The American Hotel Protective Association, founded in 1910 as a regional trade association in
Chicago, became the American Hotel Association in 1917. The AHA's first president, Frank Dudley, identified rapid expansion of the US hotel industry as vulnerable to a shortage of trained personnel which could not be filled by the then-common practice of recruiting European hotel workers. With the backing of
Ellsworth Milton Statler and of the Federal Board of Vocational Training, the group promoted college-level training in hotel management and the creation of the Cornell Hotel School at
Cornell University under dean Howard Meek. Hôteliers thrived during the
Roaring Twenties; in 1928, the AHA
Red Book listed 25,900 hotels with 1,525,000 rooms distributed widely across the US, with fewer hotels in the ex-
Confederate South because
racial segregation excluded many travellers, including
African Americans. (These segregated travellers used the
Negro Motorist Green Book to find accommodations.) Properties were forced to adapt to the newfound popularity of the
motorcar, adding parking and establishing locations on main highways; the number of rooms in each newly constructed hotel was increasing.
Prohibition hurt the hotel trade by cutting into revenue from food and beverage operations, but the
Great Depression would prove disastrous for business. Overexpansion during the 1920s left excess inventory in the Depression era. The 1933
National Industrial Recovery Act, which sought to employ nationwide trade organisations to regulate wages and prices to halt a
deflationary spiral, drew strong opposition from hotel owners (who saw it as a prelude to
unionisation) and from the association. Initial attempts to include "tourist courts" in AHA's scope were doomed as the interests of the motel owners were in direct conflict with the existing hotels whose rates were being undercut by the new entrants. ==Agenda==