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.
HOTELIERS HAVE THE opportunity to hear directly from a Congressional leader about the debate over the next round of federal stimulus to counteract the economic impact of COVID-19. Speaker of the House Nancy Pelosi sat down for American Hotel & Lodging Association’s most recent installment of its The Forum: An AHLA Experience webinar series.
Pat Pacious, Choice Hotels International president and CEO, also was a guest on the webinar Wednesday led by Chip Rogers, AHLA’s president and CEO. The trio discussed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, which the Democrat controlled House passed in May.
Rogers said the hotel industry is depending on some form of federal aid as the pandemic continues to rage.
“To put it succinctly, we’re still in survival mode, a place where we didn’t expect we’d be just six months ago,” Rogers said.
In January, biggest problem the industry faced was not having enough people to staff hotels, he said. Now, millions of hospitality workers are out of work despite previous stimulus acts that included initiatives such as the Small Business Administration’s Economic Injury Disaster Loans, the Paycheck Protection Program and the Main Street Lending Program.
“Our unemployment rate in our industry is probably over 50 percent,” Rogers said. “Another round of PPP for businesses that have been hit the most would probably be extremely helpful.”
Also, he said how to service debt, from commercial mortgage-backed securities loans and otherwise, is probably what keeps most hoteliers up at night.
Pelosi said since the HEROES Act passed the House three months ago 3 million more people have been added to the list of those in need of the assistance the bill would offer. The only way to open the economy safely, she said, is to attack the virus.
“I’m optimistic that we will reach an agreement,” she said.
The HEROES Act includes an employee retention tax credit that Pelosi said she knows is of interest to hoteliers. It also contains a “second dip” for extending the PPP.
“It’s not there yet, but [Rep. Nydia Margarita Velázquez Serrano] who does our small business piece has been working in a bipartisan way to see how we can get that second bite of the apple,” Pelosi said.
Also hope to have tax credits for healthy workplace initiatives.
“You want the travel tax credit. I don’t know that that would be part of this type of bill,” Pelosi said. “But it’s certainly something that we should be considering.”
Pacious said the pandemic has been the most difficult period of time for Choice’s 13,000 franchisees. All of them, he said, are small business owners who are trying to keep employees on the payroll while also feeding their own families.
“I’m pleased to hear you mention that recapitalizing the PPP loan program is something that both sides appear to be willing to do,” Pacious said. “About 70 percent of our owners have taken advantage of a PPP loan. I know in the future there is talk, which is good, to limit access to that program to those businesses that are really, severely impacted.”
However, Pacious said they are concerned about talk that the program may have a 50 percent economic loss threshold for participation.
“That’s really too high to provide meaningful relief to our small business owners,” he said. “We’d like to see it more in the 25 to 30 percent range. You have to think about our business, it’s an asset heavy business. You have to own a building, and the operating margins are small, so there’s a significant amount of debt that our owners have to deal with and servicing their commercial mortgage is very important to our owners.”
He also supported the possibility that the act would provide forgiveness for loans under $150,000, but the application for the process needs to be simplified to require minimal documentation. Also, destination management organizations, which are not-for-profit agencies that promote travel to specific regions, should be qualified for the PPP program.
Pelosi said Congress also has to ensure that the PPP funds are more equally distributed than previous disbursements to include women and minority-owned businesses.
“There are much smaller businesses, much more diverse ownership of business, that should be participating in this,” Pelosi said. “They fell by the wayside last time because they didn’t have a bank relationship.”
Rogers pointed out the importance of stimulating the overall economy as well.
“When people are fearful of traveling, part of it may be because they don’t want to get sick, but part of it may be because they don’t feel like they’re in an economic position to do so,” Rogers said.
Pelosi said the current discussion over direct payments to individuals and families included in the stimulus acts were part of that process, including some of the $3.4 trillion in the HEROES Act. People are less willing to risk the money they have, she said.
“The money in people’s pockets, whether it’s the $600 direct payment or it’s the help with rent, that’s all stimulus,” she said. “The more people have confidence to spend, the better and sooner our revival.”
In many ways, the hotel industry is discretionary, Pelosi said.
“People decide ‘Do I want to go now, or do I want to go next year?’” she said. “So, we want them to decide, in a discretionary way, to spend. That’s why we want to put money in their pocket, to spend.”
If PPP is a big success, Rogers said, the Main Street program has been a big failure for anyone whose business depends on commercial real estate.
“The formula for accessing funds through the Main Street lending program pretty much precludes anyone who has a significant amount of debt or really any real estate debt,” she said. “I’m not aware of any hotel company or any individual hotel that has been able to gain access to the Main Street Lending Program because of that debt test.”
Pacious also said the Main Street program should be expanded because until now it has been underutilized.
Rogers also pointed out the importance of addressing the debt faced by hotel owners. In the CMBS market, he said, delinquency rates are at 25 percent, 50 percent in New York.
“If some of these properties start falling into foreclosure it does begin to spiral downward and it pulls a lot of people with them,” Rogers said. “Once a hotel goes into foreclosure and closes its doors for good, it’s going to be many, many years before it opens its doors again.”
After Pelosi left the call, Pacious and Rogers wrapped up with a focus on the human impact of the crisis.
“We’re still in the middle of it. A lot of owners make their money in summer and a second wave of virus cases is creating a lot of uncertainty around the back half of the year as well,” Pacious said. “We need to make sure that our hotels have access [to the PPP] and have access to the forgiveness part of that program in a meaningful way to get through this. I think when we write the history of this three or four years from now, there’s going to be a lot of positives around leadership, a lot of positives around people pitching in together to get our industry and our country through this pandemic.”
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.
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.
Designed to resemble the original food item, the soaps are infused with lemon, sea salt and butter in a nod to the butter-soaked rolls that once accompanied the fried clams, according to a statement by Wyndham.
“Howard Johnson is a brand woven into America’s cultural fabric and beloved by millions for generations,” said Marissa Yoss, HoJo’s head of marketing. “As we celebrate 100 years, our limited-edition fried clam soap is a fun, nostalgic tribute to the brand’s storied past and a playful nod to the retro-modern, family-friendly spirit that continues defining our hotels today.”
For World Waffle Day celebrations, Comfort Hotels hosted a one-day Waffle Lounge in New York City on Aug. 21.
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.