Regulatory and Legal Affairs

🏨 WASHINGTON—In September 2024, the American Hotel & Lodging Association (AHLA) praised the U.S. House for key tax provisions in the Budget Reconciliation package, benefiting small business hotel owners. The provisions include the permanency of the Small Business Deduction (Section 199A), preservation of Like-Kind Exchange (Section 1031), and a five-year extension of 100% bonus depreciation. These measures aim to prevent tax hikes, encourage reinvestment, and stimulate economic growth. AHLA urges Senate approval and President Trump's signature.

💰 Sen. Ted Cruz introduced the "No Tax on Tips Act" in January, passed unanimously in the Senate on Tuesday. If enacted, it offers a $25,000 tax deduction for tipped employees earning $160,000 or less. However, 37% of tipped workers in 2022 did not qualify for federal income tax. The bill requires employer payroll taxes and state taxes on tips. Nevada has the highest per capita tipped workers, which Sen. Catherine Cortez Masto emphasized in her support.

💸 Switzerland's price watchdog, on May 22, 2025, mandated Booking.com to cut hotel commission fees by nearly 25% under national pricing laws. This decision, applicable for three years once enacted, comes amidst a broader European trend for greater OTA pricing transparency. Booking.com, planning an appeal, has three months to comply. The commission rates remain unchanged during the appeal. Swiss law already forbids OTAs from enforcing price parity clauses, aligning with recent European Court of Justice support for hotel price flexibility.

💰 U.S. Senate unanimously passed the "No Tax on Tips" Act aimed at allowing hospitality workers to keep more of their earnings. Rosanna Maietta, President and CEO of the American Hotel & Lodging Association (AHLA), praised this bipartisan effort. The Act benefits hundreds of thousands of hotel employees, including housekeepers, valets, food service workers, and bellhops. Key supporters include Senators Ted Cruz and Jacky Rosen, highlighting their leadership in this initiative.

🛑 May 21, 2025, UK. Since April 6, 2024, the Digital Markets, Competition and Consumers Act mandates full upfront pricing in travel bookings, including fees. An investigation by Which? Travel indicates major companies like Trivago and Loveholidays might be violating this by not listing mandatory fees upfront. While Booking.com, Expedia, and Hotels.com comply, others do not, creating discrepancies. BA Holidays is criticized for not disclosing true prices until late stages, citing “availability changes.”

🚨 Charles Seifert, founder of ItBox, suggests the Building Safety Act 2022 may be amended in autumn 2025 to include hotels. The Act currently covers buildings over 18 meters or with seven or more stories with at least two residential units. The Building Safety Regulator (BSR) has assessed few of the 14,000 residential buildings. If hotels are included, owners must prepare for potential compliance complexities to avoid penalties, including criminal charges and fines.

💼 Location: Brussels, Belgium. HOTREC seeks a Public Affairs Manager for digital and economic policy advocacy at the EU level. The role involves working with EU institutions, stakeholders, and HOTREC’s 47 member associations. Applicants need 5+ years of relevant experience. Deadline: 2 June 2025. Apply with a CV and cover letter to Sergey Golyshin at [email protected]. More details on the Euractiv JobSite.

🏨 This week, over 250 American Hotel & Lodging Association (AHLA) members met with U.S. Senate and House lawmakers in Washington to discuss hospitality sector priorities amid Budget Reconciliation and tax talks. Key issues included tax and trade policies affecting hotel costs and travel demand. AHLA advocated for tax provisions like the Small Business Tax Deduction, Bonus Depreciation, and "No Tax on Tips." Discussions also covered workforce expansion and the H-2B visa program.