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 assistant 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.
THERE ARE MANY challenges for hotels operating under the COVID-19 pandemic and its ensuing travel restrictions. It is a unique situation and, therefore, one that presents unique legal problems for hospitality businesses.
It may be advisable to have an attorney available to avoid or resolve issues that may otherwise produce costly results.
The Patel|Gaines law firm in San Antonio, Texas, has a page on its website dedicated to COVID-19 legal issues, and Rahul Patel, managing partner, has been taking on cases stemming from the pandemic. The main topics include property taxes, the application of “force majeure” clauses to escape contractual obligations and relief from commercial mortgage backed securities loans.
The tax man will cometh
Property taxes are, and the possibility of relief from them, are important subjects for Patel’s clients. In a March 27 property tax podcast he conducted with the firm’s Senior Associate Attorney Kathlyn Hufstetler on the tax situation in Texas, the question was raised about whether this year’s taxes would be collected.
There are a lot of discussions being held about 2020 property taxes, Patel said. For one thing, all property tax values for 2020 listed in the state’s plan are dated as of Jan. 31.
“As of Jan. 31, most businesses were not impacted by the coronavirus or COVID-19, so therefore you would not really see a lot of impact negatively or downward assessment on your 2020 taxes,” he said. “However, lots of counties are taking this into consideration and know that you will have a problem paying your taxes when they become due later in the year or Jan. 31, 2021.”
It’s still too early to say what solutions are out there yet, but they are monitoring the situation, Patel said.
“More will be known as time passes what will happen for 2020,” he said.
Of course, Patel said, property tax laws are different from state to state.
“I do think a lot of commonalities will apply when it comes to property tax and different tax-related issues in that we’re doing everything we can as a country to pump dollars back to business owners, but at some point it’s going to come from somewhere, right?” he said. “We know that, and it’s going to come in the form of taxes at some point, whether that’s income taxes, sales tax, property taxes, occupancy taxes, whatever you call it it’s going to come back.”
Hotels should be aware of that so they can mitigate the impact on their bottom lines.
“I see state sales tax across the country probably starting to increase. I think property taxes will probably start to increase as well,” he said.
Acts of God
Another possible source of relief, but one with possible legal complications, is the “force majeure” clause found in most contracts. The clauses, also known as “Act of God” clauses, essentially state that certain unforeseen events or circumstances can occur that are beyond control and may excuse or suspend a party’s obligations under the specific contract, according the Patel|Gaines website.
“They call them an ‘Act of God’ provision because it’s for something that was out of the breaching party’s control,” Patel said. “But is the pandemic an act of God? Would that negate my requirements to fulfill my contracts?”
The force majeure clause can include specific legal procedures for invoking its protection, including providing notice that it has occurred, spelling out how it might affect performance and taking steps to mitigate that impact. But actually implementing the clause encompasses accounting for many different circumstances that may or may not be spelled out.
“Let’s say you have a hotel with a big banquet hall and you had agreed to do a wedding. What if they still wanted to do the wedding and you’re not able to do it?” Patel said. “What if you’re not able to provide the food and services necessary. What if you and the other party don’t want to do it and they’re asking for a refund and you’re telling them it’s a credit?”
In other cases, he said, many hotels have leasing agreements with restaurant owners that they can no longer honor because the hotel is closed.
“Those are the types of things where force majeure is starting to come up. A lot of people are having questions about it,” he said “Generally I call it a ‘It depends’ legal argument, but it truly does depend on how it’s crafted and what the situation it’s being brought up in.”
Furthermore, nobody alive has lived through a major pandemic like this, he said.
“When was the last time something like this has come up? I think that’s where a lot of litigation will stem from,” Patel said. “I see, more or less, right now people trying to find ways to better their business situation regardless of what side they’re on.”
Business interruption coverage may not come through
Some hotel owners may be planning to cash in on business interruption insurance policies. Don’t count on it, Patel said.
