HB ON THE SCENE: HHOA Educates Potential Owners At Investment Seminar

NEW YORK—The Hispanic Hotel Owners Association (HHOA) hosted the first of three hotel investment seminars yesterday at the Marriott East Side hotel here. The sessions, developed by HHOA, were designed to provide basic information to potential Latino investors about hotel ownership. Called “Hotel Investment 101,” the seminar focused on an overview of the hotel industry and topics that included branding, acquisitions, site selection and financing. John Keeling, vp/PKF Consulting opened the day with a session on the state of the lodging industry and the economy. He noted that while many signs point to a slowing economy, the hotel industry should not panic. “Real estate is cyclical and the hotel industry is particularly cyclical…The question is are we in for a recession or a healthy correction,” he said. “Were not going to fall off a cliff this year…demand has been lagging since 2006 so even if we go into a recession, which is not likely to last too long, the outlook is still really pretty good.” Keeling noted the weak dollar, declining interest rates and high prices of commodities keeping supply in check are all working in the industrys favor. For those needing a crash course in the benefits of branding, HHOA provided attendees with a session on hotel brands, with a focus on the midscale and economy segments. With executives from Wyndham, Hilton, InterContinental Hotels Group and Carlson Hotels Worldwide on the panel, each gave a rundown on their respective midscale and select-service brands and the benefits they offer. Moderator Rick Besse of Howarth Hospitality told attendees for certain fast-growing brands such as Hampton Inn and Holiday Inn Express, “if you want a franchise, youd better hurry up.” Also on the panel representing the independent hotel perspective was Juan Carlos Contalba, vp/Benchmark Hospitality, who told attendees a brand isnt always necessary. “Theres no denying the brands are good and serve a purpose, but theyre not the answer for everyone. There are a lot of guests looking for a different experience. Theres also a cost of aligning with a brand—we are an alternative to that.” Keynote speaker Terry Sanders, vp/Wyndham Hotel Group, told attendees that there is a great deal of opportunity available for both the HHOA to succeed and for Hispanics to establish a greater presence in the industry. However, he also cautioned potential owners and investors. “Getting into the hotel business seems glamorous, but do it smart. You have to be well funded and do your homework. You dont have to go big right away,” he said. “HHOA has tremendous opportunities—look at AAHOA, they control 60% of the economy hotels in the U.S. You can do a tremendous amount of business. We tend to trust our own communities more and there is strength in numbers. Just make sure you rely on people who know what theyre doing.”