Marriott Allocates $50 Million to Attract Diverse Hotel Owners

Five hotel CEOs gather in a room, and one steps forward with a significant commitment: to invest $50 million over the coming years to recruit a more diverse range of hotel owners. This isn’t the setup for a joke; at Monday’s NYU International Hospitality Investment Conference, Marriott International CEO Anthony Capuano unveiled the launch of the “Bridging the Gap” program, aimed at dismantling the barriers faced by underrepresented groups in the hospitality sector.

“The ownership rates among Black, Latin American, Native American, and female hoteliers remain alarmingly low,” Capuano remarked to his peers during a “View from the Top” panel that included the CEOs of Hilton, Hyatt, IHG, and Accor. “We must enhance access to capital to create new ownership opportunities.”

Though Marriott boasts 30 brands and nearly 8,000 hotels across 139 countries, the company does not directly own and manage the majority of these hotels. Instead, like other leading hotel chains, it franchises its brand to individual owners who comply with brand standards regarding design, food and beverage, and sustainability. The initial investment for a medium-sized hotel can reach low millions, underscoring the importance of this capital.

Marriott’s initiative will initially provide financial incentives to “qualified historically underrepresented owners and franchisees” in the United States and Canada, who will hold a controlling equity stake in select branded projects, as stated by the company. These incentives will be available for new franchise applications from June 1, 2022, and will continue for the next three years. Additionally, the company plans to connect eligible owners with seasoned hotel developers, operators, and lenders from its network for mentorship support.

Panelists on Monday highlighted that the definition of diversity varies by country, but all concurred that increasing the presence of women in leadership roles is a global priority.

“We must encourage more female colleagues to advance within the development side of the industry,” stated Mark S. Hoplamazian, president and CEO of Hyatt Hotels Corp.

Keith Barr, CEO of IHG Hotels and Resorts (which encompasses Six Senses, Intercontinental, and Kimpton), echoed this sentiment, emphasizing the need to eliminate subtle barriers to entry. To attract more women to senior positions, he suggested, “We need to remove requirements like ‘previous chair experience’ to broaden the applicant pool.”

As per the 2022 Women in Hospitality Industry Leadership report by the Castell Project, “Women are gradually gaining ground in leadership roles within hotel companies (CEO, president, founder, etc.). While the ratio still favors men, women now occupy one leadership position for every 10.3 men, an improvement from one for every 11.2 in 2019.”