Fall 2025 Edition

RESEARCH:

Hotel Revenues are Reaching a New High in Colorado

With the legalization of marijuana increasing across the United States, hotels are seeing green in more ways than one.

A study by Florian Zach, associate professor in the Howard Feiertag Department of Hospitality and Tourism Management, part of the Pamplin College of Business, discovered that in Colorado, average monthly hotel revenue increased by 25 percent due to marijuana legalization. This occurred between 2014, when marijuana was legalized in Colorado, and 2019, the period analyzed in the study.  The increase in revenue was attributed to higher room bookings and increased daily room rates.

“This occurred due to several factors, including hotel characteristics such as proximity to dispensaries, age, class, location type, and operating structure,” said Zach, an affiliated faculty member of the Global Change Center. “Greater revenue increases were also observed in hotels that were closer to dispensaries, newer, more upscale, situated in urban or high-demand areas, and corporately managed.”

The research, published in Production and Operations Management, also found that hotels were expanding their capacity and upgrading from a three- to a four-star property in response to rising revenue. This provides upgraded amenities and guest experiences at a higher price point. The study analyzed data from nearly 1,300 hotels in Colorado and New Mexico between 2010-19, along with interviews with hotel managers from three Colorado cities. New Mexico was used as a control state due to marijuana not being legalized during the data window of 2010-19.

Zach added that “neither the hotels nor dispensaries actively pursue a strategy to be in close proximity, however, our findings suggest that the distance does matter.”

Hotels in resort, urban, and airport areas see the greatest benefits from dispensary legalization because of the high population density. The research suggests high-class, newer, and corporate-operated hotels should leverage their brand equity and resources to attract marijuana tourists. One hotel even added a page of dispensaries to the guest recommendation booklet. Hotels farther from these areas or with aging amenities may consider renovation and rebranding to attract marijuana-friendly travelers.

While the legalization of marijuana may bode well for hotel revenue, conversations with hotel managers revealed that not all hotels are excited about the change.

“It would be naive to think marijuana is the greatest thing available,” Zach said. “One hotel general manager noted real concerns, especially for hotels that cater to non-marijuana users, such as airline crews.”

As marijuana legalization continues across the country, this study serves as a novel approach to understanding its impact on hotels for not just the guests, but also for the industry. It detailed the impacts for policymakers, city planners, investors, and entrepreneurs, highlighting the economic benefits.

Policymakers and city planners may consider legalization when crafting zoning laws, potentially placing dispensaries in high-demand areas like resorts, cities, and airports. The study shared that investors and developers can use this data to guide decisions, such as upgrading hotels in these high-demand areas. Additionally, potential for partnerships between hotels and dispensaries could create curated and integrated marijuana guest experiences.

From renovations to partnerships, recreational marijuana legalization is reshaping how hotels attract and serve guests. The study highlights an emerging market with significant room for growth.

Her work examines how firms and destinations convey credibility and authenticity to reduce information asymmetry and build trust in the market, incorporating both consumer-level and organization-level theories. She aims to understand how signals in tourism and hospitality market translate intangible perceptions into tangible market outcomes, providing insights that connect academic research with managerial decision-making.

Recent publications include:

• Tourism Management — Two studies on how external signals under popular culture contexts enhance destination’s brand equity and firm market value through strategic flexibility.
  • https://doi.org/10.1016/j.tourman.2024.105060
  • https://doi.org/10.1016/j.tourman.2025.105240
• International Journal of Hospitality Management — The Ideological Recipe, which examines how CEO’s ideological congruence with firm’s strategic actions and message, represented by political ideology, influences investor responses and moderates the effectiveness of corporate marketing actions.
  • https://doi.org/10.1016/j.ijhm.2025.104379

Yelim participated in the U.S. and Global STR Market Study Competitions and won first place in both in 2023. She also earned CHIA and CAHTA credentials and received the Michael D. Olsen Memorial Graduate Fellowship in both 2024 and 2025. Beyond research, Yelim enjoys mentoring students and collaborating with peers who are curious about how ideas turn into real-world impact.

Learn more about Yelim’s work or connect with her! 

What inspired you to pursue the MSBA–HTM program at Virginia Tech?

I stumbled upon the program while researching graduate opportunities and was immediately drawn to Virginia Tech’s strong reputation and sense of community. I wanted to continue my education while growing as a leader in the hospitality industry, and the program’s blend of business strategy, analytics, and leadership felt like the perfect fit.

Looking back at your journey so far, what’s been your most impactful experience in the program?


My most impactful experience has been interning at the Prosper Forum, a premier leadership and networking event often described as the “Davos of Hospitality.” Hosted at The Ritz-Carlton Amelia Island, it brought together hundreds of global hospitality executives. Being part of the event operations team and seeing how a luxury property manages such a large-scale conference was truly eye-opening.

How do you see yourself contributing to the industry after graduation?


I absolutely love my current role, but I’m excited to see where the future leads. I hope to continue growing as a leader while exploring opportunities that allow me to combine creativity, digital innovation, and mentorship.

What’s something you’ve learned that changed how you view leadership or service?


At the Prosper Forum, I was struck by how the President of the company, Luke Kircher, led with such positivity, intelligence, and authenticity. He had a remarkable ability to make everyone feel valued, regardless of their position. That experience completely reshaped my view of leadership. It reminded me that true leaders inspire through empathy and example.

What’s something fun or unexpected about you that your classmates might not know?

I love practicing yoga! It’s my favorite way to reset and find balance amidst the busyness of my life. It keeps me grounded, creative, and centered no matter what the day brings.

Tell us about your background and what led you to teach in the Hospitality and Tourism Management Department.

