The Latino Hotel Association released the inaugural "Latino Hotel and Entrepreneurship Investment Report," which showcases data and research about Hispanic entrepreneurship, economic and population growth, and specific opportunities and barriers to Latino business ownership within and outside the hospitality industry.
“As advocates for Latino entrepreneurs, we feel an imperative to showcase the explosive growth of the Hispanic population in sheer numbers and economic power and to clearly delineate the opportunities and barriers facing Latinos striving to achieve generational wealth for their families,” Lynette Montoya, president and CEO of the LHA, said in a statement. “Owning a business is the greatest single contributor to household wealth and our goal is to showcase to hotel franchise companies the necessity of recruiting Latinos into hotel ownership and to help provide direction and guidance for Latino entrepreneurs considering an investment in hotel ownership.”
The LHEI report advocates for specific policy needs necessary for Latinos to navigate the steps required to own and invest successfully in hotels and demonstrates the importance of Latino ownership to hotel chains seeking franchise owners.
Highlights from report include:
- Latinos, through sole or joint ownership, account for 9 percent of total U.S. accommodation firm ownership, yet Latinos now comprise 19 percent of the U.S. population and are projected to be responsible for two-thirds of U.S. population growth over the next 25 years. Closing the ownership gap would more than double the number of Latino owned accommodation firms.
- The number of Hispanic accommodation firms increased 74 percent versus an increase of 3 percent for the total industry in the two-year study period leading up to the pandemic. Annual payroll for Hispanic-run accommodation firms increased 67 percent versus all companies at 11 percent and the number of employees for Hispanic-run accommodation firms increased 61 percent versus all companies at only 1.5 percent during the study period.
- Americans are starting new businesses at a record pace since the pandemic with an uptick from 3.5 million new businesses in 2019 to 5.4 million in 2022 emerging from the pandemic. In the decade preceding the pandemic, the number of Hispanic business owners increased 34 percent compared to an increase of just 1 percent among non-Hispanic business owners. Almost 5 million Hispanic owned businesses contribute over $800 billion to the U.S. economy annually and the LHA's goal is to increase awareness of hotel ownership as an attractive opportunity for these entrepreneurs.