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Born Hotelier
Thursday, March 4, 2010
Chairman of AAHOA (Asian American Hotel Owners Association), Mahesh “Mike” Amin is a third-generation hotelier. The Amin Group owns extensive properties in the west. Mike Amin has been the chairman of AAHOA for a year, a mantle that has previously rested on the likes of the illustrous Mike Patel.



In an interview with siliconindia, he talks about his vision for the hotel industry and the challenges that face AAHOA. Excerpts:



Could you tell us about your beginnings?

I am a born hotelier. Literally [laughs]. My grandfather bought a property in the early sixties, on Jesse street in downtown San Francisco. I was born to a family of hotel operators, and have continued in this business. I went to the University of San Francisco and specialized in new venture management and feasibility studies for developing firms. I joined my family business in 1986 and have been here since then.



Could you tell us about your experience as an Asian-American hotel owner?

I think this is the most independent and entrepreneurial of all businesses. There are many Asian-American hotel owners in the U.S. owning only one or two properties, and they need to be fiercely competitive to survive. In this, I feel that Asian-Americans have shown true grit and tenacity. It is this experience that has also brought me this far.



What role do you play as the chairman of AAHOA?

Given that most AAHOA members are extremely independent and entrepreneurial, the last twelve years for AAHOA have made it stronger and more mature. We now have a body that can clearly be of help to all members, who could be large or small hotel operators. Not just that, we are now in a unique position to lead the entire industry. While we have clarity of thought and vision, the trick is to communicate what we need. More importantly, we need to incorporate the needs of the industry into our thought process. I am trying to build this thought-process throughout the AAHOA. This year, we have centralized and consolidated our operations. We have identified regional directors and are encouraging them to focus on three things: increase membership, get more involved with state associations, and address social issues that affect our industry. We are including experts from diverse fields in our committees—technology professionals, academicians, business strategists—anyone who will help us to expand our vision. This is what I have been engendering in the AAHOA structure this year.



You mentioned working with the political bodies to further causes that affect the industry. Such forums in the Bay Area were held where only problems relating to India were discussed. How different is it at the AAHOA forums?

We own businesses here—in the U.S. We are not affected by immigration issues or such problems. Our forums are more focused towards causes within the U.S. domicile and we discuss domestic affairs that affect our industry. We support good legislation, support bills that bring value to our properties and industry.


What is your key focus for AAHOA this year?

I am trying to set goals that can be achieved in the next five to ten years. We are changing our strategies and vision to that effect. I hope that the next chairman (as you know, this chairmanship is only for a year) will be able to continue what we have set out to do. Our goal is to be a strong body that can take the industry forward. That is my focus for this year, and our future chairmen will hopefully take this vision forward. Personally, I have few needs. I’d like to go back to my family, watch my son grow and give time and my available resources back to my community.



What do you envision for the Amin Group?

We are content. Our wealth is from properties and we are good regional players. I don’t want to grow to levels in the next five years where I employ five hundred people who I don’t even know.



How have you coped with cultural diversity as a third-generation Asian American?

I am an American—first and last. But I know my roots are in India. I don’t think I will ignore that rich culture. I am very clear on both these points. I live in this country and owe my loyalty here, but that doesn’t stop me from imbibing rich values that are from my cultural roots. I am not confused about who I am, and am equally comfortable in both cultures.



What are the challenges that Asian-American hotel owners face in the current scenario?

Right now, we are going through very difficult times. Insurance, financing, and regulations have always been troublesome issues for us. Fifteen years ago, the Resolutions Trust Corporation (RTC) Act gave rise to many scandals in loan foreclosures. Since then, good legislation has been passed and we grew on a very healthy curve. Yet today, we seem to be going back to those times. A hotel cannot operate on a 40-50% occupancy. But does that mean that we made a bad investment? Or were the principals wrongly stated? No. It was all on paper.

Like all industries, the bank and insurance industries must also be prepared to go through the next year and a half in a calm manner. This economy will rebound and so will the hotel industry. The funding agencies wanted hotel loans on their portfolio two years ago. Now they cannot suddenly label it as garbage and declare foreclosures. This is the biggest challenge that the hotel industry is facing. AAHOA was progressing very nicely and the industry has recognized us. We are all stable business entities.



What are some operational challenges as a hotel owner?

Challenges in running a hotel are many and occur everyday. Right from getting numbers on a paper to finding building approval to finally running the hotel are all challenges.

But the exciting part is in finding new, inventive solutions everyday.


Tell us about the AAHOA mentoring programs?

We have invested a lot of time and money in building educational blocks. We have dynamic content, seminars, conferences, and one-on-one programs for new entrants who are interested in buying or developing a property.



What is the key single AAHOA membership benefit?

Our recognition in the industry and diligent efforts over the past years have paid off now. We have a good vendor list, which members can use. This is a very powerful benefit offered to every member.



Where do you see IT helping this industry?

There is a growing match between IT technologies and the hotel industry. We are in the real estate business and IT deals with virtual business. Somewhere the paths cross and we are seeing healthy deployment of IT services.



How do you foresee AAHOA’s activities being conducted in the future

As the chairman of AAHOA, I am trying to propagate the concept of “town-hall meetings.” We are a large organization and it is impossible to resolve regional issues at the corporate level. We are encouraging a decentralized functioning pattern, where members meet at local or regional levels, in small groups and try to solve issues. AAHOA coordinates and oversees these meetings, but the powers and decisions are fully vested in these “town-hall meetings,” as we see them more effective. These meetings typically bring about 20 to 30 members together. These polyps are how we see AAHOA functioning.



What are AAHOA strategies for women entrepreneurs?

This is possibly the only industry that recognizes the power of women partnerships. Typically, women are equal partners in our business and they participate in setting our agenda for the year. This year’s agenda will be announced late September.



How has AAHOA helped in sorting out inherent competition?

Competition is a constant problem among our members. We are always seeking creative solutions for this problem. We are constantly encouraging members to be clear about their business agenda, and we talk to franchise bodies to set out clearl operational guidelines. We also educate our members about healthy business practices and the importance of industry growth, which should always be aligned to personal growth strategies.



Do you have a message to the Indian community?

We are in the midst of trying times, and it is important that we stay focused on what our goals are. While growth and expansion are critical to business, we should remember to give as much as possible back to our origin country and find out ways to help others. We must also strive to stay honest and always give back more to the consumer. In the end, that always helps.



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