I grew up in northern NJ and really had no desire to go to college.  I wanted to continue to work in a body shop painting cars, but I decided to gain business knowledge to help run the body shop. I enrolled at a local community college and graduated with an associate degree in business. I passed on the body shop idea and in 1977 I transferred to Va. Tech, graduating in 1980 with a degree in Accounting from Pamplin.  I married my high school sweetheart, and we have 2 daughters, 6 grandkids, two horses and one dog. We reside in Fort Worth, TX.

 I have over 40 years of experience in the hospitality industry in various positions and have held positions in finance, operations, development and franchising. I spent the last 10 years of my career in various C-Suite positions including Chief Executive Officer/President, Chief Operating Officer, and Chief Development Officer.  My tenure spans multiple segments in hospitality, including branded chains with 300+ locations (company-owned and franchised), private equity, airport and managed services concessions. My multi-faceted experience along with strong financial acumen as a CPA prepared me for my next role in consulting. 

 I formed Paul Carolan Consulting, LLC focusing on: Fractional Leadership, Development, Operational Excellence, New Business Development and Leadership Development.“Active Intentional Leadership™ is the cornerstone for leadership development with client’s high-performance individuals and leadership teams. I’ve also presented Active Intentional Leadership™ as a keynote speaker and on various industry-related podcasts.

This led to an opportunity to bring “Active Intentional Leadership in Hospitality” to the Master’s Program, at The Pamplin College of Business, Howard Feiertag Department of Hospitality & Tourism Management, Virginia Tech.   I view this as a great opportunity to give back to the Food Service and Hospitality Industry and the VA Tech community by sharing, teaching and coaching students on the importance of leadership.  The class is unique. We meet in a conference room, to create a team culture in a business environment.  I view the students as a leadership development team that I am coaching.  Additionally, I also introduce the students to 20 – 25 C-level hospitality leaders either as guest speakers or through their final project interviewing C-level leaders.

What inspired the development of your Active and Intentional Leadership course.

 The course was inspired based on my life experiences and my leadership coaching engagements.  I have done various talks on industry-related podcasts discussing Active Intentional Leadership. Dr. “Phil” Zheng Xiang, Department Head, heard my podcasts and asked if I could develop the course for the department.  I am truly thankful for Dr. Xiang; this has been a fantastic experience for me.

Why do you think students need to enroll in this course and how will that shape their future in the hospitality and tourism industry.

This course is for students that are:

• Looking for access and exposure to real world leadership experiences, led by an adjunct professor who has over forty years of leadership in the hospitality industry, with a desire to give back to VA Tech by sharing and coaching students.
• Wanting unprecedented access to over 20 C-level hospitality leaders either through guest speakers or final project interviews.  This spring our guest speakers are Marc Bruno – COO Aramark, Greg Creed – past CEO Yum! Brands, and Emily Williams Wright Ed.D. - President/CEO Texas Restaurant Association.
• Desiring to be part of a leadership development team of students, that will collectively grow as individuals and as a team.
• Willing to put in the work to gain personal development in their leadership skills

My hope is that through this course the students are better prepared to lead their future teams, have better self-awareness of their Emotional Leadership Drivers, and an appreciation for developing individual relationships with their team, while creating a culture of trust.

What are some of the biggest leadership challenges facing the hospitality industry today?

The biggest challenge in leadership today is the need for authentic leaders who are willing to invest time to get to know their teams as individuals and develop a trusting culture.

 There are leaders that only focus on process management to deliver results.  These individuals really aren’t leaders, they are managers, and their teams don’t follow them, but they tolerate them.

 The results of a leader’s team are a direct reflection of their leadership.  Those leaders that are active and intentionally focusing on building individual relationships, utilizing their core values and creating a trusting culture, tend to deliver continuous predictable results verses a process manager who tends to deliver results which are limited by the lack of culture and individual relationships.

How can academic programs help develop the kind of leaders the industry needs for the future?

Through experiential learning – leadership must be experienced, learned and curated by interactions with leaders who are humble and have the hearts of a teacher.  So, in my course I try to bring leadership experiences alive by sharing my personal experiences through story telling, utilizing guest speakers and students C-level interviews.  

Why did you choose to study HTM?

During Covid-19, I wanted to make some money, so I applied at my Dad’s job at a luxury hotel. Shortly after starting working, I fell in love with the industry: the fast pace, the high level of service, and the guest relations are all things that excited me. I felt like my unique personality was well-suited for sucess within the industry. I really love making people feel welcome and best accommodating for the guest experience. After taking some classes, I also really enjoy the diversity of departments and disciplines that can be found in hospitality. There is truly something for everyone in hospitality.

Why Virginia Tech?

Once I had found my love for hospitality, I very soon after found out that I could also study this in college. I was between three schools, and Virginia Tech was the only school that had a hospitality degree. The cherry on top was the people: everyone that I met on my tour and walking around was super personable and friendly. I believe that you college provides you with not only a degree, but a framework for who you are as a person. I was previously the person who normally took the safest route, but I was excited about the school, so I went on a limb and did not regret it!

What are your plans after graduation?

I am in the process of applying for jobs. I am looking to work in a restaurant in Baltimore and advance my career from there.

Why did you choose this career path?

I chose hospitality because I really enjoy the fast pace and hustle of the hospitality industry. I also really enjoy the opportunity to make the best possible guest experience.

What advice do you have for future students?

I would advise students to be as involved as possible in their years of undergrad. There is so much experience to gain from extracurriculars and clubs.

If you could change one thing in the hospitality and tourism industry, what would it be and why?

I would change the extraneous hours that managers usually must work. It can be hard to spend quality time with family and have a life outside of work.

Fun Fact about me:

I enjoy playing guitar and piano in my free time.