June 5, 2018

Troy Flanagan, Vice PresidentGovernment Affairs & Industry Relations

Owners

Management Companies

Brands

2018 Properties: over 25,000

Rooms: over 3 million

2013 Properties: 8,500

Rooms: 1.3 Million

+280% growth

MEMBERSHIP & ENGAGEMENT

Our National Impact

Advocacy Agenda

Short Term Rentals

OTAs & Distribution Policy

Employment and Workforce Issues

Per Diems

We support the current system overall, but recognize it is not perfect.

Higher rates are always better, but have to be realistic that the government needs to

save money.

Our goal is to preserve current rates and make sure the system does not become

unfair to hotels.

o For example, DOD cut per diems rates for long-term travel dramatically at the end of 2014.

▪ 25% over 30 days, 45% over 180 days.

o We’ve been lobbying to get the cuts reversed.

Per Diems

Both the Senate and House Armed Services

Committees have now voted to repeal the cuts in

the National Defense Authorization Act

AHLA will be working to ensure that the language

stays in the final bill.

Senate language is stronger because the House

language asks DOD to consider other types of

savings.

Senate Armed Services voted 14-13 to repeal per

diems cuts.

Per Diems

• Worker Visa/Immigration title slide

Worker Visas and Immigration

Worker Visas

H-2B• Temporary visa program for non-agricultural workers• Secured legislation allowing the Executive Branch to expand the number of visas available

this year

J-1• Visa program for international students (often for summer internships)• Secured appropriation language prohibiting Administration from acting without formal

rulemaking process to modify the program; Administration had been rumored to be considering negative restrictions on J-1s

DACA• AHLA is working to protect workers with DACA status.

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Short-Term Rentals

Federal Workers and STRs

How Far the Short Term

Rental Market has Come

0

10

20

30

40

50

60

MarriottInternational

Airbnb Hilton InterContinental

Hotels Group

Hyatt Choice Hotels

Val

uat

ion

(in

bill

ion

s)

Valuation Comparison

‘Illegal Hotels’Commercial operators listing multiple units in the

same metropolitan area or listing units for

extended periods of time without adhering to

commonsense regulations or tax obligations

New Research Shines a Spotlight on STRs

Largest and most comprehensive study of its kind to date

Focused on 13 US markets of the largest metropolitan areas

Two troubling findings: > “Hosts” who rent multiple units > “Hosts” who rent units full-time

National Findings

11,350 unit hosts rented out over 43,000 units

˃ Equates to 17% of Airbnb’s inventory

Multi-unit hosts generated over $700 million in

revenue

All markets saw an increase in multi-unit hosts

˃ Equates to 30% of the revenue

All markets saw an increase in multi-unit hosts

~11% of entire-home hosts have 2 or more units

˃ They manage 30% of properties

˃ Make up 37% of revenue

AHLA’s Study Shatters Airbnb Homesharing Myth

250M+ Media Impressions in 24 Hours

CNBC Short-Term Rental Report

Target

Pass short-term rental

regulations in more

cities and states

Unoccupied

Rentals

Caps total number of nights

allowed

TaxesVerifiable transient occupancy tax

remittance

Housing

Affordability

Prohibited in units designated for

affordable housing

RegistrationRequires registration with relevant

local authorities

Advertising

Postings must display registration

number; platforms must remove

noncompliant listings

Commercial

Operations

Prohibits commercial operations;

Primary home only

Passing meaningful regulations in states and local markets.

Principles of STR Policy

Advancing City Legislation

San Diego

States

“Licensed bed and breakfasts charge more because theiroperating costs are much higher. Bed and breakfasts mustcomply with fire codes and health codes, among others, for theirspace. That means upgrading to an indoor alarm and sprinklersystem and commercial kitchen items, as well as taking foodsafety courses for the breakfast aspect. They also pay for alicense. That all costs money — money that people who rent outtheir homes or a room through Airbnb don't need to pay.”Tampa Bay Times, 4/21/17

Equal application of city/state/federal laws

✓ Government shouldn’t be picking winners and losers

✓ Protecting neighborhoods: hotels follow zoning and business regulations. Maintain the integrity and quality of life around residential communities.

