Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently senior editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers. Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
In our exclusive Leadership Series interview, Pat Pacious, president and CEO of Choice Hotels International, reflects on his organization’s relationship with AAHOA, his opposition to the proposed New Jersey State legislation on fair franchising and why Asian hoteliers are still important to the company. In the end, he said, it’s about keeping state governments out of a dialogue that should be held between franchisers and their franchisees regarding subjects such as selling loyalty points and revenue from preferred vender programs.
Pacious also discussed other key topics in the conflict between AAHOA and several large hotel companies, including Choice as well as Marriott International. Also in the interview, held at Choice’s recent 67th Owner & Franchisee Convention in Las Vegas, Pacious discusses topics addressed at the convention, such as Choice’s recent acquisition of Radisson Hotels Americas. He also comments on the company’s offering to current and future franchisees and the importance of Asian American owners.
‘This is not about fair franchising’
In February, Choice announced it would “pause its partnership” with AAHOA, according to an alert to AAHOA members. AAHOA said Choice’s decision came in response to AAHOA’s 12 Points of Fair Franchising and its public support for New Jersey Assembly Bill A1958, which would make changes to the New Jersey Franchise Practices Act. Prior to Choice’s action, Marriott had announced it was withdrawing its support for AAHOA for the same reason, and both companies chose not to attend the 2023 AAHOA Conference and Trade Show in Los Angeles in early April. Other companies, including Hilton and IHG Hotels & Resorts, also did not attend.
Pat Pacious said Choice foresaw trends such as remote work and the federal infrastructure bill and is therefore well prepared for the future.
Pacious put his company’s decision in a different light.
“This is not about fair franchising. Choice Hotels is probably the most franchisee friendly company, we always have been,” Pacious said. “We have had a long-standing relationship with AAHOA and the way we all move forward is through dialogue. And we are always open to dialogue, we've always made that the number one thing that we focus on. A lot of our owners are very much aware of what we're doing and support what we're doing, and the dialogue is where we're going to hopefully get back to a place where AAHOA and Choice are shoulder to shoulder again on the major issues that are facing our industry.”
Talks with AAHOA leadership are still ongoing, Pacious said. There are some sticking points.
“I think it's really around do you want a state government to be involved in your commercial contract?” Pacious said. “At the end of the day, we've always improved our relationship from a franchisee and franchiser perspective through conversations. That's the direction that we're headed and that's the direction we're going to stay.”
Pacious gave a similar response in a previous interview to explain Choice’s opposition to Arkansas House of Representatives House Bill 1783. The bill would modify the state’s Franchise Practices Act to give the state a larger role in settling differences between franchisers and franchisees.
Janis Cannon, Choice’s senior vice president of upscale brands, updates convention attendees on the progress of the company’s absorption of newly acquired Radisson Hotels Americas properties.
“Franchising has been a fantastic wealth creator for small business people for over 50 years. And it is a model that has worked very well,” Pacious said. “The regulatory aspect of it has primarily been around disclosure between the franchiser and the franchisee who's buying that franchise whether it's a quick service restaurant or a hotel business, and that's worked very well. I think what you're seeing now is there are certain states where there's an effort to get the state between the franchiser and the franchisee. And that's not good for asset owners at the end of the day.”
Disclosure of the terms of franchise agreements already is required by federal law, Pacious said. There is no need for state legislatures to get involved.
“We feel very good about the existing relationships and the way that the franchiser/franchisee relationship has evolved, particularly in the hotel segment, is through dialogue and at Choice we have probably been the most franchisee friendly franchiser,” he said. “That's proven to be very effective, it's allowed us to listen to what their needs are and respond and allows us to make sure that there's brand consistency. That's been a very effective way of doing it is having two business partners sit down and have discussions as opposed to having a state come in because that is a blunt force instrument that doesn't understand every hotel was different, every market is different. And it doesn't allow for the flexibility that I think we've had as an industry to really drive a win-win for both sides.”
‘A small part of what we do’
Two of the main issues for AAHOA concern the direct sale of loyalty points by some brands and revenue generated by preferred vender programs through fees, rebates and commissions paid by participating venders. Pacious gave answers to Choice’s positions on both issues.
On the sale of Choice Rewards points, he said that is “a very small part of what we do.”
“We are not a big point seller,” Pacious said. “Those are dialogues, again, that I think are best left for us as a as a franchiser to be having directly with our with our owners.”
Pacious also said the top redemption for points is one free room night. In a later clarification, Choice said 89 percent of points redeemed and 85 percent of all redemptions in fiscal year 2022, were used towards Rewards nights.
“These nights are an important component of the Choice Privileges program. Once a guest earns a reward night, we find they become much more attached to the program and to Choice’s brands, driving repeat stays to earn more points and even more rewards,” Choice said.
