Latinos constitute a sizeable portion of the workforce in the hospitality and travel industry in the U.S. Yet, a recent study has found that few have progressed to invest in hotels or hotel chains in the country.
Hispanics were responsible for $2.1 trillion in buying power in 2021, contributing 11.3% of total buying power, said the inaugural Latino Hotel and Entrepreneurship Investment (LHEI) Report released by the Latino Hotel Association. In 2026, they are projected to reach $2.8 trillion, claiming 12.1% of the share in the U.S.
According to the Department of Labor, almost a quarter of hotel, motel and resort desks are Latino and many more are in the maintenance, cleaning and food service positions, providing “critically important services to the hotel and travel industry,” the report said.
While Latinos mainly participate in the broad accommodation and food service industry, indexing 30% higher than the general population, it hasn’t progressed adequately to ownership stakes and management positions, indicating the need for education and mentorship so that entrepreneurial Latinos can explore these opportunities.
Hispanics make up a larger proportion of desk clerks (+33%), porter/concierge positions (+15%), and close to a third to nearly half of janitorial and housekeeping occupations in the hospitality industry. However, they under index by 22% in managerial roles, which account for only 14% of all positions. While Hispanics are well represented in the hospitality industry, they are not progressing quickly enough to high positions and ownership, according to the report.
Highlights of the report include:
- Closing the gap in opportunity in Latino hotel ownership: Through sole or joint ownership, Latinos represent only 9% of total U.S. accommodation firm ownership. Latinos now comprise 19% of the population in the U.S. and are expected to account for 2/3rd of the country’s population growth in the next 25 years. Closing the ownership gap will double the number of Latino-owned accommodation companies.
- Promoting Hispanic ownership in the accommodation industry: The number of Hispanic accommodation companies surged 74% compared to a mere 3% rise for the overall industry in the two-year study period leading to the pandemic. Annual payroll for Hispanic-run accommodation companies jumped 67% compared to all firms at 11%, and the number of employees for Hispanic-run accommodation companies soared 61% compared to all companies at only 1.5% in the study period.
- Increasing hotel ownership opportunity awareness in the Latino business community: Americans are opening new businesses at a record speed since the pandemic, rising to 5.4 million new businesses in 2022 from 3.5 million in 2019. In the decade preceding the pandemic, the number of Hispanic business owners was up 34% against a 1% rise among non-Hispanic business owners. Every year, around 5 million Hispanic-owned businesses contribute more than $800 billion to the national economy. The Latino Hotel Association aims to increase awareness of hotel ownership as a lucrative business opportunity for Latinos.
- Proposed steps for those in the hospitality industry and for governmental entities that can be taken to increase awareness and create more hotel ownership opportunities.
The LHEI report advocates for specific policy needs necessary for Latinos to navigate the steps required to own and invest successfully in hotels and demonstrates the importance of Latino ownership to hotel chains seeking franchise owners.