Hotel Industry Pushes New U.S. Legislation for Payroll Grants

New legislation that would provide U.S. hotel owners and operators direct federal grants to rehire laid-off workers was set to be introduced in the U.S. House and Senate Wednesday, drawing the enthusiastic support of both the American Hotel & Lodging Association and Unite Here, the union that represents tens of thousands of U.S. and Canadian hospitality workers. 

The bill, called the Save Hotel Jobs Act, was set to be introduced in the Senate by Sen. Brian Schatz (D-Hawaii) and in the House by Rep. Charlie Crist (D-Fla.). It would allow the U.S. Treasury Department to distribute funds to hotel owners and operators that must be used for payroll, including a mandatory offer to rehire workers laid off amid the Covid-19 pandemic.

"This legislation is the most important thing we've done to be able to get these workers back in their jobs," AHLA president and CEO Chip Rogers said Wednesday during a media conference call. 

According to the text of the bill, hotel owners and operators could apply for a grant of three times its average monthly payroll over a three-month period in 2019, or $20 million, whichever is lower. That figure also would be lowered if the hotel received funding under the U.S. Small Business Administration's Paycheck Protection Program.

Recipients would be required to use the funding exclusively for payroll costs and to offer "to the laid-off employees of the hotel supported by the grant all positions which become available after the owner or operator receives funding under this section for which the laid-off employees are qualified," according to the text of the bill.

Should hotels do otherwise, the Treasury Department would have the right to claw back the funding. The bill provides for the possibility of additional grants should a hotel's business not recover after the initial grant.

"This is not a handout," said Unite Here president D. Taylor during the Wednesday call. "It is a way to have a bridge" to a future when busines travel and large conventions return, he said.

Rogers noted a recent "uptick" in U.S. leisure travel, which he called "wonderful," but noted there has been no substantial commensurate increase in business travel or large meetings. 

"Really, under the best of circumstances, this industry can't survive on leisure travel alone," Rogers said. "We need business travel to create more jobs."

The bills in the House and Senate would be assigned to committees in each chamber for consideration; if approved, they would head to the full floors for votes.