Regulatory and Legal Affairs - 10 Minutes News for Hoteliers - Page 10

Marriott faces backlash after Sonder liquidation

💸 Marriott faced operational risks on Nov 20, 2025, when Sonder, a partner in asset-light expansion, went into liquidation, causing guest displacements. Guests were informed that reservations were invalid, and refunds became complex since payments went directly to Sonder. This left travelers pursuing credit card disputes. The collapse resulted from Sonder’s financial decline, delayed filings, and integration issues. Critics highlight Marriott's misjudgment of Sonder’s instability, impacting its reputation.

Marriott details Sonder’s collapse and alleged safety threats

🏨 Marriott, on November 20, 2025, revealed Sonder's financial collapse, detailing rapid liquidity issues and guest risks. Sonder's cash reserves dwindled by early November, leading to potential guest lockouts. Marriott terminated their agreement on November 7 to protect guests and address global disruptions affecting 7,700 rooms. Sonder owes Marriott nearly $18 million and requested up to $28 million for wind-down support, which Marriott refused. Guest payments went directly to Sonder, complicating recovery efforts.

3 min

U.S. hotel performance for October 2025

🛠️ U.S. hotel occupancy fell for the eighth consecutive month in October 2025, reaching 65.8%, a 2.4% decrease from the previous year. Despite this, the average daily rate (ADR) rose to $167.71, up 1.5%, and RevPAR fell to $110.35, down 0.9%. New York City had the highest occupancy at 89.4%, while Tampa and St. Louis had the lowest, with Tampa at 62.5%, impacted by Hurricane Milton in 2024. CoStar's data includes over 90,000 properties globally.

3 min

Watchdog bans hotel adverts over “misleading” prices

💸 UK, April-May 2025: The Advertising Standards Authority (ASA) upheld complaints against Accor, Booking.com, Hilton, and Travelodge for misleading 'from' prices. Ads overstated deals with limited room availability at the advertised rates. Accor was cited for £27 rooms at Ibis Budget Birmingham Centre. ASA's AI identified these ads, leading to their removal and future compliance orders. Companies acknowledged the issue, promising clearer pricing.

2 min

Airlines miss out on billions in annual FX…

💵 About 40% of airline tickets bought online involve cross-currency transactions. Airlines could earn $1.74 billion more annually if they implemented Multi-Currency Pricing (MCP) on their websites. If all cross-currency transactions used MCP, revenue could reach $9.6 billion. Asia Pacific and EMEA regions hold the highest potential for FX services. Early adopter SriLankan Airlines has integrated MCP since 2021, making it a top ancillary product. Transparency in FX charges is advised for airlines.

1 min

UK regulators crack down on “from” price claims in hotel advertising

📑 Nov 19, 2025, UK: The Advertising Standards Authority banned ads from Booking.com, Accor, Travelodge, and Hilton. Their “from” price claims were misleading due to limited availability. Booking.com and Hilton failed to provide evidence of room availability at advertised rates. Accor and Travelodge offered prices valid only on specific dates. The ASA emphasized the need for clear disclosure of limited-availability prices, rejecting Booking.com's dynamic pricing defense.

3 min

Hospitable launches Owner Payouts, becoming the first PMS to deliver fully integrated owner payments

🏠 18 November 2025, San Francisco: Hospitable launches Owner Payouts, a new feature enabling direct payments to property owners within the platform. This innovation tackles manual, error-prone payment processes in the short-term rental sector. Available on the Mogul plan, it supports bank accounts in the US, UK, and Australia, with additional regions to follow. Hospitable aims to ease property managers' workloads, having automated 25 million messages and processed $4.6 billion in reservations in 2024.

1 min

Hospitality insolvencies ease to 857 in Q3

💸 In Q3 2025, 857 hospitality businesses, including hotels and restaurants, became insolvent in the UK, a slight 2.7% decrease from Q2's 881. Monthly insolvencies remain over 275. The Buchler Phillips Hospitality Index dropped from 197.3 in June to 191.9 in September. Key closures include Pizza Hut, shutting 68 restaurants and risking 1,200 jobs. The sector faces ongoing challenges with rising staff costs and consumer spending pressures.

2 min

President Trump lifts food tariffs on select items, including beef and coffee

📦 President Donald Trump, on November 14, lifted tariffs on items like coffee, tea, and beef. Previously, tariffs introduced in April affected 74% of the $221 billion U.S. food imports, with rates up to 50% for countries like Brazil. This rollback aims to soothe the restaurant industry amid a 40% rise in food costs over four years. However, tariffs remain on products like tomatoes from Mexico, wheat, and dairy. The National Restaurant Association and others support this change.

2 min

Work starts on Premier Inn conversion at Phoenix House in Vauxhall

🏠 Work has commenced on converting Phoenix House, Vauxhall, London into a 180-room Premier Inn. Whitbread signed a 30-year lease with Lambeth Council in March 2025, with planning consent in July. Construction is underway, aiming for an early 2028 opening, creating about 25 jobs. Located opposite Vauxhall Underground Station, the site is part of Whitbread's London expansion. The 10-storey, 7,469 sqm building was previously used by Lambeth Council. Strip-out is by Redhammer Demolition, ending Easter 2026.

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