“I think that there are probably some strong legal provisions that state that your insurance should or does cover this type of situation. But the flip side to that is, whether it says that or not, or whether it’s covered or not, isn’t really the situation. The situation is how long is it going to take for you to find relief under that?” he said. “Do you believe that insurance companies are going to bend over and say ‘Hey, $20,000, let’s just pay the claim.’ No, because there’s going to be thousands of claims. I told someone that it might not be a bad angle to pursue, but if you’re relying on that to come in next month then you’ve got a problem.”
Actually getting paid by the insurance companies will probably take five years and legislative as well as legal action, he said.
“You better rest assured that the insurance company lobbying arm is bigger than most, so you can expect them to argue and lobby pretty hard that business interruption doesn’t apply to a national pandemic such as this,” Patel said.
More complicated than you think
The firm’s website also contains a checklist of documents a hotel may need to seek relief from commercial mortgage backed securities loan. However, CMBS loans are more complicated than regular loans, as discussed in a recent AAHOA webinar featuring Peter Berk, president of PMZ Realty Capital LLC Hotel Finance Group.
“CMBS is going to be more of a challenge right now. You have to work through servicers, you have to work through special servicers. It’s not like your local bank,” Patel said. “When there’s a downturn in the economy, people are not going to be ready for what will happen because they haven’t really understood CMBS loans.”
Patel wrote an article in 2018 on the potential for problems with the CMBS loan market. One issue was the highly structured cash management process that comes with a CMBS loan that may not appear to be a problem while the economy is good and the hotel owner can make their payments.
“But if the hotel suffers a downturn, the lender essentially takes control of cash flow until it returns to pre-set levels. In short, the CMBS borrower gives up a lot of control over the property’s finances,” Patel wrote.
And a CMBS borrower can be considered in default even if they are making their monthly payment if their debt service coverage ratio drops too low.
“Certainly, we’ve all seen what can happen when excessive optimism mixes with excessive leverage,” he wrote.
At the end of the article, Patel concluded that hoteliers consider “funding channels that are more suited to the world of 2018” when the threats to the industry came from over supply and OTAs. In the world of the current pandemic, many may wish they had heeded that advice.
“Many of the lodging folks haven’t really understood how CMBS loans are structured, they just believe it’s a normal loan,” he said. “They’re not a normal loan. [Some hoteliers are] not ready for this.”
The Trump administration says it is reviewing more than 55 million visa holders.
Reviews cover a wide range of visas for law enforcement and overstay violations.
The administration also suspended worker visas for foreign commercial truck drivers.
THE TRUMP ADMINISTRATION is reviewing more than 55 million people who hold valid U.S. visas for potential violations. It is expanding a policy of “continuous vetting” that could result in revocation and deportation.
The State Department confirmed all visa holders are subject to ongoing review, which includes checking for overstays, criminal activity, threats to public safety or ties to terrorism. Should violations be found, visas may be revoked, and holders in the U.S. could face deportation, according to the Associated Press.
Officials said the reviews will include monitoring of visa holders’ social media accounts, law enforcement records and immigration files. New rules also require applicants to disable privacy settings on phones and apps during interviews. The department noted visa revocations since President Trump’s return to office have more than doubled compared to the previous year, including nearly four times as many student visas.
The administration also announced an immediate halt on issuing worker visas for foreign commercial truck drivers, with Secretary of State Marco Rubio citing road safety and competition concerns for U.S. truckers.
“The increasing number of foreign drivers operating large tractor-trailer trucks on U.S. roads is endangering American lives and undercutting the livelihoods of American truckers,” Rubio posted on X.
The Transportation Department linked the move to recent enforcement of English-language proficiency requirements for truckers, aimed at improving safety. The State Department later said it was pausing visa processing while it reviewed screening protocols.
Critics, including Edward Alden of the Council on Foreign Relations, warned the actions could have significant economic consequences.
“The goal here is not to target specific classes of workers, but to send the message to American employers that they are at risk if they are employing foreign workers,” Alden wrote, according to AP.
