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.
MORE ASSOCIATIONS ARE joining the American Hotel & Lodging Association in protesting the National Labor Relations Board’s (NLRB) recently issued final ruling on the definition of joint-employer status. The ruling essentially broadens the definition to any “entity that has an employment relationship with the employees,” and AAHOA, AHLA and the other associations say it could damage the current franchise business model.
NLRB’s new standard, issued last week, defines a joint employer to be any company that shares or codetermines one or more essential terms and conditions of employment. Those include:
Wages, benefits, and other compensation.
Hours of work and scheduling.
The assignment of duties to be performed.
The supervision of the performance of duties.
Work rules and directions governing the manner, means, and methods of the performance of duties and the grounds for discipline.
The tenure of employment, including hiring and discharge.
Working conditions related to the safety and health of employees.
The final rule rescinds the 2020 rule that was promulgated by the prior board and applies the new definition of joint employer to any entity that can control the essential terms of employment whether or not such control is exercised and without regard to whether any such exercise of control is direct or indirect. The board says the new rule “more faithfully grounds the joint-employer standard in established common-law agency principles.”
“While the final rule establishes a uniform joint-employer standard, the board will still conduct a fact-specific analysis on a case-by-case basis to determine whether two or more employers meet the standard,” said Chairman Lauren McFerran.
Expect legal challenges
In its response to the ruling, AHLA said the ruling, which becomes effective Dec. 26, could limit opportunities for small businesses and entrepreneurs and threaten the franchising model. Chip Rogers, AHLA president and CEO, claimed the ruling was a “partisan gambit” in favor of unions.
“NLRB’s goal is to coerce businesses to the bargaining table with workers they do not actually employ to artificially increase unionization,” Rogers said in his statement. “This dramatic shift will effectively dismantle the franchise business model – the single greatest avenue to successful entrepreneurship in American history and a system that has helped our industry build millions of well-paying jobs and careers. AHLA is reviewing opportunities to legally challenge this regulation to restore certainty for America’s lodging industry.”
The NLRB received more than 13,000 comments that it reviewed and considered in drafting the final rule. Many of the comments opposed the new rule, and AAHOA said in its statement that it expects the fight against the rule to continue, though it is refraining from final judgement for now.
“Change creates uncertainty and can cause high alarm, as demonstrated by the strong comments of various franchisor lobbying groups and attorneys,” said Laura Lee Blake, president and CEO of AAHOA. “We are carefully reviewing the history of the NLRB Joint Employer rule, along with these new expanded provisions. Based on this broader language, the implementation of the rule will undoubtedly be played out on a case-by-case basis, some of which could favor franchisees who are subject to their franchisors’ authority to control (indirectly and/or directly) matters governing employees’ essential terms and conditions of employment. At the outset, however, there is talk of possible litigation and legislation to overturn the rule. We will be carefully monitoring the path forward, and providing support to our AAHOA members as they address the meaning and impact of these changes with their franchise relationships.”
“The new final rule represents the most extreme shift of the pendulum toward the broadest definition of joint employment that we have seen,” the institute said. “Given the enormous practical and legal consequences that a finding of joint-employer status may have on an employer, and given the lengthy and litigious path that has led to this final rule, we confidently predict that the rule will again be subject to legal challenge.”
One of those challenges can be expected to come from the International Franchise Association. IFA said the rule “would reduce the independence of franchise business owners, diminish franchisees’ equity in their businesses, and force franchisors to offer less support.”
“Today’s final joint employer rule solidifies that this NLRB is fundamentally hostile to Main Street business owners,” said Michael Layman, IFA senior vice president for government relations and public affairs. “This overreaching and unworkable joint employment policy is designed to change the rules in the middle of the game for hundreds of thousands of franchise owners and turn them into middle managers in their own businesses. What’s worse, we have seen this misguided policy before and it resulted in hundreds of thousands in lost job opportunities, billions in increased costs for franchised business, and a doubling of lawsuits.”
IFA said the new rule returns to an expanded joint employer standard, which was in place from 2015 to 2017. That change cost franchise businesses $33 billion per year in operational costs and led to 376,000 lost job opportunities and a 93 percent increase in lawsuits, the association claimed.
“New research from Oxford Economics shows significant concern among franchisees about the rule, expecting it to increase costs for their business, their franchisors, and consumers, and decrease access to business ownership through franchising – as well as substantially change the franchisor-franchisee relationship,” IFA said in a statement.
“IFA will use every avenue available to protect franchising from the harm this rule will bring,” Layman said. “We urge Congress to stand up for their Main Street constituents against this rogue, Washington agency and reject the NLRB’s joint employment rule, including through the Congressional Review Act.”
Glenn Spencer, senior vice president for the U.S. Chamber of Commerce’s Employment Policy Division, said in his statement that NLRB’s decision “abandons a clear, straightforward standard in favor of a vague and expansive standard for determining joint employment.”
