MORE THAN 300 Asian American hotel owners attended the March 5 kickoff of a new business organization that will focus on franchising in the hospitality industry.
Fair Franchising Initiative has its roots in New Jersey with plans to expand nationwide as it gains momentum by crafting and promoting legislation the organization says will balance the playing field in the franchiser-franchisee relationship.
Fair Franchising Initiative held the conference in a ballroom at Royal Albert’s Palace in Edison, New Jersey. During the three-hour event leaders of the initiative, hotel owners, lawyers and consultants spoke about the impact current franchising practices are having on their businesses as well as the industry overall.
President of the organization is Prakash Shah, a hotelier and owner of First Group Mortgage and Realty Group, an investment bank in New Jersey that specializes in commercial loans.
Chairman is Anil Patel, owner of Northstar Hotels in New Jersey.
The first steps
Fair Franchising Initiative’s flagship effort is A-2682, a hospitality-focused fair franchising proposal introduced in February in the New Jersey General Assembly. The group’s hope is the measure becomes law and sets off a nationwide revolution in the hotel franchising industry.
The proposed New Jersey measure would prohibit franchisers from certain acts, including:
Forcing an owner to spend more than $25,000 more than once every five years on property improvements unless the franchiser can demonstrate the franchisee would recover the value of investment during the contract term.
Receiving rebates or bonuses from brand-certified vendors that sell goods or services to the franchisee unless the deal is transparent in the franchise agreement.
Requiring franchisees to buy from specific vendors or service providers.
Making any unilateral changes to the original franchise agreement during the term of the licensing contract.
Financially penalizing owners for negative guest reviews.
Charging franchisees to resolve guest complaints via calls or emails to the franchiser’s corporate office.
Requiring owners to pay a fee for failing to enroll a specified number of loyalty members.
“This is a problem for all hoteliers over the country,” Shah said. “It’s a problem that we need a solution [for]. People are hurting and it’s not an easy situation they are in. Franchisers are taking advantage of the situation.”
One of the major concerns, Shah said, is the rising cost of guest acquisitions coming from various channels but mostly third-party agents.
“Ten years ago, an average franchiser was charging 7 or 8 percent and they would give you a lot of business in return,” he said. “Today, the business they give you has dwindled because a lot of the business is coming from third-party booking engines like Expedia, and they charge separately for providing that business. So, we’re paying double now for the same business.”
Shah said franchisers have increased their fees to 15 to 17 percent.
Taking it local
The Federal Trade Commission regulates franchising, but many, such as members of Fair Franchising Initiative who say there’s an imbalance in the system, are turning to states to produce laws that create more fairness in the industry.
Shah said New Jersey’s A-2682 is an attempt to lighten the financial burden on hotel owners/operators piled on by franchisers through various fees and penalties.
Along with lobbying New Jersey lawmakers, Fair Franchising Initiative members and hoteliers have launched efforts in other states such as California, Vermont and New York. Shah said the New Jersey bill, if it passes, would have a nationwide impact.
“These things have a cumulative effect,” he said. “We want to take the momentum from this bill in New Jersey and carry it to other states.”
‘We are part of AAHOA’
Anil Patel said as the initiative was organizing charter members asked if he could recruit supporters from past chairmen of AAHOA. Currently, Fair Franchising Initiative board members include past chairmen Mike Patel (1998-99); CK Patel (2010-11); and Hemant Patel (2011-12).
“The issues are clear,” Anil said, noting the initiative wanted experienced leaders to guide the initiative on its quest.
“We are not anti-AAHOA; we are part of AAHOA,” he said, adding he joined the association in the early 1990s.
The topic of fair franchising “has been around as long as we’ve been going to AAHOA meetings.” He sees the current board of directors easing up on the 12 Points of Fair Franchising as the association shifts its efforts to government affairs. He also attributes the shift in focus to new and younger board members who do not relate to the “sweat and blood” shed by charter AAHOA members to build their family businesses.
“Today, franchising is really getting out of control,” Anil said. “It’s a network of who you know and franchise contracts are not equal for all.”
Hoteliers are cutting their own deals with franchisers resulting in licensing agreements that are not uniform with contracts that most other hoteliers sign. The various agreements make it difficult to make sure franchisers adhere to the principals of fair franchising.
“The focus has been a little bit derailed,” he said.
Though most of the Fair Franchising Initiative conference attendees do business in New Jersey, many others have hotels throughout New England, the Mid-Atlantic, Southwest and Southern regions of the U.S.
A few hoteliers at the conference have properties in California, where the state Legislature in 2016 passed amendments to its Franchise Relations Act that places restrictions on franchisers’ decisions to terminate or not renew licenses. It also gives franchisees more freedom to sell their franchised business assets or add investors.
A newer act, AB-5, paves the way for a franchisee to hold a franchiser financially responsible under the state’s wage and hour laws if the franchisee’s business fails and the franchisee loses income as a result.
The International Franchise Association opposed the law, which was passed and signed by Gov. Gavin Newsom in September.
New Jersey Sen. Joseph Cryan, Democrat, District 20, spoke at Fair Franchising Initiative’s conference and vowed to support A-2682.