According to Choice’s 2022 franchise disclosure document, the company brought in $86.9 million from franchisee purchases in 2021, including “revenues from Qualified Vendors and choiceADVANTAGE installation and support fees.” That equates to 8.14 percent of Choice’s total revenue for that year. Pacious gave an idea where at least some of that money goes.
Choice hotel owners mix with venders on the trade show floor at the company’s recent convention.
“The money that we work with our vendors to create is what supports the massive trade show we're doing right now,” Pacious said. “If you look at the huge amount of commerce that's going on on that tradeshow floor, those vendors, it costs money for them to come here, it costs money for us to put the show on. That's how we spend our dollars to make sure that we're helping our owners find the best product at the lowest price. And we're very open with them about how we're working through that. And so again, through dialogue, that's where we get better venders, that's where we get better demand for the right product and that's really how we've always approached the procurement side of the business.”
Radisson incorporation almost complete
Pacious also said the company is on track to complete incorporation of the newly acquired Radisson properties by August. Choice has been working closely with Radisson Hotel Group on the transition.
“The sellers of the brands in the Americas, they picked us. They chose Choice Hotels because of the stewardship we've shown with our existing brands, and also our ability to grow brands,” Pacious said. “We are in partnership with them on the sort of global brand standards and logos and those types of things to maintain some consistency at that level, but allowing for the development in this particular market. If brands need to shift somewhat to attract the right developer. It gives both of us the flexibility to do that.”
The Radisson owners are particularly happy about Choice’s drive to increase drive direct reservations, bypassing OTAs, said Pacious.
Choice President and CEO Pat Pacious discussing the company’s extended-stay brands during a session at the recent 67th Owner & Franchisee Convention in Las Vegas.
“We have shifted this channel mix away from OTAs and towards the .com delivery that that we provide,” Pacious said. “In the conversations with the Radisson Hotel Group owners Country Inn and Suites and Radisson brand owners, they're really excited to get onto our platform, which we will be doing later this year, because of that ability to reduce the amount of third-party contribution and drive up their direct contribution, which is their lowest cost and highest rate delivery channel.”
The final word
Pacious said Asian Americans comprise around 60 percent of Choice’s franchisees.
“It has been growing as we have done a lot of work with that community to really help them get started,” Pacious said. “Once we get owners in our community, they don't like to leave, we have the industry's highest retention rate. They are always asking us what's coming next, what is Choice Hotels working on next that might meet the demand trends that we're going to see in the future and we always have some something new to bring to the table.”
Choice’s news for those curious franchisees is good, Pacious said.
“The future is exceptionally bright and the reason for that is what I call the five R's,” Pacious said. “We're seeing rising wages, we are seeing more retirements, we are seeing remote work, we are seeing the rebuilding of America with the infrastructure bill. And we're also seeing a lot more road trips. It's an exceptional set of trends.”
These are trends that Choice identified several years ago, Pacious said. They used the information to ensure that were offering the right product to put Choice’s hotels “in the sweet spot.”
“We saw these trends coming. We're ahead of the curve on them. We are out there with proven prototypes and proven brands in these segments that can really capitalize on that,” Pacious said. “We're looking at where this entire opportunity from a demand perspective is going to be the pie is getting larger, and our brands are in the right place to really capitalize on those trends. That's why I'm so bullish on our opportunity going forward.”
The U.S. led global travel and tourism in 2024 with $2.6 trillion in GDP, WTTC reported.
India retained ninth place with $249.3 billion in GDP.
The sector supported 357 million jobs in 2024, rising to 371 million in 2025.
THE U.S. LED global travel and tourism in 2024, contributing $2.6 trillion to GDP, mainly from domestic demand, according to the World Travel & Tourism Council. Europe accounted for five of the top 10 destinations, while India ranked 9th.
WTTC opened its 25th Global Summit in Rome with research showing investment reached $1 trillion in 2024, led by the U.S., China, Saudi Arabia and France.
“These results tell a story of strength and opportunity,” said Gloria Guevara, WTTC interim CEO. “The U.S. remains the world’s largest travel and tourism market, China is surging back, Europe is powering ahead, and destinations across the Middle East, Asia and Africa are delivering record growth. This year, we are forecasting that our sector will contribute a historic $2.1 trillion in 2025, surpassing the previous high of $1.9 trillion in 2019. As Italy hosts this year’s Global Summit, its role as a G7 leader showcases the importance of tourism in driving economies, creating jobs and shaping our shared future.”
The U.S. kept its top position, but international visitor spending is expected to fall by $12.5 billion in 2025, limiting growth to 0.7 percent. China, the second-largest market, contributed $1.64 trillion in 2024 and is forecast to grow 22.7 percent this year. Japan, the fifth-largest market, is expected to rise from $310.5 billion to nearly $325 billion.