“It defies common sense to say that businesses can be held liable for workers they don’t employ at workplaces they don’t own or control, yet that is exactly what the new NLRB joint employer rule does,” Spencer said. “This rule will create chaos and more legal confusion that will harm both employers and workers. The U.S. Chamber will carefully evaluate our options going forward, including litigation.”
A PETITION FOR a referendum on Los Angeles’s proposed “Olympic Wage” ordinance, requiring a $30 minimum wage for hospitality workers by the 2028 Olympic Games, lacked sufficient signatures, according to the Los Angeles County Registrar. The ordinance will take effect, raising hotel worker wages from the current $22.50 to $25 next year, $27.50 in 2027 and $30 in 2028.
Mandatory health care benefits payments will also begin in 2026.
The L.A. Alliance for Tourism, Jobs and Progress sought a referendum to repeal the ordinance, approved by the city council four months ago. The petition needed about 93,000 signatures but fell short by about 9,000, according to Interim City Clerk Petty Santos.
The council approved the minimum wage increase for tourism workers in May 2023, despite opposition from business leaders citing a decline in international travel. The ordinance requires hotels with more than 60 rooms and businesses at Los Angeles International Airport to pay workers $30 an hour by 2028. It passed on a 12 to 3 vote, with Councilmembers John Lee, Traci Park and Monica Rodriguez opposed.
The L.A. Alliance submitted more than 140,000 signatures in June opposing the tourism wage ordinance, triggering a June 2026 repeal vote supported by airlines, hotels and concession businesses.
AAHOA called the ruling a setback for Los Angeles hotel owners, who will bear the costs of the mandate.
"This ruling is a major setback for Los Angeles' small business hotel owners, who will shoulder the burden of this mandate," said Kamalesh “KP” Patel, AAHOA chairman. "Instead of working with industry leaders, the city moved forward with a policy that ignores economic realities and jeopardizes the jobs and businesses that keep this city's hospitality sector operating and supporting economic growth. Family-owned hotels now face choices—cutting staff, halting hiring, or raising rates—just as Los Angeles prepares to host millions of visitors for the World Cup and 2028 Olympics. You can't build a city by breaking the backs of the small businesses that make it run."
Laura Lee Blake, AAHOA president and CEO, said members are proud to create jobs in their communities, but the ordinance imposes costs that will affect the entire city.
“Even with a delayed rollout, the mandate represents a 70 percent wage increase above California's 2025 minimum wage,” she said. “This approach could remove more than $114 million each year from hotels, funds that could instead be invested in keeping workers employed and ensuring Los Angeles remains a competitive destination. The mandate increases the risk of closures, layoffs and a weaker Los Angeles."
A recent report from the American Hotel & Lodging Association found Los Angeles is still dealing with the effects of the pandemic and recent wildfires. International visitation remains below 2019 levels, more than in any other major U.S. city.
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AHLA Foundation is partnering with ICHRIE and ACPHA to support hospitality education.
The collaborations align academic programs with industry workforce needs.
It will provide data, faculty development, and student engagement opportunities.
THE AHLA FOUNDATION, International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration work to expand education opportunities for students pursuing hospitality careers. The alliances aim to provide data, faculty development and student engagement opportunities.
Their efforts build on the foundation’s scholarships and link academics to workforce needs, AHLA said in a statement.
"We're not just funding education—we're investing in the alignment between academic learning and professional readiness," said Kevin Carey, AHLA Foundation president and CEO. "These partnerships give us the insights needed to support students and programs that effectively prepare graduates to enter the evolving hospitality industry."
ACPHA will provide annual reports on participating schools’ performance, enabling the Foundation to direct resources to programs with curricula aligned to industry needs, the Foundation said.
Thomas Kube, incoming ACPHA executive director, said the partnership shows academia and industry working together for hospitality students. The collaboration with ICHRIE includes program analysis, engagement through more than 40 Eta Sigma Delta Honor Society chapters and faculty development.
“Together, we are strengthening pathways to academic excellence, professional development and industry engagement,” said Donna Albano, chair of the ICHRIE Eta Sigma Delta Board of Governors.
Fragmented systems, poor integration limit hotels’ data access, according to a survey.
Most hotel professionals use data daily but struggle to access it for revenue and operations.
AI and automation could provide dynamic pricing, personalization and efficiency.
FRAGMENTED SYSTEMS, INACCURATE information and limited integration remain barriers to hotels seeking better data access to improve guest experiences and revenue, according to a newly released survey. Although most hotel professionals use data daily, the survey found 49 percent struggle to access what they need for revenue and operational decisions.
“The Future of Hotel Data” report, published by hospitality data platform Hapi and direct booking platform Revinate, found that 40 percent of hoteliers cite disconnected systems as their biggest obstacle. Nearly one in five said poor data quality prevents personalization, limiting satisfaction, loyalty and upsell opportunities.
