From a business standpoint, the hospitality industry may appear transactionally focused. But at its core, it’s a people-driven business that flourishes when teams collaborate efficiently and foster a strong sense of community. And for many hoteliers, that focus includes family. AAHOACON25, held at the New Orleans Ernest N. Morial Convention Center in New Orleans, Louisiana, included a panel titled “Power Players: Insights From Hospitality’s Top Leaders,” where participants discussed the importance of the legacy of first-generation hoteliers in the United States, the growth of the industry with second-generation hoteliers, and flexibility as hospitality moves into its next phase with third-generation hoteliers taking the reins. AAHOA Vice Chair Kamalesh (KP) Patel introduced the panel, which was moderated by Teague Hunter, president and CEO, Hunter Hotel Advisors. LODGING is reporting live from the conference.
“One of the most powerful ways we [build a stronger, smarter, more possible future] is by learning from those who push boundaries and redefine what success looks like in hospitality,” said Patel about the panel.
Many first-generation hoteliers came to the United States from their home countries and built up their businesses without structure and the comforts of home. Al Patel, president, Baywood Hotels, said they took enormous risks and worked extremely hard for their success. “As that transitioned to [the second generation], we saw that hard work. We also worked hard in the beginning, but we also, at some point, learned that after we work hard, we’ve got to work smart. And so, that was the progression. … Next, we’ll see how the third generation works.”
For many AAHOA members, working with family is paramount. Yet, working with family, especially the third generation, can be tricky. Sam Patel, CEO, Natson Hotel Group, mentioned directing the next generation toward identifying their passions and helping them get into positions where they could “give them a little bit of direction to pursue that.” He mentioned that adjusting their roles to find where they’re most engaged in the company is ideal for navigating challenging situations.
An overarching theme of the panel was that while the first generation started the business, the second generation continues to build on it. To prepare for the third generation, succession planning is important to keep the family on track. DJ Rama, CEO, Auro Hotels, said, “Generation two, we digested the pill in the sense that we kept generation one happy. We kept ourselves happy. Generation three, you cannot control them. They’re educated here. They want what they want. They want to work in any industry they want. They also want to have a lavish lifestyle. … I think you have to have this dialog and have this conversation.” Rama shared with attendees a message he learned from his own experience working with his family: “I urge each one of you to really look back and see what the purpose of your family is and where you want to keep everybody happy behind it.”
Mitch Patel, 2025 AHLA Board chair and founder and CEO of Vision Hospitality Group, also touched on the topic of succession planning by mentioning that in every culture, there are businesses where the first generation started the business, and the second generation has grown it, followed by a third generation that is yet to come. “In my opinion, there are only two outcomes with success. One is, you’ve got to sell everything or there has to be thoughtful, meaningful, strategic succession,” he said.
For that succession to smoothly occur, Mitch Patel emphasized the importance of having people who are passionate about the industry because that directly correlates to a company’s success. “We’re very fortunate that we found our passion in this industry, all of us. … Success is not a straight line. Life, business, there’s going to be bumps in the road, tremendous bumps in the road that we all have faced. So, you have to learn how to preserve, and for those that can’t, you’re probably not going to make it in this business because there are going to be detours.”
As for the future of the industry and where the third generation is going to take the hospitality business, Mit Shah, CEO, Noble Investment Group, noted that first- and second-generation hoteliers need to be flexible because the future of the industry is in their hands. Shah said that the next generation is going to take hospitality to a different level with flexible accommodations by casting a wider net, like some hotel companies are already doing with short-term rentals, glamping, and cruises. “That is something that I never thought was going to happen, but it is what this next generation is going to do,” he said.
