Getting to know the Asian American Hotel Owners Association: with AAHOA's 8,700 members whose ownership is made up of almost 65 percent franchises, and the International Franchise Association comprised of both franchisees and franchisors, it is important that continued dialogue for a healthy franchise system be paramount to both organizations.

The Asian American Hotel Owners Association has grown significantly since its founding with 100 members in 1989 to today's membership total of more than 8,700. Founded as an advocacy organization, AAHOA continues to work for its members, offering representation on political issues facing hoteliers

With a rich tradition of entrepreneurship, hard work and family values, many young Asian Indians immigrated to the United States following India's independence in 1948 to pursue educational opportunities and the "American Dream." When they arrived in the United States, the hospitality industry became a popular choice as it offered immediate housing and cash flow and perhaps most importantly an opportunity to blend into the American culture despite obvious differences. The name "Patel" soon became synonymous with the American hotel industry and today more than 60 percent of AAHOA members' last names are Patel. The name Patel originated in ancient India when rulers appointed a record keeper to maintain records of annual crops on each parcel of land or "pat." Those individuals became known as a "patel."

Hospitality Industry a Natural "Fit"

The vast majority of the association's membership hails from the Gujarat Region of India and the migration into the hospitality industry was a natural fit because of their generous, hospitable nature. The first generation of U.S. hoteliers found support from family members and friends in obtaining the financial means necessary to get their businesses established.

Initially many of these hoteliers met with resistance particularly from bankers and insurance companies who discriminated against Indians, specifically those whose last names were Patel. In an effort to offset the problem, the Midsouth Indemnity Association was formed in Tennessee in 1985 and grew nationwide, eventually changing its name to the Indo American Hospitality Association.

Another group of Indian hoteliers came together in Atlanta in 1989, also with the goals of addressing discrimination issues and of increasing awareness of Asian Americans in the hospitality industry. They called themselves the Asian American Hotel Owners Association (AAHOA). Mike Leven, who is CEO and president of U.S. Franchise Systems, Inc., was one of the early architects having co-founded AAHOA with 12 members in 1989.

By the end of 1994, these two groups merged so they could work together more efficiently on behalf of Asian hoteliers throughout the United States. Today insurance and lending groups embrace AAHOA members as a proven entrepreneurial group. AAHOA is the country's fastest-growing hospitality organization and the largest membership-based Indian business organization in the nation. The association is governed by a membership-elected board of directors made up of both regional directors and directors at large.

Member Benefits

Initially referred to as "accidental" hoteliers, AAHOA members now own 20,000 hotels with more than one million rooms, representing more than 50 percent of the economy lodging properties and nearly 37 percent of all hotel properties in the United States. Approximately 13,000 of the properties are franchised while 7,000 are independent. The market value of the properties owned by AAHOA members is estimated to be $29.9 billion in franchised properties and $8.1 billion in independent properties.

Education remains at the forefront of AAHOA's annual efforts on behalf of its membership. The association offers a Certified Hotel Owner program free of charge to members. The courses are designed to provide education on a wide range of industry topics including front office operations, housekeeping, sales and marketing, and laws of innkeeping, among others that benefit both independent and franchise hoteliers as well as those with and without college degrees in hospitality.

Within the last year, AAHOA launched a private-label mediation program for members in conjunction with the National Franchise Mediation Program. The list of mediators with hospitality-specific experience can be accessed through www.franchisemediation.org. The association strongly encourages an attempt at resolution through mediation before legal avenues are sought. When mediation is utilized, history has shown that both the franchisee and franchisor typically save significant time and money.

One of the main benefits of mediation is that both sides come to the table hoping to find a business rather than a legal solution to the issue at hand. Through this discussion typically both sides come away from the process with a greater understanding of the issues facing the other and can work through to an acceptable resolution without the need for legal action. When mediation occurs someone from the franchisor with the authority to make business decisions is at the table and can finalize the agreement on-site. In the event mediation fails to resolve the issue, both sides are free to pursue legal action without having compromised their position.

In each of the last three years AAHOA has played host to franchise advisory councils' and member representatives' summits where both AAHOA members and representatives from FACs have come together to discuss how to make FACs more effective for both the franchisee and franchisor. This event is part of AAHOA's ongoing advocacy efforts on behalf of its membership. The association recognizes the important role that FACs play and believes that through ongoing dialog the relationship can only be strengthened and both sides will benefit from the discussion of mutually agreeable topics and those in which they differ.

AAHOA also keeps its members abreast of political issues that impact them on the local, state and national levels. The association jumped into action in 2004 when pending legislation in the Georgia General Assembly threatened to put a cap on room rates during special events in the state. The legislation was not passed, but the association continues to monitor the situation, and will again work to fight such legislation if it is reintroduced in future sessions.

Through AAHOA's Web site and other member communications, up-to-date legislative contact information is provided to members. In addition, the association closely monitors national issues such as Small Business Administration loan amounts, Americans with Disabilities Act notification legislation, and the Destination Marketing Campaign. AAHOA is also a representative on the executive committee of the Travel Business Roundtable where it directly works to educate elected officials on the importance of tourism and travel to the U.S. economy. These and other efforts provide AAHOA members with a voice in Washington, D.C., as well as in their hometowns and home states and the association actively encourages its members to become participants in the political process in their home areas.

Commonalities

With so many of AAHOA's members owning franchises, it is important to continue building the existing relationship between AAHOA and the International Franchise Association and find additional opportunities to work together on issues of mutual interest. There are a number of advocacy commonalities that IFA and AAHOA share. Both organizations provide significant educational opportunities to members each year, each participates on the Steering Committee of the National Franchise Mediation Program and offers dispute resolution options for franchisors and franchisees, and both work on behalf of their memberships on the local, state and national political levels.

One ongoing issue of vital importance to both of AAHOA's and IFA's members is ADA notification. AAHOA recognizes that every individual is entitled to full access to and within facilities and in no way supports a lack of responsiveness to access issues. Currently the issue is that attorneys are the main benefactors from not having notification of an ADA violation.

With ADA notification, no legal action would be taken until after the corrective period had passed and no corrective action was taken to remedy the violation. This is an issue that is on the legislative agenda of both AAHOA and IFA and we can and should work more closely together for the benefit of the hospitality and restaurant industry. There are many other legislative issues that affect both groups, such as the business meal, spousal and entertainment tax deductions where we can work together.

Additionally, both IFA and AAHOA rely on SBA loan guarantees for the future success and growth of both organizations' members' businesses. Through continued monitoring of the changing federally-supported loan environment, both organizations can play a vital role in helping to keep significant funding alive.

Certainly with AAHOA's 8,700 members whose ownership is made up of almost 65 percent franchises, and the IFA comprised of both franchisees and franchisors, it is important that continued dialogue for a healthy franchise system be paramount to both organizations. We're sure AAHOA and the IFA have more in common than not and we look forward to continuing to work with the IFA to our mutual benefit.

Fred Schwartz is the president of the Asian American Hotel Owners Association, an advocacy organization based in Atlanta. Schwartz can be reached at 404-816-5759.