Skip to content

Search

Latest Stories

Congress to debate new stimulus HEROES Act

Hotel associations say the bill has good elements, but political heat is on

THE LATEST ROUND of federal stimulus in response to the COVID-19 economic downturn has been proposed in the House. However, the Democrat’s bill is expected to meet stiff debate from Republicans who call it an “unserious” wish-list of political projects.

The ‘‘Health and Economic Recovery Omnibus Emergency Solutions Act’’ is meant to follow and continue the mission of the current “Coronavirus Aid, Relief, & Economic Security Act” and may address some of the concerns the hotel industry has had about that act, particularly the funding and terms for Paycheck Protection Program loans.


More generally, too, many hoteliers were hoping for some other form of stimulus to keep their businesses open. That includes those who have already received PPP loans from the first iteration of the CARES Act, such as Nancy Patel, a Knights Inn owner in Corpus Christi, Texas.

Patel said she was not expecting to get more from the PPP program and believes the current funding there should go to those who have not received anything.

“But, I’m hoping they come out with a stimulus package like the first one. Hopefully they’ll think of something because we’re not going to survive for two months with just a PPP loan, with the restrictions they’ve got,” she said. “And the question of the day is, when is this economy going to get back to how we were doing before. We were expecting a little slowdown. It’s not like this wasn’t coming, but it wasn’t coming like this.”

Partial endorsements

The current version of the HEROES Act, which is more than 1,800 pages long, includes funding for various federal programs that totals around $3 trillion according to Investopedia.com. It also includes “a number of elements” sought after by the American Hotel & Lodging Association, including improvements to PPP, the association said in a statement that offered only partial endorsement of the bill.

The approved elements include more flexibility in the way PPP funds can be used as well as an extension of the covered period to use loan proceeds. Considering the fact that 70 percent of hotel employees have been laid off or furloughed during the crisis, the aid is badly needed, said AHLA, which plans to release a “Roadmap to Recovery” soon.

“According to the Bureau of Labor Statistics, the leisure and hospitality sector lost 7.7 million jobs in April alone. With the impact to hotels being nine times worse than 9/11, the devastation caused to our industry is staggering and we are truly engaged in a fight for survival,” said Chip Rogers, AHLA president and CEO. “By expanding the PPP, Congress would help save millions of jobs and support our small business hotel operators who make up more than 61 percent of our industry.”

AAHOA also welcomed the HEROES Act’s corrections to the PPP.

“The changes to the PPP introduced in the House as part of the HEROES Act are critical to ensuring small business owners can effectively employ funds to make payroll and cover necessary operating costs,” said Cecil Staton, AAHOA president and CEO. “The proposed corrections to PPP will help provide small business owners with much needed liquidity, something that we've been asking for since the start of this crisis. We hope, as the legislation is debated in Congress, that our leaders will continue to prioritize small businesses and their employees – especially in industries hardest hit by the economic crisis.”

Staton also approved of language in the bill that allows destination marketing organizations to participate in PPP.

“Travel will play an integral part in rebuilding our economy as the nation reopens,” Staton said. “Americans love to travel, and, after spending the better part of the spring in their homes, people are ready to hit the road again.”

But first, the bill must pass through what is sizing up to be a difficult political debate. It’s a debate Rogers predicted during an April 30 webinar.

“Each iteration or each bill that comes forward is becoming extremely difficult to get passed,” he said at that time. “It’s the fourth bill where I believe there’s going to be a lot of discussion. What we’re seeing here, unfortunately, is the politics begin to come into play. There are items and issues being debated in the fourth bill that frankly don’t have a lot to do with recovery.”

Dead on arrival?

House Democrats claim the HEROES Act is all about keeping businesses afloat and people working across the economy. Senate Republicans debate that.

“It continues on the work that we've done in a bipartisan way in the first four packages that have passed the House,” Speaker of the House Nancy Pelosi said in an interview, the transcript of which is on her website. “That is investing in state and local government, which is carrying a big brunt of the coronavirus crisis. It also invests in testing, testing, testing, which is the key to opening up our economy, and it talks about money in the pockets of the American people, whether that's direct payments, Unemployment Insurance, PPP loans, any initiatives that puts money in circulation, which we believe not only helps those people but are stimulus to the economy.”

