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U.S. HOTELS ADDED 1,200 jobs in April, recent government statistics showed, yet employment levels in the industry still lag significantly behind pre-pandemic levels, according to American Hotel & Lodging Association. The Bureau of Labor Statistics also noted that there are currently about 1.92 million people employed in hotels, representing a decrease of 193,600 compared to February 2020. The association is advocating for policy changes to address hospitality industry's labor shortages. AHLA urged the Department of Homeland Security to issue around 65,000 additional H-2B temporary nonagricultural worker visas, as authorized by Congress in the Further Consolidated Appropriations Act. "Hotels are doing all they can to attract and retain workers, but the nationwide workforce shortage is preventing our industry from reaching its full potential," said Kevin Carey, AHLA's Interim president and CEO. "AHLA members need help filling open jobs so they can maintain and expand operations. The DHS can provide vital assistance by making available nearly 65,000 additional H-2B visas. Meanwhile, we are urging Congress to pass three important bills to help grow our nation's workforce: the Asylum Seeker Work Authorization Act, the H-2 Improvements to Relieve Employers Act and the Closing the Workforce Gap Act."

A BIPARTISAN SOLUTION to the federal immigration issue is needed to reduce the still ongoing labor shortage for hotels, according to a survey from the American Hotel & Lodging Association. To accomplish that, AHLA affiliate Hospitality is Working created the Workforce and Immigration Initiative that includes a targeted advertising campaign promoting immigration reform and border security. U.S. Bureau of Labor and Statistics put hotel employment down by more than 350,000 jobs compared to February 2020, AHLA said in a statement. Hotels are looking to fill many of the jobs lost during the pandemic, including more than 105,000 hotel jobs currently open across the nation. "Workforce shortages are severely impacting America's economy, notably the leisure and hospitality sector, which is facing historic worker shortfalls. This crisis has contributed to high levels of inflation and restricted economic growth. Americans everywhere are feeling the impacts of these difficulties. To address the extraordinary workforce shortages, Congress and the administration must come together and find bipartisan solutions that include incorporating more immigrants into the American economy," said Chip Rogers, president and CEO of AHLA. "The goal of the newly launched Workforce and Immigration Initiative is to highlight the historic opportunity to take action on this critical issue. Americans are demanding our that leaders in Washington put partisan politics aside and prioritize growing our economy and workforce, by developing an efficient and workable immigration system. The time to act is now."

U.S. HOTELS ADDED 700 jobs in May, highlighting persistent workforce shortages, with 191,500 vacancies since early 2020, according to the American Hotel & Lodging Association. However, a survey by AHLA of hoteliers in May found 76 percent of respondents are experiencing a staffing shortage and 13 percent reported they are severely understaffed, meaning the shortage is affecting their hotel's ability to operate. By comparison, in a January survey, 67 percent said they were experiencing a staffing shortage, and 72 percent said they were unable to fill open positions. Total hotel employment is now approximately 1.92 million, according to the Bureau of Labor Statistics. This is still 191,500 short of pre-pandemic levels in February 2020, highlighting the ongoing struggle to find workers.

WORKFORCE MANAGEMENT SOFTWARE can help hotels better deal their reduced workforce, according to a white paper from Unifocus. The paper examines the persistent labor shortage in the hotel industry, while outlining strategies for operators to adapt for sustained efficiency and profitability. The white paper, titled 'The hotelier's definitive guide to success amid staffing shortages,' offers strategies for cost control, optimizing staffing, and reducing turnover to create a sustainable and predictable operational framework, Unifocus said in a statement. It gives insights into lessons drawn from the gig economy, strategies for upholding service excellence with fewer available workers, and means to assess the sustained advantages of these approaches. Roughly 92 percent of hotels experiencing staffing shortages despite job growth in the second quarter of 2023, Unifocus said.

