AHLA emphasizes H-2B visas' importance for seasonal hotel labor
By Vishnu Rageev RJan 01, 2025
PRESIDENT-ELECT DONALD TRUMP joined billionaire Tesla founder Elon Musk in supporting the H-1B visa program despite opposition from some of Trump’s base. Meanwhile, hotel associations, including AAHOA and the American Hotel & Lodging Association, are pushing to replace the 66,000 annual cap on H-2B visas with a needs-based system.
Trump, who restricted H-1B visas during his first term, told The New York Post that he now supports the program.
“I have many H-1B visas on my properties. I’ve been a believer in H-1B. I have used it many times. It’s a great program,” he said.
Despite his statement, Trump has rarely utilized the H-1B program, which allows skilled workers, such as engineers, to work in the U.S. for up to six years. Instead, his companies have frequently relied on the H-2B visa program for unskilled workers, such as gardeners and housekeepers, and the H-2A program for agricultural workers. These visas allow stays of up to 10 months.
Federal data shows Trump’s companies have employed more than 1,000 workers through these programs in the past two decades, Reuters reported.
Trump’s remarks followed a social media post by Musk, CEO of Tesla and SpaceX, who vowed to “go to war” to defend the H-1B visa program. The dispute escalated after far-right activists criticized Trump for selecting Indian American venture capitalist Sriram Krishnan as an adviser on AI, alleging it could influence immigration policies.
Trump also has nominated Indo American entrepreneur Vivek Ramaswamy to head the newly created Department of Government Efficiency along with Musk. Kashyap “Kash” Patel has been named to head the Federal Bureau of Investigation.
The Department of Labor oversees H-1B and H-2 visa programs, each with specific rules. The H-1B program for skilled workers is capped at 65,000 visas annually, while H-2B visas are limited to 66,000. H-2A visas have no cap but are restricted to seasonal agricultural work.
AHLA noted that H-2B visas are vital for hoteliers seeking seasonal labor.
“AHLA co-chairs the H-2B Coalition in Washington, D.C., working with both the Biden and Trump administrations to secure additional visas, including 64,716 for FY 2025,” a spokesperson said. “We look forward to collaborating with Congress to create a more predictable system based on workforce needs.”
AHLA has also urged Congress to pass legislation such as the Closing the Workforce Gap Act of 2024, the HIRE Act and the Asylum Seeker Work Authorization Act to address labor shortages. In May, more than 200 hoteliers from 30 states attended AHLA’s “Hotels on the Hill” event to advocate for a Returning Worker Exemption to expand the H-2B program. AHLA’s analysis shows the U.S. hotel industry supports 8.3 million jobs—nearly 1 in 25 nationwide.
Musk, a South African-born naturalized U.S. citizen, previously held an H-1B visa. Tesla secured 724 H-1B visas this year, according to Reuters. These visas, valid for three years with extensions possible, can also serve as a pathway to green cards. Musk’s tweet directly addressed Trump’s supporters and critics of the H-1B program, sparking debate over skilled foreign workers.
Unlike the hotel industry, which primarily uses H-2 visas, the tech industry heavily relies on H-1B visas for talent. Critics argue this undermines wages for American workers. From 2003 to 2017, Trump’s companies were approved for more than 1,000 H-2 visas for jobs at properties like Mar-a-Lago in Florida.
In 2022, Trump Media & Technology Group filed an H-1B application for a “product data analyst” role at $65,000 annually, though it is unclear if the position was filled. Trump’s winery in Charlottesville, Virginia, recently sought 31 H-2A workers at $15.81 per hour.
In September, more than 400 AAHOA and AHLA members met with Congress to discuss workforce expansion and visa reform, including the Closing the Workforce Gap Act of 2024. The bill proposes replacing the H-2B cap with a needs-based system, addressing labor shortages impacting industries nationwide.
Peachtree adds six hotels to third-party platform.
Five are owned by La Posada Group, one by Decatur Properties.
Third-party portfolio totals 42 hotels.
