NEWH - Fall 2021 - 11

GUEST PERSPECTIVE
1 percent of hotel GMs. It took us a few years to analyze the data,
but we have developed algorithms to rank diverse pools of talent
and predict their worth and annual compensation. Today, our talent
database has over 500,000 hospitality leaders in supervisor roles
and above, featuring over 50 percent women and 33 percent who
identify as minorities. However, our work is just getting started.
Today, the hotel industry's consolidation has made the executive
ranks a small world. Many of my former corporate colleagues,
owners, and business partners are now CEOs of major hotel brands
and real estate groups. Most are quite sophisticated, care deeply
about building winning cultures, and have established clear metrics
that define winning in real estate, property operations, and online
distribution. But prior to 2020, few have set diversity as one of their
top management priorities.
The hotel industry remains extremely conservative with few outsider
CEOs. Being in the same industry and company for a long period of
time can ingrain even the most exceptional business leaders with
orthodoxies or deeply held beliefs about " how we do business in
this industry. " These are perpetuated by the investment community,
media, academics, industry associations, and universities.
Hotel CEOs can start by identifying the toxic orthodoxies that must
be challenged to accelerate diversity and then brainstorm what
opportunities could be made possible if they are overturned. To start
the process, the following are five industry orthodoxies regarding
diversity in the hotel industry:
1. The focus of a CEO's diversity agenda should be the board
and human resources leader, including a strong diversity
department in the corporate office.
To overturn this orthodoxy, start with the hotel properties.
Jim Reynolds, the African American chairman and CEO of Chicagobased
Loop Capital, recently said in a CNBC interview: " I have not
ever been able-and I'm trying-to find a correlation between Blacks
on the board of directors and a company doing more for Blacks and
African Americans. I haven't seen it. "
Adding a few diverse members to your board of directors and building
a diversity department in HR is important but it is table stakes-the
cost of entry. Moreover, hotel companies have been doing this for
decades with little if any meaningful progress. For hotel CEOs, the
leadership challenge is achieving diversity at the property managerial
levels, where an array of owners, lenders, third-party management
companies, unions, and other stakeholders can intentionally or
unintentionally block progress. To accelerate progress, CEOs must
focus more time on implementing change in the properties, starting
with those they manage and with real estate owners and third-party
operators who get it.
2. Diversity data on employees and the talent pipeline is best
kept confidential both internally and externally.
To overturn this orthodoxy, collect and share employeevolunteered
data with all levels of the entire organization and
franchised properties. Then make it public before governments
and regulators require us to do so.
The NAACP already publishes an annual report where it grades
hotel operators and their franchisees on minority representation of
skilled versus unskilled labor, property management, and corporate
ranks. In 2019, the NAACP declared that " little progress has been
made since the organization's 2005 evaluation, " and gave Hilton,
Hyatt, and Wyndham each a C, and Marriott a B. For top management
representation, the range of grades was from C to many Fs. How
does this square with the same brands winning diversity awards from
major publications?
The issue is data transparency. While I applaud the NAACP, their
grades are based on Equal Employment Opportunity Commission
data and surveys with grades based on results against their own
targets. Meanwhile, hotel industry leaders have not been forthcoming
in sharing data.
Hotel CEOs manage a complex ecosystem of stakeholders and
recognize that the first step in leading any change process is to
collect and disseminate data widely. Data also helps stimulate debate
and new ideas and may even create entire markets for innovation. It is
also in the shareholders' best interest for hotel CEOs to take the lead
rather than hide beyond legal excuses and wait for regulators and
politicians to legislate requirements that may serve their parochial
political interests. Regular reports on diversity gaps should be as
important as customer reviews. Diversity should be an integral part
of a talent pipeline, integrated into dashboards and pushed all the
way down to hotel management teams.
3. Our labor costs are already too high, and diversity will only
increase our recruiting, training, and legal costs.
To overturn this orthodoxy, use zero-based budgeting and reset
the entire recruiting and HR model to reduce expenses.
Labor-related costs are over 50 percent of the cost structure of fullservice
hotels and have been increasing at 5-10 percent per annum,
outpacing revenues since 2000. However, do not forget that the
U.S. hotel industry generates profit margins of 25-50 percent and
Continued on p. 12 〉〉〉
Fall 2021 11