AS THE LABOR shortage continues, hotels are offering more incentives to attract new employees, according to a survey by the American Hotel & Lodging Association. They include higher wages, more benefits and greater scheduling flexibility. AHLA's Front Desk Feedback survey of more than 500 hoteliers, conducted Jan. 10 to 17, found that 79 percent of responding hotels were experiencing staffing shortages. Also, 71 percent of respondents are increasing wages, 64 percent are offering greater flexibility with hours and 33 percent are expanding benefits. Despite that, 81 percent said they are still unable to fill open positions. Also, 79 percent of respondents are experiencing a staffing shortage, severely so for 22 percent. The most critical staffing need is housekeeping, with 43 percent ranking it as their top hiring need. At the same time, in September, 87 percent of respondents said they were short staffed, 36 percent severely, with 43 percent ranking housekeeping as their top hiring need at the time. Respondents are attempting to fill an average of seven positions per property, down from 10 vacancies per property in September. "Recruiting enough workers continues to be the top challenge for many hoteliers, and this is leading to historic career opportunities for hotel employees," said Chip Rogers, AHLA president and CEO.

U.S. HOSPITALITY SECTOR has consistently maintained the highest quit rates by workers among all industries, consistently exceeding 4.5 percent since July 2021, according to the U.S. Chamber of Commerce. However, the leisure and hospitality sector maintained the highest hiring rate among all industries, fluctuating between 6 percent and nearly 19 percent. These industries saw a loss of 837 thousand workers in September, yet 1.1 million individuals were hired into the industry during the same month. This hiring rate exceeds the national average, which was 3.7 percent in September 2023, the U.S. Chamber of Commerce said in its latest report titled Understanding America's Labor Shortage: The Most Impacted Industries. The latest jobs report from the Bureau of Labor Statistics reveals a positive influx of individuals into the workforce.

REMOTE SALES AND training appear to be surging in popularity among hotels, according to training consulting firm Gillis Sales. The firm reported $23 million in revenue from hospitality clients in 2021 and a 40 percent since the beginning of the pandemic. The latest figures indicate that hotels are seeing the benefits of investing in sales to increase profitability as travel resumes, said Tammy Gillis, CEO of Gillis Sales. Gillis foresees an increase in business as hoteliers turn to remote sales solutions to find and keep qualified salespeople. Market trends suggest that leisure and corporate travel are increasing while labor shortage continues, according to the company's statement.

THE U.S. DEPARTMENT of Homeland Security will make available more than 64,000 additional H-2B temporary nonagricultural worker visas for fiscal year 2023. The extra visas will help the hotel and travel industries meet continuing labor shortages, according to the U.S. Travel Association. DHS also will issue its normal allotment of 66,000 H-2B visas as well as the 64,716 extra visas. The visas, which permit employers to temporarily hire noncitizens to perform certain labor in the U.S., became available at the beginning of October. Also, the agency created the new Worker Protection Taskforce to make sure the H-2B visa workers are not exploited. "The Department of Homeland Security is moving with unprecedented speed to meet the needs of American businesses," said Alejandro Mayorkas, secretary of Homeland Security. "At a time of record job growth, this full year allocation at the very outset of the fiscal year will ensure that businesses can plan for their peak season labor needs. We also will bolster worker protections to safeguard the integrity of the program from unscrupulous employers who would seek to exploit the workers by paying substandard wages and maintaining unsafe work conditions."

AAHOA LEADERS AND members met with the nation's leaders in Washington, D.C., for the association's 2023 Fall National Advocacy Conference on Oct. 24 to 25. Topics covered included Small Business Administration loan limits, the Credit Card Competition Act and the labor shortage. The AAHOA contingent met with more than 200 offices and 70 members of Congress as part of the conference. Keynote speakers for the event were Reps. Beth Van Duyne, Republican from Texas; Rich McCormick, Republican from Georgia; and Shri Thanedar, Democrat from Michigan. "Advocacy at the state, local, and federal level is a pillar upon which AAHOA stands," said Bharat Patel, AAHOA chairman. "Representing such a large portion of the hotel industry, it is through our voice that we strive to shape and fortify policies that help pave the way to our industry's success."

