AAHOA Members:

As a result of AAHOA’s united front behind fair franchising principles, and for doing exactly what this organization was created to do, I’m writing to inform you that Choice Hotels International (Choice) has chosen to pause its partnership with AAHOA, including not attending the industry’s upcoming largest convention and trade show: AAHOACON23. 

AAHOA has enjoyed a successful, long-term relationship with Choice, and we’re disappointed to hear that because of AAHOA’s support for increased fairness and transparency, and for wanting to engage in dialogue on tough issues, Choice no longer wants to be involved.

Background

AAHOA is proud to be the only organization that exclusively represents the interests of America’s hotel owners, founded to be the collective voice of hoteliers, whether they own franchised hotels, independent, or a combination of both. 

What makes us different from other organizations is also what makes us stronger.

In fact, AAHOA is the largest minority-owned hotel association in the world, with the strongest focus in the industry on promoting women as hoteliers, as demonstrated by our inaugural HerOwnership conference in 2022. While Indian Americans make up roughly 1.4% of the U.S. population, AAHOA Members own more than 60% of all hotels in this country — truly an American dream success story.  

To fulfill our vision of being the foremost resource and advocate for America’s hotel owners also means we proudly stand upon principles that represent the best interests of our members, the hotel owners. We push for change that will improve the livelihoods of hospitality entrepreneurs while balancing a mutually beneficial Franchisor-Franchisee relationship.

This is the fundamental reason AAHOA exists. We are your collective voice.

When we stand together, and we unite behind the principles of fairness, this can unsettle players in our industry. When we ask difficult questions that no other organization is willing to ask, this can create a sense of unease.

Five Key Principles

AAHOA has been forthcoming about our stance to bring fairness to the franchise model. As referenced prior, while AAHOA is not the author of the New Jersey legislation, we do support five key principles of the fair franchising bill, which provide:

1. If a Franchisor or brand partner receives commissions/rebates from a vendor based on purchases by the Franchisees, then such commissions/rebates must be fully disclosed and turned over for the betterment of the Franchisees and the franchise system, as approved by the Franchise Advisory Councils (FACs).
2. AAHOA shall not object to vendor exclusivity so long as the vendor provides these mandated products and services to Franchisees for competitive pricing. 
3. AAHOA shall not support the selling of loyalty points by a brand partner or Franchisor for a profit.
4. AAHOA shall not support franchise fees being added that were not previously disclosed in the Franchise Disclosure Document (FDD) without prior approval from the FACs.
5. AAHOA further 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. 

These points outline reasonable expectations in the Franchisor-Franchisee relationship, because, ultimately, mutually beneficial relationships are the cornerstone of the hospitality industry.

Progressing the Industry Forward

The work we’re doing is about protecting and improving your bottom line and building a stronger business model – with the guests we serve at the center of it all. It’s about standing up to large corporations which, over time, have diminished the equitable role that hotel owners have in operating your businesses, supporting your families, and better contributing to your communities.

While we are deeply disappointed to learn of Choice’s desire to pause its relationship with AAHOA, make no mistake: We will continue to advocate for your interests while maintaining an open-door policy with our franchise partners.

Dialogue on complex issues is what progresses us forward.
 

AAHOA is grateful to many of our hotel brand partners that have taken an open-minded and collaborative approach to fair franchising. Their partnership is essential to building a model that sustains our industry for the long term.
 

We look forward to seeing you in Los Angeles in April for AAHOACON23 to discuss the issues we face as hoteliers, enjoy each other's company, and celebrate all we have done to strengthen our industry.

Thank you for all you do to support AAHOA.

Sincerely,

Nishant (Neal) Patel, CHO, CHIA

AAHOA Chairman
 

You can also read Chairman Neal Patel’s full update on AAHOA’s franchise relation efforts here.