Hoteliers Applaud Lifting of Travel Restrictions
ATLANTA – America’s hoteliers applauded the Biden administration’s announcement that it will allow fully vaccinated foreign nationals from Canada and Mexico to enter the United States starting in early November after a 19-month freeze. For air travel, the policy would require travelers to be fully vaccinated and to test negative for the virus. No testing will be required to enter the country by land or sea, as long as travelers meet the vaccination requirements.
The Asian American Hotel Owners Association (AAHOA) is working with the administration to promote vaccine awareness in the hospitality industry and called for new measures to restart international travel. “This is a big win for our members, families, businesses, and tourism industries, especially those living in Texas and states bordering Canada,” said AAHOA president & CEO Ken Greene. “Cross-border operations were halted at the start of the pandemic, and AAHOA pressed the administration on the financial toll the travel ban took on small businesses.”
Travel industry studies estimate that international travel spending in the U.S. fell 76 percent year-over-year compared to 34 percent for domestic travel in 2020. “Lifting the COVID-19 restrictions on foreign travelers from Mexico and Canada is a significant step in the right direction and signals yet another phase of recovery for the hotel industry,” said AAHOA Chair Vinay Patel (pictured). “This decision from the Biden Administration will help return two significant sources of travel and tourism to the U.S., visitors who have historically visited by the tens of millions annually.”
Summit Hotel Properties Acquires Hotel Portfolio
AUSTIN, TX – Summit Hotel Properties recently acquired a 27-hotel portfolio totaling 3,709 guest rooms, two parking structures, and various financial incentives through its existing joint venture with GIC for total consideration of $822 million from affiliates of NewcrestImage. The total consideration for the Transaction is comprised of $776.5 million, or $209,000 per key, for the 27-hotel portfolio, $24.8 million for the two parking structures, and $20.7 million for the various financial incentives.
“We are thrilled to announce this transformational investment opportunity for the acquisition of 27 hotels that are complementary to our existing portfolio of high-quality, well-located assets and significantly expands our presence in high-growth Sun Belt markets,” said Jonathan P. Stanner, president and CEO. “We have creatively structured the transaction with the issuance of both common and preferred operating partnership units and continued our partnership with GIC, which will preserve nearly all our existing liquidity of approximately $450 million. We expect the transaction to be immediately accretive to earnings and leverage-neutral to our balance sheet leaving us ample investment capacity to continue to grow our portfolio.”
AAHOA’s Workforce Coalition Advocates For H-2B Expansion
ATLANTA – AAHOA joined hundreds of small and seasonal businesses in penning a letter to the Department of Labor and the Department of Homeland Security urging strong support for the H-2B visa program. As hoteliers continue to face challenges in the labor market, AAHOA is firmly committed to advocating for policies that will return good paying jobs to the hospitality industry. The following is an excerpt…
“We write today to urge you to quickly exercise the authority that Congress granted to your respective departments and release as many additional H-2B visas needed to meet the demands of American businesses around the country. PL 117-43 grants the Department of Homeland Security the authority to release additional H-2B visas up to the highest number of returning workers who participated in the program during a single fiscal year that the returning worker program was authorized.
“The highest number of H-2B returning workers approved in the program’s history was 64,716 in FY 2007. Given the stark workforce needs for the coming winter season, and the likely shortfalls that employers with seasonal labor needs will see next summer, we urge your Departments to exercise your authority and make half of these additional visas (32,358) available immediately. This will provide employers with winter workforce needs the ability to better handle their labor challenges, while also ensuring that H-2B employers with summer needs will have that same opportunity later this year.”
Click Here to see the full letter.