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THE NEW JERSEY legislature has passed legislation that will place new requirements regarding employees when a hotel changes hands. Hospitality and business associations are objecting to the law, saying it will hinder hotels' recovering in the state. Assembly Bill 6246 will, among other things, require new owners of a hotel to keep all employees on staff for at least 90 days after the purchase without reducing their wages or benefits. The bills also would require the previous owners to provide a list of all employees' names, addresses, hiring dates, phone numbers, wage rates and employment classifications at least 30 days before the change in control, according to the legislation. It also sets terms for how the new owners can reduce staff if necessary during the retention period as well as how violations of the law should be addressed. The proposed law is well intended, but flawed, Ray Cantor, vice president of government affairs for the New Jersey Business & Industry Association told Center Square newspaper.

HOSPITALITY INDUSTRY ASSOCIATIONS are welcoming two laws, one proposed on a federal level and another passed by the state of Tennessee. The federal law is long-awaited clarification of the definition joint employers and the Tennessee law limits regulations by local governments in the state that would affect small businesses, including hotels. A clear definition Versions of the Save Local Business Act recently was introduced in the U.S. House of Representatives and the Senate. Sponsors of the bill say it will provide clarity on Department of Labor's proposed new joint employer rules that have undergone multiple changes lately, leading to legal confusion. "You can't focus on running a business if the federal government keeps changing the rules. The Save Local Business Act provides long-overdue clarity and consistency that will protect our nation's small businesses," said one of the bill's sponsors, U.S. Sen. Roger Marshall. "The Biden Administration's Labor Department has relied on complicated court rulings to handle joint employers instead of providing clear guidance to the business community. In a time of economic hardship, we should be doing all that we can to help our nation's small businesses, not let the heavy hand of government regulations run amok."

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THE NEW YORK City government implemented new regulations last week, enabling oversight of short-term rentals. These rules now mandate hosts to register with the city when renting their homes for less than 30 days, and AAHOA issued a statement supporting the law. Under this rule as of Sept. 5, platforms such as Airbnb, Vrbo, and Booking.com are required to confirm a host's registration approval before processing fees. Failing to register a rental listing could lead to penalties of up to $1,500 per transaction for these platforms, while hosts themselves face potential fines of up to $5,000. "[The Mayor's Office of Special Enforcement]'s initial phase of Local Law 18 enforcement will focus on collaborating with the booking platforms to ensure they are using the city's verification system, that all verifications are occurring correctly, and that the platforms stop processing unverified transactions," said the OSE's website.

A NEW JERSEY bill that will reform the franchise business model in that state took another step forward today, moving from the Assembly to the Senate, and supporters, including AAHOA, expect it to become law this year. However, the American Hotel & Lodging Association has come out in opposition to the law, saying it would "undermine the foundation of hotel franchising." New Jersey Assembly Bill A1958 would make changes to the New Jersey Franchise Practices Act. AAHOA has been supporting the bill, saying it mirrors several concerns included in its 12 Points of Fair Franchising. Specifically, it would reform rules for mandated vendors, rebates, loyalty programs and new fees, AAHOA said in a statement. "New Jersey has long been a state with a strong entrepreneurial culture that has been welcoming to immigrants, including many AAHOA members," said AAHOA Chairman Bharat Patel. "The state Assembly recognized that and took a step toward making New Jersey a better place for small businesses with today's vote to advance fair franchising principles. New Jersey can be an example to the nation for supporting franchising practices that allow hotel owners to achieve the American dream." AAHOA supports the preference of certified women-owned, minority-owned and veteran-owned businesses to serve as the mandated and preferred vendors for the franchise business model.