NEWH - Fall 2021

Table of Contents for the Digital Edition of NEWH - Fall 2021

President's Letter
News
Guest Perspective
Equity, Inclusion, and Diversity
Who's Who
Conference RoundUp
Have You Seen
Scholarships
Scholarship Heroes
Interview
Sustainability Point of View
Q&A: Sarah Churchill
Q&A: Barry Sullivan
Q&A: Ben Wells
Cover Story
Project: Saltline Hotel
Project: ABA Restaurant Austin
Project: Un Diavolo Per Capello
Project: Ritz-Carlton, St. Thomas
Chapter Highlights
Save The Date
New Members
Partner Profiles
Sponsor Index
NEWH - Fall 2021 - FC
NEWH - Fall 2021 - IFC
NEWH - Fall 2021 - 3
NEWH - Fall 2021 - President's Letter
NEWH - Fall 2021 - 5
NEWH - Fall 2021 - 6
NEWH - Fall 2021 - 7
NEWH - Fall 2021 - News
NEWH - Fall 2021 - 9
NEWH - Fall 2021 - Guest Perspective
NEWH - Fall 2021 - 11
NEWH - Fall 2021 - 12
NEWH - Fall 2021 - 13
NEWH - Fall 2021 - Equity, Inclusion, and Diversity
NEWH - Fall 2021 - 15
NEWH - Fall 2021 - 16
NEWH - Fall 2021 - 17
NEWH - Fall 2021 - Who's Who
NEWH - Fall 2021 - 19
NEWH - Fall 2021 - 20
NEWH - Fall 2021 - 21
NEWH - Fall 2021 - 22
NEWH - Fall 2021 - 23
NEWH - Fall 2021 - 24
NEWH - Fall 2021 - 25
NEWH - Fall 2021 - 26
NEWH - Fall 2021 - 27
NEWH - Fall 2021 - Conference RoundUp
NEWH - Fall 2021 - 29
NEWH - Fall 2021 - Have You Seen
NEWH - Fall 2021 - 31
NEWH - Fall 2021 - 32
NEWH - Fall 2021 - 33
NEWH - Fall 2021 - 34
NEWH - Fall 2021 - 35
NEWH - Fall 2021 - 36
NEWH - Fall 2021 - 37
NEWH - Fall 2021 - 38
NEWH - Fall 2021 - 39
NEWH - Fall 2021 - Scholarships
NEWH - Fall 2021 - 41
NEWH - Fall 2021 - Scholarship Heroes
NEWH - Fall 2021 - 43
NEWH - Fall 2021 - Interview
NEWH - Fall 2021 - 45
NEWH - Fall 2021 - 46
NEWH - Fall 2021 - 47
NEWH - Fall 2021 - Sustainability Point of View
NEWH - Fall 2021 - 49
NEWH - Fall 2021 - 50
NEWH - Fall 2021 - 51
NEWH - Fall 2021 - Q&A: Sarah Churchill
NEWH - Fall 2021 - 53
NEWH - Fall 2021 - Q&A: Barry Sullivan
NEWH - Fall 2021 - 55
NEWH - Fall 2021 - Q&A: Ben Wells
NEWH - Fall 2021 - 57
NEWH - Fall 2021 - Cover Story
NEWH - Fall 2021 - 59
NEWH - Fall 2021 - Project: Saltline Hotel
NEWH - Fall 2021 - 61
NEWH - Fall 2021 - 62
NEWH - Fall 2021 - 63
NEWH - Fall 2021 - Project: ABA Restaurant Austin
NEWH - Fall 2021 - 65
NEWH - Fall 2021 - 66
NEWH - Fall 2021 - 67
NEWH - Fall 2021 - Project: Un Diavolo Per Capello
NEWH - Fall 2021 - 69
NEWH - Fall 2021 - 70
NEWH - Fall 2021 - 71
NEWH - Fall 2021 - Project: Ritz-Carlton, St. Thomas
NEWH - Fall 2021 - 73
NEWH - Fall 2021 - 74
NEWH - Fall 2021 - 75
NEWH - Fall 2021 - Chapter Highlights
NEWH - Fall 2021 - 77
NEWH - Fall 2021 - 78
NEWH - Fall 2021 - 79
NEWH - Fall 2021 - 80
NEWH - Fall 2021 - 81
NEWH - Fall 2021 - 82
NEWH - Fall 2021 - 83
NEWH - Fall 2021 - 84
NEWH - Fall 2021 - 85
NEWH - Fall 2021 - 86
NEWH - Fall 2021 - 87
NEWH - Fall 2021 - 88
NEWH - Fall 2021 - 89
NEWH - Fall 2021 - Save The Date
NEWH - Fall 2021 - 91
NEWH - Fall 2021 - 92
NEWH - Fall 2021 - 93
NEWH - Fall 2021 - New Members
NEWH - Fall 2021 - 95
NEWH - Fall 2021 - 96
NEWH - Fall 2021 - 97
NEWH - Fall 2021 - 98
NEWH - Fall 2021 - 99
NEWH - Fall 2021 - Partner Profiles
NEWH - Fall 2021 - 101
NEWH - Fall 2021 - 102
NEWH - Fall 2021 - 103
NEWH - Fall 2021 - 104
NEWH - Fall 2021 - 105
NEWH - Fall 2021 - Sponsor Index
NEWH - Fall 2021 - IBC
NEWH - Fall 2021 - BC
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