Hotel industry executives at the top of their companies said there is a lot they can learn from their employees at all levels, and particularly the younger generation, about their commitment to the workplace, society and the planet.
"Listen to your millennial associates. I've got five of them as children, and I'll tell you ... they destroy me if they see Styrofoam, plastic bottles," Michael George, founder, president and CEO of Crescent Hotels & Resorts, said on a "Boardroom Outlook" panel at the 2023 Americas Lodging Investment Summit.
"We've got to leave the globe a better place. For us old-timers, for the time that we do have left, we've got to lean in harder. I'm glad that it is an important topic, I'm still learning a great deal about it."
George said only about 1% of the total U.S. hotel inventory is LEED-certified, which is a globally recognized symbol of sustainability achievement and leadership.
"You think it would be a lot more," he said. "It's certainly because of cost. But there is an obligation."
Concord Hospitality Enterprises founder, President and CEO Mark Laport said the key to pushing companies and the industry to be better starts with accountability.
His firm has about 6,800 associates that he is accountable to — on everything from workplace culture and fairness to meeting commitments on environmental, social and governance initiatives, he said.
"It's a really big deal that we connect well with those folks every day so they know we're with them, not above them, in a way that they are our team members and we're theirs," he said.
Wyndham Hotels & Resorts President and CEO Geoff Balloti said accountability to him means delivering what his owners and team members expect of him.
"I realize how important every owner is to us," he said. "All of us can sit up here and say people do business with our companies because they know us, they like us and they trust us."
George Limbert, president of Red Roof, said he's committed to listening to all stakeholders — which includes team members, franchisees, owners and communities — and then delivering on what's been heard.
Environmental, Social Stewardship
George said the hotel brand companies do a great job advising companies like Crescent on how it can contribute to ESG initiatives and best operate its properties.
Ballotti said his biggest challenge is influencing Wyndham's independently managed hotels to embrace the initiatives and changes made by management companies such as Crescent and Concord. Wyndham currently has 9,200 hotels in its system that are independently managed, he said.
"Most of our base is those independent, small business owners. For hotels we don't manage — the franchisee — how do we advance them all?" he said.
One of the initiatives that Wyndham executives feel very passionate about is providing owners with tools that track utility usage and educating them on the benefits of doing so, Ballotti said.
"We're asking, but we're also mandating all of our franchisees to begin to input their data into [these tools]," he said.
Limbert said doing away with single-use plastics and conserving water are at the forefront of guests' minds today.
"When you're not managing the hotels, you have to work a little bit harder to show your franchisees the benefit to becoming environmentally friendly," he added.
Laport's company is committed to environmentally friendly development, and it currently has 17 hotel projects under construction.
"Part of my company and my team's DNA for the last 37 years is to be a developer of hotels ... building them right so they not only make sense from an operations standpoint like LEED-certified buildings, which we build in almost every case, but also to make sure that we are in harmony with state jurisdictions ... knowing that it's not only socially correct but right for the environment," he said.
In addition to being stewards for the environment, leaders know they must hold their organizations accountable for promoting diversity, equity and inclusion.
"I'm really proud to say, our senior management team, 61% of them fall into a diversity, equity and inclusion belonging category," Limbert said. "If you go one step further, if you look at our department heads, 68% of those individuals fall in those categories."
George said DEI done right can make a difference in the ability to recruit and retain staff.
"In the Crescent bubble, we have to make a difference. We have to make a work environment that people can feel it's an oasis, it's safe, they can be protected, respected and thrive," he added. "Form a diversity council, have the tough conversations, push it into the properties and you'll reduce turnover, increase guest satisfaction; you'll make more money."
Laport said Concord has created "C-councils," various diverse groups that discuss how the organization can become stronger.
Ballotti said the industry has come a long way in promoting more women and minorities, especially through programs like Wyndham's "Women Own the Room" and Bold, which stands for "Black Owners and Lodging Developers."
"But we should make a point that we shouldn't be having these panels of all average white guys," he said.