The bill’s primary sponsor is Assemblyman Raj Mukherji, Democrat, District 33, who introduced it to New Jersey’s General Assembly on Feb. 13.
Mukerji also spoke at the event and promised to move the bill to the House’s Judiciary Committee, which he chairs. He talked about the “lopsided” relationship between hotel franchisers and franchisees.
He said while there are federal laws that address franchising, “there are no laws that protect franchisees.”
“As policy makers, we have a responsibility to level the playing field.”
Peachtree recognized by Inc. and the Atlanta Business Chronicle.
Named to the 2025 Inc. 5000 list for the third year.
Chronicle’s Pacesetter Awards recognize metro Atlanta’s fastest-growing companies.
PEACHTREE GROUP ENTERED the 2025 Inc. 5000 list for the third consecutive year. The company also won the Atlanta Business Chronicle Pacesetter Awards as one of the city’s fastest-growing private companies.
The Inc. 5000 list provides a data-driven look at independent businesses with sustained success nationwide, while the Business Chronicle’s Pacesetter Awards recognize metro Atlanta’s fastest-growing privately held companies, Peachtree said in a statement.
“We are in the business of identifying and capitalizing on mispriced risk, and in today’s environment of disruption and dislocation, that has created strong tailwinds for our growth,” said Greg Friedman, managing principal and CEO. “These recognitions validate our ability to execute in complex markets, and we see significant opportunity ahead as we continue to scale our platform.”
The Atlanta-based investment firm, led by Friedman; Jatin Desai, managing principal and CFO and Mitul Patel, principal, oversees a diversified portfolio of more than $8 billion.
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AHLA Foundation is partnering with ICHRIE and ACPHA to support hospitality education.
The collaborations align academic programs with industry workforce needs.
It will provide data, faculty development, and student engagement opportunities.
THE AHLA FOUNDATION, International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration work to expand education opportunities for students pursuing hospitality careers. The alliances aim to provide data, faculty development and student engagement opportunities.
Their efforts build on the foundation’s scholarships and link academics to workforce needs, AHLA said in a statement.
"We're not just funding education—we're investing in the alignment between academic learning and professional readiness," said Kevin Carey, AHLA Foundation president and CEO. "These partnerships give us the insights needed to support students and programs that effectively prepare graduates to enter the evolving hospitality industry."
ACPHA will provide annual reports on participating schools’ performance, enabling the Foundation to direct resources to programs with curricula aligned to industry needs, the Foundation said.
Thomas Kube, incoming ACPHA executive director, said the partnership shows academia and industry working together for hospitality students. The collaboration with ICHRIE includes program analysis, engagement through more than 40 Eta Sigma Delta Honor Society chapters and faculty development.
“Together, we are strengthening pathways to academic excellence, professional development and industry engagement,” said Donna Albano, chair of the ICHRIE Eta Sigma Delta Board of Governors.
U.S. holiday travel is down to 44 percent, led by Millennials and Gen Z.
Younger consumers are cost-conscious while older generations show steadier travel intent.
76 percent of Millennials are likely to use AI for travel recommendations.
NEARLY 44 PERCENT of U.S. consumers plan to travel during the 2025 holiday season, down from 46 percent last year, according to PwC. Millennials and Gen Z lead travel intent at 55 percent each, while Gen X sits at 39 percent and Baby Boomers at 26 percent.
PwC’s “Holiday Outlook 2025” survey found that among those not traveling, about half prefer to celebrate at home and cost concerns affect 43 percent, rising to 50 percent for Gen Z non-travelers. Visiting friends and relatives remains the main reason for holiday travel, cited by roughly 48 percent of those planning trips.
Younger consumers are more cost-conscious, while older generations show steadier travel intent. This split influences travel operators’ planning: younger travelers may require clear value, bundled perks and flexible options, whereas older travelers respond to reliability and convenience. Despite overall spending pressure, travel remains a key priority, reflecting its social and emotional importance during the holidays.
PwC surveyed 4,000 U.S. consumers from June 26 to July 9, with 1,000 each from Gen Z, Millennials, Gen X and Boomers, balanced by gender and region.
Generational spending patterns
Gen Z plans a 23 percent reduction in spending after last year’s 37 percent surge, while Boomers expect a 5 percent increase. Millennials are largely flat, down 1 percent and Gen X edges up 2 percent. Overall holiday spending is down 5 percent, with gift spending falling 11 percent, while travel and entertainment budgets remain stable, increasing 1 percent.
Households with children under 18 plan to spend more than twice as much as households without, averaging $2,349 compared to $1,089, highlighting the focus on family-centered experiences.
For travel and hospitality operators, these patterns suggest stronger conversion potential among older cohorts with steadier budgets and the need for clear value and cost transparency for younger travelers. Consumers are prioritizing experiences and togetherness over material gifts. Flexible fares, transparent pricing and bundled benefits such as Wi-Fi, breakfast, or late checkout can reinforce value and encourage bookings, especially among younger demographics. Gen Z’s pullback makes price-to-experience ratios decisive.