Italy, which hosted the summit and is a G7 member, contributed $248.3 billion in 2024, driven by international visitors and the meetings and events sector. Germany, the third-largest market, contributed $525 billion. The UK generated $367 billion despite a fall in international visitor spending, while France and Spain added $289 billion and $270 billion. Europe’s growth was supported by both cultural and modern sectors.
India contributed $249.3 billion in 2024. In June, WTTC reported international visitors spent $36.09 billion in India in last year, up 9 percent from 2019.
Jobs on the rise
Travel and tourism supported 357 million jobs in 2024 and is expected to reach 371 million in 2025, increasing its share of global employment, the WTTC report found. By 2035, the sector is projected to support one in eight jobs worldwide, adding 91 million positions—most in Asia-Pacific—and accounting for one in three new jobs globally.
Uncertainties over trade tariffs and geopolitical tensions could limit sector growth in 2025, the report said. Travel and tourism’s GDP contribution is forecast to rise 6.7 percent, returning toward pre-pandemic averages but still outpacing the 2.5 percent growth projected for the global economy.
The sector is expected to contribute $11.7 trillion, or 10.3 percent of global GDP and add 14.4 million jobs, bringing total employment to 371 million, or 10.9 percent of global jobs. International visitor spending is projected to fully recover, rising 8.6 percent above 2019 levels to nearly $2.1 trillion, while domestic visitor spending is expected to rise 13.6 percent to $5.6 trillion. Annual growth for 2025 is forecast at 10 percent for international and 5.1 percent for domestic spending.
In May, WTTC projected the U.S. stood to lose $12.5 billion in international travel spending this year, falling to under $169 billion from $181 billion in 2024. The council said U.S. needs to do more to welcome international visitors rather than “putting up the ‘closed’ sign.”
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Hyatt Hotels Corp. marked 45 years of its Park Hyatt brand.
It recently launched “Luxury Is Personal,” its first global campaign in more than five years.
Its luxury hotel portfolio has grown 146 percent since 2017.
HYATT HOTELS CORP. marked the 45th anniversary of its Park Hyatt brand, launched in 1980 with Park Hyatt Chicago. It also introduced “Luxury Is Personal,” its first global marketing campaign for the brand in more than five years.
“The Park Hyatt campaign celebrates luxury not just as a grand performance, but as an intimate convergence of refined details that resonate long after the stay,” said Katie Johnson, Hyatt’s vice president and global brand leader for luxury. “As we celebrate 45 years of Park Hyatt hotels, we are proud of the personal touch we bring to serving our guests and members and can’t wait to breathe new life into the brand as we head into our next chapter.”
The campaign coincides with Hyatt’s expansion of the Park Hyatt brand across Europe, Africa, Asia-Pacific and the Americas, the statement said. Hyatt reports its luxury hotel portfolio has grown 146 percent since 2017 and includes Park Hyatt, Alila and The Unbound Collection by Hyatt.
A recent Hyatt Inclusive Collection survey found that most Americans define quality time as moments with loved ones, but 82 percent say they don’t get enough.
President Donald Trump will meet Congress as a shutdown looms.
Democrats say they are ready to negotiate a bipartisan deal.
Thousands of federal jobs and the U.S. travel economy are at risk if a shutdown occurs.
PRESIDENT DONALD TRUMP will meet Congressional leaders on Monday after Senate Democrats rejected a Republican stopgap spending bill to fund the government until Nov. 21. The U.S. Travel Association recently warned a government shutdown could cost the travel economy $1 billion a week.
Democrats want spending bills to reverse Trump’s Medicaid cuts, while Republicans want healthcare addressed in broader budget talks, according to Al Jazeera.
Senate Minority Leader Chuck Schumer, House Minority Leader Hakeem Jeffries, House Speaker Mike Johnson and Senate Majority Leader John Thune are expected to meet Trump at the White House.
“If it has to shut down, it’ll have to shut down. But they’re the ones that are shutting down government,” Trump told ABC News.
Democrats shifted the blame to Trump but also kept the door open to negotiations.
“President Trump has once again agreed to a meeting in the Oval Office,” the Democratic leaders said. “As we have repeatedly said, Democrats will meet anywhere, at any time and with anyone to negotiate a bipartisan spending agreement that meets the needs of the American people. We are resolute in our determination to avoid a government shutdown and address the Republican healthcare crisis. Time is running out.”
The government will shut down Wednesday if Congress doesn’t pass a short-term spending bill. The Senate could vote Monday on an extension Democrats previously rejected, The Wall Street Journal reported.
The White House warned that thousands of government jobs could be at risk if the government shuts down at midnight Tuesday. In a memo to federal agencies, the administration said Reduction-in-Force plans would go beyond standard furloughs, according to POLITICO.