✓ Guest safeguards: hotels implement latest safety and procedures to protect the traveling public.

Ensure a Level Playing Field

Ensure a Level Playing Field

‘Voluntary Collection Agreements’

✓ Violate standards of transparency and democratic governance.

✓ Improperly cede tax authority to a single private company.

✓ Fail to address other market players.

"If they're going to write you a check, they can tell you where it's coming from ... Why can't they disclose that information to a government official?”

– Doug Belden, Hillsborough County Tax Collector

Tax DayExposing Airbnb secret deals.

Tax Fight: Airbnb Called

Out For "Sweetheart

Deals“ WXPR Radio

"It's like putting an empty jar at the counter of a

retail store and asking customers to voluntarily

pay sales taxes. There's no accountability”

Troy Flanagan, AHLA

Hotel Association

Attacks Airbnb On

'Secret Tax Deals’ Texas Public Radio

Hotel industry

pushes for taxation

of Airbnb, on Tax DayBaltimore Business Journal

Airbnb faces Collier

County lawsuit, lingering

criticism from hoteliers News-Press and Naples Daily News

(USA Today papers)

Airbnb On Defense

Momentum building.

Airbnb cost New York City renters

$616 million in 2016, city says

Landlords turned 14 SF apartments

into illegal Airbnbs, city attorney says

Airbnb Vs. Boston City Council:

It’s On!

Los Angeles moves to regulate

Airbnb rentals

Basic business registration

Compliance with state and local tax obligations

Adherence to state lodging regulations

Platforms must remove noncompliant listings

Commercial insurance for commercial businesses

A Path Forward

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Labor and

Employment Issues

Hotel Worker Safety/‘Panic Button’ Legislation

• Hotel-only ordinances are popping up across the country that require panic buttons• Most include onerous workforce rules• AHLA establishing a safety button taskforce

Industry Progressing with Safety Devices in Key Markets

Human Trafficking Training Seminars

OTA / Distribution Policy

OTA Consumer Poll Results

Source: Morning Consult survey of 2,201 adults, February 26-28, 2018

Action on Online Booking Scams

Search Smarter Campaign

Refresh Search Smarter campaign;

drive direct booking message

Underscore FTC Reservation Counter

settlement and need for government action

Advance Stop Online Booking Scams Act

as a permanent solution

AHLA Partners with Better BusinessBureau

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Travel and Tourism

Visit US Coalition How to Reverse America’s

Foreign Tourist Problem (1/17/18)

Coalition formed to reverse drop in

international visitors to the U.S.

“Travel and tourism is our country’s second largest export,” said Katherine Lugar, CEO of the American Hotel & Lodging Association. “We can’t afford to lose ground to other countries.” She

said the average overseas traveler spends $4,400 visiting the U.S., adding that “fewer visitors mean fewer hotel stays, fewer meals, fewer goods purchased in our retail stores and fewer visits

to our national attractions.”

US travel industry launches plan

to reverse tourism decline (1/16/18)

Visit U. S. Coalition

MEMBERS• American Gaming Association

• American Hotel & Lodging Association

• American Resort Development Association

• American Society of Association Executives

• Asian American Hotel Owners Association

• International Association of Exhibitions And Events

• National Restaurant Association

• National Retail Federation

• Real Estate Roundtable

• Society of Independent Show Organizers

• Travel Technology Association

• U.S. Chamber Of Commerce

• U.S. Travel Association

CONGRESSIONALCHAMPIONS

ENGAGEVISIT U.S.

Fighting for Brand USA

September 12-13, 2018 Capital Hilton

ahla.com/las

Thank you.

Troy Flanagan

Vice President,Government Affairs & Industry Relations

tflanagan@ahla.com

202-289-3125