PEACHTREE GROUP’S HOSPITALITY management division added six hotels to its third-party management platform. Five are owned by La Posada Group LLC and one by Decatur Properties Holdings.
La Posada’s hotels include Fairfield Inn Evansville East in Evansville, Indiana; Fairfield Inn Las Cruces and TownePlace Suites Las Cruces in Las Cruces, New Mexico; and SpringHill Suites Lawrence Downtown and TownePlace Suites Kansas City Overland Park in Kansas, Peachtree said in a statement.
It also assumed management of Decatur Properties’ Hampton Inn in Monahans, Texas.
“Our third-party management business is experiencing growth and these six hotels demonstrate the trust owners are placing in our team,” said Vickie Callahan, president of Peachtree’s hospitality management division. “We have experience managing hotels and managing operations for partners who have entrusted us with their assets. We are committed to protecting asset value, driving results for partners and delivering a strong guest experience.”
The division manages hotels across brands and markets nationwide, the statement said. It operates 115 hotels across 29 brands with 14,212 rooms in 27 states and Washington, D.C. The additions bring its total third-party operations to 42 hotels.
Callahan said the team uses scale, operating systems and brand relationships to optimize revenue, control costs and improve guest satisfaction.
Atlanta-based Peachtree is led by Greg Friedman, managing principal and CEO; Jatin Desai, managing principal and CFO and Mitul Patel, principal.
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The Highland Group: Extended-stay occupancy, RevPAR and ADR declined in August.
Room revenue rose 0.4 percent, while demand increased 2.2 percent.
August marked the second time in 47 months that supply growth exceeded 4 percent.
U.S. EXTENDED-STAY OCCUPANCY fell 2.1 percent in August, its eighth consecutive monthly decline, while ADR declined 1.8 percent and RevPAR dropped 3.9 percent for the fifth consecutive month, according to The Highland Group. However, total extended-stay room revenue rose 0.4 percent year over year.
The Highland Group’s “US Extended-Stay Hotels Bulletin: August 2025” noted that summer leisure travel has a greater impact on the overall hotel industry than on extended-stay hotels.
“August’s performance metrics further indicated that economy extended-stay hotels are weathering the hotel industry downturn better than most hotel classes, especially at lower price points,” said Mark Skinner, The Highland Group partner.
The 2.1 percent drop in extended-stay hotel occupancy in August was the eighth straight month of decline, the report said. Occupancy declined more than the 1.3 percent drop STR/CoStar reported for all hotels. However, extended-stay occupancy was 11.3 percentage points higher than the overall hotel industry, consistent with long-term late-summer trends.
The 1.8 percent decline in extended-stay ADR was partly due to a larger share of economy supply in August 2025 versus August 2024, the report said. Economy extended-stay ADR fell for the first time since May 2024 but outperformed the 3.4 percent drop for all economy hotels reported by STR/CoStar. Mid-price extended-stay ADR also declined, while upscale extended-stay ADR fell more than upscale hotels overall.
RevPAR fell 3.9 percent in August, the fifth straight monthly decline and the largest in 2025. The overall drop was greater than individual segment decreases because economy supply made up a larger share than in August 2024. STR/CoStar reported RevPAR declines of 5.7 percent for economy, 2.6 percent for mid-price and 2 percent for upscale hotels.
Revenue, demand and supply trends
Extended-stay room revenue rose 0.4 percent in August from a year earlier, The Highland Group said. STR/CoStar reported overall hotel revenue fell 0.1 percent and excluding luxury and upper-upscale segments, revenue fell 2 percent. STR/CoStar also reported August room revenue declines of 6.4 percent for economy hotels, 1.4 percent for midscale and 0.7 percent for upscale compared to August 2024.
Extended-stay demand rose 2.2 percent in August, the second-largest monthly increase in seven months. STR/CoStar reported total hotel demand fell 0.4 percent. Adjusting for the extra day in February 2024, extended-stay demand has grown in 32 of the past 33 months.
