Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently senior editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers. Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
WITH JUST OVER one month to go before the presidential election, hotel industry associations are in Washington, D.C., advocating for legislation they say will benefit their members. More than 400 members of AAHOA and the American Hotel & Lodging Association met with members of Congress to discuss issues including workforce expansion, tax relief and transparency in OTA fees.
Around 200 AAHOA members and leaders attended the association’s Fall National Advocacy Conference on Sept. 18 and 19. They held nearly 200 meetings with Senate and House members and their staff to discuss issues.
Also, more than 200 hoteliers and industry leaders from 36 states flew in for AHLA’s annual Hotels on the Hill event on Sept. 24. They held more than 150 meetings.
AHLA emphasizes economic power
AHLA said in a statement that the hotel industry has earned some attention on the federal level. There are nearly 64,000 hotels in the country that together were expected to pay employees a record $123 billion in wages, salaries and other compensation this year while generating nearly $83.4 billion in tax revenue. The industry also supports nearly 1 in 25 American jobs.
“Nothing is more effective at shaping public policy for our industry than when hoteliers and their employees tell their stories directly to legislators,” said Kevin Carey, AHLA’s interim president and CEO. “From tax policies that promote small business growth, to expanding the hotel workforce, to challenging burdensome regulations, there’s no limit to what hoteliers can achieve when we’re united and speak with one voice. Hotels on the Hill gives us a unique opportunity to do just that.”
Chirag Shah, left, executive vice president for federal and political affairs and counsel for the American Hotel & Lodging Association, and Mitch Patel, founder and CEO of Vision Hospitality Group and AHLA board of directors vice chair, welcome attendees to AHLA’s 2024 Hotels on the Hill congressional fly-in event in Washington Sept. 24.
Some of the proposed legislation that AHLA is supporting include:
The Closing the Workforce Gap Act would replace the arbitrary annual cap of 66,000 available H-2B temporary visas with a new, needs-based system.
Extending a pass-through tax deduction, 199A, which is set to expire in 2025 and provides tax relief to franchisees and other hotel small businesses.
Maintaining the like-kind exchange, section 1031, which allows hoteliers to defer capital gains taxes when they sell one property if they roll the proceeds into the purchase of a larger one. According to AHLA, the exchange helps create new jobs and contributes to economic growth.
The Hotel Fees Transparency Act and the No Hidden FEES Act would establish a single and transparent standard for mandatory lodging fee display and an even competitive playing field for hotels, short term rentals, online travel agencies, and metasearch sites.
"As hotel owners, we understand our businesses and the industry better than anyone," said Miraj Patel, AAHOA’s chairman. "It's crucial that the voices of AAHOA members are heard and their realities are taken into account when policymakers are making decisions that affect their livelihoods and businesses."
Miraj Patel, AAHOA’s chairman, with Republican Sen. Ted Cruz of Texas. Cruz was the keynote speaker at the opening Congressional Reception for AAHOA’s Fall National Advocacy Conference on Sept. 18 and 19.
Republican Sen. Ted Cruz of Texas was the keynote speaker at the conference’s opening Congressional Reception for AAHOA members and legislators.
"It was an honor to have Senator Cruz as the keynote speaker at this year's event," Patel said. "As a fellow Texan, I'm proud to see strong leadership from our state. His insights on the challenges facing our industry and the broader economy are invaluable, and his commitment to advocating for small businesses like ours is something all AAHOA members can appreciate."
AAHOA’s Political Action Committee hosted a special reception on the final night of the conference for members who donated $1,001 or more to its
AAHOA pursued three legislative priorities during the conference.
Supporting the Loans In Our Neighborhoods (LIONS) Act of 2024, which seeks to increase the maximum loan amount for Small Business Administration 7(a) loans from $5 million to $10 million.
Promoting the Credit Card Competition Act which aims to introduce more competition in credit card processing, potentially saving businesses billions annually by reducing transaction fees.
Defending hotel owners from regulations that could impose significant financial burdens, such as the Department of Labor's new Overtime Rule, which AAHOA said has substantially raised the salary threshold for overtime exemptions. To address this, AAHOA is supporting the Congressional Review Act, which seeks to repeal the new rule.
