Regulatory and Legal Affairs

545 posts

Legal and regulatory news for hospitality: laws, compliance and policy affecting hotels and their operators.

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Gran Canaria halts new short-term rentals

🏠 Nov 13, 2025: In southern Gran Canaria, a five-year moratorium on tourist-apartment licences has been enacted, reshaping the holiday-rental market. Existing licences remain valid, but new ones are banned, affecting property values. Licensed properties may rise in value, while new or unlicensed units decline. Licence transfer restrictions add uncertainty. Local councils now control tourist accommodation planning. The law caps tourist housing at 10% of residential stock and aims to protect housing supply and curb over-tourism.
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Sonder’s collapse ends the tech-hotel experiment

💸 Nov 12, 2025, Sonder, once valued over $2 billion, filed for bankruptcy, exposing the flaws in tech-branded hospitality. Unlike Airbnb's model, Sonder's asset-heavy approach magnified losses by leasing and managing units. A $126 million deal with Marriott collapsed due to integration issues, hastening financial decline. The fallout included displaced guests, unpaid landlords, and job losses. This mirrors WeWork's trajectory, highlighting investor skepticism and a shift towards hybrid models.
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Sonder shuts down after Marriott deal collapse

💸 Nov 11, 2025, U.S.: Sonder ends all operations, filing for bankruptcy after Marriott ends their licensing agreement. Interim CEO Janice Sears cites tech challenges and high costs. Marriott distances itself, focusing on guest care. Sonder's lease-based model collapses, worsened by the pandemic. The company, which raised $680 million and went public via SPAC in 2022 with a $1.9 billion valuation, faced a leadership and liquidity crisis, culminating in Marriott terminating the deal on Nov 9, 2025.
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Sonder initiates immediate wind down of operations

📈 Sonder Holdings will wind down its US operations immediately, seeking Chapter 7 liquidation due to financial struggles from integration challenges with Marriott. Marriott terminated their 2024 agreement to add over 9,000 Sonder units, affecting Marriott's projected 2025 net room growth, now adjusted to 4.5%. Sonder properties are no longer bookable through Marriott, and Marriott is prioritizing support for existing guests and addressing bookings made through other channels.
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Planning for the future: the role of inheritance tax changes in hotel sale decisions

🏨 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.
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BoE holds interest rates at 4% ahead of Budget

💸 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.
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How Sabre’s air bookings dropped during the government shutdown

📈 Sabre reports a decline in air bookings due to the ongoing U.S. government shutdown, impacting government and military travel—accounting for 4% of their volume. While air bookings rose 7% in September 2025, October saw a downturn. Hotel bookings rose 6% in Q3 2025. Sabre revises air distribution growth forecasts to 6–8% in Q4. Recovery hinges on the shutdown ending soon, potentially into early 2026. Sabre explores new distribution models to offset losses.
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Guest Post: We’ve not had travel…

🛬 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.
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US hotel stays cost more as cities raise bed taxes

💸 Nov 4, 2025, rising hotel taxes in U.S. cities including Washington DC (15.95%), New York City (~14.75% plus nightly fees), and Las Vegas (~13%) are increasing travel costs. San Diego's Measure C allows up to a 13.75% hike to fund convention centers and homelessness programs. The trend encourages travelers to consider alternative accommodations. While some states like California set local taxes, others like Hawaii add state and county surcharges, resulting in high combined rates.
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