Regulatory and Legal Affairs

💸 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.

🛫 Travel experts predict an 8.2% decline in international travel to the U.S. in 2025, reversing an expected 9% increase. Visitor spending is projected to drop by 4.2%, or $8.3 million. Canadian air travel to the U.S. fell 35.6%-43%, while travel to Mexico rose 11.8%-13.5%. Key factors include tighter travel budgets, a strong dollar, and negative global sentiments towards the U.S. Vermont businesses consider “Canada Days” to boost tourism. Staffing challenges persist amid fluctuating demand.

💸 PPHE's Q3 revenue increased by 5.2% to £155.9m, with like-for-like revenue at £154.7m. Occupancy improved to 80.2%, and RevPAR grew 2.7% to £140.3. UK hotels showed growth, while the Netherlands and Germany faced challenges. Croatian properties performed well despite lower occupancy. PPHE focuses on cost control amid tax hikes in the UK and Netherlands and inflation concerns. The FY 2025 outlook remains stable, with new art’otel locations in London and Rome showing promising occupancy.