SEVERAL DIFFERENT PROGRAMS have been enacted at the federal and state levels that offer coronavirus relief to eligible taxpayers, including hotels, according to advisory, assurance and tax firm CohnReznick. From the Paycheck Protection Program to various tax credits and deferments, the firm lists advice on a variety of assistance programs.
On April 24, the U.S. government passed a new $484 billion stimulus package that included $310 billion in new funding for the PPP and another $60 billion for its Economic Injury Disaster Loan (EIDL) program. The initial $349 billion in funding for the PPP was exhausted in just under two weeks as the SBA reported processing more than 1.6 million loans during that time, and debate has begun on a fourth stimulus bill, the Heroes Act.
Paycheck Protection Program
The PPP is designed to help small businesses with fewer than 500 employees fund their payrolls for up to eight weeks, including benefits. The funds also can be used to pay mortgage interest, rent, and utilities. The maximum loan amount for each qualifying business is the lesser amount of 2.5 times the average monthly payroll costs during a specific period, 2019 for most, or $10 million.
Hotels and franchises are waived from the SBA’s current affiliation rules within certain criteria, and a PPP loan may ultimately be fully or partially forgiven if a hotel uses the loan to continue paying salaries and benefits to employees and other costs such as rent (subject to specific rules limiting forgiveness amounts by expense type).
On May 15, the Small Business Administration released its PPP Loan Forgiveness Application, which the small business borrower must complete and submit to their bank or lender from whom they received PPP funds. The lender has 60 days to issue a decision on the submitted application once it is completed and filed.
Economic Injury Disaster Loans
The EIDL program provides small businesses with up to $2 million in coronavirus-related economic relief in certain states and territories. The loans are available to small businesses and private non-profit organizations to provide working capital and ease economic injury due to a temporary loss of revenue. Funds can be used to pay fixed debts, payroll, accounts payable, and other bills. There are specific rules to follow if applying for both EIDL and PPP loans.
The interest rate for these SBA loans is 3.75 percent for small businesses and 2.75 percent for non-profits. Loan conditions are determined on a case-by-case basis with repayment terms of up to 30 years.
“The SBA is currently not accepting new EIDL applications, but watch for updates in case there is additional funding in a future congressional stimulus package,” CohnReznick said on its site.
Employee Retention Credit
The Employee Retention Credit is designed to encourage businesses to keep employees on the payroll. This refundable tax credit is 50 percent of up to $10,000 in wages paid by an eligible employer whose business has been hurt financially by COVID-19. The maximum per-employee credit is $5,000.
To qualify for this credit, the employer’s business must be fully or partially shut down by government order due to COVID-19 during a calendar quarter, or gross receipts must be less than 50 percent of the comparable quarter in 2019. This credit is not available if a hotel receives a PPP loan.
Payroll tax deferment
The Coronavirus Aid, Relief, and Economic Security Act permits employers to defer their share of 2020 Social Security payroll taxes, with 50 percent of the deferred taxes due by Dec. 31, 2021, and the other half due by Dec. 31, 2022. This payroll tax deferral would help hotels retain some immediate liquidity but do not release them from payment responsibility. Consequently, hoteliers could be dealing with a large tax bill in 2021 and 2022 if 2020 tax payments are deferred.
FFCRA tax credits for employers and the self-employed
The Families First Coronavirus Response Act provides employers with tax credits against the employer-provided portion of FICA for those covering paid time off for employees. The credit allows for up to $511 per day paid to employees caring for themselves or $200 per day for those caring for family members. The credits are refundable to the extent that they exceed the employer’s payroll tax and are in effect through Dec. 31, 2020.
The CARES Act contains several tax provisions that could benefit hotels and hospitality companies. The relief ultimately received depend on certain facts, including the company’s legal entity structure.
Alternative minimum tax
Businesses taxed as C corporations can fully recover any remaining alternative minimum tax credits in tax years beginning in 2019. Alternatively, an election may be made to take the AMT credit fully in tax years beginning in 2018 if not yet filed.