A LAWSUIT FILED in federal court in Washington state alleges that STR, owned by commercial real estate information researcher CoStar Group, along with several major hotel companies conspired to inflate luxury hotel rates. The seven individuals named as plaintiffs in the lawsuit seek to make it a class-action filing on behalf of every person who stayed at the defendants' hotels from February 2020 until the present for an unspecified amount. CoStar and hotel companies including IHG Hotel & Resorts, Marriott International and Hyatt Hotels Corp., entered an exchange of "competitively-sensitive information about their prices, supply, and future plans" in violation of the antitrust provisions of the Sherman Act, according to the lawsuit. STR and most of the other defendants in the suit did not respond to requests for comment in time for this article, but a spokesperson for IHG said the company could not comment on pending litigation. "Teddy Roosevelt passed the antitrust laws to prevent titans of industry from price fixing in smoke-filled rooms," Steve Berman, the plaintiffs' lead attorney told Reuters, calling the defendants' conduct the "modern equivalent." The alleged price fixing happened in major cities including Boston, Chicago, Los Angeles, New York, San Diego, Denver, Washington, D.C., and Seattle. The lawsuit focuses on STR's "Forward STAR" product that was expanded into many of those markets in April after launching 17 of the country's 25 largest hotel markets, including Las Vegas, New York City, Los Angeles, Washington, D.C., Boston and Phoenix.

AAHOA MEMBERS RECENTLY testified in support of New Jersey Assembly Bill 1958, which would make changes to the New Jersey Franchise Practices Act that could benefit the hospitality industry. The association's support for specific parts of the bill is at the center of a division between AAHOA and two major hotel companies over franchise reform. On March 22, 30 AAHOA members attended a hearing of the New Jersey Assembly Commerce and Economic Development Committee during which the bill was passed out of the committee. Several of the members also testified, according to AAHOA. AAHOA members own 45.4 percent of New Jersey hotels, representing 46,124 rooms, the association said. "As the largest hotel owners association, representing the exclusive interests of America's hotel owners, AAHOA showed up in New Jersey to testify in support of amendments to the legislation to improve the franchise model," said Nishant "Neal" Patel, AAHOA chairman. Last May, a contingent of AAHOA members testified in favor of the bill in front of the New Jersey Assembly Judiciary Committee, particularly the aspects of the bill that match AAHOA's 12 Points of Fair Franchising. Specifically, the franchise reform changes supported by AAHOA include restricting non-competes for longer than six months; prohibiting requiring a relocation or capital investment greater than $25,000 more than once every five years unless hotel franchisers can establish a return on the investment; requiring a franchiser that receives "any rebate, commission, kickback, services, other consideration or anything of value" to fully disclose them to the franchisee and turn them over to the franchisee; putting restrictions on mandatory sourcing of goods or resources; and prohibiting suspending, restricting or preventing access to franchise services.

THE PROPOSED FRANCHISE reform legislation in New Jersey that has driven a rift between AAHOA and several large hotel companies has stalled in the state's legislature. AAHOA said it was misinformation that delayed the bill's passage, while the American Hotel & Lodging Association said the bill "would have destroyed the hotel industry's franchise model." It will return Assembly Bill 1958 would make changes to the New Jersey Franchise Practices Act that could benefit the hospitality industry, AAHOA said previously. Specifically, the changes include restricting non-competes for longer than six months; prohibiting requiring a relocation or capital investment greater than $25,000 more than once every five years unless hotel franchisers can establish a return on the investment; requiring a franchiser that receives "any rebate, commission, kickback, services, other consideration or anything of value" to fully disclose them to the franchisee and turn them over to the franchisee; putting restrictions on mandatory sourcing of goods or resources; and prohibiting suspending, restricting or preventing access to franchise services.

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NATALIE ROBINSON IS now vice president of people and culture for Peachtree Group. Also, the Atlanta-based company, led by Jatin Desai and Mitul Patel as managing principals, also says it's on the way to a record year for new hotel construction. Good with people Previously, Robinson was the human resource director of title company OS National, according to Peachtree Group. She began her career developing accounting and billing policies and procedures, as well as human resources systems for two Atlanta law firms. She holds a bachelor's degree in sociology and criminal justice from the University of Georgia. "It's an exciting time at Peachtree as our organization expands and evolves," said Vivian Clarke, Peachtree's senior vice president of people and culture. "Natalie's strong leadership skills will advance our culture, drive our growth and talent strategy, and strengthen our reputation as an employer of choice. We are proud of Peachtree's high team member engagement, and the company culture built and recognize the opportunity to improve our people processes and discipline as we further scale the business." Peachtree made several changes to its structure and leadership in September.

