Regulatory and Legal Affairs

🏨 Boutique Hotel News, in partnership with Clyde & Co, hosted a Feed Your Mind event on branded residences at Mandarin Oriental Mayfair. This event highlighted the convergence of hospitality and living, with key discussions on managing residences within legal frameworks, planning control variances across countries, and service charge considerations. Companies like Aston Martin, Belmond, and Hyatt participated. Globally, branded residences command a 30% premium. Co-located hotels are favored for shared amenities and streamlined service charges.

🏨 Netherlands: Over 25 European national hotel associations filed legal action against Booking.com over price parity clauses. 🏨 The lawsuit aligns with a September 2024 European Court of Justice ruling that challenged such clauses under EU competition law. The Stichting Hotel Claims Alliance, backed by HOTREC, leads the action for hotels linked with Booking.com from 2004-2024. Registration to join ends July 31, 2025. Booking.com argues these clauses ensure fair platform competition.

💸 Senate and House passed the No Tax on Tips Act, proposing a tax deduction up to $25,000 for employees earning $160,000 or less, adjusted for inflation. Over 400 restaurant operators urge inclusion of kitchen staff to avoid penalizing independent restaurants. Critics, including the Economic Policy Institute, warn the act may not benefit lower-wage workers effectively. The legislation retains some tax obligations and could hinder career advancement and widen income gaps in the restaurant industry.

📈 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.

🏨 National hotel associations from 25+ European countries are launching a collective action against Booking.com, supported by HOTREC. The legal move follows the ECJ ruling on 19 September 2024, declaring Booking.com's parity clauses as violations of EU competition law. Hotels can reclaim commissions paid from 2004-2024. The deadline to register is 31 July 2025. The action is coordinated by Stichting Hotel Claims Alliance, with proceedings in the Netherlands. More details at www.mybookingclaim.com.

💸 Premiums in hotel industry insurance have been rising significantly in recent years, affecting property, general liability, and umbrella policies. Increased claims and settlements, particularly from natural disasters, human trafficking, and ADA lawsuits, are key factors. The market requires more underwriting detail, safety measures, and risk management. Franchisees face challenges with fewer carriers and stricter policies, especially for older properties. Some hotels opt for higher deductibles to manage costs, while strong broker partnerships help navigate these challenges.

💰 USALI, first developed in 1926, is a standardized accounting system for the hotel industry, crucial for financial transparency and benchmarking. The 12th edition, effective January 1, 2026, includes updates for sustainability, all-inclusive hotels, labor cost transparency, and brand/operator cost reporting. Aligned with GAAP but also addressing IFRS, USALI aids in securing financing and improving comparability. Proper implementation in PMS systems is critical to reduce errors and improve financial decision-making.

🌎 May 23, 2025, Seattle: At Expedia's EXPLORE conference, leaders like Expedia CEO Ariane Gorin and U.S. Travel Association President Geoff Freeman highlighted declining international arrivals and economic pressures. They urged investment and policy reform ahead of the 2026 FIFA World Cup to harness its potential for travel growth. Key issues include infrastructure investment, simplified processes, and improved visitor experiences. Despite challenges, economic softness may lead to travel deals for U.S. vacationers this summer.