"Engaging directly with lawmakers is how we turn passion into policy," said Laura Lee Blake, AAHOA’s president and CEO. "Representing more than 60 percent of U.S. hotel owners, it is essential that AAHOA leaders collaborate with legislators to drive positive changes that will support the industry in these challenging times. By sharing their experiences and addressing key issues, AAHOA members are building meaningful relationships with the nation's top policymakers. The long-term benefits will be substantial, allowing AAHOA to continue supporting the industry for generations to come."
IHG launched its 20th global brand, Ruby, in the U.S.
The brand offers serves city-centers and urban locations with restrictions.
It focuses on major urban markets with new-build, conversion, and adaptive reuse.
IHG HOTELS & RESORTS introduced Ruby Hotels, its 20th global brand, to the U.S. It is designed to fit in city centers and urban locations with entry barriers and space constraints.
The company’s growth plan will focus on major urban markets and include new-build, conversion and adaptive reuse projects, IHG said in a statement.
“Ruby is a brand built for the future of hospitality,” said Jolyon Bulley, IHG's CEO for the Americas. “Its success in Europe speaks to the growing demand for flexible, lifestyle-focused hotels in highly traveled locations. Ruby’s U.S. introduction will complement our premium portfolio and offer owners a differentiated product with strong economics and scalable growth potential. We’re encouraged by the initial interest and buzz around Ruby, which reinforces our confidence in its appeal and ability to thrive in this market.”
Ruby, founded in Germany in 2013, joined the IHG portfolio earlier this year and has 34 open or pipeline hotels in European cities. The U.S. launch reflects IHG’s plan to grow the brand to more than 120 hotels in the next decade and more than 250 in 20 years.
Lauren Krostue, Ruby's vice president for global brand management, said Ruby allows IHG to connect with a new type of traveler—those who value unique stays at an accessible price point.
"In bringing Ruby to the U.S., we will retain what’s made the brand so special in Europe—including its unique design and operating model—while localizing certain elements to reflect market needs," she said. "We look forward to introducing the Ruby experience to a new group of owners and guests and showcasing what sets the brand apart in the increasingly popular ‘urban micro’ segment.”
IHG nearly doubled global conversion signings from 2023 to 2024, with conversions representing about 60 percent of openings and 40 percent of signings in the first quarter of 2025.
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The H-2B visa program protects U.S. jobs and wages, according to AHLA citing a study.
It allows hotels and resorts to meet travelers’ needs while supporting the economy.
It provides foreign workers for seasonal jobs when domestic workers are unavailable.
THE H-2B VISA program does not harm U.S. jobs or wages but increases pay and supports the labor force, according to an Edgeworth Economics study. Citing that study, the American Hotel & Lodging Association said the program enables hotels and resorts to meet travelers’ needs while supporting the workforce and economy.
The Edgeworth study for the H-2B Workforce Coalition found the program allows businesses to hire foreign workers for seasonal jobs when domestic workers are unavailable. It showed no evidence that increases in H-2B visas reduce U.S. employment or wages. Instead, each H-2B worker supports three to five local jobs and areas with more H-2B workers saw wages grow 1.6 percent faster.
“Areas that hired more H-2B workers under the higher visa cap saw greater job and wage growth among U.S. workers,” said Steve Bronars, partner at Edgeworth Economics, citing findings consistent with an earlier analysis by the U.S. Government Accountability Office.
Ashley McNeil, AHLA’s vice president of federal government affairs and chair of the H-2B Workforce Coalition, said the new analysis underscores the H-2B program’s clear value to local communities.
“The hotel industry, which is still 200,000 workers short compared to pre-pandemic levels, relies on legal guest worker programs to augment our workforce, particularly to address seasonal demands,” McNeil said. “Access to the H-2B visa program has been critical in allowing hotels and resorts of all sizes to meet travelers’ needs, while supporting the local workforce and economy.”
