Let’s face it. These days, most third-party management companies have fallen into a predictably corporate (boring) “operating system.” With universal protocols and rules, there isn’t much room for diversity in how hotels within a portfolio are operated – or a clear understanding of each individual property’s vision in its unique marketplace.
According to the most recent survey of economists, a recession in the coming months looks increasingly likely.
The tragic news of the murder of a young employee at a resort in Rishikesh last month tarnished the Indian hotel sector, which is recovering strongly from the pandemic. This prompted a verification drive to inspect all the hotels, resorts, and homestays in the area for violations of rules and regulations, as well as the closure of properties that did. There is no denying that rules and regulations must be strictly followed or there will be serious consequences. The recent fatal fire incident at a hotel in Lucknow, which occurred allegedly due to insufficient fire safety measures, serves as a case in point.
French hotel leases and contract law governing hotels constitute essential legal and economic stakes for a hotel business in France. The country is, in fact, home to over 17,000 hotels, many of which are operated under commercial leases. For owners and tenants, the legal and economic challenges associated with hotel leases are crucial, especially when the hotel under operation is their main asset.
Over the last few years, numerous states and cities across the U.S. have worked to reform hotel on-property safety by implementing enhanced workplace safety standards and regulations. Many of these initiatives were brought to life in the wake of the AHLA’s 5-Star Promise, a voluntary commitment made by American Hotel and Lodging Association members to enhance policies, training, and resources surrounding hotel safety and security. The 5-Star Promise was announced in September 2018, and since then, over 20,000 hotel properties have pledged to protect their staff and guests better.
Recently on March 18, 2022, the U.S. Department of Justice (DOJ) issued a “Web Accessibility Guidance” statement for state and local governments and public accommodations (including businesses) under Titles II and III of the Americans with Disabilities Act (ADA).
A recent arrival from across the pond, coliving blends shared accommodation and apart-hotel services, combining communal living with amenities that can be worthy of even the best hotel. The concept is catching on and seducing French investors. But as the saying goes, “all that glitters is not gold”.
In 2022 and for the fourth consecutive year, EHL Hospitality Business School maintains its world’s number one position in Hospitality & Leisure Management, and number five in Business & Management Studies in Switzerland (QS World University Rankings by Subject).
As travel started to resume, scammers and hackers are also back to take their share of the business. Travel and hospitality is an industry with high-value transactions made by people who have money to spend, making both hotels and travelers an attractive target for fraudsters.
Many hotels have opted to include Electric Vehicle Charging Stations as an amenity for guests as the cars become more and more common. And while hotels may be very aware how the Americans with Disabilities Act applies to their property, are they considering the requirements for disabled guests at these charging stations?
If you are planning to make a large gift as part of your estate plan, you should consider taking advantage of the current tax exemption in effect until the end of 2025. After this time, the exemption will revert back to approximately one-half of its current value. This has potentially huge implications for hospitality executives and other high-net-worth individuals. Gordon Schaller, managing partner of JMBM’s Orange County office, explains below.
Addressing privacy compliance and cybersecurity is becoming more and more challenging for companies. At least 26 states are considering various kinds of data privacy laws. At the same time the rate, depth, and impact of ransomware, wiperware and data breaches has become more intense and more expensive, and there is no indication that the trend will end soon. Hotel companies, as holders of significant amounts of personal information and highly dependent on computer networks for daily operations, are particularly at risk in this environment.
Serial ADA litigants are continuing to face challenges in the courts as dozens of cases alleging a failure to include accessibility information on hotel websites are being dismissed. Martin Orlick, Chair of JMBM’s ADA Compliance & Defense Group, describes one such case faced by a JMBM client below. This successful outcome is good news for hotels worried about Reservation Rules lawsuits.
The legal environment of the hospitality industry is forever evolving and changing. Given specific hospitality industry events and circumstances, industry professionals need to view the law, policies and regulations across the industry -- and beyond -- with particular attention to social, political, environmental, and human needs and their responsibilities and obligations.
The Indian government has placed greater emphasis on road development in the country in recent years to promote economic growth and progress. The government has planned massive investments to bring the country’s 6 million kilometers (km) long road network – the world’s second-largest – at par with that of the US and European countries in the coming years.
Cities and counties continue rolling out mandates requiring many businesses to demand customers show proof of vaccination before being allowed inside. These orders, which apply to businesses where people congregate, may be easier to enforce for nightclubs, stadiums or amusement parks, because they already have security operations regularly checking IDs and providing support.
India has prolonged the suspension of scheduled international commercial passenger flights till the end of October 2021 due to the ongoing pandemic. Only flights under bilateral air bubbles, special flights, and cargo flights are permitted to operate. However, the central government is planning to welcome international travelers back to the country soon, albeit with several strict guidelines and protocols in place as the prospect of a third wave still looms large. The Indian government also recently announced its plans to provide free visas to the first 500,000 tourists once scheduled international commercial travel resumes in the country.
After a year and a half, the global tourism sector is recovering steadily, owing primarily to an increase in domestic tourism across countries. People are rediscovering the tourism treasures in their own countries because of foreign travel restrictions. In fact, hotel occupancy in some parts of the world, such as the US and Europe, is approaching pre-pandemic levels.
As the lights begin to brighten on a dimmed world of the post-COVID era, the hospitality and tourism sectors have started to gain traction again. It is now time for hotels to take this opportunity to create innovative ways to earn new customers and regain lost revenue.
As the hospitality industry moves toward recovery, many hotel owners are re-evaluating the management of their properties. A good manager can bring great value to a property; a poor manager can reduce its value.