By Laura Lee Blake, President and CEO
A United Front in the Nation’s Capital
As we mark AAHOA’s 35th anniversary, it is important to reflect on significant milestones in our advocacy journey. Our first steps into legislative advocacy began in 2000 with Legislative Action Summits, followed by our first Legislative Day in 2006, which included a reception for members of Congress. These early initiatives laid the groundwork for the impactful FNAC and Spring National Advocacy Conference (SNAC) we host each year. Each year, our presence in Washington, D.C., underscores a clear message: hotel owners are engaged, informed, and ready to advocate for their businesses and our industry.
The impact of our gatherings extends beyond mere participation; they facilitate crucial relationships with lawmakers. By sharing their stories directly with legislators, our members help turn passion into actionable policy, influencing the legislative agenda in ways that benefit the hospitality sector. This direct engagement proves that a united industry voice can drive meaningful change.
Empowering the Industry
Events like FNAC are essential not only for AAHOA but for the broader hospitality industry. By bringing our members to D.C., we ensure that their voices are heard by those crafting legislation. Without these personal interactions, the real challenges faced by hotel owners might remain unnoticed.
One notable outcome of our advocacy efforts is the introduction of the Loans In Our Neighborhoods (LIONS) Act. This proposed legislation seeks to increase the maximum loan amount for Small Business Administration 7(a) loans from $5 million to $10 million. This enhancement would significantly benefit small businesses, including many owned by AAHOA Members, by providing greater financial flexibility in a competitive market.
Congressman Shri Thanedar (MI-13) introduced the bill in response to the concerns expressed by AAHOA Members, highlighting the direct impact of our advocacy.
Another key focus is the Credit Card Competition Act (S. 1838/H.R. 3881). This legislation aims to introduce more competition in credit card processing, potentially saving businesses billions annually by reducing transaction fees. For hoteliers, who often face substantial swipe fees, this act represents a critical opportunity to improve their financial bottom line. The bipartisan support for this bill, including sponsors like Rep. Lance Gooden (R-TX) and Sen. Dick Durbin (D-IL), underscores its potential to deliver significant benefits to hotel owners and their customers.
Addressing Costly Regulations
Our advocacy also involves defending hotel owners from regulations that could impose significant financial burdens. A prime example is the Department of Labor’s new Overtime Rule, which has substantially raised the salary threshold for overtime exemptions. This rule, which increased the threshold to $43,888 in July 2024 and will rise again to $58,656 in January 2025, is projected to add considerable labor costs for hotel owners. AAHOA’s analysis suggests that this rule could cost our members up to $18,000 each in just six months, amounting to an estimated $360 million collectively.
To address this, AAHOA is supporting the Congressional Review Act (S.J. Res. 97/H.J. Res. 166), which seeks to repeal the new rule. This effort is crucial in preventing policies that could undermine the financial stability of small business owners in the hospitality sector.
Looking Ahead: Advocacy for the Future
Advocacy is not a one-time event; it is an ongoing commitment. The relationships and dialogues fostered during FNAC and SNAC lay the foundation for sustained influence throughout the year. By sharing their experiences and challenges, our members contribute to a narrative that helps shape policies affecting our industry.
As we look to the future, AAHOA's commitment to advocacy remains unwavering. Through our collective efforts in Washington, D.C., and beyond, we aim to influence policies that support and protect hotel owners. Our ongoing advocacy ensures that the voices of hotel owners continue to resonate in the corridors of power, shaping a more favorable and sustainable business environment for the hospitality industry.
Together, we will continue to advocate for policies that benefit our members, fostering a robust and resilient hospitality sector for years to come.