AAHOA Opposes AB 2721, Warns Bill Creates Legal Uncertainty and Operational Risk for California Hotels

SACRAMENTO, CA — AAHOA (Asian American Hotel Owners Association), the nation's largest hotel owners association representing nearly 20,000 hotel owners nationwide, strongly opposes AB 2721 and urges the California State Assembly to reject the measure. 

AB 2721 would require hotels to publicly disclose when federal immigration enforcement agencies, including U.S. Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP), have reservations or contracts at a property. The bill would further require hotels to post notices identifying the government agency involved and the duration of its stay. 

AAHOA Members own approximately 61% of California's hotels, including thousands of small, independent, and family-owned lodging properties that help power the state's tourism economy, support local jobs, and serve communities across California. Many of these hotel owners are immigrant entrepreneurs and small-business operators who are already navigating rising labor costs, insurance pressures, and increasing regulatory burdens. 

While AB 2721 has been narrowed to apply specifically to ICE and CBP-related reservations, the bill continues to create serious operational, privacy, and legal concerns for hotel owners throughout the state. The legislation would require hotels to publicly disclose certain government-related reservations under a vague “knows or should have known” standard, exposing operators to potential liability over subjective determinations that may be impossible to verify in practice. 

The bill would also require notices to be publicly posted in advance, remain displayed throughout the reservation period, and identify the agency and duration of the stay, creating additional compliance burdens for hotels while undermining long-standing hospitality principles centered around guest privacy, safety, and operational discretion. 

AAHOA Chairman Rahul Patel expressed concern over the impact the legislation could have on hotel operations and guest trust. 

"As a hotel owner, I understand firsthand how important guest privacy, safety, and operational consistency are to our industry," Patel said. "AB 2721 places hotel owners in an impossible position by requiring businesses to make subjective determinations about government-related reservations while exposing them to potential legal consequences. This measure creates confusion, uncertainty, and additional burdens for hotel owners throughout California." 

Hotels are places of lodging, not political battlegrounds. AB 2721 forces hotel owners into the role of monitoring and publicly disclosing government-related guest activity. That creates legal uncertainty and safety concerns, particularly for small and independent owners who lack the compliance infrastructure of larger corporations. Hotels work best when they can remain professional and trusted environments for everyone.

AAHOA President & CEO Laura Lee Blake

AAHOA continues coordinating with hospitality industry stakeholders and coalition partners in opposition to AB 2721 and urges lawmakers to reject the bill.