More and more Blacks and women are becoming board directors as the hotel industry increases it diversification.
According to recent research commissioned by AHLA Foundation, the charitable arm of the American Hotel & Lodging Association, and conducted by Penn State’s School of Hospitality Management, the percentage of hotel industry board seats held by Black members and women members, respectively, is going up.
The increase exceeds the 2022 average in both categories for firms in the Russell 3000 Index, signaling progress in the effort to diversify corporate boards.
The report highlights multiple gains for the industry. The 2022 data set analyzed 230 board members at 28 companies between 2016-2022. Key findings include:
• Women occupied 31.3% of independent board seats on hotel public company boards in 2022, a significant increase from 22.5% in 2021. This exceeds the 2022 average for firms in the Russell 3000 Index, which was 28.4% women.
• Only one publicly traded hotel firm has no women on its board of trustees. In 2021, there were two firms with no women on their boards.
• 67% of directors who were new to a board in 2022 were women.
• In 2022, 12.6% of hotel public company board members were Black, a significant increase from 6.5% in 2021. This exceeds the 2022 average for firms in the Russell 300 Index, which was approximately 6% Black and is approaching the overall percentage of the U.S. population that is Black (13.6%).
• 22% of directors who were new to a board in 2022 were Black.