Regulatory and Legal Affairs

🏖 Z’Tejas, founded in 1989 in Austin, Texas, closed its last restaurant on June 30 due to an expired lease and market challenges. Initially famous for Southwestern cuisine on 6th Street, it expanded to 14 locations before filing for bankruptcy in 2015. Acquired by Cornbread Ventures and later by Randy Cohen and Michael Stone, it eventually shrank to four locations. Cohen plans to sell the business to pursue other ventures.

📝 HOTREC and 14 European business groups express concerns about the European Commission’s Green Claims Directive, criticizing its complexity and potential to discourage legitimate sustainability efforts. Concerns include administrative burdens, unclear pre-approval rules, and legislative overlaps, risking innovation in microenterprises and SMEs. They urge EU policymakers to reconsider the directive's scope, align it with existing legislation effective in 2026, and engage with businesses for clear, enforceable rules.

💰 President Trump’s "One Big Beautiful Bill Act" passed in the Senate with a 50-50 vote, Vice President JD Vance breaking the tie. Key supporters include the National Restaurant Association and American Hotel & Lodging Association for its "pro-growth tax policies." The "No Tax on Tips" provision sparked criticism from labor groups and the Independent Restaurant Coalition. The bill impacts restaurant and hotel tax policies, creating mixed reactions. Critics call for amendments to ensure equitable tax relief for all workers.

💰 U.S. Senate passed President Trump's One Big Beautiful Bill on Tuesday with a 51-50 vote. The bill includes eliminating tax on tips and making the 20% business income deduction permanent. It will return to the U.S. House for reconciliation. Key provisions are a $25,000 cap deduction on tips for workers earning up to $150,000, and a $12,500 deduction cap on overtime pay. Both bills propose permanent paid family leave credit and increase the employer-provided childcare credit to 40%.

🏨 The AHLA praised the Senate on September 2024 for passing tax provisions vital for the hospitality sector. These include making Small Business Deduction (Section 199A) permanent, benefiting small hotel owners. It also involves securing 100% bonus depreciation and expanded business interest deductibility to encourage investment and job creation. Additionally, the preservation of Like-Kind Exchange (Section 1031) remains crucial for ongoing real estate investment and economic activity.

🌿 In the late 90s, Penny and Armin Rembe saved a farm near Albuquerque, New Mexico, from becoming a subdivision. They purchased it with family funds and began focusing on biodynamic and organic farming, ultimately planting lavender. After seven years of securing permits, they opened a five-room bed and breakfast, which ran at a loss for five years. Their son Matt left NYC to join the venture, expanding the family's vision of agritourism.

🏨 HOTREC, representing 47 associations across 36 countries, highlights key facts: The European hospitality sector includes 2 million businesses and 10 million jobs, with 90% as micro-enterprises. Tourism contributes 10% to the EU GDP. Current challenges include high EU inflation, rising food and energy costs, geopolitical tensions near Ukraine, and ongoing skill and labor shortages. HOTREC supports the Competitiveness Compass, EU Single Market Strategy, and Union of Skills initiatives to boost the sector’s resilience and competitiveness.

📊 HOTREC, representing 47 associations in 36 countries, highlights key facts: Europe’s hospitality sector comprises 2 million businesses supporting over 10 million jobs, mostly SMEs and micro-enterprises. The sector contributes 10% to the EU's GDP. Despite resilience, challenges include high EU inflation, rising food and energy costs, and geopolitical instability, particularly near Ukraine. Post-pandemic, skill and labor shortages persist. HOTREC supports the EU's Competitiveness Compass and Single Market Strategy, emphasizing subcontracting flexibility without EU-level legislation.

💸 Hyatt Hotels Corporation, on June 17, 2025, agreed to sell Playa’s real estate portfolio to Tortuga Resorts for $2 billion, with a potential $143 million earnout. The portfolio includes 15 resorts in Mexico, the Dominican Republic, and Jamaica. Hyatt retains $200 million preferred equity and will manage 13 properties for 50 years. Net purchase price of Playa’s management business is $555 million. Hyatt aims for $60-$65 million Adjusted EBITDA in 2027. Transaction completion by 2025 end.