Hiring qualified, dedicated employees is proving challenging for many franchised local businesses, and it can be just as difficult to find good franchise ownership candidates. There are myriad reasons to look to traditionally underserved communities for the future of franchising, and these hotels are great examples of how, with strategic goals and focus, they can make a expand opportunities for Black entrepreneurs. In our recent Oxford Economics Study, we found that companies with stronger ethnic and cultural diversity were 22% more likely to out-perform companies lacking ethnic and cultural diversity.

So, we’re shining a light on the companies who are advancing Diversity, Equity and Inclusion in their ranks. According to the National Association of Black Hotel Owners, Operators & Developers (NABHOOD), less than two percent of owners are Black. To change that, hospitality brands such as Wyndham, Choice Hotels and Hyatt are finding innovative ways to bring new owners into their systems and increase diverse hiring.

Choice Hotels has been a leader for years through their corporate partnership with the Executive Leadership Council, which works to increase the number of successful black executives through mentorship, leadership opportunities and scholarships. They have a number of Employee Resource Groups (ERGs) to ensure all employees are welcomed, supported and involved. Choice Hotels is one of few companies that has a Diversity Committee at the Board of Directors’ level. The committee assists and oversees management in developing a culture that values diversity and inclusion.  As John Lancaster, vice president, emerging markets franchise development, Choice Hotels, said “Diversity starts from the top – All of your key stakeholders need to represent an inclusive environment of your customer perspectives.”

To advance diverse hiring, Hyatt Hotels has deeply committed to review and improve their hiring and advancement practices, and, as is happening more frequently in business, are tying their leaders’ compensation packages to advancement of their inclusion and diversity goals (for more on leadership compensation and DEI, listen to our podcast with Papa Johns and Roark Capital Group). Highlighting this commitment to inclusion, Crystal Vinisse Thomas, vice president and global brand leader, Hyatt Hotels Corp. says, “Hyatt has done such a great job of giving us space to run with that, and I think our guests are seeing that and connecting to that a bit more directly than they have in the past. We have to do that now.”

To make a difference in the future talent pipeline, Hyatt launched its Change Starts Here grant program, which will provide $1 million over three years to six community-based organizations which focus on reducing unemployment in Black communities, strengthening Chicago – Hyatt’s home base – and other groups who support small and minority owned businesses.

At Wyndham Hotels & Resorts, Galen Barrett is the vice president, strategic franchise initiatives, where he leads Black Owners and Lodging Developers (BOLD) and Women Own the Room.  As he told Medium, “These initiatives were created to elevate communities that are underserved in our industry by giving them tools and the keys to successful ownership, and capital management is a huge part of that. To date, we’ve awarded more than 50 hotel development agreements — more than a dozen of which are already open — in support of aspiring hoteliers who historically have not had the support system or resources, and I’m thrilled to be on the journey to grow these programs to new heights.”

To assist in the sometimes daunting task of business ownership, BOLD by Wyndham hosted a BOLD Bootcamp, where they invited select candidates to Miami for an in-depth look at owning and operating a hotel, and provided mentorship opportunities with executive leadership and team members who provide them with insights and expertise.

All three of these examples highlight the importance of leadership support to expand employment and ownership opportunities to traditionally underserved communities. Grants, employee resource groups, mentoring opportunities and more are all ways to strengthen corporate culture and create a new future of franchising.

David Smith, senior manager, diversity programs, International Franchise Association says, “The IFA Diversity Institute embraces all efforts to increase diverse representation within the hotel industry. We look forward to working with more franchise brands to support their DEI programs and create more diverse leadership throughout their company.” For more information on getting involved with Diversity Institute, please reach out to David.