LAS VEGAS — On the first day of the Choice Hotels International Conference at Mandalay Bay, President and CEO Patrick Pacious introduced Megan Brumagim, the company’s first-ever VP of environmental, social and governance. On the conference’s final day, Brumagim and several other Choice leaders gathered for a roundtable to discuss not only the company’s ESG work, but also its corporate social responsibility.
“We hear loud and clear from consumers that this is something they care about,” Brumagim said of the company’s ESG initiatives. “We hear from employees and associates that this helps to drive engagement and motivation for them. And of course, it's something that investors are focused on as well.”
Balancing social and responsible efforts with profitability can be tricky, of course, and Brumagim said the company is seeking win-win opportunities with its franchisee partners: “There [are] a lot of low-hanging fruit opportunities out there.” For example, in regions with hot, dry summers, owners have replaced their lawns with native landscaping and plants. “That reduces their need to irrigate and reduces the mowing and maintenance cost,” she said.
Paths to Ownership
John Lancaster, Choice's VP of emerging markets, franchise development and owner relations, said that the company has been working to make hotel ownership inclusive for almost 20 years. “We have awarded, financially supported and trained over 300 underrepresented minorities and women for hotel ownership,” he said, noting that in both 2020 and 2021 the company executed 24 agreements with owners in these categories.
More recently, Choice launched Hertels, which is targeting women to become hotel owners. Out of the 5,920 hotels in the company’s portfolio, fewer than 10 percent are owned by women. “With this program, we're focused on recruiting, empowering, connecting and partnering women in the hotel industry,” Lancaster said. According to the 2022 Castell Project "Women in Hospitality Industry Leadership Report," one woman enters into hotel investment and development for every nine men who do the same. Choice also works with women-focused groups and conferences on hotel ownership, including She Has a Deal, an education and investment platform for aspiring women hotel investors and developers; Fortuna's Table, an online community for diverse potential hotel owners; and the Black Girls In Real Estate Conference.
To help potential owners get the loans they need to get started, Choice will have someone from the company’s financing department talk about Small Business Administration loans, the 504c program and conventional lending. “It's taking them step by step as to how to get through that process,” Lancaster said. The Choice Hotel Owners African American Alliance also offers support to Black owners once they are established with the company.
“We are known, I think, for helping individuals who do not have hospitality experience get into hospitality,” said Simone Wu, SVP, general counsel, corporate secretary and external affairs for Choice. “If you call us and you're engaged, as John said, and we believe that it's possible for you, then we will help you.”
Partnerships
Late last year, Choice and Concord Hospitality Enterprises announced plans to sponsor a hospitality management accelerator program for recent students graduating from historically Black colleges and universities to take on management roles at Choice’s Cambria Hotels brand. Two students have already gone through the rotational program at Morgan State University in Baltimore and were placed in leadership roles at Cambria hotels. The company also partnered with the Executive Leadership Council so Choice employees can go through midlevel management programs to get the training and education they need.
“We really want to take a look at our internal talent and make sure that we're truly representing the communities that we're working and living in and have that authentic representation,” said Corinne Abramson, Choice’s senior director of culture, inclusion and engagement.
Choice also partnered with Schneider Electric to develop a new cloud-based energy-tracking dashboard that gives owners automated tracking of energy, water and waste at the hotel level. “We are a franchised system, and so working with our locally owned and operated hotels, it isn't always easy to get all of the data,” Brumagim said. “But this is a really important first step to make sure that we are getting the data and getting that baseline.”