STAFF MEMBERS OF two hotel industry associations donned blue in January to recognize National Human Trafficking Prevention month. AAHOA and the American Hotel & Lodging Association also sought to encourage hotel owners to take advantage of their educational programs on detecting and preventing trafficking in their properties. Like his predecessors since 2010, President Joe Biden issued a proclamation officially designating January as the month to focus awareness on trafficking prevention, according to the U.S. Department of State. The month recognizes the work done by foreign governments, international organizations, anti-trafficking entities, law enforcement officials, survivor advocates, communities of faith, businesses and private citizens to raise awareness about human trafficking, the State Department said. "Since human trafficking disproportionately impacts racial and ethnic minorities, women and girls, LGBTQI+ individuals, vulnerable migrants, and other historically marginalized and underserved communities, our mission to combat human trafficking must always be connected to our broader efforts to advance equity and justice across our society," Biden said in his proclamation.

THE AMERICAN FRANCHISE business model is in trouble, according to a recent survey commissioned by AAHOA. The survey was inspired by a webinar AAHOA co-sponsored to gather public comment on the state of franchising for the Federal Trade Commission. The survey found that only 5 percent of the franchisee respondents are satisfied that their current franchise agreements provide fair terms representing a balanced relationship between themselves and their franchiser. Also, 72.6 percent of respondents would "possibly" or "probably" terminate their current franchised business within the next year if they could do so without penalty. "Franchising is in dire straits unless changes are made," said Laura Lee Blake, AAHOA president and CEO. "Franchising is still a powerful tool for economic mobility for America's small-business owners, including AAHOA Members. But franchising only works when both franchisors and franchisees are committed to its success, which requires transparency, fairness, and sustainable business practices. As this survey shows, there is much room for improvement when it comes to relationships that allow our small-business owners to thrive." Blake recently wrote an editorial supporting AAHOA's 12 Points of Fair Franchising and its promotion of a proposed New Jersey law that would reform that state's franchising regulations in ways similar to the 12 points. Several large hotel companies, including Choice Hotels International and Marriott International, protested AAHOA's recent annual convention in protest to its position on franchise reform The survey was conducted among owners of hotels, restaurants, retail stores and other small businesses that had participated in the FTC webinar. It was co-sponsored by the American Association of Franchisees and Dealers, and the Coalition of Franchisee Associations, conducted the survey after a recent webinar with FTC Chair Lina Khan. The FTC is soliciting comments through June 8 about issues that affect franc

BWH HOTEL GROUP has announced the recipients of the first ever David and Louise Kong Legacy Scholarship. The scholarship grants financial assistance to individuals associated with Best Western Hotels & Resorts. The four winners are Alexis Heichman of Eagle, Ashley Hernandez, of Patterson, and Phoenix residents Katerina Rose Levendi and Kayla McMahon, the group said in a statement. They will receive $12,000 as part of funding. Heichman will begin her journalism studies at Arizona State University this fall. She wants to be a travel, cultural or sports correspondent. Hernandez will continue her bachelor's degree studies in hotel and hospitality management. She is currently the general manager of the Best Western Plus Villa Del Lago Inn. Levendi now studies business at Paradise Valley Community College and wants to become a human resources manager. McMahon will start studying business administration and management at Arizona State University this fall. Her career interests is in family law and business. The scholarship is given to member hoteliers or their children, hotel staff or their children, and corporate associates or their children, the statement added.

From the courtroom to the halls of Congress, Laura Lee Blake has been representing AAHOA in some capacity for more than a decade now. For the past year she has served as the organization's president and CEO, and recently she sat for Asian Hospitality's Leadership Series to discuss the issues facing the association today. Those issues include the promotion of franchise reform, programs to advance women in the hotel industry and her future plans in her role at AAHOA. Blake's work for the association began well before her current appointment. Making the decision Blake, who is an attorney, worked with AAHOA from 2005 to 2014, then left to return to her law firm in Newport Beach, California. She had just started a trial on a big case when AAHOA offered her the president position.

