Diversity initiatives sit center stage at Hilton, Marriott

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NEW YORK -- Hilton Hotels staged its first annual Diversity Review here, rolling out details of several projects meant to attract more minorities and women as employees, investors and business partners.

At the same time, Marriott International set more aggressive goals as a way to strengthen its diversity initiatives, beginning with a doubling of the number of minority owners and franchisees in the next five years. Currently, 270 Marriott-branded properties are minority- or women-owned.

Marriott also pledged to do at least $1 billion worth of business with minority- and women-owned suppliers in the same five-year period. It said it spent $210 million with such suppliers in 2004.

Marriott also announced new relationships with minority- and women-owned financial services firms.

At its Diversity Review, Hilton touched on similar topics. Ernest Wooden, senior vice president of hotel operations, said, We have an aggressive effort to seek minorities and women to invest in and own our franchises.

Hilton did not spell out a numerical goal for growth but said it aims to increase franchise participation in under-represented groups -- African-Americans, Hispanics and Native Americans. Representation is high among Asian-Americans and women, a spokeswoman said.

Speakers at the event said Hilton is taking a proactive approach to identifying and seeking bids from minority- and women-owned suppliers. Tony Nieves, senior vice president of purchasing, noted that each Hilton property is charged with helping to identify such suppliers.

The company spent $89 million with minority- and women- owned businesses in 2002. (More recent statistics werent available.)

As for its staffing, Hilton reported that its nonminority employees in 2004 were, in fact, in the minority, at 40.5%.

African-Americans were at 21%, Hispanics at 29.3% and Asians, Pacific Islanders and Native Americans accounted for the rest.

As for gender breakdown of employees, men made up 47.9%, of the work force, making women a majority.

Among officials and managers/professionals, women were a majority at the corporate headquarters at 51.6% but were in the minority elsewhere at 46.2%.

It isnt just the complexion of Hiltons staff and business associates that is evolving.

Customer demographics also have changed, Wooden said, so Hilton recently created a multicultural sales advisory board to keep us current on the needs of the changing customer base and named two multicultural sales directors, Carnita Chopin and Elvida Rogers.

From the audience, Andrew Ingraham, president of the National Association of Black Hotel Owners, Operators & Developers, said his organization expects by the end of 2005 to double the number of hotel members that are majority-owned by African-Americans.

The group has 27 properties controlled by African-Americans (another 32 have some African-American ownership).

Ingraham was upbeat about the opportunity for black Americans in the hotel business and said he expected most of the new members to be Hilton or Marriott franchisees.

The two hotel companies have connected with some of the same people, too.

Robert Johnson, founder of Black Entertainment Television, chairs the committee that advises the Hilton board on diversity policies.

His hotel business, RLJ Development, owns eight Hilton-affiliated franchises and four Marriott-branded properties. Last week, Marriott announced it invested $20 million in RLJs Urban Lodging Fund, a real estate development fund.

To contact the reporter who wrote this article, send e-mail to Nadine Godwin at [email protected].

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