Trump reportedly warned Sunday of widespread layoffs if the government shuts down this week.
“We are going to cut a lot of the people that … we’re able to cut on a permanent basis,” he said.
More than 100,000 federal employees could lose their jobs as early as Tuesday if the government shuts down, India’s Times Now reported.
A shutdown would disrupt federal agencies, including the TSA and hurt the travel economy, USTA CEO Geoff Freeman wrote in a Sept. 25 letter to Congress.
A recent Ipsos survey cited in the USTA letter found 60 percent of Americans would cancel or avoid air travel during a shutdown. About 81 percent said shutdowns harm the economy and inconvenience travelers and 88 percent said Congress should act across party lines to prevent one.
IHG launched its 20th global brand, Ruby, in the U.S.
The brand offers serves city-centers and urban locations with restrictions.
It focuses on major urban markets with new-build, conversion, and adaptive reuse.
IHG HOTELS & RESORTS introduced Ruby Hotels, its 20th global brand, to the U.S. It is designed to fit in city centers and urban locations with entry barriers and space constraints.
The company’s growth plan will focus on major urban markets and include new-build, conversion and adaptive reuse projects, IHG said in a statement.
“Ruby is a brand built for the future of hospitality,” said Jolyon Bulley, IHG's CEO for the Americas. “Its success in Europe speaks to the growing demand for flexible, lifestyle-focused hotels in highly traveled locations. Ruby’s U.S. introduction will complement our premium portfolio and offer owners a differentiated product with strong economics and scalable growth potential. We’re encouraged by the initial interest and buzz around Ruby, which reinforces our confidence in its appeal and ability to thrive in this market.”
Ruby, founded in Germany in 2013, joined the IHG portfolio earlier this year and has 34 open or pipeline hotels in European cities. The U.S. launch reflects IHG’s plan to grow the brand to more than 120 hotels in the next decade and more than 250 in 20 years.
Lauren Krostue, Ruby's vice president for global brand management, said Ruby allows IHG to connect with a new type of traveler—those who value unique stays at an accessible price point.
"In bringing Ruby to the U.S., we will retain what’s made the brand so special in Europe—including its unique design and operating model—while localizing certain elements to reflect market needs," she said. "We look forward to introducing the Ruby experience to a new group of owners and guests and showcasing what sets the brand apart in the increasingly popular ‘urban micro’ segment.”
IHG nearly doubled global conversion signings from 2023 to 2024, with conversions representing about 60 percent of openings and 40 percent of signings in the first quarter of 2025.
Announcement of $100,000 H-1B visa fee triggers panic among Indian professionals.
The fee applies only to new petitions.
IT companies are reportedly reviewing staffing and travel.
THE TRUMP ADMINISTRATION’S announcement of a $100,000 fee for new H-1B visa petitions, effective Sept. 21, reportedly triggered panic among Indian H-1B holders. Many rushed to book last-minute flights, resulting in fully booked planes and higher fares.
The move caused anxiety among IT employees whose work depends on U.S. assignments, according to India Today.
However, the U.S. Citizenship and Immigration Services later clarified that the fee applies only to new petitions, not existing visa holders, providing some relief but not ending widespread uncertainty.
Airports and travel agents reported a surge in cancellations and rescheduling requests, while families of visa holders faced disruptions during the festive season.
Friday’s announcement sparked further confusion, culminating in chaotic scenes aboard an Emirates flight from San Francisco to Dubai, AeroTime reported. The plane was held on the tarmac for three hours as H-1B holders tried to determine if they could re-enter the U.S. The policy change created confusion over who would be affected.
India’s external affairs ministry said the fee could have humanitarian consequences “by disrupting families.” The Indian government said it “hopes these disruptions can be addressed by U.S. authorities” and emphasized that the exchange of skilled workers has “contributed enormously” to both nations, The Guardian reported.
H-1B visas are valid for three years and can be renewed for another three. The Trump administration says the increased fee helps U.S. companies stay competitive and create more jobs. However, Indian stakeholders raised concerns about its impact on the IT sector, citing potential disruptions to operations and project timelines. IT companies are reportedly reviewing staffing and travel while managing higher compliance requirements.
“Service exports have finally been dragged into the global trade and tech war,” Madhavi Arora, chief economist at Emkay Global Financial Services, wrote in a note on Sunday, according to CNN.
Arora also suggested the policy could have an unexpected upside for India, potentially bringing talent back home. While it could concentrate top professionals within India’s largest tech firms, it could also “catalyze India’s transformation into a more powerful global innovation and delivery hub.”
Meanwhile, U.S. Citizenship and Immigration Services data for fiscal 2025, show Amazon as the top H-1B recipient, securing about 10,000 visas.
The recent 50 percent tariff imposed by the Trump administration on India was also met with backlash from the country.