The American Hotel & Lodging Association (AH&LA), the sole national association representing all segments of the 1.8 million-employee lodging industry, issued the following statement on today’s filing of a lawsuit by the International Franchise Association (IFA) challenging the franchise provisions of the recently-enacted wage increase in the City of Seattle:
“The wage increase in Seattle contains a very troubling anti-franchise provision not previously utilized anywhere else in the country, and small hotels and businesses will suffer the brunt of the consequences as a result,” said Katherine Lugar, AH&LA president/CEO. “It’s absurd to think that the mom-and-pop hotels making up the vast majority of our industry would be considered large employers under Seattle’s new provisions, simply because of their affiliation with national chains. AH&LA strongly supports the efforts of the International Franchise Association to file a legal challenge to overturn the franchisee
provision in the city's minimum wage ordinance. We are an industry comprised of many franchisees
, and we hope the final outcome protects the small business status of many of our Seattle hoteliers. Seattle – and any other city taking steps to adopt extreme wage mandates - will soon find that these proposals only serve to harm Main Street businesses, deny opportunities for men and women seeking to climb the ladder of opportunity and success, undermine employer-provided health benefits, and hurt their local travel and tourism industry.”
Serving the hospitality industry for more than a century, the American Hotel & Lodging Association (AH&LA) is the sole national association representing all segments of the 1.8 million-employee U.S. lodging industry, including hotel owners, REITs, chains, franchisees
, management companies, independent properties, state hotel associations, and industry suppliers. Headquartered in Washington, D.C., AH&LA provides focused advocacy, communications support, and educational resources for an industry generating $155.5 billion in annual sales from 4.9 million guestrooms.