THE DEPARTMENT OF Homeland Security will issue more than 64,000 additional H-2B visas for fiscal year 2024, surpassing a congressionally authorized discretionary cap for the second consecutive year. The American Hotel & Lodging Association, AAHOA and others have been lobbying for the increase as a step to relieving the labor shortage challenge in the hotel industry. A forthcoming interim final rule, which was announced on Friday, will additionally approve temporary work visas, bringing the total to over 130,000 including those issued under the regular annual cap of 66,000. Chip Rogers, AHLA president and CEO, commended the federal government's action. "The H-2B Workforce Coalition, which AHLA co-chairs, worked hard to convince the Biden administration to offer this considerable expansion, which nearly doubles the yearly allocation of H-2B visas," said Rogers. "These extra visas will be crucial to helping hotels and resorts in remote vacation destinations fill seasonal roles, and we thank Homeland Security Secretary Mayorkas for making them available. But we still need help from Congress to get hoteliers across the country all the employees they need. That includes establishing an H-2B returning worker exemption, passing the Asylum Seeker Work Authorization Act, and passing the H-2 Improvements to Relieve Employers (HIRE) Act."

THE U.S. HOTEL industry will be well on the way to recovery in 2022, according to consulting firm HVS Americas. However, a full recovery in real terms, after adjusting for inflation, remains a few years away, it added. With more assets, both distressed and well performing, expected to come to market this year, 2022 will be an exciting year for the industry, said Rod Clough, president of HVS, in an article titled 'ALIS 2022 Takeaways - Our Industry Braces for a Big Year Ahead'. A near full recovery in RevPAR at $85 for U.S. hotels is likely to happen by the end of 2022 when compared to $86 in 2018-19. "The higher inflationary environment will continue to bode well for hotels, resulting in ADR pricing power leading to a lift in revenue on top of still lean operational models. Group travel is still lagging the recovery, but near-term, smaller-group bookings (at newly raised room rates) should help bridge the gap while the industry waits for larger meetings to return," Clough wrote in the article. "Rising development costs due to supply-chain disruptions, labor shortages, and overall inflation are leading to a general contraction in new hotel openings. Moreover, development challenges are intensifying for major CBDs, attributed to slow office re-openings, a lag in larger convention bookings, higher operating/labor costs, and even higher construction costs than your average project."

THE U.S. DEPARTMENT of Labor's definition of who qualifies as independent contractors, due to take effect in March, is meant to ensure that workers are treated fairly, according to the department. However, the American Hotel & Lodging Association says the new rule limits independent contractors to work and impact hotels' ability to find workers. The new rule under the Fair Labor Standards Act aims to prevent misclassification of workers that can affect workers' rights to minimum wage and overtime pay, "facilitates wage theft, allows some employers to undercut their law-abiding competition and hurts the economy at-large," the Labor Department said in a statement. It uses a multifactor analysis of six factors defining a worker's relationship with an employer, such as the worker's opportunities for profit or loss; the financial stake and nature of any resources a worker has invested in the work; the degree of permanence of the work relationship; the degree of control an employer has over the individual's work; how essential the work is to the employer's business; and the worker's skill and initiative.

THE FEDERAL GOVERNMENT may have expanded an immigrant visa program that can bring more workers to the U.S. to ease the labor shortage but processing those visas may still be delayed due to a pandemic-related backlog. A group of lawmakers recently wrote a letter to the Department of State urging the agency to bring that processing back to pre-COVID levels. The letter, sent by Reps. Darren Soto, a Florida Democrat, and Peter Meijer, a Michigan Republican, along with 86 other Congress members says visa processing has been slowed by procedures put in place at the beginning of the pandemic but which are no longer needed because testing and vaccines are so readily available. "[Pandemic restrictions] disrupt the reopening of American businesses. According to the U.S. Travel Association, international visitor spending in the U.S. dropped by 76 percent in 2020, leading to the loss of $141 billion and 1.1 million American jobs," the letter said. the letter said. "As international and domestic travel begin to recover, many travel businesses rely on H-2B and J1 visas to meet short-term and seasonal workforce demands that cannot otherwise be filled. With such a significant portion of U.S. visa processing sites fully or partially closed, travel businesses will not have the international visitors or the temporary workers they need to generate a speedy and robust recovery from the COVID-19 pandemic."

