Breaking Barriers: Black and Latino Hotel Ownership

“I didn’t know you could own a hotel” is a common response to the idea of hotel ownership. For many, it seems like an unattainable goal, reserved for the lucky or well-connected. Yet, for those willing to navigate the industry or carve their own path, hotel ownership is not only possible but can also serve as a powerful means of generating wealth and uplifting communities.

My own journey began with my love for hospitality and my mother’s encouragement to “dream bigger, go further.” Through education, industry connections, and my current role as a consultant at CBRE Hotels, I’ve come to see hotel ownership as a practical goal—one I now help my clients achieve. However, for many minorities, particularly Black and Latino communities, the road to hotel ownership can feel distant.

These communities have long been defined by their ingenuity, creativity, passion, and hospitality—traits that align perfectly with hotel ownership. Yet, the reality is that Black and Latino representation on the ownership level remains disproportionately low. While there is a rich history of minority hotel ownership, barriers such as access to capital and lack of awareness continue to limit participation.

Latino hotel ownership also boasts a rich history dating back to the 1800s. Trailblazers like Pio Pico, the last governor of Mexican California, established iconic properties such as the luxurious Pico House in Los Angeles. These hotels were cultural hubs, offering spaces of safety and solidarity in a society that often marginalized Latino individuals.

Today, Black and Latino hotel ownership represents a small fraction of the industry. Black individuals own less than 2% of hotels in the U.S., while Hispanic-Latino ownership accounts for 9.1% of accommodation firms, according to the 2023 Latino Hotel Association Entrepreneurship Investment Report.

This lack of representation is striking given the economic power of these communities. Black U.S. travelers spend over $100 billion annually on travel and hospitality, while the Latino community spends $113.9 billion on domestic leisure travel. These figures highlight not only the importance of representation in ownership but also the potential to cater to the preferences and needs of these travelers.

Hotels are responsible for 1 in 25 jobs in the U.S., giving Black and Latino owners a unique opportunity to create jobs within their own communities. While the challenges are significant, the potential impact of increasing minority ownership is immense.

Gilyard-James and her husband, Norland James, took a different route, investing as limited partners in minority-led hotel deals. Despite challenges with their first investment, they persevered, learning from setbacks and eventually becoming general partners in two hotels. Their journey underscores the importance of persistence, networking, and embracing community support.

Organizations like the LHA, the National Association of Black Hotel Owners, Operators, and Developers (NABHOOD), and Hospitality Hued play a vital role in providing education, resources, and connections for aspiring hoteliers.

Another key to success in hotel ownership is collective economics. As Plummer explains, “Hotels are one of the best examples of collective economics. It takes a group to get a project done instead of resting on just one person’s shoulders.”

Many minority hotel owners start by raising capital within their communities. Friends, family, and local investors become early stakeholders, creating opportunities for shared economic growth. Plummer says Elise Capital’s investors are 80% minorities, “whether that be through gender, race, or age.” Minority led hotel deals open the door for new minority investors.

By pooling resources and working collaboratively, Black and Latino communities can overcome financial challenges and create avenues for generational wealth.

For aspiring hoteliers, building a strong community and network is essential. Hospitality is not a solitary journey—it thrives on collaboration and shared knowledge. Gilyard-James emphasizes the importance of giving back, frequently engaging with local communities and speaking at HBCUs to inspire the next generation of owners.

The hotel industry is constantly evolving, and staying attuned to trends is critical. From extended-stay products to technological advancements, the ability to adapt is key. “Many people are trying to skip steps,” says Head. “Please do not skip the steps. Talk to professionals, hire them, and listen to what they say.”

As Omari Head says, “I’m excited for the day when going to the grand opening of my daughter’s hotel is no longer seen as a unicorn moment.” Together, Black and Latino hoteliers are paving the way for a more diverse and equitable hospitality landscape.

So yes, hotel ownership is possible. With a rich history to lean on and a growing community of trailblazers, the opportunity is ripe for those willing to take the leap. The next chapter of minority hotel ownership is one of resilience, collaboration, and boundless potential.