Hotel Asset Managers Association October 2010

1. Hotel Asset Managers Association October 2010

2. 2010 Elections – anti-incumbent wave Obama Administration Healthcare, immigration - out of touch with desire of voters (jobs) BP Oil spill – seen as reflection on competency Themes Government takeovers – out of control Rise of Tea Party/Independents – rise in frustration Voters impatient (vote swings are shorter in duration) UNCERTAINTY Polls Direction of Country (Wrong 60.4, Right 33.6) House (D 190 – R 207) Senate (D 48 – R 47) 5 toss up POLITICAL UPDATE

3. Tourism (TPA, AZ Boycott, BP Oil Spill) Online Hotel Booking Tax Per Diems EFCA and the Labor Agenda Healthcare (covered by panel) Americans with Disabilities Act Immigration MAJOR ISSUES

4. Travel Promotion Act signed into law by President Obama on March 4th Public-private partnership to explain U.S. security policies, attract millions of international visitors through new ad programs $10 fee from incoming Visa Waiver countries and “in kind” travel industry contributions funding program Bill provides $20 million in start-up funds over 3 years. Travel Corporation Board to be announced in Early September Next steps: September 8, 2010 – DHS started collecting the ESTA fee to fund the Corporation TPA Board announced MAJOR ISSUESTravel and Tourism

5. Arizona Boycott - Hospitality industry employs 52,000 people AH&LA President & CEO Joe McInerney sent opposition letter to Washington, DC council when they threatened a city-wide boycott of Arizona – resulted in council backing down AH&LA held Summer Summit in Scottsdale, AZ, sent out a press release and has done interviews on this issue. BP Oil Spill Disaster AH&LA working with Alabama, Louisiana, New Orleans City and Florida associations Working with legislators - participated in Congressional hearings Updated the AH&LA website with information for our members Working with US Travel Association with their Roadmap to Recovery MAJOR ISSUESTravel and Tourism

6. MAJOR ISSUESOnline Hotel Booking Tax

7. MAJOR ISSUESOnline Hotel Booking Tax • Cities and states suing online travel companies (OTCs) • Consumer class-action lawsuits filed against OTCs • Cases decided on wording of ordinances and laws • Many cases decided in favor of OTCs • Ordinances that compel “hotel operator”

8. MAJOR ISSUESOnline Hotel Booking Tax • “Internet Travel Tax Fairness Act” (ITTFA) • Preempts state and local tax authority and limits tax to discounted rate • Mandates that traditional travel agents would enjoy preferential tax treatment • Specifically bans hotels from utilizing new tax category

9. MAJOR ISSUESOnline Hotel Booking Tax • States/localities look to hotels to make up for lost revenue • Makes hotels vulnerable to tax on revenue not received • Places hotels at competitive disadvantage • OTCs protected from full tax where hotels will continue to pay full tax • Can undercut hotels in final price of room (even when room rate is equal)

10. MAJOR ISSUESOnline Hotel Booking Tax • AH&LA has led fight against ITTFA • Built coalition with state and local governments, HAMA, DMAI, AAHOA, NABHOOD, IFA etc. • AH&LA hired Venable tax counsel and will launch a PR campaign • Support for OTCs from Sen. Reid (D-NV), Ensign (R-NV), Wyden (D-OR), Baucus (D-MT) • OTCs face legislative opposition if their measure was put to a vote • Met with OTCs to suggest non-legislative alternative, but were turned down

11. MAJOR ISSUESPer Diem Rates • FY2011 per diem rates averaged a 5.73 % reduction nationwide • Rates based on data gathered May 2009 – April 2010 (rates low) • Reviews and changes of rates possible • Federal agency must contact GSA, lack of rooms at rate • GSA reviews 2010 data and issues new rate in April • Hoteliers should work with federal agencies in their area • AH&LA can assist • Schedule meetings in Washington, DC with GSA • AH&LA website has per diem info and tips • Contact Shawn McBurney, smcburney@ahla.com, (202) 289-3123

12. Employee ‘Forced Choice’ Act AH&LA’s efforts through Coalition for a Democratic Workplace (CDW) have made issue toxic and a political liability Little time and few vehicles left during this Congress Danger still exists during lame duck CDW Coalition will continue to monitor issue and provide updates on the regulatory side MAJOR ISSUESCard Check

13. MAJOR ISSUESNLRB • National Labor Relations Board • Wilma Liebman (D) – Current Board Chair, Term expires in 2010 • Brian Hayes (R) – Only remaining Republican member, Term expires in 2012 • Craig Becker (D) – Recess appointed, Term expires in 2011 (former assoc gc AFL-CIO) • Mark G. Pearce (D) – Recess appointed, Term expires in 2013 • Why this matters: • As card check legislation looks unlikely, NLRB is backdoor for organizing • AHLA through CDW will be following these developments • Evidence: NLRB will revisit 2007 Dana Corp. ruling • Currently allows workers to vote out via secret ballot a union that was recognized through the card check process

14. Department of Labor – regulatory & enforcement activity DOL’s “Plan Prevent and Protect” policy Identify hazards and implement plan w/ employees Identify person responsible Provide plan to employees to help monitor OFCCP Audits of Hotel Headquarters and properties OSHA Investigations Study – task force to respond H2B Investigation of Hotels and new regulations AHLA hosted webinar (over 400 registered) and has online resources at www.ahla.com MAJOR ISSUESDOL Enforcement

15. ADA signed July 26, 1990 – This year is the 20th Anniversary Title III of the ADA applies to commercial facilities (i.e, hotels) Department of Justice announced significant changes to the ADA, including: Reconfigurations to accessible guest room bathrooms Changes how reservations for accessible rooms are handled & guaranteed Expands accessibility to employee work areas Adds requirements for recreational and exercise facilities, play areas, pools, spas and golf facilities AH&LA activity includes: Hired ADA Counsel, formed multiple committees, held meetings with regulators, filed comments at every stage of regulatory development Webinars on new ADA regulations – October 14th (see www.ahla.com) Crafting industry response to newly proposed rules to cover furniture, equipment and web sites MAJOR ISSUESAmericans with Disabilities Act

16. Sen. Charles Schumer (D-NY) and Sen.Lindsay Graham (R-SC) led initial effort; Graham withdrew support Majority Leader Reid (D-NV), Sen. Schumer (D-NY) and Robert Menendez (D-NJ) drafted new “framework” with no bipartisan support Unlikely to be completed in an election year, Arizona complicating issue H2B workers Difficult requirements in the new legislation US Department of Labor also rewriting regulations DOL investigation of Hospitality industry’s use of H2B workers MAJOR ISSUESImmigration Reform

17. HotelPACKeeping Friends in the Business

18. March 15 -16, 2011 Washington DC Legislative Action Summit

19. Marlene Colucci Executive Vice President for Public Policy (202) 289-3121 mcolucci@ahla.com CONTACT INFORMATION

20. HotelPACFundraising Breakdown

21. AH&LA Activity on Health Care Reform Health Care web page for information www.ahla.com AH&LA Healthcare Webinars Series Partner with law firm of Seyfarth, Shaw and others; Webinars on various topics (general, franchisees/small business; impact on collective bargaining, etc) Regular communications to AH&LA members letting them know effects of reform Follow up lobbying on future legislative and regulatory issues. MAJOR ISSUESHealth Care Reform