In recent interviews with The Epoch Times, small-hotel operators expressed anxiety about the start of the vacation season now that the Memorial Day weekend has passed. However, many remain optimistic about future opportunities after the industry nearly collapsed during the pandemic.
The Asian American Hotel Owners Association (AAHOA), the nation’s largest hotel owners trade group, recently launched a nationwide analysis, conducted in partnership with Washington-based Kalibri Labs, examining the ongoing effects of recent federal policy changes and anticipated industry challenges on the hotel and hospitality sector.
In March, approximately one-third of U.S. hotel submarkets were outperforming the benchmarks set for 2024, while a larger proportion were facing declines, particularly in the government and corporate segments, according to the report.
Kalibri Labs founder and CEO Cindy Estis Green recently told The Epoch Times that there were early concerns about demand heading into the peak summer travel season.
Updated data sent to AAHOA members shows that, as of May 10, hotel industry demand was slightly down, by 1 percent from a year ago, and there haven’t been dramatic changes amid federal staffing cuts and tariffs.
“While some markets are managing well through a turbulent period, the broader trend shows evidence of contraction, particularly in government and corporate segments,” said Green, who founded the hospitality data analytics firm in 2012.
“Our collaboration with AAHOA brings both context and clarity to these early warning signs.”
AAHOA chairman Miraj Patel said in a statement provided to The Epoch Times that the findings “are not just numbers—they reflect the real-world challenges and opportunities facing our members.”
“It’s encouraging to see that some markets are holding steady or growing, but the overall outlook calls for close attention and action,” Patel said.
The AAHOA represents 60 percent of member-owned hotels nationwide. Patel is president of Houston-based Wayside Investment Group, a privately held lodging and hospitality real estate firm.
Among the key findings of the industry report, which is updated weekly, most of the improvements over the past year have been in the leisure and discount rate categories. The rate categories that are trailing the previous year’s performance are primarily driven by commercial business, which is down by 11 percent from a year ago.
Green and others agree that there are ample opportunities and challenges for small-hotel owners. The industry is becoming more fragmented because of competition from digital short-term rental platforms such as Airbnb and VRBO, which have disrupted traditional boundaries. She said these platforms are creating a hybrid model where property owners can simultaneously act as real estate investors, property managers, and hoteliers.
Founded and operated by Anjan Ghosal and his son Saurav Ghosal, Sojourn opened its new micro-hotel development just before Memorial Day. It is fully booked through the following weekend and into the summer vacation season, they said.
“We took the whole concept of cabins and shrunk it down to a tiny cabin and all the amenities,” Anjan Ghosal told The Epoch Times. “You feel like you’re in a cabin, but you’re probably not paying anywhere close to what you would for a large cabin.”
A serial entrepreneur and former Silicon Valley executive, Anjan Ghosal started Ghosal Luxury Lodging in the Smoky Mountains in 2023 after purchasing two dozen cabins in scenic locations throughout Gatlinburg, Sevierville, and the Pigeon Forge area, known as the gateway to the Smoky Mountains in eastern Tennessee.
“The concept behind Sojourn Lodging is to build tiny house resorts that reflect the local community. We intentionally designed our resort to resemble tiny cabins, a key component of an authentic Smoky Mountain experience,” Saurav Ghosal said.
About a five-hour drive north of Sevierville, Karie and Julian Brittano are feverishly preparing for the grand opening of a new hotel project in South Boston, Virginia, in early 2026.
Once novices in the hotel development business, the Brittanos told The Epoch Times they began exploring the idea of opening a hotel at the beginning of the pandemic nearly six years ago. After visiting the former John Randolph Hotel in the Virginia community, the couple said they were sold on renovating the historic property that was first built in 1929.
“I knew we were going to buy and develop it the moment we saw it,” said Karie Brittano, a licensed general contractor. “I fell in love with it and saw a clear vision of what we could do.”
Over the next few years, the couple began their due diligence and learned about Opportunity Zone Funds and other investment vehicles available to finance the $11 million-plus renovation project.
Julian Brittano, a longtime entrepreneur and a costar on the Oprah Winfrey Network’s hit series “Greenleaf,” said he learned the importance of community involvement and partnerships and educated himself about all aspects of the hospitality sector.
“You need an entire community to develop a project like ours to succeed,” he said.
Since taking the leap into the hotel development business, the Brittanos said they have found support locally and nationwide. In March 2020, the husband-and-wife team were invited to the White House during President Donald Trump’s first term to discuss their project at the behest of Scott Turner, the former executive director of the White House Opportunity and Revitalization Council and current U.S. Housing and Urban Development secretary.
In April 2022, the Brittanos closed a deal with South Boston officials to develop the historic, four-story property as the Rook Hotel in the rural Virginia community. Once construction is complete, the upscale, boutique hotel will include 37 rooms, an event center, a full-service restaurant, and a rooftop bar.
In early 2023, Choice Hotels International Inc. also reached an agreement with the Brittanos for the Rook Hotel to be the first member of the Ascend Hotel Collection, the company’s emerging markets franchise development program.
Once the Rook Hotel is up and running in 2026, the Brittanos said they plan to develop similar projects across the United States and create a vetting system for other aspiring hotel developers to learn about financing opportunities and navigate the complex tax credits system for historical projects.