The program has also helped businesses manage peak-season labor shortages, easing the workload for full-time employees. Landscaping accounts for nearly 40 percent of certified H-2B workers. Hotels and motels account for 8.67 percent, support activities for forestry 6.3 percent and seafood processing and packaging 5.65 percent.
“This study reaffirms what our members have long recognized: despite extensive recruitment efforts, there remains a critical shortage of U.S. workers willing or available to fill temporary positions that are currently being filled by H-2B workers,” said Arnulfo Hinojosa, COO of the Federation of Workers and Employers of America and vice chair of the H-2B Workforce Coalition. “H-2B workers allow seasonal businesses to operate at a higher capacity and create more U.S. jobs.”
Meanwhile, President Donald Trump recently signed a proclamation raising the H-1B visa fee to $100,000 annually, a move that could affect Indian professionals in the U.S.
The use of AI agents hotels must rethink customer loyalty, a FAU study finds.
The paper proposes strategies as AI becomes the main booking channel.
Researchers warn of ethical and privacy issues.
HOTELS MUST RETHINK how they build and maintain loyalty as artificial intelligence systems make travel decisions and bookings for consumers, according to a study by Florida Atlantic University. The rise of artificial intelligence agents will complicate hotel customer loyalty management.
“AI agents will be the new gatekeepers of loyalty,” said Anil Bilgihan, FAU College of Business professor of hospitality management. “The question is no longer just ‘How do we win a customer’s heart?’ but ‘How do we win the trust of the algorithms advising them?’ Hotels need to prepare for a future where a guest’s preferred brand may be decided before they even open their phone.”
As consumers use AI agents to search for hotels, check availability, compare prices, analyze reviews and make bookings, decision-making will shift to the algorithm, creating loyalty to the agent or its ecosystem rather than to the brand, the report said.
Bilgihan said AI is not influenced by traditional advertising and sorts options based on algorithmic criteria.
“Imagine a traveler asking their AI agent to book a hotel in Miami within a certain budget, with a pool and strong reviews,” he said. “If your hotel doesn’t appear in that recommendation set, you may never be considered. Hotels must design loyalty programs, digital visibility and service experiences that appeal to both human guests and the AI systems filtering choices on their behalf.”
The paper proposes a framework for hotels to rethink loyalty strategies as AI agents become the main channel for travel bookings. While emotional branding still matters for humans, marketers should focus on loyalty programs that engage both humans and AI systems, using customer data to tailor experiences, improve algorithmic visibility and design programs appealing to both, the study said.
Researchers also warned of ethical and privacy concerns, including algorithmic bias, limited consumer understanding of how AI agents work and challenges in brand visibility.
“At the end of the day, technology doesn’t replace the fundamentals,” Bilgihan said. “AI may shape how guests discover and book, but the foundation of loyalty will always be the experience once they arrive.”
The paper in the International Journal of Contemporary Hospitality Management was authored by Max Ostinelli, assistant professor of marketing; Ye Zhang, associate professor of hospitality management; Melanie Lorenz, associate professor of marketing and Bilgihan.
New York University’s State of Distribution 2025 found a gap between AI potential and hotel operational readiness, as teams are still developing training, systems and workflows. In May, India’s International Institute of Hotel Management (IIHM) Kolkata launched ‘NamAIste – IIHM HospitalityGPT,’ the first generative AI platform for the global hospitality industry.
More than 70 percent expect a RevPAR increase in Q4, according to HAMA survey.
Demand is the top concern, cited by 77.8 percent, up from 65 percent in spring.
Only 37 percent expect a U.S. recession in 2025, down from 49 percent earlier in the year.
MORE THAN 70 PERCENT of respondents to a Hospitality Asset Managers Association survey expect a 1 to 3 percent RevPAR increase in the fourth quarter. Demand is the top concern, cited by 77.8 percent of respondents, up from 65 percent in the spring survey.
HAMA’s “Fall 2025 Industry Outlook Survey” found that two-thirds of respondents are pursuing acquisitions, 80 percent plan renovations in the coming year and 57 percent are making or planning changes to brand affiliation or management strategies.
