The annual AAHOA conference is generally marked by some news event or more often a controversy. No controversies this year, but a big news story is dominating this week’s convention in Charlotte. The news was the announcement from former AAHOA Chairman and community gadlfy Mike Patel of the launch (technically a relaunch) of Budgetel, a new franchise-friendly economy brand that appeals to the Asian hotelier community’s long-held dream of an Indian-American-owned brand.

In a nutshell, the new Budgetel will offer low fees (around three to four percent), one-year agreements, no liquidated damages and an opportunity for franchisees to become equity partners in the company. Brand founder Patel says the brand “will live up to the spirit of AAHOA’s 12 points of fair franchising,” the group’s hot-button issue since Patel championed the cause during the chairmanship in 1998-99.

The real question, of course, is will the brand succeed? Also, does the industry need another brand, particularly in the economy segment? And with this brand will Patel be able to meet the high expectations most Asian-American hoteliers have from a chain that’s owned by a member of the community?

The good news is that Budgetel denotes a clear identifier of its segment and that Budgetel has some built-in consumer awareness. (Budgetel is the former name of Baymont Inns. Marcus Hotels sold Baymont/Budgetel to The Blackstone Group, which then sold Baymont to Wyndham and the Budgetel branding rights to Patel.) Also, Patel and his executive team have plenty of experience in the franchised hotel world.

The real issue in my mind is whether hotel owners need another franchise-friendly brand from which to choose. Companies like Accor, La Quinta and particularly Vantage Hospitality have grown quickly in recent years by staying in touch with the real and perceived needs of the hotel ownership community. Still, I wouldn’t bet against Mike and his organization. He’s smart, well-connected, politcally savvy and a winner in everything else he’s ever attempted. Brand companies like Choice and Wyndham need to watch their backs.

A pat on the back—make that a cheer—goes to Hilton Hotels Corp. for putting its money where its mouth is in Baltimore. In each of the next 15 years, Hilton plans to make $200,000 available to National Academy Foundation students in a $3-million college scholarship program designed to encourage them toward careers in hospitality and tourism. Hospitality is one of three tracks offered by National Academy, which shares a building with Digital Harbor High School in the city’s Federal Hill section. The scholarships will go to graduating seniors concentrating in hospitality and tourism.

The Baltimore Sun says the stipends make good on a pledge Hilton made in 2005 after it was selected to operate the city-owned convention center hotel. A 20-story, 756-room Hilton, to be on Pratt Street adjacent to the Baltimore Convention Center, is set to open in August 2008. It should prove stiff competition for the Hyatt Regency Baltimore near the center.

The paper reports that Hilton promised to create the scholarship fund to land the deal, so the motivation wasn’t altogether altruistic. The package Hilton agreed to also guaranteed that 75 percent to 85 percent of its hotel jobs would go to city residents including ex-offenders and the unemployed.

Again, the motivation for that wasn’t totally altruistic, either. But that kind of guarantee is not only politically correct, it’s plain smart politics, particularly in a city that, according to a recent Police Forum study, experienced a 20-percent increase in homicides and a 30-percent jump in robberies in the past two years. Anything that brightens city life and cuts unemployment is good news these days. Besides, Hilton’s Baltimore actions eloquently attest to the spirit of hospitality.