Suite Success: Women Taking the Lead in Hotel Ownership
The hotel industry has seen significant growth in the participation and leadership of women over recent decades. However, while strides have been made in gender equality, challenges remain, particularly in terms of ownership representation, wage disparity, and leadership opportunities. This blog explores the current landscape of women in the hotel industry, highlighting ownership, workforce participation, leadership roles, and the specific barriers women face. By offering context to the numbers, we can better understand how consumers and businesses can support women in hospitality.
Women in Hotel Ownership: Growth and Impact
The number of women-owned hotels is growing, albeit slowly, relative to the overall industry. Women-owned businesses represent 8% of the hotel industry, according to a 2023 report by the American Hotel and Lodging Association (AHLA). While this number is lower compared to other sectors in hospitality, there has been steady growth, driven by the increasing involvement of women entrepreneurs. Ownership by women brings a diversity of perspectives that influences management, customer experiences, and organizational culture in meaningful ways.
Interestingly, women of color play a pivotal role in the growth of women-owned businesses across the hospitality sector. In the broader hospitality field, Black/African American women-owned have grown to 2,079,000 firms, representing 52.1% of all Black-owned businesses. Hispanic/Latina women-owned on the other hand have grown to 2,009,000 businesses, representing 42.3% of all Hispanic/Latino-owned businesses, as reported by the National Women’s Business Council (NWBC). Their contributions to hotel ownership are particularly valuable in fostering a more inclusive business landscape. Despite this, there remains a long road ahead for greater representation in hotel ownership.
For consumers, booking stays at women-owned hotels can actively support gender equality in hospitality. Encouraging more travelers to prioritize women-led accommodations can help push this trend forward. Additionally, promoting women-owned hotels through social media, reviews, and travel blogs can help amplify their impact in the industry.
Women in the Hotel Workforce: Employment and Leadership Roles
In the hotel industry, women make up a substantial part of the workforce, with over 55% of hotel employees being women. This includes positions in housekeeping, guest services, food and beverage operations, and middle management. However, while women are well-represented in these areas, significant disparities exist in leadership positions.
Women held only 19.23% of C-suite positions in the hotel industry, and these roles are often concentrated in human resources and marketing. In comparison, women occupy a higher percentage of middle-management roles, such as department heads and directors, with 48% of hotel director roles filled by women. Despite this progress, the executive pipeline is not as robust for women in operations and general management.
Interestingly, hotel chains that prioritize gender diversity have seen tangible benefits. Studies show that hotels with women in leadership positions tend to have higher customer satisfaction ratings and better employee retention rates, which highlights the importance of promoting women to higher positions in the industry.
The Importance of Gender Diversity in the Hotel Industry
For hotels, gender diversity isn't just a social responsibility—it's also a smart business strategy. Research from McKinsey & Company shows that companies with 30% more women in executive roles are more likely to outperform other companies. Diverse teams tend to foster more innovation, creativity, and problem-solving abilities, all crucial for the dynamic and customer-focused nature of the hotel industry. Hotels with a higher representation of women in leadership roles often see better guest satisfaction and employee engagement rates, both of which are critical to long-term success.
Challenges Women Face in the Hotel Industry
The challenges women face in the hotel industry are varied and often systemic. One of the biggest hurdles is the gender pay gap, which continues to persist. On average, women in the hotel industry earn 16% less than men in similar roles, according to Gender Pay Gap Statistics In 2024. This pay disparity is exacerbated by the fact that women are more likely to work in lower-paid, part-time, or seasonal roles within hotels, where wages are often lower compared to operational or management positions.
In addition, work-life balance poses a significant challenge. The hotel industry is notorious for its long hours, irregular schedules, and weekend work, all of which disproportionately affect women, especially those with caregiving responsibilities. Women in hotel management feel that balancing family responsibilities with demanding work hours is a major career hurdle, leading many to opt for lower-level positions that offer more flexibility but less career advancement potential.
Moreover, lack of mentorship is another challenge. Studies have shown that women are less likely to receive mentorship or sponsorship from senior executives, which limits their opportunities for advancement. Only 18% of women in hotels report having a mentor, compared to 32% of men, according to the 2022 Women in Hospitality Leadership Report.
Initiatives to Support Women in Hospitality
The hotel industry is beginning to take steps to address these challenges and promote gender equality. Several initiatives are currently underway to support women in their careers, create more inclusive workplaces, and close the gender gap.
Mentorship and Leadership Programs: Programs like Marriott’s "Women’s Leadership Development Initiative" are designed to support women’s career advancement by offering mentoring, networking opportunities, and leadership training specifically for women. These programs focus on career development, offering pathways for women to move from mid-level management into senior roles.
Flexible Work Arrangements: More hotels are implementing flexible work policies to support women juggling work and family responsibilities. Offering part-time work, flexible schedules, and remote work options where possible allows women to remain in the industry without sacrificing career progression.
Industry Collaborations: Organizations such as the Women in Hospitality Leadership Alliance and Women Leading Travel and Hospitality provide platforms for women to network, access resources, and share best practices. These organizations advocate for more gender-inclusive policies and create forums for women to connect with mentors and industry leaders.
The Impact on Consumers and Businesses
For consumers, a more diverse leadership team can translate into a better guest experience. Women leaders often bring unique insights and perspectives that can help hotels better cater to a diverse customer base. Furthermore, businesses with a commitment to diversity are increasingly favored by socially conscious travelers who prefer to support organizations that align with their values.
For the hotel industry as a whole, fostering gender diversity isn’t just about meeting quotas—it’s about creating a culture of inclusion that benefits both employees and guests. Diverse leadership teams help drive innovation and improve decision-making, which can lead to better financial performance, higher employee satisfaction, and enhanced customer loyalty.
Supporting Women in the Hotel Industry: What Can We Do?
As consumers and industry stakeholders, there are ways we can support women in the hotel industry. Patronizing hotel brands that demonstrate a commitment to gender diversity is one way to contribute. Additionally, guests can voice their support for diversity initiatives through feedback channels, encouraging hotels to continue their efforts to promote women into leadership roles.
For businesses, partnering with organizations that promote gender diversity, such as the American Hotel & Lodging Educational Foundation, can help ensure a more equitable future for the industry. These partnerships can provide hotels with the tools and resources they need to create more inclusive workplaces.
While there has been progress in advancing women into leadership roles in the hotel industry, there is still much work to be done. By continuing to address the challenges women face and expanding initiatives that support their growth, the hotel industry can create a more inclusive and equitable environment for all employees.
Support women in hospitality by attending the Battle of the Babes Cocktail Competition, an exciting event showcasing the talents of female bartenders and mixologists. It’s a chance to enjoy incredible cocktails while celebrating gender diversity in the industry. Book your tickets today or become a partner to promote women’s leadership and make a real impact in the hospitality sector.
