Regulatory and Legal Affairs

📈 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.

🏨 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.

🛬 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. 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.

💸 US government shutdown since October 1 has cost the hotel industry $650 million, losing $31 million daily. Over 30 hospitality associations, including AHLA, plead for resolution to protect holiday travel. Shutdown impacts travel, causing trip cancellations and weakened consumer confidence. The hotel sector supports 2.1 million direct jobs and almost nine million overall. Rosanna Maietta, AHLA’s CEO, calls for urgent government action to safeguard the vital travel and hospitality sectors.