Regulatory and Legal Affairs

🏠 UKHospitality forecasts England's hospitality venues will see an average business rate increase of over £32,000 in three years. By 2028/29, rates may rise from £20,835 to £40,409, a 94% increase. Holborn and St Pancras face a £96,429 hike, while Leeds West and Pudsey see £12,297 more. Despite transitional relief and a sector-specific multiplier, costs rise. UKHospitality urges a 20p reduction in the business rates multiplier, warning of potential closures and job losses.

🤝 California, 2026: Employers face significant labor law updates including expanded paid leave, AI regulations, and strengthened pay equity. AB 858 mandates rehiring of displaced workers; SB 303 requires bias mitigation training. From January 1, 2026, AB 692 bans “quit fees.” SB 553 enforces workplace violence prevention plans. December 18, 2025: Senate confirms James Murphy and Scott Mayer to the NLRB, restoring quorum. October 1, 2025: AI anti-discrimination rules effective under FEHA. Compliance is critical as local ordinances grow.

💸 As 2025 ends, hotel owners face rising costs and slowed revenue growth. HVS data shows 2025 occupancy dips and moderated ADR growth. Labor costs rose 26.5% from 2020 to 2024. The budget focus for 2026 shifts to maintaining profitability margins through efficient management. Structural cost pressures, like outdated labor models and brand standards, require active asset management to protect margins, as rate growth won't suffice. GOP margins decline across all property types.

💸 Bank of England cuts interest rates to 3.75% from 4% on 3 December 2025, marking the lowest since February 2023. The Monetary Policy Committee's decision was split 5-4. Inflation fell to 3.2% in November, driven by decreases in food, alcohol, and clothing costs. Despite this, the rate remains above the 2% target. Budget measures such as energy bill reductions are expected to aid further inflation decline. Governor Andrew Bailey emphasizes ongoing vigilance regarding inflation and labor market trends.

🏨 AHLA, led by CEO Rosanna Maietta, supports the American Franchise Act, introduced in the Senate to protect hotel franchises, which sustain 3 million U.S. jobs. Senators Marshall and King championed the bill. AHLA, representing 30,000 members including 80% of franchised hotels and the 16 largest U.S. hotel companies, advocates from its Washington, D.C. base. The move is crucial for economic growth and supporting small business hotel owners nationwide.

🏨 Senators Marshall and King introduced the American Franchise Act in the Senate to protect the hotel franchise model. This act is crucial for nearly 3 million jobs nationwide, supporting small business hotel owners and economic opportunities across the U.S. The American Hotel & Lodging Association CEO, Rosanna Maietta, emphasized its importance for the American Dream and urged quick legislative approval. Washington, D.C., is the focal point for these legislative efforts.

🎮 Atari has launched a public equity offering for its first hotel in Phoenix's Roosevelt Row Arts and Entertainment District. The development, led by Intersection Development and designed by räkkhaus, has seen a $14 million investment and aims to raise $35-$40 million more. It will feature 91 tech-enhanced rooms, creator studios, dining venues, and an e-sports arena for 2,000+ people. Construction begins in early 2026, with opening planned for late 2028. Minimum investment is $500.

💰 Over 1,000 German hotels can claim damages from Booking.com, confirmed by the Berlin Regional Court on Dec 17, 2025. Between 2013 and early 2016, 1,099 hotels were affected by anticompetitive price parity clauses that restricted pricing freedom. Booking.com’s liability is established, but compensation amounts are undetermined. This ruling is part of a European trend reinforcing hotels' distribution strategies. Despite some claims being rejected, Booking.com maintains its clauses benefited both travelers and partners.

💨 Hyatt Hotels Corporation has announced that due to Hurricane Melissa's impact in October, its Jamaican properties will remain closed until November 1, 2026. Affected hotels include Breathless Montego Bay, Dreams Rose Hall, and Hyatt Zilara. Guests can rebook at other Inclusive Collection resorts or cancel without penalty. Hyatt is committed to Jamaica's recovery and renovation efforts, assisting guests through their Global Care Center. As of June 30, 2024, Hyatt's portfolio included over 1,350 hotels globally.