August was the second time in 47 months that supply growth exceeded 4 percent, the report said. Supply has risen about 3 percent year to date. Annual supply growth ranged from 1.8 to 3.1 percent over the past three years, below the long-term 4.9 percent average.
The 8 percent rise in economy extended-stay supply, with minimal change in mid-price and upscale rooms, is mainly due to conversions, as new economy construction accounts for about 3–4 percent of rooms compared to a year ago.
The Highland Group reported that economy, mid-price and upscale extended-stay segments led first-quarter 2025 RevPAR growth over their class counterparts. The report noted 602,980 extended-stay rooms at quarter-end, a net gain of 17,588 rooms over the past year, the largest in three years.
AHLA Foundation distributed $710,000 in scholarships to 246 students.
Nearly 90 percent of recipients come from underrepresented communities.
The foundation funds students pursuing education and careers in the lodging sector.
AHLA FOUNDATION DISTRIBUTED $710,000 in academic scholarships to 246 students at 64 schools nationwide for the 2025–2026 academic year. Nearly 90 percent of recipients are from underrepresented communities, reflecting the foundation’s focus on expanding access to hospitality careers.
The foundation awards academic scholarships annually to students in hospitality management and related programs, it said in a statement.
“Our scholarship program is helping ensure the next generation of talent has the resources to pursue careers in the hospitality industry,” said Kevin Carey, AHLA Foundation's president and CEO. “We’ve invested millions of dollars over the last several decades to recruit and support future leaders who will strengthen our industry.”
It provides funding to help students pursue education and careers in the lodging sector, the statement said. Award decisions are based on applicants’ academic performance, extracurricular involvement, recommendations and financial need.
In September, AHLA Foundation, the International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration announced plans to expand education opportunities for hospitality students. The alliance aim to provide data, faculty development and student engagement opportunities.
The U.S. government shut down at midnight after Congress failed to agree on funding.
About 750,000 federal employees will be furloughed daily, costing $400 million.
Key immigration and labor programs are halted.
THE FEDERAL GOVERNMENT shut down at midnight after Republicans and Democrats failed to agree on funding. Disputes over healthcare subsidies and spending priorities left both sides unwilling to accept responsibility.
The shutdown could cost America’s travel economy $1 billion a week, the U.S. Travel Association said previously. It will disrupt federal agencies, including the Transportation Security Administration and hurt the travel economy, USTA CEO Geoff Freeman wrote in a Sept. 25 letter to Congress.
“A shutdown is a wholly preventable blow to America’s travel economy—costing $1 billion each week—and affecting millions of travelers and businesses while straining an already overextended federal travel workforce,” Freeman said. “While Congress recently provided a $12.5 billion down payment to modernize our nation’s air travel system and improve safety and efficiency, this modernization will stop in the event of a shutdown.”
USTA said that halting air traffic controller hiring and training would worsen a nationwide shortage of more than 2,800 controllers and further strain the air travel system.
About 750,000 federal workers are expected to be furloughed each day at a cost of about $400 million, according to the Congressional Budget Office. Essential services to protect life and property remain operational, CNN reported. The Department of Education said most of its staff will be furloughed, while the Department of Homeland Security will continue much of its work. Agencies released contingency plans before the deadline.
Immigration services are directly affected. Most U.S. Citizenship and Immigration Services operations continue because they are fee funded, but programs relying on appropriations—such as E-Verify, the Conrad 30 J-1 physician program and the special immigrant religious worker program—are suspended. Houston law firm Reddy Neumann Brown said employers must manually verify I-9 documents if E-Verify goes offline, though USCIS has historically extended compliance deadlines.
The Department of Labor will halt its Office of Foreign Labor Certification, freezing labor condition applications for H-1B visas, PERM applications and prevailing wage determinations, India’s Business Standard reported. Its FLAG system and related websites will also go offline. Immigration lawyers warn of ripple effects, since USCIS depends on DOL data. The Board of Alien Labor Certification Appeals and administrative law dockets will also pause.