Senate Majority Leader Mitch McConnell, however, said in a statement the bill is stuffed with unnecessary items, calling it a “seasonal catalog of left-wing oddities.” In particular, McConnell said the HEROES Act would provide money to illegal aliens and cannabis companies.

“The Speaker’s bill also tries to use the virus as cover to implement sweeping changes to election laws that Democrats have wanted for years — like forcing every state to embrace California’s sketchy ‘ballot harvesting,’ whether they want to or not,” McConnell said. “This is a totally unserious effort. It’s a Democratic wish list.”

More for you

G6 Hospitality RMS Program Powers Q1 2025 Growth

G6 RMS properties log 11 percent Q1 revenue gain

Summary
  • The G6 RMS program uses automation, comp tracking and strategy calls.
  • RMS properties saw 11 percent year-over-year revenue growth in Q1 and a 10 percent higher ADR.
  • Revenue-managed properties posted 11.5 percent growth through web and app channels.

PROPERTIES OF G6 Hospitality enrolled in its “G6 Revenue Management Services” program saw 11 percent year-over-year revenue growth in the first quarter of 2025, more than double the rate of the rest of the portfolio. They also recorded a 10 percent higher ADR than non-RMS properties.

The RMS program uses proprietary automation tools, daily competitive set monitoring and bi-weekly strategy calls with revenue managers, G6 said in a statement. G6 is the parent company of Motel 6 and Studio 6 brands.

Keep ReadingShow less
Peachtree Group's Residence Inn by Marriott under construction in downtown San Antonio, topping out milestone reached, June 2025

Peachtree tops out San Antonio Residence Inn

Peachtree Hotel to Open in Summer 2026 with 117 Extended-Stay Rooms

PEACHTREE GROUP HELD a “topping out” for its Residence Inn by Marriott in downtown San Antonio, Texas, marking completion of the structural phase of the 10-story, 117-room hotel. The property, co-developed with Austin-based Merritt Development Group, is scheduled to open in summer 2026.

The extended-stay hotel will be owned by Peachtree and managed by its hospitality management division, the company said in a statement.

Keep ReadingShow less
Air India plane crash 2025
Photo by Sam PANTHAKY / AFP

Air India reducing flights after deadly crash

AIR INDIA WILL reduce international service on widebody aircraft by 15 percent through at least mid-July, according to media reports. The decision comes less than a week after the June 12 crash of an Air India airliner carrying 230 passengers and 12 crew members in Ahmedabad, India, that killed 246 but left one survivor among the passengers.

The airline said the reduced service due to the safety inspection of aircraft and ongoing geopolitical tensions in the Middle East, which have disrupted operations, resulting in 83 flight cancellations over the past six days, according to ABC News. Passengers can either reschedule their flights at no additional cost or receive a full refund.

Keep ReadingShow less
hihotels executive team honored for long-term service and loyalty in hospitality

Hihotels recognizes eight company leaders

EIGHT LEADERS OF hihotels by Hospitality International, Inc. are being recognized by the company for their combined 121 years of service. The company was established in 1982 as an alternative to other, established brands.

The honorees include Paul Vakharia, hihotels’ senior director of franchise development for the Northeast Region who has been with the company for 25 years. Chhaya Patel, franchise development coordinator, also has been with the company for 25 years.

Keep ReadingShow less
ICE Raid Resumes in Hotels & Farms After DHS Reversal
Photo by Mario Tama/Getty Images

Reuters: ICE resumes hotel immigration raids

ICE Reverses Decision to Pause Raids on Key Industries

U.S. IMMIGRATION OFFICIALS have reversed enforcement limits at hotels, farms, restaurants and food processing plants days after issuing them, following conflicting statements by President Donald Trump, according to Reuters. ICE leadership told field office heads on Monday it would withdraw last week's directive that paused raids on those businesses.

ICE officials were told a daily quota of 3,000 arrests—10 times the average last year under former President Joe Biden—would remain in effect, two former officials said in the report. ICE field office heads raised concerns they could not meet the quota without raids at the previously exempted businesses, Reuters reported, citing a source.

However, it was not clear why the directive was reversed.

Keep ReadingShow less