“Data is the foundation for every company, but most hotels still struggle to access and connect it effectively,” said Luis Segredo, Hapi’s cofounder and CEO. “This report shows there’s a clear path forward: integrate systems, improve data accuracy and embrace AI to unlock real-time insights. Hotels that can remove these technology barriers will operate more efficiently, drive loyalty, boost revenue and ultimately gain a competitive edge in a tight market.”
AI and automation could transform hospitality through dynamic pricing, real-time personalization and operational efficiency, but require standardized, integrated and reliable data to succeed, the report said.
Around 19 percent of respondents cited communication delays as a major issue, while 18 percent pointed to ineffective marketing, the survey found. About 10 percent reported challenges with enterprise initiatives and 15 percent said they struggled to understand guest needs. Nearly 46 percent identified CRM and loyalty systems as the top priority for data quality improvements, followed by sales and upselling at 17 percent, operations at 10 percent and customer service at 7 percent.
Meanwhile, hotels see opportunities in stronger CRM and loyalty systems, integrated platforms and AI, the report said. Priorities include improving data quality for personalized engagement, using integrated systems for real-time insights, applying AI for offers, marketing and service and leveraging dynamic pricing and automation to boost efficiency, conversion and profitability.
“Clean, connected data is the key to truly understanding the needs of guests, driving amazing marketing campaigns and delivering direct booking revenue,” said Bryson Koehler, Revinate's CEO. “Looking ahead, hotels that transform fragmented data into connected data systems will be able to leverage guest intelligence data and gain a significant advantage. With the right technology, they can personalize every interaction, shift share to direct channels and drive profitability in ways that weren’t possible before. The future belongs to hotels that harness their data to operate smarter, delight guests and grow revenue.”
In June, The State of Distribution 2025 reported a widening gap between technology potential and operational readiness, with many hotel teams still early in using AI and developing training, systems, and workflows.
Hyatt partners with Way to unify guest experiences on one platform.
Members can earn and redeem points on experiences booked through Hyatt websites.
Way’s technology supports translation, payments and data insights for Hyatt.
HYATT HOTELS CORP. is working with Austin-based startup Way to consolidate ancillary services, loyalty experiences and on-property programming on one platform across its global portfolio. The collaboration integrates Way’s system into Hyatt.com, the World of Hyatt app, property websites and FIND Experiences to create a centralized booking platform.
World of Hyatt members can earn and redeem points on experiences booked through Hyatt websites, including wellness programs, cultural activities, ticketed events and local collaborations, the companies said in a statement. Members can also access FIND Experiences, which includes activities and auctions where points can be used to bid on events.
"In our search for an on-brand platform to power experiences and tap into ancillary revenue opportunities, Way's collaboration has been a true unlock for us," said Arlie Sisson, Hyatt’s senior vice president and global head of digital. "After a thorough evaluation of potential solutions, Hyatt chose Way to power the next chapter of our digital strategy by streamlining operations, elevating brand differentiation, enhancing personalization and, most importantly, delivering care at every touchpoint in the guest journey."
The Way initiative spans Hyatt’s portfolio, covering cabana rentals, in-room amenities and partnerships with local providers, the statement said. Way’s technology supports real-time translation, more than 100 currencies, multiple payment methods and data insights to help Hyatt manage operations globally.
"Hyatt set a high bar and Way is proud to bring their vision to life," said Michael Stocker, Way’s co-founder and CEO.
"The platform supports enterprise needs while preserving the guest experience."
U.S. CMBS delinquency rate rose 10 bps to 7.23 percent in July.
Multifamily was the only property type to increase, reaching 6.15 percent.
Office remained above 11 percent, while lodging and retail fell.
THE U.S. COMMERCIAL mortgage-backed securities delinquency rate rose for the fifth consecutive month in July, climbing 10 basis points to 7.23 percent, according to Trepp. The delinquent balance reached $43.3 billion, up from $42.3 billion in June.
Trepp’s “CMBS Delinquency Report July” showed multifamily led the increase, with its delinquency rate rising 24 basis points to 6.15 percent. Lodging fell 22 basis points to 6.59 percent and retail declined 16 basis points to 6.90 percent. Office delinquencies edged down to 11.04 percent after hitting a record 11.08 percent in June.
Loan-level analysis showed $4.4 billion in loans became newly delinquent in July, exceeding $3 billion that cured. Mixed-use, retail and office each accounted for more than $800 million of newly delinquent loans.
The seriously delinquent share, 60+ days, foreclosure, REO, or non-performing balloons, rose to 6.93 percent, Trepp said. Excluding defeased loans, the overall delinquency rate would be 7.41 percent.
A separate report from Lodging Econometrics showed the global hotel pipeline at 15,871 projects, up 3 percent year-over-year, totaling 2,436,225 rooms, up 2 percent.