The shortage of diverse owners also has as much to do about education as it does with access to capital, says Robinson. Qualifying to franchise out a Marriott-branded hotel could mean putting down as much as 40% of the total cost of the project. Yet as more women and minorities gain access to capital, Robinson says the pool of qualified candidates is growing.
“Diversity is a big part of who we are as a company,” says Robinson. “We have diverse associates and diverse customers and we want to make sure diversity is exhibited in every level of the organization.”
Roughly 25 years ago, Marriott was the first big hotel company to formalize a diversity and inclusion program. In 2005, the hospitality giant was also the first to launch a formal initiative to encourage diverse hotel ownership. Still, Marriott has a shortage of diverse talent at the top of its organization: There are only three women on Marriott’s 15-person executive leadership team and just one member is from Hispanic descent.
The business strategy behind the new ownership initiative is not lost on Robinson, either. Women and minorities are becoming a larger percentage of business travelers every day, he says, which means having diverse owners could mean more successful hotels. In June, the hotel chain also championed a marketing campaign geared toward the LGBT community. Its #LoveTravels ads feature prominent members of the community sharing their stories and staying at Marriott hotels. A second phase of the campaign focusing on African-Americans launched in August. The company knows that if it can corner the market on diverse travelers, it will be at an advantage in the long-term.
Like any investment, however, opening up a hotel is not without its risks. Alexandra Martinez signed her first agreement with Marriott to open a hotel 12 years ago. Now, her family has invested more than $150 million with Marriott and they collectively own four hotels in Mexico. It’s all about locations, says Martinez, and it can take up to eight years to see a return on your investment.