Earlier this year, the CEO of a major hospitality company with more than 100 hotels worldwide was charged in Miami, along with his regional vice president, for unlawful compensation and conspiracy related to the renovations and remodeling of their newest hotel in South Beach.
The charges allege that the company would regularly offer heavy discounts or comped rooms for the city’s building department in Santo Domingo and other properties in exchange for assistance with permitting, licensing and, in some cases, to avoid paying fines.
The hospitality industry is constantly subject to inspection, permitting and licensing from local, state and federal governments. Whether it is a concession to operate on public federal beach property in Mexico, permits to build in protected or historic areas in Cusco, or a license to operate a new multiuse development in Manhattan, the hospitality industry is, somewhat inconspicuously, significantly regulated. Although some hotels operators act as if they do not, most have contact with government officials of every level almost daily.
Keep up with the latest and dive into all areas of hospitality news through our ConvergeBlog with new articles posted each week.
Purchase Textbook
Hospitality Law: Managing Legal Issues in the Hospitality Industry is a practical approach to hospitality law.
Join GATTHA
Research, Connect, Network & Publish with the Global Alliance of Travel, Tourism & Hospitality Attorneys
See What's New
Proving Due Diligence In Bed Bug Prevention
August 14, 2018 via Hotel Business
Employee education and developing a documentation system that is both comprehensive and easy to employ is the best way to prove a hotel has undergone due diligence when it comes to bed bugs.
California Supreme Court Rejects De Minimis Doctrine For Off-The-Clock Work Claims August 8, 2018 via ConvergeBlog
In any event, the Court "declined to adopt a rule that would require the
employee to bear the entire burden of any difficulty in recording regularly occurring work time."
Lodging establishments that have already been targeted may find themselves embroiled in future litigation, and a settlement agreement may not protect them. As such, lodging establishments have to rely on the guidance and prioritize remediation. For some, it may make sense to consider a judicially approved settlement agreement.
