Skip to content

Search

Latest Stories

AAHOA leaders meet with legislators, FTC head

Topics for advocacy include SBA loans, Earned Income Tax Credit and franchise relations

AAHOA leaders meet with legislators, FTC head

REFORMS TO THE distribution of Small Business Administration loans, a new H2-C visa program and expansion of the Earned Income Tax Credit to benefit hotels were the main topics discussed at AAHOA’s recent Fall National Advocacy Conference with legislators in Washington. Days later, AAHOA leadership met with Federal Trade Commission Commissioner Alvaro Bedoya to discuss fair franchising concerns.

A day of advocacy


AAHOA board members and representatives met with more than 100 agency heads and 40 U.S. senators and representatives in Washington to advocate for these and other causes for the hospitality industry.

AAHOA regularly holds the legislative conferences on behalf of its nearly 20,000 members and the hospitality industry at large, according to the association. The four specific issues discussed this year were:

  • Promote access to capital by increasing SBA 7(a) and 504 Loan Limits to $10 million from the current $5 million, which was last set in 2010. For hoteliers, over the past decade, the costs of constructing and purchasing properties have skyrocketed and far exceed $5 million.
  • Cosponsoring the SBA Franchise Loan Default Disclosure Act, sponsored by Sen. Catherine Cortez Masto of Nevada. The act would require the SBA to publish on its website, and to regularly update, the loan default rates by franchise brands during the preceding 10-year period. Loan default rates for a franchise brand are a key indicator of success of which prospective franchisees should be aware, AAHOA said.
  • Provide assistance with labor shortages by cosponsoring the Essential Workers for Economic Advancement Act, sponsored by Rep. Lloyd Smucker of Pennsylvania, to fill a need currently unaddressed in the U.S. immigration system. Also related to the labor shortage, AAHOA asked the legislators to permanently expand the Earned Income Tax Credit provisions that expired at the end of 2021. By expanding the EITC, young adults without children aged 18 years and older, as well as retirees, will qualify for the credit, incentivizing more people to return to work and help to reduce the labor shortages for U.S. employers, including hotels.
  • Cosponsor the Franchisee Freedom Act, sponsored by Rep. Jan Schakowsky of Illinois, which would provide a private right of action for persons harmed by violations of the FTC Franchise Rule, and thus allow individuals damaged by rule violations access to the courts. “When FTC rule violations occur, franchisees are not fully informed of the material facts and the corresponding risks they face when signing a franchise agreement,” AAHOA said. “Since franchisees are frequently required to sign personal guarantees, the results can financially devastate a franchise buyer.”

“AAHOA has long understood the importance and significance of advocacy work at the state, local, and federal levels,” said Neal Patel, AAHOA chairman. “Having our voices heard on issues that are important to our members protects and promotes the rights of hotel owners and entrepreneurs in America. We are the experts of our businesses and the hotel industry. It is our responsibility to ensure the views and realities of AAHOA members are considered when decisions are being made by elected officials about their livelihoods and their businesses.”

AAHOA’s legislative conferences show the human impact of the government’s decisions, said Laura Lee Blake, AAHOA president and CEO.

“Providing lawmakers with personal, real-life stories, puts a name and a face to the American hotelier,” Blake said. “The next time these elected officials go to make decisions, they will remember us – the foundations we are laying in these meetings are critical to our advocacy work going forward,” Blake said.

A sit down with the commissioner

In the meeting with Bedoya, the commissioner and his staff involved with oversight of franchising, including Consumer Protection Bureau Director Sam Levine, discussed with the AAHOA representatives unfair practices in franchising and the FTC’s Franchise Rule.

Blake briefed Bedoya and his staff on AAHOA’s recent revamp of its 12 Points of Fair Franchising as an educational primer for AAHOA member franchisees.

“There are so many important topics to address when it comes to advancing fair franchising, and the Federal Trade Commission and the work it does is an important component to AAHOA’s overall strategy,” Patel said. “When it comes to protecting franchisees, the FTC is crucial in ensuring that the U.S. business environment is free from deceptive and unfair business practices, and we are thankful for the FTC’s ongoing engagement with AAHOA and protection of U.S. consumers.”

More for you

IHG Ruby Hotels USA launch
Photo credit: IHG Hotels & Resorts

IHG’s Ruby debuts in U.S. market

Summary:

  • 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.

Keep ReadingShow less
H-2B visa hospitality impact

Study: H-2B visas boost U.S. jobs and wages

Summary:

  • 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.

Keep ReadingShow less
Howard Johnson 100th anniversary

HoJo marks centennial with throwback

Summary:

  • Howard Johnson is marking its 100th anniversary with fried clam–shaped soaps.
  • The soaps pay homage to an iconic HoJo menu item.
  • Available at select hotels and for online purchase starting Oct. 3.

HOWARD JOHNSON BY Wyndham marks a century with one of its most famous menu items, the fried clam strip. The brand is introducing limited-edition HoJo’s Original Fried Clam Soap, available at select Howard Johnson hotels across the U.S. and for online purchase beginning Oct. 3.

Keep ReadingShow less
AI digital assistant redefining guest loyalty in U.S. hospitality industry

Study: AI agents redefine hotel loyalty

Summary:

  • 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.

Keep ReadingShow less
HAMA Fall 2025 survey results

Survey: Hotels expect Q4 RevPAR gain

Summary:

  • 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.

Keep ReadingShow less