Regulatory and Legal Affairs

📦 On 12 August 2026, the EU's Packaging and Packaging Waste Regulation (PPWR), Regulation (EU) 2025/40, enforces core requirements on packaging in the EU market. It targets reducing packaging waste, enhancing recyclability, reuse, and restricting PFAS in food-contact packaging. The hospitality sector must prioritize understanding and controlling packaging to ensure compliance. By 2030, stricter design-for-recycling and single-use packaging restrictions come into effect. Compliance rests with manufacturers and importers, requiring assessments and documentation.

🏨 In the quirky world of hotel law, English common law historically compelled innkeepers to accommodate travelers, as the next inn could be 50 miles away. A humorous Texas tale suggests it was once illegal to shoot a buffalo from a hotel’s second floor. Contrary to popular belief, "Do Not Disturb" signs don't guarantee privacy; hotels may enter rooms for safety. Laws ensure guest and employee protection, reflecting evolving legal and technological landscapes in hospitality.

📈 Rep. Mark Alford, a former news anchor, was elected to the U.S. House for Missouri’s 4th district in 2022 and re-elected in 2024. By 2025, he introduced the STRONG Act to increase SBA 7(a) and 504 loan limits from $5M to $10M. He also proposed the AI for Main Street Act, co-sponsored by Rep. Scholten, to aid small businesses in AI adoption. Alford will keynote at the 2026 National Leadership & Advocacy Conference on September 15-16.

🏨 In 2023, hotel owners across the U.S. are facing costly Americans with Disabilities Act (ADA) litigation, particularly in California, where each violation can cost up to $4,000. These "drive-by lawsuits" often target minor accessibility issues, like parking signage or desk height. Plaintiffs and law firms exploit these violations for financial gain, with settlements often reaching $12,500. Legislation like Arizona's 2017 law and proposed California bills aim to reduce these suits by allowing businesses time to rectify issues.

📖 Hotels face significant challenges from human trafficking, with over 60% of sex-trafficking victims reporting exploitation in hotels, according to a Polaris Survivor Survey. US state and federal legislation now mandates hotels to prevent and report trafficking. Comprehensive strategies—which include training, reporting protocols, and communication both internally and externally—are essential. These strategies should involve all staff levels and be tailored by department. Legislative compliance varies, with training typically required annually or biennially.

🐞 May 2025, Ventura, CA: A jury awarded $2 million to hotel guests for bedbug bites. March, Manteca, CA: A $245,500 award for a family in a bedbug lawsuit. Florida tourist sues Disney for $50,000+ over bedbug bites. Bedbug claims grow as attorneys seek hotel complaints online. Hotel owners face increased bedbug litigation costs due to lack of insurance coverage. Prevention, documentation, and training are key to reducing legal risks and maintaining guest safety in hotels.

📈 Worker misclassification in hotels is a common issue, often involving contractors like housekeeping or maintenance staff who work regular schedules and use hotel equipment. The IRS and Department of Labor define employee versus contractor status based on control and economic reality. Misclassification leads to tax liabilities and unpaid wages. Addressing this proactively by reviewing worker conditions and consulting legal experts can prevent penalties. Enforcement and state laws may vary, making compliance crucial for hotel owners.

💸 United Arab Emirates (UAE) offers a 9% corporate tax and 5% VAT, with strong tourism investment and connectivity, yet high rents and competition persist. Singapore has a 17% tax rate, but high costs prevail. Portugal presents a 19% tax and supportive business conditions but faces seasonality. Estonia promotes reinvestment, with tax on distributed profits. Georgia offers low costs and ease of setup, but geopolitical risks remain. Saudi Arabia targets major tourism growth with a 20% tax for foreign investors.

💰 AAHOA members held a significant conference in Washington, D.C., on September 15–16, 2026. Key discussions focused on federal policies impacting hotel businesses. AAHOA represents 60% of U.S. hotels, supporting 4.2 million jobs. U.S. Rep. Mark Alford advocated increasing SBA loan limits to $10 million under the STRONG Act. Other legislative priorities included supporting the LIONs Act, Lawsuit Abuse Reduction Act, American Franchise Act, and Credit Card Competition Act to bolster growth and protect hotel owners.

📦 Sep 21, 2026: Booking Holdings’ €1.63 billion bid to acquire Etraveli, Europe's top online flight seller, was blocked by a European court, citing potential market dominance. Despite the absence of direct harm to hotels, concerns about market concentration justified the decision. Booking Holdings sold 36 million airline tickets in 2023, 49 million in 2024, and 68 million in 2025. While extending its Etraveli partnership into 2028, the acquisition remains prohibited.