Hoteliers entered 2026 with cautious optimism, following a year of mounting operational challenges and rocky performance results. As they prepare for the year ahead, owners are watching key policy shifts that stand to impact their bottom lines.
Also watching the changing regulatory environment is the American Hotel & Lodging Association, which advocates at the federal, state and local level to advance practical solutions that strengthen hotels and the communities they serve, according to the organization.
In December, AHLA — which represents more than 33,000 member properties, equating to roughly 80% of all franchised hotels in the U.S. — named Brett Horton to the newly created role of chief advocacy officer. Horton, who most recently served as chief of staff to the U.S. House of Representatives Majority Leader Steve Scalise (R-La), is now overseeing the association’s advocacy, political engagement and government affairs strategies.
As the organization maps out its policy priorities for the year ahead, Horton sat down with Hotel Dive for an exclusive interview to discuss how AHLA plans to address the hospitality industry’s current pain points with legislation at all levels of government.
Improving the operating environment for hoteliers
A top priority for AHLA in 2026 is improving the operating environment for hoteliers, as rising costs outpace revenue for owners nationwide.
Over the last five years, operating costs have increased by four times the rate of revenue, “fundamentally compressing margins, negatively impacting the workforce and reshaping investment decisions across the sector,” according to AHLA’s 2026 policy priorities guide, which the organization shared exclusively with Hotel Dive.
Driving this financial pressure are rising labor, insurance, utilities and maintenance costs, among other expenses. Labor costs, though, represent the largest toll for hoteliers, up more than 30% since 2020, according to AHLA.
Meanwhile, last year, key full-year hotel performance metrics fell for the first time since 2020. Hoteliers face an “economic imbalance” as performance trends do not keep pace with rising costs, per AHLA.
“The gap between cost growth and revenue growth is a problem that’s been compounding year over year, and revenue is just not keeping pace,” Horton said. “That constrains hiring, property upgrades and community investment.”
To address this growing financial strain, AHLA will support the easing of existing tariffs and avoid new levies on materials and products needed for hotel construction, renovation and furnishing, Horton said. A significant portion of hoteliers delayed or canceled development and renovation projects last year amid rising costs.
AHLA will also advocate for litigation reform measures and oppose emission regulations “that fail to consider operational realities and create one-size-fits-all mandates that impose untenable and excessive costs on hotel properties,” per the guide.
Reinvesting in travel and tourism demand
Hotel performance results were dampened in 2025, in part, by a decline in international inbound visitation. In October, the U.S. Travel Association projected that inbound international visits would be down 6.3% for full-year 2025, compared to 2024.
International travelers are indispensable guests, AHLA detailed in the guide, noting that they typically stay longer and spend more per trip than domestic travelers.
It is “critical for policymakers to prioritize sustained investment in international destination marketing to ensure the U.S. competes effectively in the global tourism marketplace,” according to AHLA. The association is calling for funding to be fully restored to Brand USA, the nation’s official destination marketing organization, to “ensure robust global marketing ahead of major international events.” In July, Congress cut federal matching funds for Brand USA by 80%.
Upcoming mega-events like the FIFA World Cup this summer and the 2028 Olympic Games in Los Angeles represent a significant opportunity to capture international guests, Horton noted.
While “the industry is ready and wants to be there” to provide international visitors with the accommodations they need for these upcoming events, it needs to “find ways to encourage more inbound travel,” he said.
To support this, AHLA will oppose and delay visitor visa fee increases and streamline visa processing, per the guide. The association also supports reauthorization of the United States-Mexico-Canada Agreement to “preserve duty-free treatment for key hotel supply inputs, protect cross-border travel and digital trade, and reinforce competitiveness ahead of major global events.” Canadian travel to the U.S., in particular, has dropped steeply over the past year.
Strengthening the hotel workforce
The hotel industry also needs to strengthen its labor force in order to capitalize on notable events this year and beyond, Horton said.
One of the association’s top priorities in 2026 is expanding the seasonal workforce H-2B visa program and adopting returning-worker exemptions to ensure hotels can meet peak demand periods. This focus builds on momentum from 2025.
The H-2B visa program is a temporary, seasonal guest worker program that allows U.S. employers to bring in foreign workers once they’ve demonstrated to the U.S. Department of Labor that they cannot find enough U.S. workers.
The U.S. hotel industry has approximately 100,000 open jobs currently, making the H-2B visa program pertinent to supplement the workforce, Horton noted.
Additional hospitality industry priorities
Other policy priorities for AHLA this year include opposing hotel-specific compensation and benefits mandates, including those like the Hotel Worker Minimum Wage Ordinance, which took effect in Los Angeles last year. AHLA has condemned that ordinance despite local hospitality workers’ unions advocating in favor of its passage.
AHLA will also continue to promote the passage of the American Franchise Act and the codification of the joint employer standard to “prevent regulatory uncertainty for small businesses, avoid increased litigation risk and preserve the franchise business model,” according to the guide. The association will also work to combat human trafficking and advance competitiveness industrywide.
To forward this mission, Horton is speaking constantly to chiefs of staff, members of Congress and other Capitol Hill allies to stay up to date on changes at the federal level and how policy shifts impact the hotel industry, he said. On the flip side, he’s having discussions with owners nationwide to understand how to best advocate for their needs.
“Keeping your ear to the ground and picking up intel” on key issues is a huge part of his job, Horton said, but “turning that intel into strategy” may be even more important as he strives to get AHLA’s policy priorities across the finish line.