IT'S BEEN A tough year for women in the hospitality industry, but progress has been made as more female executives took leadership roles, according to an annual report from the Castell Project, a nonprofit focused on promoting women in the industry. The next challenge, according to the project, is getting more women in hospitality education programs. Castell Project founder and chairwoman Peggy Berg released the 2022 Women in Hospitality Industry Leadership report during the Americas Lodging Investment Summit in Los Angeles earlier this week. During the conference, Berg received the ISHC Pioneer Award for her work in the industry, and she told a story during her acceptance speech that encapsulates where women are coming from in the industry. When she was in college, Berg said, the Equal Employment Opportunity Act lifted the restrictions on women working. So, she walked into a large firm looking for a job. "The partner in charge of the office, Jerry, he took one look at me and said 'Well, this will never work.' And then because of the EEOA, he said, 'I will give you a job if you promise not to get pregnant for two years,'" Berg said. "Jerry thought this was impossible. I thought Jerry didn't understand the law. Mostly I thought, if that's the barrier to success, the best vertical I have to cross, I can run this company. And a few years later, 140 men found themselves with a female partner."

MAJOR U.S. HOTELS firms Marriott Hotels & Resorts and Hyatt Hotels Corp. announced that they are ceasing operations in Russia due to its ongoing invasion in Ukraine. Also, AAHOA issued a statement condemning the war. The hotel companies also emphasized their efforts to ensure the safety and wellbeing of their employees and guests in both Ukraine and neighboring countries who face these 'unconscionable challenges'. "We have made the decision, effective immediately, to close our corporate office in Moscow, and pause the opening of upcoming hotels and all future hotel development and investment in Russia," Marriott said in a statement. "We have been closely monitoring the deteriorating situation in Ukraine, Russia and neighboring countries, and remain in regular contact with our teams on the ground, as we work to comply with sanctions and applicable laws. Our hotels in Russia are owned by third parties and we continue to evaluate the ability for these hotels to remain open."

THE PARTNER PROGRAM of American Hotel & Lodging Association reached a record 27 members with the addition of six new partners. The program offers industry suppliers and service providers an opportunity to engage directly with AHLA members at an executive level and increase brand visibility. Proskauer's Hospitality, Gaming & Leisure Group becomes a Gold Partner in the program, the association said. It has one of the broadest and longest-standing commitments to the hotel and lodging sector among major global law firms and has experience in handling every relevant issue in the industry. The five Silver Partners are Guest Worldwide, Marsh, NewGen Advisory, Relay and WizeHire, said AHLA.

Recently, Larry Cuculic, president and CEO of BWH Hotel Group, sat down with Asian Hospitality to share his insights into the status of the Best Western Hotel brand and the industry as a whole. A video of the entire interview, the first in Asian Hospitality's "Leadership Series," is now available on the magazine's website. Subjects included the labor crisis, attracting new franchisees and the state of the economy. Below are excerpts from the interview along with additional information on the subjects discussed, including franchise relations, the labor crisis and changes the company has seen since his appointment to the top role. Franchise relations One of the biggest issues Cuculic discusses in the interview is maintaining positive relations with Best Western franchisees. He emphasized the need for openness and transparency. "We disclose all of our contract terms throughout the negotiation. I tell our people, I believe in karma," Cuculic said in the Leadership Series interview. "Karma doesn't forget a name or an address. If you treat someone who's thinking about coming into your brand reasonably fairly, and then when they sign a contract, you drive revenue to them, that's a win-win relationship. That's what we want. If you don't have that win-win relationship, they're going to leave and your reputation is that you don't support your hoteliers or believe in that relationship, which then hinders development." Cuculic said his training at West Point Military Academy and law school at Notre Dame University instilled in him an innate sense of fairness. Also, due to its structure, the company has to involve its members in every decision. "I'm the president, CEO of Best Western, I cannot design a governance change," Cuculic said. "The members vote on all those changes. Our board of directors approves our contracts."

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."