THE UPWARD MOVEMENT of ADR for U.S. hotels lifted the forecast for the market by STR and Tourism Economics. The travel research firms released the new forecast during the opening sessions of the Americas Lodging Investment Summit in Los Angeles on Monday. The recovery timeline laid out in the new forecast remains mostly the same as the previous forecast released in November, with ADR will near full recovery this year. RevPAR is anticipated to exceed 2019 levels in 2023, but when adjusted for inflation ADR and RevPAR are not projected to reach full recovery until after 2025. Occupancy is projected to surpass 2019 levels in 2023. "The industry recaptured 83 percent of pre-pandemic RevPAR levels in 2021, and momentum is expected to pick up after a slow start to this year," said Carter Wilson, STR's senior vice president of consulting. "With so much of that RevPAR recovery being led by leisure-driven ADR, however, it is important to keep an eye on the real versus the nominal. Terms of recovery are not playing out evenly across the board, and many hoteliers have had to raise rates to minimize the bottom-line hit from labor and supply shortages. We are anticipating inflation to remain higher throughout the first half of the year with a gradual leveling off during the third and fourth quarters. If that happens, and we avoid major setbacks with the pandemic, this year will certainly be one to watch with demand and occupancy also shaping up to hit significant levels during the second half."

THE U.S. HOTEL construction pipeline dropped 8 percent by projects and 10 percent by rooms in 2021 when compared to 2020, according to Lodging Econometrics. However, the number of projects in the early planning stage is rising, it added. The total construction pipeline at the fourth quarter of last year stood at 4,814 projects containing 581,953 rooms, according to LE. There were 2,021 projects containing 239,816 rooms in the early planning stage, up 18 percent by projects and 11 percent by rooms, LE data shows. According to LE, 1,821 hotel projects containing 210,890 rooms are scheduled to start construction in the next 12 months. As many as 972 projects containing 131,247 rooms under construction finished the year. "New project announcements are down in the fourth quarter. However, developers are eager to accelerate projects long-delayed by the COVID-19 pandemic. Unfortunately, they face some development roadblocks, including escalating inflation and supply chain shortages, that are causing higher prices versus 'pre-pandemic' costs for labor and materials," LE said. "These factors continue to prolong hotel development timelines. We anticipate these challenges to abate throughout the year and see construction starts to moderately improve."

THE U.S. HOTEL industry is "beginning to get back to getting back to it," according to a speaker at The Lodging Conference 2022, held Sept. 19-22 in Phoenix. More than 2,500 people attended the event at the JW Marriott Desert Ridge Resort, continuing the industry's return to normalcy after more than two years of pandemic. Talk of the economy during the conference was mostly positive, though concerns about the labor shortage remained high as well as some apprehension about overall economic stability. Women were strongly represented on the stage with the awarding of the annual Castell Award. AAHOA's leadership team also contributed to the conference conversation.

