To get the next generation in the door, hoteliers must first open it
By Aaryan Patel & Jin Laxmidas
For generations, hotel ownership has represented one of the purest examples of the American Dream. Many AAHOA Members arrived in this country with little more than determination, worked tirelessly, made sacrifices, and built businesses that now support their families and communities. Through decades of hard work, they accumulated not only income but also valuable real estate, thriving portfolios, and generational wealth.
Yet today, an interesting trend has emerged.
Many hotel owners who spent years building successful businesses now encourage their children to pursue corporate careers instead of exploring the opportunities that already exist within the family enterprise.
A young professional earning $150,000 per year is often viewed as successful. But many independent hotel owners generate significant annual cash flow while simultaneously building equity through appreciation, mortgage paydown, and business growth. Ownership provides something employment often cannot – an asset that can continue creating value for decades.
Society often talks about the advantages enjoyed by trust fund families and children who inherit wealth. Traditional Americans frequently view those individuals as having a significant head start in life. Yet many hotel owners have quietly created a similar opportunity for their own children.
The difference is that these assets were not inherited from previous generations. They were built from the ground up.
After years of long hours, financial risk, and personal sacrifice, many independent hoteliers now own businesses and real estate portfolios worth millions – even tens of millions – of dollars. These portfolios represent opportunities that most people will never have access to. So why spend a lifetime building generational opportunities if the next generation is never encouraged to understand them?
The issue is not whether hospitality is better than corporate America. The issue is whether the next generation fully understands both paths before making a decision.
Too often, they do not.
Behind the Curtain
Many children of hotel owners grow up seeing the challenges of the business but never truly learn how it works. They see their parents working long hours, handling guest issues, and managing daily operations, but they are rarely shown the bigger picture of ownership.
They are not shown how a hotel generates revenue. They are not taught how assets appreciate over time. They are not exposed to the financial statements, investment decisions, or strategic planning that transform a single property into a multi-million-dollar business.
As a result, many young people never realize that the skills they are seeking elsewhere are already available within the family business.
This is where owners have an opportunity.
The goal should not be forcing children into hospitality. The goal should be exposing them to it.
Invite them to participate in meetings. Show them how revenue management works. Explain how staffing decisions are made. Teach them about budgeting, sales, marketing, guest service, and property improvement planning. Let them see how financial statements tell the story of a business.
The reality is that the skills learned through hotel ownership extend far beyond hospitality. Leadership, entrepreneurship, accounting, customer service, marketing, operations management, real estate investment, negotiation, and asset management are valuable in virtually every industry.
Even if a child ultimately chooses another career path, the lessons learned from participating in the family business will remain valuable throughout their life. Without exposure, however, they can never make a fully informed decision.
Looking Ahead
This conversation extends beyond individual families. It also impacts the future of our industry.
Today, AAHOA Members own approximately 60 percent of hotels in the United States. That remarkable achievement was not built overnight. It was built through generations of entrepreneurs who believed in hospitality ownership and were willing to invest their time, energy, and capital into the industry.
The future of that success depends on the next generation.
If fewer young people choose to enter hospitality ownership, the number of independent hotel owners will gradually decline over time. Family-owned businesses will become harder to sustain across generations, and the entrepreneurial spirit that helped build this industry may weaken.
The solution is not to pressure young people into following a specific path. The solution is to give them the opportunity that very few people ever receive: The chance to learn firsthand how to own and operate a business.
Many parents spend decades building assets, creating opportunities, and establishing a foundation for future generations. Before encouraging children to look elsewhere, we should ensure they understand the value of what has already been built.
The next generation may ultimately choose hospitality, corporate America, entrepreneurship, or something entirely different. But they deserve the opportunity to make that choice with a full understanding of the American Dream that previous generations have already achieved.
For independent hoteliers, that may be the most important investment they ever make.
Because the greatest legacy is not simply passing down a hotel.
It is passing down the knowledge, confidence, and opportunity to continue building upon what generations before worked so hard to create.
Independent Hotelier Committee Members Aaryan Patel and Jin Laxmidas share a commitment to help hoteliers become – and stay – independent.
Image: Konstantin/stock.adobe.com
Leave a Reply