Lalith James of Hotel Emporium On 5 Things You Need To Run A Highly Successful Family Business

An Interview With Jason Hartman

Sense of inclusivity: Always, always, always, foster a sense of inclusivity among all team members as a strong level of bonding is what keeps everyone aligned in pursuing that same level of dedication to achieve company goals. It’s important that everyone has that same desire to help the company thrive.

As a part of our series about 5 Things You Need To Run A Highly Successful Family Business, I had the pleasure of interviewing Lalith James.

Born in Colombo, Sri Lanka, Lalith James is the founding father and visionary of Hotel Emporium, Inc. A seasoned entrepreneur, James started his career by receiving his hospitality management degree in Germany, then migrated to the USA to manage an array of properties from New York to California. With his years of executive hotel management experience, he co-founded Hotel Emporium, Inc. with a vision to become the world’s best hospitality supplier. A true global visionary and serial entrepreneur, Lalith has developed multiple international businesses over his tenured career and today, occupies the role of Chairman at Hotel Emporium which services over 20,000 hotels & resorts worldwide in over 40 different countries around the world.

Thank you so much for joining us in this interview series! Before we dive in, our readers would love to learn a bit more about you. Can you tell us a story about what brought you to this specific career path?

My career in hospitality began when I was very young, at just 16 years old and in Sri Lanka, doing room service. This initial break into hospitality was eye-opening for me as it gave me the opportunity to get to know hospitality from the ground level. I then made the move to Germany to get an education in hospitality, followed by 6 years working in renowned hotels like the InterContinental. From there, I moved to New York and began working in the operations of 5-star boutique hotels, and then 8 years at the corporate level for Hilton Corporations. In 1990, I moved to Los Angeles, working for Hilton and other 5-star hotels in Hollywood and Beverly Hills. Finally, in 2000, a client let me know that his hotel amenity company was up for sale, and that’s when my entrepreneurial journey officially began.

Can you tell us a bit about your family business and your role in it?

My knowledge of the business really began with my dad, who was also an entrepreneur and who I viewed as a mentor and admired for his unique business acumen. My beginnings were very barebones as I started my career solo, literally going door-to-door with a briefcase in hand of product samples, trying to garner interest, which ultimately over time led to securing 500–600 hotel accounts. That is when I decided to take the business to the next level and brought in family, providing them with opportunities to join the hotel industry and receive training in a variety of operations-oriented jobs before being brought on board. Now, I am the Co-Founder & Chairman of Hotel Emporium.

Can you share the most interesting story that happened to you since you began this career?

I would say that story comes from when I was in Hawaii on vacation and at that time had been working at Hotel Emporium for 3–4 years. At that point in the company’s history, we were very much focused on the big continent, but during the vacation I discovered so many beautiful hotels in Hawaii and felt it had lots of similarities with Sri Lanka. Ultimately, that vacation opened my eyes to new possibilities and an opportunity to develop the company in Hawaii.

Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?

I have the perfect story and have to say that, even thinking about it today, it still makes me a bit embarrassed! During one of our first corporate meetings, in which Andy and I were to introduce our products, we both froze on the spot and didn’t know where to begin. We stood there, looking at one another, hoping the other would break the discomfort and get things moving, but it seemed we were both in the same boat. The meeting felt chaotic and poorly handled, but in the end, we secured the business because we were presenting good products. Since that time, we learned to come better prepared and to continue producing high quality products.

What do you think makes your company stand out? Can you share a story?

The way our company stands out is very clear: we offer high quality products, exceptional service, an unparalleled hotel experience from all team members, and quick delivery. These differentiators are clearly evident as the American Register Hotel has proved them in the attribution of awards to Hotel Emporium for 4 to 5 consecutive years. This is something we are very proud of — leadership and beyond — as we’ve worked hard and have cultivated strong relationships with hoteliers from a similar industry background.

Are you working on any exciting new projects now? How do you think that will help people?

We are! We anticipate that 2024 will be marked by the development of various products to further expand our already very substantial line of premier sustainable offerings. We are excited to present them to the market as they fall directly in line with our company’s global mission, which is to improve the experience for the modern hotel guest, as well as optimize hotel operations.

None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?

Throughout the course of my journey, I was lucky to be surrounded by friends who really believed in me and my dream and helped me through some very tough times. In fact, I have a very vivid memory of a time when I had only $500 in my pocket while expecting a shipment of products to arrive, valued at $50,000. At the very last minute, my business partner at the time backed out of the payment, leaving me in a very bad situation. I was in a panic, thinking I had no way out to solve the problem except praying for a miracle.

Then, quite unexpectedly, an old friend called me, inviting me to a get-together.

The next day, she transferred more than necessary to cover my shipment and simply said that she believed in me and I could return the loan once I was on my feet.

Her act of kindness, and her testimony of trust and support really touched me and helped build some of our family and company foundations and values.

I’m also very grateful to Andy, who through his tenacity and leadership brought Hotel Emporium to the success it is today. His level of commitment and devotion really gave me the confidence and motivation to push forward as a team and structure the company in a way that has perpetuated that success.

How have you used your success to bring goodness to the world?

I try to inspire other businesses and the business leaders I come in contact with to be more ambitious by sharing my own experience. Ideally, that inspiration helps them to reach higher and achieve even more success, which benefits all. Additionally, I give back by sharing business opportunities with my own clients.

Ok thank you for that. Let’s now pivot to the main parts of our interview. How do you define a family business? How is a family business different from a regular business?

A family business is naturally built on connection, something that may not be as evident in a business not-family driven, and it also helps create the strong goal to help the company thrive. Each day, we interact with family members, and I’ve found that the overall energy is different, the sharing is much stronger and we work together to bring our family values to the company.