THE HOTEL INDUSTRY is poised for a fairly strong year in 2023 despite remaining concerns about a downturn, according to a pair of reports. Continuing demand is expected to overcome extra labor costs and economic vagaries to propel performance above pre-pandemic levels, according to the reports from the American Hotel & Lodging Association and STR. The state of the industry AHLA's 2023 State of the Hotel Industry Report projects that demand, nominal room revenue and state and local tax revenue all are well on the way to recovery. Operational challenges, such as staffing shortages and economic factors will replace COVID as hoteliers' top concerns, the report predicts. "Three years after the unprecedented hardships our industry faced due to the pandemic, hotels continue to make significant strides toward recovery," said Chip Rogers, AHLA president and CEO. "2022 saw one of the strongest summer travel seasons ever, and this year we expect hotels to reach new heights in terms of room revenue, room-night demand and state and local tax revenue. But when inflation is taken into account, our industry likely won't see full recovery for several more years. Nevertheless, hotel performance is trending in the right direction - great news for our industry and our employees, who are enjoying better pay, more career opportunities, upward mobility and flexibility than ever before."

U.S. HOTELS WILL generate $46.71 billion in state and local tax revenue, more than ever before, according to a survey from the American Hotel & Lodging Association and Oxford Economics. Occupancy is expected to continue its recovery, the report said, but challenges remain. Average U.S. hotel occupancy is projected to reach 63.8 percent in 2023, just under 2019's level of 65.9 percent, according to AHLA. However, the labor shortage is expected to continue this year as hotels seek to fill jobs lost in the pandemic. As of December, national average hotel wages were at historic highs of more than $23 an hour and hotel benefits and flexibility are better than ever. Nearly 100,000 hotel jobs are currently open across the nation, according to job search site Indeed. "Hotels are making significant strides toward recovery, supporting millions of good-paying jobs and generating billions in state and local tax revenue in communities across the nation," said Chip Rogers, AHLA president and CEO. "To continue growing, we need to hire more people. Fortunately, there's never been a better time to be a hotel employee, with wages, benefits, flexibility and upward mobility better than ever before."

GREATER ACCESS TO capital and addressing the severe labor shortage facing the hospitality industry were the major topics to address for AAHOA's Spring National Advocacy Conference last week. It was the final advocacy conference for Nishant "Neal" Patel as AAHOA chairman. "It was an honor to attend my final advocacy conference as chairman. We brought nearly 200 AAHOA leaders to Washington, D.C., to advocate on behalf of our industry and on behalf of AAHOA's 20,000 members," Patel said in a press release. "Creating relationships with our elected officials is a top priority for AAHOA, and we will continue to work on your behalf, strengthening relationships so we can continue to represent the entire hospitality industry with your best interests at heart." The AAHOA reps met with more than 200 elected officials. Their mission included educating those officials on the importance of hotels to their communities and the economy at large. The issues at hand were essentially the same as those addressed during AAHOA's Fall National Advocacy Conference in September. AAHOA's main advocacy objectives include: More access to capital by increasing Small Business Administration loan caps/limits - Currently, SBA 7(a) and 504 loan limits are capped at $5 million, but AAHOA wants that raised to $10 million, which would be the first increase in the cap since 2010. AAHOA said hoteliers' costs of constructing and purchasing properties have risen past that cap over the past decade.

HOTEL OWNERS NAVIGATING industry changes wrought by the pandemic face no dearth of challenges: the decline in business travel, competition from home rental apps and ongoing labor shortages are just a few. Too often, the people owning the hotels - many of them small business owners - are figuring out how to adapt to the new hospitality landscape with added complications from the hotel brands that should be their partners. While many hotel owners have struggled to maintain their livelihoods since the pandemic began three years ago, some big hotel chain franchisers sold hundreds of millions of dollars' worth of loyalty point value to credit card companies under a system that often fails to adequately reimburse the franchisees. That is the thanks these hardworking franchisees got as they worked hard to keep hotel doors open. It does not have to be this way. Generations of franchise owners have successfully embraced entrepreneurship through the franchising model. Franchising allows budding entrepreneurs to adopt a known brand name and comprehensive business strategies in exchange for a portion of the revenue. This partnership has nurtured our industry: Hotels owned by our members employ 1.1 million Americans and contribute $368 billion to the economy. But the franchising relationship needs to be a two-way street to be truly successful. That is why we must ensure that the franchise industry engages in sustainable practices that recognize and safeguard the contributions of small business owners.