NEW ORLEANS — During the AAHOACON 2025 this week in New Orleans, second-generation leaders discussed the legacy of their family businesses, built by hard work and risk-taking of the first generation leaders and what's next for the family business.
Insights were shared by Al Patel, president of Baywood Hotels; Mitch Patel, founder and CEO of Vision Hospitality Group; Sam Patel, CEO of Natson Hotel Group; DJ Rama, CEO of Auro Hotels; and Mit Shah, CEO of Noble Investment Group. The panel was moderated by Teague Hunter, president and CEO of Hunter Hotel Advisors.
The conversation highlighted the importance of family, the challenges of running a family business, succession planning and the evolving nature of the industry. The panel also underscored the significance of AAHOA in providing support and recognition to hoteliers, fostering a sense of community and mutual assistance.
Many first-generation hoteliers came to the U.S. without much to build a new life. Al Patel said they took enormous risks and worked extremely hard for their success. The first generation worked hard to build that success while the second generation worked differently. "After you work hard, you have to work smart," he said. "Next, we'll see how the third generation works."
Al Patel continued: "First generation was accidental hoteliers. The second generation were hoteliers by choice."
The Shoulders of Giants
While there are no bloodlines at Noble Investment Group, Shah admits that it is less complicated that way.
"The message that you're hearing across [the stage] is one deep gratitude [to that first generation] and I often say how lucky we are—we stand on shoulders of giants," Shah said. "Family matters more than anything in our lives and... those sacrifices helps create joy in our lives."
For many AAHOA members, working with family is vital, but working with family has its challenges as well. Sam Patel mentioned directing the next generation toward identifying their passions and helping them get into positions where they could “give them a little bit of direction to pursue that.”
Turning to the second generation, of which most on the stage are a part, Rama stressed the importance of succession planning. Ensuring the transition of the business to the next generation is a thoughtful and meaningful process, rather than just selling everything. "Generation three, you cannot control them," he said. "They’re educated here. They want what they want. They want to work in any industry they want. They also want to have a lavish lifestyle."
While the first generation has started the business, the second generation has grown the business. And the third generation? "I don't know what to say anything further than that," Mitch Patel chuckled. “In my opinion, there are only two outcomes with success. One is, you’ve got to sell everything or there has to be thoughtful, meaningful, strategic succession,” he said.