AI, timing and travel strategy
About 76 percent of Millennials say they are likely to use AI agents for recommendations, signaling a shift to “assistant-first” travel discovery. Operators must provide structured, AI-readable content, including route maps, fees, loyalty policies and inventory availability. Brands that do not may be invisible in AI-driven search and recommendation systems.
This year’s late Thanksgiving on Nov. 27 compresses the holiday booking window. Short-haul visiting-friends-and-relatives trips may see bunched reservations, increasing demand for early inventory visibility, simple cancellation policies and accurate last-minute availability. Operators should hold a portion of inventory for late bookings, streamline mobile checkouts and maintain flexible policies to capture last-minute travelers.
Strategies should be generationally targeted. Boomers and Gen X respond to comfort, reliability and multi-generational options, while Millennials and Gen Z require clear value and AI-optimized offers. Focusing on VFR travel through “home for the holidays” packages, flexible dates, partner transport and easy add-on nights can capture demand in key residential hubs.
Despite overall spending declines, travel remains a priority. Operators that deliver transparent value, AI-ready content and offers tailored to each generation can maintain bookings, convert last-minute demand and meet consumers’ evolving holiday expectations.
A TravelBoom Hotel Marketing report found that Americans continue to prioritize travel despite inflation and economic uncertainty, but with greater financial caution. About 74.5 percent plan a summer vacation and 17.5 percent are considering one, showing strong demand linked to careful budgeting.
Global hotel RevPAR is projected to grow 3 to 5 percent in 2025, JLL reports.
Hotel RevPAR rose 4 percent in 2024, with demand at 4.8 billion room nights.
London, New York and Tokyo are expected to lead investor interest in 2025.
GLOBAL HOTEL REVPAR is projected to grow 3 to 5 percent in 2025, with investment volume up 15 to 25 percent, driven by loan maturities, deferred capital spending and private equity fund expirations, according to JLL. Leisure travel is expected to decline as consumer savings tighten, while group, corporate and international travel increase, supporting RevPAR growth.
Major cities continue to attract strong demand and investor interest, particularly London, New York and Tokyo. APAC is likely to post the strongest growth, fueled by recovering Chinese travel, while urban markets remain poised for continued momentum.
Lifestyle hotels are emerging as the new “third place,” blending living, working and leisure. The trend is fueling expansion into branded residences and alternative accommodations. JLL said investors must weigh regional performance differences, asset types and lifestyle trends when evaluating opportunities.
Separately, a Hapi and Revinate survey found fragmented systems, inaccurate data and limited integration remain barriers for hotels seeking better data access to improve guest experience and revenue.
Fragmented systems, poor integration limit hotels’ data access, according to a survey.
Most hotel professionals use data daily but struggle to access it for revenue and operations.
AI and automation could provide dynamic pricing, personalization and efficiency.
FRAGMENTED SYSTEMS, INACCURATE information and limited integration remain barriers to hotels seeking better data access to improve guest experiences and revenue, according to a newly released survey. Although most hotel professionals use data daily, the survey found 49 percent struggle to access what they need for revenue and operational decisions.
“The Future of Hotel Data” report, published by hospitality data platform Hapi and direct booking platform Revinate, found that 40 percent of hoteliers cite disconnected systems as their biggest obstacle. Nearly one in five said poor data quality prevents personalization, limiting satisfaction, loyalty and upsell opportunities.
“Data is the foundation for every company, but most hotels still struggle to access and connect it effectively,” said Luis Segredo, Hapi’s cofounder and CEO. “This report shows there’s a clear path forward: integrate systems, improve data accuracy and embrace AI to unlock real-time insights. Hotels that can remove these technology barriers will operate more efficiently, drive loyalty, boost revenue and ultimately gain a competitive edge in a tight market.”
AI and automation could transform hospitality through dynamic pricing, real-time personalization and operational efficiency, but require standardized, integrated and reliable data to succeed, the report said.
Around 19 percent of respondents cited communication delays as a major issue, while 18 percent pointed to ineffective marketing, the survey found. About 10 percent reported challenges with enterprise initiatives and 15 percent said they struggled to understand guest needs. Nearly 46 percent identified CRM and loyalty systems as the top priority for data quality improvements, followed by sales and upselling at 17 percent, operations at 10 percent and customer service at 7 percent.
Meanwhile, hotels see opportunities in stronger CRM and loyalty systems, integrated platforms and AI, the report said. Priorities include improving data quality for personalized engagement, using integrated systems for real-time insights, applying AI for offers, marketing and service and leveraging dynamic pricing and automation to boost efficiency, conversion and profitability.
“Clean, connected data is the key to truly understanding the needs of guests, driving amazing marketing campaigns and delivering direct booking revenue,” said Bryson Koehler, Revinate's CEO. “Looking ahead, hotels that transform fragmented data into connected data systems will be able to leverage guest intelligence data and gain a significant advantage. With the right technology, they can personalize every interaction, shift share to direct channels and drive profitability in ways that weren’t possible before. The future belongs to hotels that harness their data to operate smarter, delight guests and grow revenue.”
In June, The State of Distribution 2025 reported a widening gap between technology potential and operational readiness, with many hotel teams still early in using AI and developing training, systems, and workflows.