Regulatory and Legal Affairs

🏨 Jeremy Jones, Christie & Co, examines UK hotel inheritance tax impacts. When? From 6 April 2026. Where? UK. What? New inheritance tax rules will provide only 50% relief on asset values above £1 million. How? Hotel owners face reduced tax relief, influencing succession planning. In H1 2025, single-asset transactions surged to 85%, up from 18% in 2024. Independent hotels see robust demand despite cost pressures. Upcoming Autumn Budget on 26 November may further impact hotel profits.

🌊 The Maldives plans to amend its SEZ Act to promote Sustainable Townships, integrating hospitality, real estate, health, education, and renewable energy. Projects over USD 500 million qualify, with tax incentives (5% for 10 years, 10% after). A real estate transfer tax starts at 1%, rising to 4% on third transactions. These changes align with Vision 2040, focusing on economic diversification and sustainability, aiming to attract high-value investments and long-stay visitors.

💸 Bank of England (BoE) held interest rates at 4% on 26 November 2025. The Monetary Policy Committee voted 5-4 to maintain the rate, despite four members wanting a 0.25% cut. Inflation stood at 3.8% in September, unchanged since July, with high transport inflation. Governor Andrew Bailey noted less urgent inflation risks and potential for policy easing if disinflation persists. Chancellor Rachel Reeves aims to reduce inflation and support economic growth in the upcoming Budget.

🛬 Europe is experiencing its biggest border transformation since Schengen. As of October 2025, nation-by-nation rollout of the Entry/Exit System (EES) began, collecting biometric data from non-EU visitors. In 2026, the European Travel Information and Authorisation System (ETIAS) will require pre-trip authorisation. Airlines must verify passenger data, risking fines if unprepared. Many travelers remain unaware of these digital requirements, placing additional burdens on airlines to manage new responsibilities effectively.

📌 The U.S. General Services Administration (GSA) announced that per-diem rates for FY2025 will remain at $178/day, with $110 for lodging and $68 for meals/incidental expenses. Despite cuts to government travel, these rates remain crucial for hotels, especially near military bases. Increases of $9/night for FY2024 and $3/night for FY2025 were made after advocacy from AHLA. The hospitality sector anticipates challenges with flat rates amid rising costs and upcoming global events like the FIFA World Cup and USA250.

📈 The U.S. government shutdown, ongoing for one month, is projected to cost $7-$14 billion. Washington, D.C.’s $8 billion restaurant market, with 2,660 establishments, is heavily impacted. Upscale restaurants face a 6.8% drop in traffic and a 5.7% drop in sales. The shutdown, combined with consumer pessimism and fewer government employees, exacerbates the situation. The Cheesecake Factory anticipates a 1% revenue decline for Q4. Analysts suggest a conservative outlook as companies like CAVA and Sweetgreen face high exposure in D.C.