“With hopes high for a stronger fourth quarter, hotel asset managers continue to maintain an optimistic outlook,” said Chad Sorensen, HAMA president. “More than 70 percent of our members expect RevPAR to increase 1 to 3 percent and two-thirds are pursuing acquisitions. With 80 percent planning renovations in the coming year, we see an engaged community focused on performance.”
Conducted among 81 HAMA members, about one-third of the association, the survey reports expectations for revenue growth, property investments and acquisitions.
However, the top three most concerning issues were demand, ADR growth and tariffs, HAMA said.
RevPAR growth forecast
Looking into 2026, 72.8 percent expect 1 to 3 percent growth, 18.5 percent expect 4 to 6 percent, 7.4 percent anticipate flat results and 1.2 percent project a decline. Full-year RevPAR projections versus budget are more mixed: 49 percent expect 1 to 3 percent growth, 17 percent expect flat results, 12 percent expect 4 to 6 percent growth, 2 percent expect 7 percent or more and 19 percent expect declines.
Hotel asset managers note several market pressures, the report said. Other concerns include ADR growth at 51.9 percent, tariffs at 34.6 percent, wage increases at 33.3 percent and potential Federal Reserve rate changes at 32.1 percent. Management company performance at 25.9 percent, immigration and labor trends, union activity and insurance costs were also mentioned.
“The industry is at its highest level of concern around maintaining or increasing rates,” Sorensen said. “There’s pressure to build on the P&L going into 2026.”
Performance projections
Confidence in the broader economy has increased since spring, the survey found. Only 37 percent of respondents expect a U.S. recession in 2025, down from 49 percent earlier in the year.
When asked about properties exceeding gross operating profit forecasts, 59 percent of managers expect 0 to 25 percent of their hotels to surpass targets, 25 percent expect 26 to 50 percent, 10 percent expect 51 to 75 percent and 6 percent expect 76 to 100 percent. Additionally, 20 percent reported returning hotels to lenders or entering forced sales since the spring survey.
Peachtree launched new DST with 131,040‑square foot industrial facility in Mansfield, Texas.
The property was acquired at $180 per square foot.
Peachtree completed $320M in debt-free transactions across multiple markets since 2022.
PEACHTREE GROUP LAUNCHED its latest Delaware Statutory Trust with the acquisition of a newly built 131,040-square-foot industrial facility in Mansfield, Texas. The company has completed about $320 million in debt-free transactions since launching its DST program in 2022, according to its statement.
The rear-load building, completed in 2025, features 36-foot clear heights, a three-acre outdoor storage yard and room for future expansion. The property was acquired for $180 per square foot, below market comparables, and is fully leased to Ferguson, a distributor for professional contractors in North America, Peachtree said in a statement.
“In today's higher-rate environment, where tighter credit and volatile valuations challenge traditional ownership, DSTs have emerged as a compelling alternative,” said Greg Friedman, Peachtree’s managing principal and CEO. “They deliver attractive cash flows backed by institutional-quality assets, while also offering tax advantages, professional management and diversification.”
Ferguson signed a 10-year corporate lease beginning in March, with 3 percent annual rent escalations, two five-year extension options and limited landlord obligations, the statement said. With investment-grade credit ratings from S&P BBB+ and Moody’s Baa1, the tenant supports the trust’s income stability and risk profile.
Peachtree’s DSTs, Opportunity Zones and REIT structures form a platform aimed at tax efficiency, compounding benefits and risk-adjusted returns, supported by Peachtree’s integrated asset management.
“Expanding into the industrial sector is a step toward building a diversified DST platform that can perform across cycles,” said Tim Witt, Peachtree’s president of 1031 Exchange and DST Products. “DSTs turn a looming tax bill into compounding wealth, keeping money in commercial real estate, but their true strength is pairing tax efficiency with investments that stand on their own merits.”
Atlanta-based Peachtree is led by Friedman; managing principal and CFO Jatin Desai and principal Mitul Patel. In July, Peachtree added the 128-key SpringHill Suites Phoenix West Avondale in Arizona as its ninth Delaware Statutory Trust offering since launching the program in 2022.