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As U.S. businesses evaluate their diversity initiatives in light of scrutiny from the Trump Administration, CEOs of the largest hotel groups positioned the overall concept of diversity as essential to their businesses of serving global travelers.
“It is ultimately a business imperative,” said Hilton CEO Chris Nassetta, referring to how the hotel industry serves about a quarter billion people annually.
Nassetta’s comments were echoed by leaders of Marriott, IHG Hotels & Resorts, and Wyndham Hotels, who addressed the topic at the Americas Lodging Investment Summit in Los Angeles.
Since his second inauguration, President Donald Trump has indicated that the White House considers any program with preferences based on gender or race to be illegal for both federal agencies and private companies.
The executives didn’t talk about specific programs or goals, instead endorsing a need for “diversity” to help with hiring employees and boosting hotel ownership.
Evaluating DEI Efforts
Trump ordered the attorney general to report to him by May with recommendations to “encourage” private businesses “to end illegal discrimination and preferences, including DEI [diversity, equity, and inclusion].”
However, Trump’s executive orders and statements leave some room for interpretation and still need clarification.
One executive order asked federal agencies to identify “up to nine” private-sector entities, including publicly traded organizations, for potential investigation regarding their DEI practices. Still, it wasn’t yet clear which initiatives might be risky under the new guidance.
Many companies are also reviewing their programs. Last week, airline executives at United and American said they “hire on merit” without elaborating. Uber told the Wall Street Journal on Tuesday that it would likely stop including DEI-related goals as part of the targets that help determine executive compensation.
Hotel CEOs Support ‘Diversity’
The CEOs were asked about their views on their diversity policies, which all the major hotel groups have touted in recent years.
The executives were broadly unified in saying that the hotel business needs to embrace a spirit of diversity because they need to appeal to a wide base of global travelers, employees, owners, investors, and managers.
Geoff Ballotti, president and CEO of Wyndham Hotels & Resorts, said “diversity” would be a “continued focus.”
“I’ve talked about a continued commitment to making sure we’re welcoming owners that otherwise would not otherwise be able to enter [the hotel segment],” Ballotti said.
Wyndham is one of a few hotel groups that have programs that provide mentorship to women and Black entrepreneurs seeking to own hotels.
“All of our businesses are built on some simple beliefs,” said Anthony Capuano, president and CEO of Marriott International. “The ability to welcome everyone to our hotels, the chance to create opportunities for all. And those will continue to guide how we operate our businesses.”
“Our businesses, by definition, are very diverse businesses, meaning about the quarter billion people we serve per year,” said Nassetta. “For the almost 20 years I’ve been here, our objective has been to make sure that the teams that we’re building corporately or at the properties are able to deliver what our customers want and the best experiences that relate to their needs.”
“So, it is ultimately a business imperative for us to be able to deliver to that customer base for us to have the kind of diversity around our table that we have,” Nassetta said.
“Our inclusion culture started before the events of 2020; I was fundamental to establishing it when I was running the Americas,” said Elie Maalouf, CEO of IHG Hotels & Resorts. “And it will continue beyond trends and fads. We’re in over 100 countries. Hundreds of cultures. People from all over the world. There’s no way we can be successful as a company unless we’re attractive as an employer to the broadest set of people regardless of their origin or religion or height, etc. We’re also a meritocracy.”
Accommodations Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.
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