According to the fifth annual Lodging Industry report card recently released by the National Association for the Advancement of Colored People (NAACP), five of the national hotel companies were rated “B-” or better when graded on such items as diversity in hiring, contracting with Black vendors, marketing campaigns, and charitable giving.
NAACP President/CEO Kweisi Mfume said: “Although the NAACP has seen a greater responsiveness from the industry and we are pleased to witness the installation of various diversity officers to implement and direct project goals, we are disheartened to report that progress in certain categories remains stagnant. One category that gives us grave concern is the area of hiring minorities for executive positions. While there are now African Americans on six out of 11 boards of directors, as opposed to only one when the project first started, few if any of those six have more than one African American and many hotels have no minority representation whatsoever.”The NAACP first issued the report card in 1997 to monitor activity and progress in the lodging industry, to help customers make informed choices about where to spend their dollars. “African Americans spend over $35 billion annually in travel tourism,” Mfume added. “Such an enormous source of revenue potentially wields an enormous amount of power. It is our hope African Americans will learn in this industry, and in many others, to wield this collective economic strength to demand greater inclusion and opportunities.”
Holding the top position this year, Marriott Corporation–the only hotel company to top the list more than once– out-scored 10 other lodging chains, knocking Cendant out of the #1 spot. Marriott is an industry leader in several diversity-related areas, including board membership, supplier diversity, franchising and the hiring, retention and promotion of minorities. “We are very excited to be #1 for the third time,” said J.W. Marriott, Jr., chairman and CEO, Marriott International, Inc. “We have made an ongoing commitment to diversity, and our goal is to set the industry standard.”
In 2001, Marriott’s Supplier Diversity program reported that the company spent a total of $157 million, or 5.5 percent of their total procurement, with minority and women business entrepreneurs. Spending with African American-owned companies has risen 30 percent to $26 million since 2000. As of March 2002, the Marriott International Franchise Network included 160 minority-owned franchised properties, of which 16 are African American-owned. The company more than doubled the number of women- and minority-owned franchisees in the past four years.
“We have to mirror the communities where we do business. Marriott launched its diversity program more than 15 years ago, but when you consider the demographic changes in our country–the Asian, Hispanic and African American markets–those are huge new markets for us to expand and tap,” said Dave Sampson, senior vice president, Diversity Initiatives, Marriott International, Inc. “We really view our diversity initiative as not so much altruism but just good business.”
Marriott has the largest number of African Americans and other minorities in senior management positions in the hospitality industry. Marriott also continues to partner with a variety of minority business organizations, including the National Minority Supplier Development Council and local minority chambers of commerce nationwide, to identify new talent and minority owned businesses.
Celebrating its 75th Anniversary this year, Marriott International, Inc. is a leading worldwide hospitality company with nearly 2,600 operating units in the U.S. and 65 other countries and territories. Marriott International operates and franchises hotels under the Marriott, JW Marriott, The Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Ramada International brand names; develops and operates vacation ownership resorts under the Marriott Vacation Club International, Horizons, The Ritz-Carlton Club and Marriott Grand Residence Club brands; operates Marriott Executive Apartments; provides furnished corporate housing through its Marriott ExecuStay division; and operates conference centers. Other Marriott businesses include senior living communities and services, and wholesale food distribution. The company is headquartered in Washington, D.C., and has approximately 145,000 employees. In fiscal year 2001, Marriott International reported system-wide sales of $20 billion.
Economic Reciprocity Initiative
The NAACP Economic Reciprocity Initiative (ERI) was launched in 1996 as a sustained consumer movement measuring corporate America’s commitment to the African American citizenry and other people of color. ERI targeted companies are surveyed for their activity in employment, vendor development and contracting, advertising and marketing, equity investment and ownership, and philanthropy.
Lodging Industry Report Card
The lodging industry was initially reported on in 1997. This two-year comparison report card is the fifth to be issued on the hotel chains. Over the course of the lodging industry review, progress has been made with board appointments, employment advancement, increased contracting opportunity and advertising relationships. Diversity councils have been formed and franchise recruitment programs have been developed. However, overall sustained progress has been slow in pace.
Collectively, the industry received a grade of 2.7 in both 2001 and 2002. Since the beginning of this initiative, the NAACP has seen a greater responsiveness from the industry and has been pleased to witness the installation of various diversity officers to implement and direct project goals. However, progress in certain categories remains stagnant. As was widely reported, the travel industry as a whole suffered significant losses in the aftermath of September 11th which affected results particularly in the areas of advertising/marketing, vendor relationships and charitable giving.
