Regulatory and Legal Affairs

📌 Kevin Carey, COO and Senior Executive VP of AHLA, has been appointed to the SBA's Small Business Lending Advisory Council in Washington, DC. The Council aims to advise on capital availability for small businesses, particularly in underserved communities, and to enhance small business lending practices. Carey brings expertise to support over 33,000 small business hotels in the U.S. The Council is part of SBA's efforts to boost access to capital and address lending barriers.

🚢 DFDS, a ferry operator, partners with WebBeds.com to offer hotel stay packages in Northern France, Belgium, Holland, and Germany, with exclusive discounts for bookings through their website. Packages cater to weekend city breakers, allowing flexibility with car travel and luggage. Starting from £99 per person, the deal includes a one-night stay in Bruges and ferry travel. DFDS transports three million passengers yearly and aims to be a one-stop-shop with ABTOT protection.

💸 Californians voted against Proposition 32—50.8% opposed—blocking an increase of the state minimum wage from $16 to $18 by 2026. The Associated Press confirmed the results on Election Day. California still maintains a high minimum wage, second to Washington State's $16.66 starting January 1, while California's has doubled since 2010. Fast-food workers, following AB 1228 passed in fall 2023, see a separate minimum of $20 as of April 1. However, restaurant traffic has declined nearly 6%, outpacing the national average, after the wage hike.

🌆 voco hotels opened voco The Darwin Hotel in Atlanta, Georgia, marking its first property in the city. The 111-room hotel showcases a half-century legacy and includes eco-friendly amenities like plant-based products and recycled material bedding. For leisure, guests can access an onsite dog park, cocktail bar, and a restaurant with Atlanta's Alon’s Bakery pastries. The hotel offers electric bicycle rentals for exploring local attractions. HVMG manages the hotel, adding to their portfolio of over 100 nationwide properties. Launched in 2018, voco aims to have over 200 hotels open globally by 2028, following recent and upcoming openings in Tucson, Mexico City, Cincinnati, and Laguna Hills.

💲 In Texas, U.S. District Judge Sean Jordan struck down the Department of Labor's final overtime pay rule, which would have raised the threshold incrementally to $58,656 by 2025. The rule, which went into effect on July 1, raised the yearly threshold to $44,000, impacting nearly 4 million salaried U.S. workers. However, this will now revert to the pre-pandemic level of $35,568. The Restaurant Law Center and Texas Restaurant Association's lawsuit led to this ruling, which the hospitality industry largely supports.

💸 The Federal Reserve’s recent rate cut hasn’t led to lower market interest rates, with the five-year Treasury yield at 4.31% and the ten-year at 4.47%, the highest since early 2023. BRICS nations considering their own currency could further increase U.S. rates. Gold prices are over $2,600 per ounce, indicating a move away from the dollar. September’s strong jobs report was influenced by public-sector employment, raising concerns about private-sector growth. U.S. policy could affect the hotel industry, with energy expansion possibly offset by trade tensions and tariffs. The hotel sector faces economic challenges in 2025, with financing costs remaining high.