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AAHOA IS URGING hotels to adopt cybersecurity measures to prevent incidents similar to the recent cyberattacks on MGM Resorts International and Caesars Entertainment. Following the ransomware attack on IHG Hotels & Resorts last year, which cost hotel owners between $30,000 and $75,000 each, AAHOA called for clear lines of communication to protect franchisees who bore the brunt of revenue losses from bookings missed due to the disruptions. In July, Choice Hotels International confirmed a data breach impacting guest information in its Radisson Hotels Americas chain, originating from a file-transfer system hack, according to AAHOA and media reports. The association said that most impacted franchisees are small business owners, unable to absorb unexpected booking losses. This challenge is amplified by ongoing issues like staffing shortages, which further hinder their recovery efforts. It further emphasized that with franchisor support, hoteliers can improve the guest experience and reduce the risk of disruptive incidents.

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REFORMS TO THE distribution of Small Business Administration loans, a new H2-C visa program and expansion of the Earned Income Tax Credit to benefit hotels were the main topics discussed at AAHOA's recent Fall National Advocacy Conference with legislators in Washington. Days later, AAHOA leadership met with Federal Trade Commission Commissioner Alvaro Bedoya to discuss fair franchising concerns. A day of advocacy AAHOA board members and representatives met with more than 100 agency heads and 40 U.S. senators and representatives in Washington to advocate for these and other causes for the hospitality industry.

U.S. PRESIDENTIAL CANDIDATE Vivek Ramaswamy and AAHOA chairman Bharat Patel have delved into hospitality industry issues at the inaugural AAHOA 2024 Presidential Candidate Forum. The virtual forum allowed AAHOA members and viewers to hear directly from Ramaswamy about his policy priorities, his vision for the future of America and the role of Asian Americans in the hospitality industry, AAHOA said in a statement. "Ramaswamy's choice to directly engage with AAHOA Members highlights our industry's vital contribution to the nation's economy," said Bharat Patel, AAHOA chairman. "It was an honor to meet with him on behalf of AAHOA members. It's promising to witness a presidential candidate acknowledging the substantial influence that AAHOA members exert both as everyday citizens and as dynamic entrepreneurs and small business proprietors driving the hospitality industry of this great nation.'"

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."

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THE COVID-19 PANDEMIC did not slow Magnuson Hotels' growth as it added 80 franchise agreements for its Independent Collection in the U.S. and United Kingdom in 2021. The company said its business model and focus on local markets and dynamic pricing helped it weather the storm. Magnuson is expecting continued strong performance in 2022 for the Independent Collection, which is made up of independent hotels receiving support from Magnuson. Occupancy for the collection rose 31.3 percent and RevPAR rose 43.5 percent over 2019 levels during 2021, according to a statement from the company. At the same time, according to data from STR, U.S. total occupancy for 2021 dropped 12.6 percent, ADR dropped 4.8 percent and RevPAR went down 16.8 percent. "The pandemic has seen a shift in hotel source markets, with corporate travel and international travel as we've known it removed from hotels' options. Our teams have instead looked domestically and locally at those businesses which are key to success and solid, long-term business," said Thomas Magnuson, the company's CEO. "Local government, medical, public safety, energy, transportation, construction, government, long-term corporate. The business market is now driven by essential business travel-the must-take trips, those small and medium-sized enterprises which have been getting in their cars and hitting the road."

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THOMAS MAGNUSON, CEO and co-founder of Magnuson Hotels, stood before the House of Lords in the British Parliament last week and spoke on what hotels in the United Kingdom need to continue their recovery from the COVID-19 pandemic. Much of what he said applies to U.S. hotels as well, he said. The key to success in the U.K., Magnuson said in his address, is preserving independent hotels. "Not all hotels are the Savoy," Magnuson said. "Most hotels in the U.K. are small, family owned, and endangered." In the presentation to the Travel Technology Initiative, hosted by the Baroness Ros Altmann, Magnuson said there has been a rapid decline in the number of U.K. hotels owned by independent private businesses. In 2010, independent hoteliers represented 78 percent of the U.K. hotel industry, Magnuson said. He reported that publicly traded branded hotels combined with globalism powers have reduced the native share to 50 percent in 2022. Magnuson also said that at today's change rate, the U.K. independent hotelier share will fall to 22 percent by 2026.

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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.

SPONSORS AND SUPPORTERS of the proposed Richard L. Trumka Protecting the Right to Organize Act of 2023 say it is needed to protect the rights of workers to organize under labor unions. However, the American Hotel & Lodging Association and others claim the PRO Act puts an undue burden on small businesses, including hotels. The PRO Act would authorize penalties against employers that interfere with employees' efforts to organize, according to Democratic Rep. Robert "Bobby" Scott of Virginia, one of the co-sponsors of the bill. Also, the bill would facilitate collective bargaining agreements, close loopholes that allow employers to misclassify employees as supervisors and independent contractors. Other aspects of the PRO Act include protection for employees that experience retaliation for trying to organize a union, ensures that workers can collect "fair share" fees and authorizes a private right of action for violation of workers' rights. It also prevents employers from interfering in union elections or holding captive audience meetings. "Regrettably, for too long, workers have suffered from anti-union attacks and toothless labor laws that undermined their right to form a union," Scott said. "As a historic number of Americans put their support behind labor unions, Congress has an urgent responsibility to ensure that workers can join a union and negotiate for higher pay, better benefits, and safer workplaces."

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TOTAL REVENUES FROM extended-stay hotel rooms fell by 0.2 percent in March, marking the first monthly decline in over three years, according to The Highland Group. However, the revenue decline was smaller than the 1.6 percent contraction estimated by STR/CoStar for the overall hotel industry. Meanwhile, extended-stay room supply increased by 2.7 percent in March, a slight uptick compared to the average monthly growth over the past two years, the report said. This marks the 30th consecutive month of supply growth at 4 percent or less, with the annual change remaining below 2 percent for two years. However, both these figures lag behind the long-term average. The 14.2 percent rise in economy extended-stay supply, coupled with a small increase in mid-price segment rooms, primarily stems from conversions, The Highland Group said. New construction in the economy segment is estimated to account for approximately 3 percent of open rooms compared to one year ago.