Data from the Department of Homeland Security shows there are 12.8 million green card holders and 3.6 million temporary visa holders in the United States. The 55 million figure under review includes many outside the U.S. with valid multiple-entry tourist visas.
Earlier this week, the State Department reported revoking more than 6,000 student visas for violations since Trump returned to office, including around 200 to 300 for terrorism-related issues.
The vast majority of foreign visitors require visas to enter the U.S., with exceptions granted to citizens of 40 countries under the Visa Waiver Program, primarily in Europe and Asia. Citizens of China, India, Russia and most of Africa remain subject to visa requirements.
A $250 Visa Integrity Fee in President Donald Trump’s Big Beautiful Bill drew criticism from groups that rely on seasonal workers from Latin America and Asia on J-1 and other visas.
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Peachtree Group originated a $176.5 million retroactive CPACE loan for a Las Vegas property.
The deal closed in under 60 days and ranks among the largest CPACE financings in the U.S.
The company promotes retroactive CPACE funding for commercial real estate development.
PEACHTREE GROUP ORIGINATED a $176.5 million retroactive Commercial Property Assessed Clean Energy loan for Dreamscape Cos.’s Rio Hotel & Casino in Las Vegas. The deal, completed in under 60 days, is its largest credit transaction and one of the largest CPACE financings in the U.S.
The 2,520-room Rio, now under the Destinations by Hyatt brand, was renovated in 2024 and comprises two hotel towers connected by a casino, restaurants and retail, Peachtree said in a statement.
“This transaction is a milestone for Peachtree Group and a testament to the ecosystem we have built over the past 18 years,” said Greg Friedman, Peachtree's managing principal and CEO. “Through our vertically integrated platform, deep expertise and disciplined approach, we have developed the infrastructure to be a leader in private credit. Our ability to deliver speed, creativity and certainty of execution positions us to provide capital solutions that create value for our investors and partners across market cycles.”
Atlanta-based Peachtree is led by Friedman; Jatin Desai as managing principal and CFO and Mitul Patel as principal.
The CPACE loan retroactively funded the renovations, allowing the owners to pay down their senior loan, the statement said. The property improvement plan included exterior work, upgrades to the central heating and cooling plant, electrical infrastructure improvements and convention center renovations.
Jared Schlosser, Peachtree’s head of originations and CPACE, said the deal marks an inflection point, with major financial institutions consenting to its use for the benefit of the capital stack.
“By closing quickly on a marquee hospitality asset, we were able to strengthen the position of both the owner and its lenders,” he said.
The CPACE market has surpassed $10 billion in U.S. originations in just over a decade, according to the C-PACE Alliance, with growth expected as more institutional owners and lenders adopt it.
“We see significant opportunity for retroactive CPACE and its use in funding new commercial real estate development,” Schlosser said. “It is an alternative to more expensive forms of capital.”
In June, Peachtree named Schlosser head of originations for all real estate and hotel lending and leader of its CPACE program. Peachtree recently launched a $250 million fund to invest in hotel and commercial real estate assets mispriced by capital market illiquidity.
Spark acquired the 120-key Home2 Suites by Hilton Wayne in Wayne, New Jersey.
Hunter Hotel Advisors facilitated the transaction with DC Hospitality Group affiliates.
The 2020-built hotel is near William Paterson University and less than 20 miles from Manhattan.
SPARK GHC RECENTLY acquired the 120-key Home2 Suites by Hilton Wayne in Wayne, New Jersey, from affiliates of DC Hospitality Group. Hunter Hotel Advisors facilitated the deal for an undisclosed amount.
The 2020-built hotel is less than 20 miles from Manhattan in a commercial corridor with major employers including Driscoll Foods, FedEx Group, Advanced Biotech, St. Joseph’s Wayne Hospital, and the Passaic County Administration, Hunter said in a statement. William Paterson University, Willowbrook Mall, and MetLife Stadium are also nearby.
It features an on-site fitness center, business center and indoor pool.
