Skip to content

Search

Latest Stories

Study: Nationwide hospitality investment to rise with tax reform

The association urges passage of the bill that was approved by the House in January

Study: Nationwide hospitality investment to rise with tax reform

THE TAX RELIEF for American Families and Workers Act of 2024 is set to provide tax relief to hotels nationwide, encouraging investments in renovations and property upgrades, according to a Cornell University study commissioned by the American Hotel & Lodging Association. The bipartisan bill, passed by the House in January, is awaiting Senate review, and the association called on the Senate to promptly pass the bill.

“The bipartisan tax package [H.R. 7024] would help hoteliers invest in renovations and upgrades to stay competitive and improve the guest experience,” said Kevin Carey, AHLA’s interim president & CEO. “This means more jobs, employee benefits, and economic growth. This study is proof that the bill would help hoteliers navigate the economic challenges created by persistent inflation, a nationwide workforce shortage, and an aggressive federal regulatory agenda. On behalf of America’s nearly 62,500 hotels, we call on the Senate to pass the bipartisan Tax Relief for American Families and Workers Act as soon as possible.”


The study by Cornell’s Center for Hospitality Research pointed out how hotels of different sizes and service levels could benefit from H.R. 7024’s extension of 100 percent bonus depreciation and broadening of business interest deductibility.

Temporarily restoring 100 percent bonus depreciation encourages investments in qualified improvements, the study noted. For example, investing $2.75 million in qualified commercial kitchen equipment could potentially yield over $175,000 in additional tax relief under H.R. 7024. Similarly, the temporary expansion of business interest deductibility also offers additional tax relief.

It outlined different tax relief scenarios, sampling 25 hotel properties of various sizes that could benefit from the bill, including:

  • Nine hotel properties with up to 150 rooms could experience tax relief ranging from $17,000 to nearly $500,000.
  • Nine additional hotel properties with more than 200 rooms but less than 500 rooms could expect tax relief ranging from $37,000 to $1 million.
  • Seven properties with more than 500 rooms could receive tax relief ranging from $600,000 to nearly $6 million.

Last November, Texas voters approved Proposition 4, a constitutional amendment reducing property taxes that year. The amendment, supported by AAHOA and the Texas Hotel & Lodging Association, allocated $12.6 billion in state funds for public education, lessening reliance on local property taxes, according to AAHOA. It also raised the Texas franchise tax exemption from $1.24 million to $2.47 million, providing businesses with tax relief, and caps appraisal values for commercial properties under $5 million.

More for you

U.S. Hotel Construction Hits 20-Quarter Low in June

CoStar: Hotel construction drops in June

Summary:

  • U.S. hotel rooms under construction fell year over year for the sixth straight month in June, hitting a 20-quarter low, CoStar reported.
  • About 138,922 rooms were under construction, down 11.9 percent from June 2024; the luxury segment had 6,443 rooms, up 4.1 percent year over year.
  • Lodging Econometrics recently said Dallas led all U.S. markets in hotel construction pipelines at the end of the first quarter, with 203 projects and 24,496 rooms.

THE NUMBER OF U.S. hotel rooms under construction declined year over year for the sixth straight month in June, reaching a 20-quarter low, according to CoStar. Additionally, more than half of all rooms under development are in the South, mostly outside the top 25 markets.

Keep ReadingShow less
Chart showing decline in U.S. extended-stay hotel occupancy and RevPAR in May 2025

Report: May fifth month for drop in extended-stay occupancy

Summary:

  • Extended-stay occupancy fell 2.2 percent in May, the fifth straight monthly decline; ADR and RevPAR also dropped for a second consecutive month.
  • May marked 44 straight months of supply growth for the segment at 4 percent or less, with annual growth below the 4.9 percent long-term average.
  • Extended-stay room revenues rose 0.5 percent, while total industry revenue grew 0.9 percent, led by segments with little extended-stay supply.

EXTENDED-STAY HOTEL occupancy fell 2.2 percent in May, the fifth consecutive monthly decline, exceeding the 0.7 percent drop reported for all hotels by STR/CoStar, according to The Highland Group. Extended-stay occupancy was 10.5 percentage points above the total hotel industry, at the lower end of the long-term average premium range.

Keep ReadingShow less
Auro Hotels Showcases India Culture at TCMU Exhibit

Auro unveils 'India Cultural Corner' for children

Summary:

  • Auro Hotels opened the India Cultural Corner, where children can check in and explore Indian culture at The Children's Museum of the Upstate.
  • Families can engage with community art, activities and storytelling about daily life in India.
  • The exhibit runs through May 2026, offering interactive learning on Indian culture.

AURO HOTELS RECENTLY opened the India Cultural Corner at The Children's Museum of the Upstate in Greenville, South Carolina, offering a look into Indian stories for American families. The exhibition, held at The Grand Geo Hotel and running through May 2026, includes a hotel desk where children can check in and explore Indian culture through interactive activities.

Keep ReadingShow less
U.S. Firms Lose $2.4 Trillion by Skimping on Business Travel

Report: Business travel gaps cost U.S. firms $2.4T

Summary:

  • U.S. companies risk losing more than $2.4 trillion in sales due to underinvestment in business travel, says GBTA.
  • An 8.3 percent T&E increase could drive a 6 percent sales gain, despite post-COVID virtual meeting tools.
  • Current T&E spending is $294 billion—$24 billion short of the $319.1 billion needed for peak profitability.

U.S. COMPANIES ARE missing more than $2.4 trillion in potential sales due to underinvestment in business travel, according to a Global Business Travel Association report. Despite a post-pandemic rebound, travel and entertainment spending remains $66 billion below 2019 levels.

Keep ReadingShow less
AI threats in hospitality

Study: Cyberattacks on hotels to surge

Summary:

  • Around 66 percent of hotel IT and security executives expect more cyberattacks this summer, and 50 percent anticipate greater severity, according to VikingCloud.
  • Guest-facing systems most at risk include POS and payment technology at 72 percent, guest WiFi at 56 percent and front desk systems at 34 percent.
  • About 48 percent of executives lack confidence in their staff’s ability to detect and respond to AI-driven attacks and deepfakes.

APPROXIMATELY 66 PERCENT of hotel IT and security executives expect an increase in cyberattack frequency and 50 percent anticipate greater severity during the summer travel season, according to cybersecurity firm VikingCloud. In summer 2024, 82 percent of North American hotels experienced a cyberattack and 58 percent were targeted five or more times.

Keep ReadingShow less