Wyndham Hotels & Resorts announced Wednesday the launch of its Bold by Wyndham program aimed at engaging and advancing more Black entrepreneurs toward hotel ownership.
Bold, which stands for "Black Owners and Lodging Developers," is being launched at the right time to fill a gap, said Galen Barrett, vice president of strategic development at Wyndham.
According to research by the National Association of Black Hotel Owners, Operators and Developers, nearly 20% of the lodging workforce is Black, but less than 2% of hotel owners are Black.
"Finding a way to bridge that gap and bring more people into the fold was why we thought now was the right time to bring our leadership and our resources to make something happen," Barrett said.
Entrepreneurship is not only a beneficial opportunity for the entrepreneurs themselves, but also for the communities they are in, he added.
"Whether that's during construction or renovation phase and the job opportunities associated with that or with operating a hotel and the staffing opportunities. It's an economic impact," he said.
Barrett said Wyndham pulled inspiration from the conception of its recently launched Women Own the Room program, which helps women own hotels franchised under Wyndham brands.
For this program, Barrett said Wyndham "went out into the community and listened to the women to understand their specific challenges."
Engaging the target audience is critical. When it comes to diversity and inclusion, "one of the promises of an approach is that you actually get different perspectives," he said.
Bold was formed through the same approach.
"We went out to the Black community; we asked them: 'What has been your experience in hotel ownership and hotel development? What are the things that maybe you've already gotten past but could have used a little assistance? What are challenges you continue to face?'" he said.
Through that feedback, Wyndham heard that some Black entrepreneurs feel they lag behind those with a wealth of knowledge in hotel ownership or ones who have family members that grew up in the industry.
Barrett said another element Black entrepreneurs face is challenges with establishing relationships with lenders, brokers and other market participants.
"Even if they were able to find a broker, they may not have a call returned or they didn't get a strong list of opportunities of hotels that were up for sale or land that was likely to be up for development," he said. "Just having access to those networks and someone to support the credibility of their participation is something that we are looking to form."
Bold Incubator
A large portion of the Bold program is dedicated to laying the foundation through education, networking and "matchmaking," Barrett said.
Through its Bold Incubator initiative, those pre-qualified for ownership and development will gain access to enhanced capital and operational support. They will be directly connected or matched with lenders and brokers who have opportunities available.
In terms of education, Bold will bring in experts from across the hospitality industry to advise on things such as what to know about financing a hotel or identifying the right properties. Individuals will also receive resources to help them explore if hotel ownership is right for them and the steps it takes to be a successful hotelier.
Inaugural Member Vaughn Irons
Vaughn Irons, principal of Stonecrest Resorts, which is an Atlanta-based commercial real estate development company that's active with retail, entertainment and food and beverage outlets, is Bold's inaugural member. Irons was a part of the early discussions that led to forming Bold.
Now, Irons' role within Bold via a volunteer capacity is "to become a great example for other people to look to" while also helping Wyndham reach its goals with diversity, equity and inclusion. In addition, Irons wishes to support this platform through his extensive network and invite others to be a part of Bold. Irons had spent 12 years as a senior executive at Freddie Mac, a publicly traded, government-sponsored enterprise.
One of the many ways Irons hopes to be an example to other Black hoteliers is by going through his first foray into hospitality ownership.
Irons is in the midst of planning a new 110-room Tryp by Wyndham in Atlanta's Stonecrest suburb that he expects to break ground in 2023. Irons said the room count hits the sweet spot, and he hopes this hotel will serve as a hub for hosting corporate meetings, weddings and other social groups.
Not only does Irons run his business in Stonecrest, but he also resides there, which is why it made sense for him to plant his first hotel there. The Tryp hotel will be an addition to Stonecrest Resorts' current $17 million adaptive-reuse project, Priví, and will bring an urban experience into a suburban environment through a luxury, upscale product, he said.
"I have the advantage of hearing what my neighbors care about, what they complain about," he said. "We have this fabulous, thriving African American community but in order to have an upscale experience, we have to drive into Atlanta. I think what Tryp provides us is an opportunity to host family, friends, relatives and other visitors in our growing community at a level that we actually live. Why would we want to have a hospitality option that's not equal to the standard that we live in our homes?"
Irons had his first construction project meeting for the hotel on Monday. The site is the former location of a Sears Auto Center, and the next steps include demolition of the site, clearing it and prepping it for new construction.
"We've selected a fantastic general contractor for the project; I've had a relationship with them before and I've always been looking for the perfect project to hire them. They build hotels, hospitals, they have the right level of experience," he added.