Chirag Shah

📈 Federal government reopened on Nov. 13 after a 43-day shutdown, costing the U.S. economy over $1.2 billion in hotel-related activity and $6 billion in travel and hospitality. Oxford Economics noted a 1% demand drop for airlines and hotels. 64% of surveyed hotel operators reported revenue decline. Federal Aviation Administration reduced flight schedules, causing delays. AHLA urged Congress to pass a long-term funding bill before Jan. 30 to prevent future disruptions.

💰 President Trump signed a law on July 4, making 2017 tax provisions permanent for hoteliers. Key provisions include: Pass-through deduction permanency for small-business owners, 100% bonus depreciation, no tax on tips benefiting 800,000 industry workers until 2028, and preserving Section 1031 for capital gains deferral. AHLA's advocacy ensured no new harmful tax increases for hoteliers. This provides tax certainty, allowing reinvestment and economic growth. AHLA remains focused on further industry policy goals.

📈 April 30 marked the first 100 days of President Trump’s second term, with significant changes in tax and trade policies affecting the lodging industry. The 2017 tax plan, offering cuts for small businesses, is set to expire in 2025, prompting new legislative efforts. Tariffs initiated on April 2 target Canada, Mexico, and China. An executive order on February 26 limited non-essential government travel. AHLA's Hotels on the Hill event is scheduled for May 13-14 in Washington, D.C.

🔔 The Tax Cuts and Jobs Act (TCJA) of 2017 benefits small hotel businesses, but key provisions are set to expire. More than half of U.S. hotels operate as small businesses, including women- and minority-owned ones. The Small Business Deduction (Section 199A) offers a 20% deduction until 2025, with AHLA lobbying for permanence to avoid a potential 33% tax hike. Bonus depreciation will decrease from 100% to 40% in 2025 and to 20% in 2026, ending by 2027. The Like-Kind Exchange rules have no expiration but face potential limitations. AHLA is also pushing to maintain current individual and corporate tax rates, reinstate full EBITDA deductions, make the estate tax permanent, and extend Opportunity Zones Tax Incentives. The AHLA's "2025 State of the Industry Report" highlights rising costs and labor shortages. Hoteliers will advocate in Washington at AHLA's Hotels on the Hill in May as expiration dates loom.