What challenges do U.S. hotels face in 2025? AHLA’s Rosanna Maietta says 64,000 hotels supporting 9 million jobs struggle with 200,000 unfilled positions, inflation, and rising costs, despite 15% wage hikes.
APPROXIMATELY 64,000 U.S. hotels support more than nine million jobs, but the industry still faces post-COVID challenges, including labor shortages, inflation and rising costs, American Hotel & Lodging Association President President and CEO Rosanna Maietta told the House Committee on Education and Workforce. She urged Congress to pass legislations to support the industry's recovery.
Maietta highlighted the hotel industry’s impact, noting that it supports one in 25 U.S. jobs and contributes nearly $900 billion to GDP. However, with employment still 10 percent below pre-pandemic levels, more than 200,000 positions remain unfilled.
“The hotel industry offers more than just a job,” Maietta said. “It creates opportunities for lifelong careers and a pathway to a better life—where, regardless of background, hotel associates can achieve prosperity through perseverance and a commitment to service. Many of the industry’s top leaders, from general managers to brand CEOs, began their careers washing dishes, making beds and assisting guests. Across America, from city centers to roadside attractions, hotels are more than buildings—they are symbols of upward mobility and the American Dream.”
‘Investing in workforce development’
The AHLA president said the industry has made strides in rebuilding its workforce and expanding career opportunities but still faces economic pressures from inflation, labor shortages, and overregulation.
“The hospitality sector remains committed to attracting and retaining talent, investing in workforce development, and creating good jobs for millions of Americans,” she said.
Maietta said hotels have taken significant steps to address workforce shortages, including raising wages 15 percent faster than the national average, offering flexible hours, expanding benefits, and investing in apprenticeships to help workers build skills and advance careers.
“Through partnerships with schools and local organizations, we are creating lasting career pathways, yet labor shortages persist,” she said.
Meanwhile, a recent survey by AHLA and Hireology found that 65 percent of hotels still face staffing shortages despite increased pay and benefits.
Call for action
Maietta urged Congress to expand the H-2B guest worker program for peak tourism areas, pass the Save Local Business Act to protect franchise owners from joint-employer regulations and maintain key tax provisions that allow hotel owners to reinvest in their businesses and workforce.
She said inflation remains a major challenge, with rising costs outpacing revenue growth.
“From goods and building materials to property insurance, expenses have soared, forcing many small businesses to raise prices while still struggling to stay afloat,” Maietta said. “Congress should pass the Save Local Business Act to codify the traditional joint employer standard, protecting small businesses from rising costs and uncertainty. We also support legal guest worker programs to help address workforce shortages.”
Maietta pressed Congress to extend provisions of the Tax Cuts and Jobs Act, including the small business deduction, bonus depreciation and like-kind exchanges to support job growth and economic development.
“We also urge support for the ‘No Tax on Tips’ initiative, allowing hardworking employees to keep more of what they earn,” the AHLA president said.
She said hoteliers are ready to work with Congress to strengthen the industry, support job growth, and drive economic opportunity. “We look forward to collaborating with this committee and incoming Secretary Chavez-DeRemer to ensure hotels remain vital to our nation’s economy.”
