that included raising $500,000 for people affected by the massive earthquake in Gujarat in January last year, and another $100,000 for 9/11. He also noted that AAHOA members had donated hundreds of “room nights” to the U.S. Services Organization (USO) for American troops returning from Afghanistan.

As for participating in the national policy debate, Patel pointed out that AAHOA was already working with mainstream industry groups. “And AAHOA is working to educate at grassroots level for members to be politically involved,” he added. He also said many state-level chapters were being formed this year.

During the AAHOA meeting here, Tennessee Democrat gubernatorial candidate Phil Bredesen made an appearance and urged AAHOA to be involved in his campaign committee.

Patel, who started his entrepreneurial career with just a 35-room motel in Pulaski, Tenn., in 1979, now has 11 properties that include Hiltons and Holiday Inns.

Indian-American hoteliers have come a long way from the first motel that some grapefarm workers bought in San Francisco several decades ago. In the past year, AAHOA joined the executive committee of Travel Business Roundtable, a lobbying group to influence legislators in Washington. In March, the organization went to Washington to talk to elected officials on the hotel industry’s concerns. It is also in the process of putting forward several joint legislative days with state associations to inform and protect members.