Net operating losses
For C corporations, any net operating losses incurred in 2018, 2019, and 2020 can be carried back five years to generate tax refunds. The 2017 Tax Cut and Jobs Act limited NOL usage to 80 percent of taxable income. The CARES Act removes this limitation for these years, offering businesses seeking relief the ability to obtain a refund of prior-year taxes.
The act also delays the application of the excess business loss limitation of Internal Revenue Code Section 461(l) applicable to pass-through business owners and sole proprietors to tax years beginning after Dec. 31, 2020. Accordingly, all hotels incurring a tax loss in 2018 or 2019 should review their situation to see if it makes sense to file an NOL carryback.
Also, the act raises the Section 163(j) limit of interest deductions from 30 percent to 50 percent of adjusted taxable income for 2019 and 2020.
“However, since many hotels are organized as partnerships or LLCs for tax purposes, these entities should be careful, as the 50 percent deduction only applies to 2020 and not to 2019 for partnerships. Special rules apply to partners receiving excess business interest expense in 2019, so we recommend that you consult your tax advisor to see how these changes could help you,” said experts with CohnReznick.
Qualified improvement property-The CARES Act corrects a drafting error contained in the Tax Cuts and Jobs Act (TCJA), retroactively making Qualified improvement property (QIP) 15-year property that is eligible for 100 percent bonus depreciation in relief. While state depreciation rules may differ, this correction could help multi-unit operators making property improvements, allowing those with QIP expense in 2018 and 2019 to potentially file amended federal income tax returns.
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.
By clicking the 'Subscribe’, you agree to receive our newsletter, marketing communications and industry
partners/sponsors sharing promotional product information via email and print communication from Asian Media
Group USA Inc. and subsidiaries. You have the right to withdraw your consent at any time by clicking the
unsubscribe link in our emails. We will use your email address to personalize our communications and send you
relevant offers. Your data will be stored up to 30 days after unsubscribing.
Contact us at data@amg.biz to see how we manage and store your data.
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.
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.
Peachtree launched new DST with 131,040‑square foot industrial facility in Mansfield, Texas.
The property was acquired at $180 per square foot.
Peachtree completed $320M in debt-free transactions across multiple markets since 2022.
PEACHTREE GROUP LAUNCHED its latest Delaware Statutory Trust with the acquisition of a newly built 131,040-square-foot industrial facility in Mansfield, Texas. The company has completed about $320 million in debt-free transactions since launching its DST program in 2022, according to its statement.
The rear-load building, completed in 2025, features 36-foot clear heights, a three-acre outdoor storage yard and room for future expansion. The property was acquired for $180 per square foot, below market comparables, and is fully leased to Ferguson, a distributor for professional contractors in North America, Peachtree said in a statement.
“In today's higher-rate environment, where tighter credit and volatile valuations challenge traditional ownership, DSTs have emerged as a compelling alternative,” said Greg Friedman, Peachtree’s managing principal and CEO. “They deliver attractive cash flows backed by institutional-quality assets, while also offering tax advantages, professional management and diversification.”
Ferguson signed a 10-year corporate lease beginning in March, with 3 percent annual rent escalations, two five-year extension options and limited landlord obligations, the statement said. With investment-grade credit ratings from S&P BBB+ and Moody’s Baa1, the tenant supports the trust’s income stability and risk profile.
Peachtree’s DSTs, Opportunity Zones and REIT structures form a platform aimed at tax efficiency, compounding benefits and risk-adjusted returns, supported by Peachtree’s integrated asset management.
“Expanding into the industrial sector is a step toward building a diversified DST platform that can perform across cycles,” said Tim Witt, Peachtree’s president of 1031 Exchange and DST Products. “DSTs turn a looming tax bill into compounding wealth, keeping money in commercial real estate, but their true strength is pairing tax efficiency with investments that stand on their own merits.”
Atlanta-based Peachtree is led by Friedman; managing principal and CFO Jatin Desai and principal Mitul Patel. In July, Peachtree added the 128-key SpringHill Suites Phoenix West Avondale in Arizona as its ninth Delaware Statutory Trust offering since launching the program in 2022.