In your opinion or experience, what are the unique advantages that family owned businesses have?

Family-owned businesses generate much tighter bonds, more authentic stories, a personal investment in the company and a larger sense of ownership, with a level of caring that isn’t present in a traditional business environment — though we try to encourage that feeling of family across the company and that dedication to positive outcomes. You’ll also find that admiration is much higher than jealousy from junior family members towards those more senior.

Most importantly, team members really rally together in the face of struggles, with COVID as an excellent example.

What are the unique drawbacks or blindspots that family owned businesses have?

I think one of the most substantial drawbacks is when it comes to letting go of family members or bringing about discipline. It can be tough to separate yourself from the emotional component that naturally occurs when working alongside family, so these kinds of decisions can be very challenging. Additional challenges that occur include navigating the sense of entitlement that exists among family members, ensuring that an appropriate balance of hiring family and non-family members is struck, and that family time and work time are well separated.

What are some of the common mistakes you have seen family businesses make? What would you recommend to avoid those errors?

Many of these mistakes stem from issues with trust: trusting family members more than non-family members, simply due to that familial relationship. Sometimes this trust issue will result in promotions to family members when perhaps non-family members show the same level of competencies. To avoid those errors, it’s important to anticipate a good balance in the team organizational chart between family and non-family members, keeping a fair mindset and judgment, putting feelings aside and always thinking of the company’s best interest.

What advice would you give to other CEOs or founders of family businesses to help their employees to thrive?

Most important is being sure that all employees — family and non-family — are placed at the same level and have access to the same kind of opportunities to grow, be promoted, etc. Additionally, family-owned businesses are in a unique position to extend an established set of family values company wide that can foster a corporate culture that enables employees to trust and care for one another. Ultimately, this unites everyone to push towards a common goal of success and enjoy their time while doing it.

How do you define “Leadership”? Can you explain what you mean with a story or example?

Leadership is best defined by three things: comfort and willingness to make decisions, embracing responsibility, and inspiring others. While in many ways this comes naturally to some, it is always a work in process, especially as a company undergoes change, small and large. In our case, and like many other companies, we’ve faced hardships and I’ve had to tap into my leadership skills to keep Hotel Emporium thriving.

Here is our main question. What are the “5 Things You Need To Run A Highly Successful Family Business”? Please share a story or example for each.

1. Ability to identify the right family member(s) to join in the adventure: Even with that familial connection in place, not all family members are best suited to join in the adventure or share that same level of devotion. It’s also important that there is a proper cultural fit and level of experience.
2. Ability to assign the right leader(s): Recognizing who has the knowledge required to serve as the best company leaders is the optimal way to assign individuals. This also helps to garner respect from all family members and act as a role model.
3. Strong family values to build foundations for company culture: It takes strong family values, woven throughout the fabric of a company, to make sure that the right culture is established and emphasized. Functioning as a unified entity is necessary for company success, and this begins with emphasizing strong family values.
4. Fair judgment at all times: It’s important to remember that not everyone in the company will be a family member, nor should they be! Keeping that sense of fairness close and remembering to treat family members and non-family members the same is crucial.
5. Sense of inclusivity: Always, always, always, foster a sense of inclusivity among all team members as a strong level of bonding is what keeps everyone aligned in pursuing that same level of dedication to achieve company goals. It’s important that everyone has that same desire to help the company thrive.

We are very blessed that some of the biggest names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch with, and why? He or she might just see this if we tag them :-)

I’d like to have a private breakfast or lunch with Celine Dion or Santana. Music has always moved me personally, and I find a great deal of inspiration in their creativity and their talent, which has spilled over to me professionally. I’d like to ask both what has driven them to achieve the level of success they’ve achieved and also what drives them in their personal lives. I think there is a lot to learn from both individuals!

You are a person of great influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)

I think one of the most important things that we need to establish as a global community, which would make a significant positive impact, is the importance of giving without expecting anything in return, as well as operating as people with love and kindness. It sounds so simple but definitely requires a mind shift from much of the way the world currently works.

Thank you so much for joining us. This was very inspirational.

About The Interviewer: Jason Hartman is the Founder and CEO of Empowered Investor. Jason has been involved in several thousand real estate transactions and has owned income properties in 11 states and 17 cities. Empowered Investor helps people achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide. Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing real estate investors with education, research, resources and technology to deal with all areas of their income property investment needs. Through Jason’s podcasts, educational events, referrals, mentoring and software to track your investments, investors can easily locate, finance and purchase properties in these exceptional markets with confidence and peace of mind.

Starting with very little, Jason, while still in college at the age of 19, embarked on a career in real estate. While brokering properties for clients, he was investing in his own portfolio along the way. Through creativity, persistence and hard work, he earned a number of prestigious industry awards and became a young multi-millionaire. Jason purchased a California real estate brokerage firm that was later acquired by Coldwell Banker. He combined his dedication and business talents to become a successful entrepreneur, public speaker, author, and media personality. Over the years he developed his Complete Solution for Real Estate Investors™ where his innovative firm educates and assists investors in acquiring prudent investments nationwide for their portfolio. Jason’s sought after educational events, speaking engagements, and his popular “Creating Wealth Podcast” inspire and empower hundreds of thousands of people in 189 countries worldwide.

While running his successful real estate and media businesses, Jason also believes that giving back to the community plays an important role in building strong personal relationships. He established The Jason Hartman Foundation in 2005 to provide financial literacy education to young adults providing the all-important real world skills not taught in school which are the key to the financial stability and success of future generations. We’re in a global monetary crisis caused by decades of misguided policies and the cycle of financial dependence has to be broken, literacy and self-reliance are a good start. Visit JasonHartman.com for free materials and resources.