“The Home2 Suites by Hilton Wayne represents the type of asset we target,” said Patel. “Its proximity to major corporate demand generators, higher education institutions, and retail and entertainment venues supports strong performance.”
Hunter’s senior vice presidents, David Perrin and Spencer Davidson, brokered the transaction.
Patel said this is their second transaction with Hunter and praised the process and partnership.
“We look forward to building on the hotel’s recent performance and continuing to deliver guest experiences in the Greater New York City community,” he said.
Northstar Hotels Management recently acquired a 78-key Residence Inn and an 81-key Courtyard near the Jacksonville, Florida, airport.
Global pipeline hit a record 15,871 projects with 2.4 million rooms in Q2.
The U.S. leads with 6,280 projects; Dallas tops cities with 199.
Nearly 2,900 hotels are expected to open worldwide by the end of 2025.
THE GLOBAL HOTEL pipeline reached 15,871 projects, up 3 percent year-over-year, and 2,436,225 rooms, up 2 percent, according to Lodging Econometrics. Most were upper midscale and upscale, LE reported.
The U.S. leads with 6,280 projects and 737,036 rooms, 40 percent of the global total. Dallas leads cities with 199 projects and 24,497 rooms, the highest on record.
LE’s Q2 2025 Hotel Construction Pipeline Trend Report showed 6,257 projects with 1,086,245 rooms under construction worldwide, unchanged in project count and down 3 percent in rooms from last year. Projects scheduled to start in the next 12 months totaled 3,870 with 551,188 rooms, down 3 percent in projects but up 1 percent in rooms. Early planning reached 5,744 projects and 798,792 rooms, up 10 percent in projects and 9 percent in rooms year-over-year.
Upper midscale and upscale hotels accounted for 52 percent of the global pipeline, LE said. Upper midscale stood at 4,463 projects and 567,396 rooms, while upscale reached 3,852 projects and 655,674 rooms. Upper upscale totaled 1,807 projects and 385,396 rooms, and luxury totaled 1,267 projects and 245,665 rooms, up 11 percent year-over-year.
In the first half of 2025, 970 hotels with 138,168 rooms opened worldwide. Another 1,884 hotels with 280,079 rooms are scheduled to open before year-end, for a 2025 total of 2,854 hotels and 418,247 rooms. LE projects 2,531 hotels with 382,942 rooms to open in 2026 and 2,554 hotels with 382,282 rooms to open globally in 2027, the first time a forecast has been issued for that year.
HAMA is accepting submissions for its 20th annual student case competition.
The cases reflect a scenario HAMA members faced as owner representatives.
Teams must submit a financial analysis, solution and executive summary.
THE HOSPITALITY ASSET Managers Association is accepting submissions for the 20th Annual HAMA Student Case Competition, in which more than 60 students analyze a management company change scenario and provide recommendations. HAMA, HotStats and Lodging Analytics Research & Consulting are providing the case, based on a scenario HAMA members faced as owner representatives.
Student teams must prepare a financial analysis, a recommended solution and an executive summary for board review, HAMA said in a statement.
“Each year, the education committee looks forward to the solutions that the next generation of hotel asset managers bring, applying their own experiences to issues in ways that reveal new directions,” said Adam Tegge, HAMA Education Committee chair. “This competition demonstrates that the future of hotel asset management is in good hands.”
The two winning teams will each receive a $5,000 prize and an invitation to the spring 2026 HAMA conference in Washington, D.C. HAMA will cover travel and lodging.
Twenty industry executives on the HAMA education committee will evaluate submissions based on presentation quality, the statement said. HAMA mentors volunteer from September through November to assist teams seeking feedback and additional information. Schools will select finalists by Jan. 15, with graduate and undergraduate teams reviewed separately.
The competition has addressed topics in operating and owning hospitality assets and HAMA consulted university professors to update the format for situations students may encounter after graduation, the statement said.
This year’s participants include University of Denver, University of Texas Rio Grande Valley, Boston University, Florida International University, Michigan State University, Columbia University, Morgan State University, Howard University, New York University and Penn State University.