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   The 2004 NAACP Lodging Industry Report Card; 
Survey Results for 13 Hotel Chains

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July 2004 - The NAACP Economic Reciprocity Initiative (ERI) was launched in 1996 as a sustained consumer movement measuring corporate America’s com-mitment to the African American citizenry and other people of color. ERI targeted companies are surveyed for their activity in employment, equity ownership and franchise opportunities, advertising and marketing, philan-thropy (charitable giving) and vendor relationships.

Lodging Industry Report Card (Year 7)

This is the seventh year of measuring the lodging industry. This report card focuses on the largest hotel chains in the industry, cross referenced with the hotels most often used by African American organizations and consumers for conventions and other gatherings. Thirteen hotel chains were included in this review and the industry has scored an overall grade of C (2.44).

When the NAACP began surveying hotels eight years ago, there were originally 16 chains identified for the initiative. Industry changes, including mergers and acquisitions, have resulted in 13 hotel chains being included in the Year 2004 report card. Previous Report Cards (2003 Report Card) (2002 Report Card)

2004 Report Card

2004 Rank
Score
Grade
Marriott a 3.00 B
Wyndham b 2.93 B-
Intercontinental h 2.88 B-
Hyatt g 2.76 B-
Adam's Mark 2.75 B-
Choice c 2.56 C+
Starwood e 2.55 C+
Hilton f 2.43 C
Loews 2.38 C
Omni 2.30 C
Cendant i 2.22 C
Carlson d 2.00 C
Best Western 1.00 D
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a Includes Marriott Hotels and Resorts, Ritz-Carlton, Renaissance, Courtyard, Residence Inn, TownPlace Suites, SpringHill Suites, Fairfield Inn, JW Marriott; 

b Includes Wyndham Luxury Resorts, Wyndham Hotels & Resorts, Wyndham Garden Hotels, Summerfield Suites; 

c Includes Comfort Inns, Comfort Suites, Sleep Inn, Mainstay Suites, Clarion Hotels, Quality Inns, Hotels & Suites, EconoLodge, Rodeway Inns; 

d Includes Radisson Hotels & Resorts, Park Plaza Hotels & Resorts, Country Inns & Suites By Carlson, Park Inn; 

e Includes Westin Hotels, Sheraton Hotels & Resorts, St. Regis Hotels, Four Points Hotels, The Luxury Collections, W Hotels; 

f Includes Conrad Hotels, Hilton Hotels, Embassy Suites Hotels, Doubletree Hotels, Doubletree Guest Suites, Doubletree Club Hotels, Hilton Grand Vacations Club, Homewood Suites, Hilton Grand Inns, Hampton Inns, Hampton Inns & Suites; 

g Includes Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt; 

h Formerly known as Six Continents, includes Holiday Inn, Holiday Inn Select, Holiday Inn Express, Crowne Plaza Hotels & Resorts, Staybridge Suites, InterContinental Hotels & Resorts, Candlewood Suites;

i Includes Days Inn, Howard Johnson, Knights Inn, Super 8, Travelodge, Villager, Wingate Inn, AmeriHost Inn, Ramada.

The hotel industry, commonly referred to as the lodging industry is part of the much larger industry of travel and tourism. It is a multi-billion dollar industry that is now eagerly anticipating a surge in the travel market.  Pretax income for the lodging industry for 2003 was between $13.3 billion and $14.9 billion. Total revenue was between $97.1 billion and $108.7 billion, room revenue was $79.4 billion and the average daily room rate was $83.21. Although these numbers give the impression that 2003 was a profitable year, it is predicted to have been the last of what has been a disappointing three years.

Since the tragedy of September 11, 2001, the lodging industry has seen a steady decline in revenue per available room. Hotels and motels have had to endure a decline in the economy and profit. With this decline, consumers are more cautious about how and where they spend their money. The hos-pitality industry cannot afford to overlook any part of its market, thus diversity has become a major focus.

The African American travel market is the fastest growing segment of the industry - rising 16% over a recent two-year period, compared to only 1% growth in the general market. Travel industry research shows that African Americans spend more than $35 billion out of a total of $544 billion that is spent each year on leisure and business travel.

The Lodging Industry has much to gain in obtaining the business of African Americans. In return, the industry is being charged to reinvest those valuable dollars back into the communities that are assisting in their profit.

Property Ownership continues to be a problem for the African American community and many companies are hard at work developing strategies to increase the number of minority-owned properties.  The past three years have been ideal for the property buyer’s market.  The decline in the travel industry revenue has made it the perfect time for entrepreneurs to capitalize and embark on the ownership and management of hotel franchises.

Consumer Alert

This report provides consumers with the tools for empowerment, enabling them to make the most of the choices they have in the continu-ingly changeable market of the lodging world. While the NAACP intends to keep monitoring the lodging industry for progress and advancement, consumers are encouraged to utilize this guide in making informed choices about where to spend and invest their dollars. Please note that the information contained in this report is based on data provided by the participating companies.

 

 
Contact:
NAACP
410-580-5777



 
Also See: NAACP Lodging Industry Report Card 2003; Foremost Problem Facing African-Americans: Property Ownership / July 2003
NAACP Report Gives Hotel Industry a Grade of B-minus for Diversity / July 2002
NAACP 2002 Lodging Industry Report Card; Marriott Out-scores 10 Other Lodging Chains / July 2002
NAACP Issues Lodging Industry Report Card; Marriott Ranked First Among the Eleven Hospitality Companies / Oct 2000
 NAACP 2nd Year Hotel Survey Uncovers New Leaders / June 1998


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