Visa and passport services at U.S. consulates generally continue because they are fee funded. If revenue falls short at a post, services may be limited to emergencies and diplomatic needs.
Reuters reported that the disruption could delay the September jobs report, slow air travel, suspend scientific research, withhold pay from active-duty U.S. troops and disrupt other government operations. The funding standoff involves $1.7 trillion in discretionary agency spending—about one-quarter of the $7 trillion federal budget, according to Reuters. Most of the rest goes to health programs, retirement benefits and interest on the $37.5 trillion national debt.
According to The New York Times, unlike previous shutdowns, Trump is threatening long-term changes to the government if Democrats do not concede to demands, including firing workers and permanently cutting programs they support.
The U.S. led global travel and tourism in 2024 with $2.6 trillion in GDP, WTTC reported.
India retained ninth place with $249.3 billion in GDP.
The sector supported 357 million jobs in 2024, rising to 371 million in 2025.
THE U.S. LED global travel and tourism in 2024, contributing $2.6 trillion to GDP, mainly from domestic demand, according to the World Travel & Tourism Council. Europe accounted for five of the top 10 destinations, while India ranked 9th.
WTTC opened its 25th Global Summit in Rome with research showing investment reached $1 trillion in 2024, led by the U.S., China, Saudi Arabia and France.
“These results tell a story of strength and opportunity,” said Gloria Guevara, WTTC interim CEO. “The U.S. remains the world’s largest travel and tourism market, China is surging back, Europe is powering ahead, and destinations across the Middle East, Asia and Africa are delivering record growth. This year, we are forecasting that our sector will contribute a historic $2.1 trillion in 2025, surpassing the previous high of $1.9 trillion in 2019. As Italy hosts this year’s Global Summit, its role as a G7 leader showcases the importance of tourism in driving economies, creating jobs and shaping our shared future.”
The U.S. kept its top position, but international visitor spending is expected to fall by $12.5 billion in 2025, limiting growth to 0.7 percent. China, the second-largest market, contributed $1.64 trillion in 2024 and is forecast to grow 22.7 percent this year. Japan, the fifth-largest market, is expected to rise from $310.5 billion to nearly $325 billion.
Italy, which hosted the summit and is a G7 member, contributed $248.3 billion in 2024, driven by international visitors and the meetings and events sector. Germany, the third-largest market, contributed $525 billion. The UK generated $367 billion despite a fall in international visitor spending, while France and Spain added $289 billion and $270 billion. Europe’s growth was supported by both cultural and modern sectors.
India contributed $249.3 billion in 2024. In June, WTTC reported international visitors spent $36.09 billion in India in last year, up 9 percent from 2019.
Jobs on the rise
Travel and tourism supported 357 million jobs in 2024 and is expected to reach 371 million in 2025, increasing its share of global employment, the WTTC report found. By 2035, the sector is projected to support one in eight jobs worldwide, adding 91 million positions—most in Asia-Pacific—and accounting for one in three new jobs globally.
Uncertainties over trade tariffs and geopolitical tensions could limit sector growth in 2025, the report said. Travel and tourism’s GDP contribution is forecast to rise 6.7 percent, returning toward pre-pandemic averages but still outpacing the 2.5 percent growth projected for the global economy.
The sector is expected to contribute $11.7 trillion, or 10.3 percent of global GDP and add 14.4 million jobs, bringing total employment to 371 million, or 10.9 percent of global jobs. International visitor spending is projected to fully recover, rising 8.6 percent above 2019 levels to nearly $2.1 trillion, while domestic visitor spending is expected to rise 13.6 percent to $5.6 trillion. Annual growth for 2025 is forecast at 10 percent for international and 5.1 percent for domestic spending.
In May, WTTC projected the U.S. stood to lose $12.5 billion in international travel spending this year, falling to under $169 billion from $181 billion in 2024. The council said U.S. needs to do more to welcome international visitors rather than “putting up the ‘closed’ sign.”