CHLA California Lodging News January/February 2023

T H E O F F I C I A L M A G A Z I N E O F T H E C A L I F O R N I A H O T E L & L O D G I N G A S S O C I A T I O N C A L I F O R N I A January/February 2023 LODGINGNEWS 2022 STARS OF THE INDUSTRY

2 Message from the Chair 4 Cal/OSHA’s COVID-19 Standards in 2023 and Beyond 6 CHLA Leadership Reception 8 2022 Annual Meeting 10 Stars of the Industry 20 F ollow That Bill 22 S BA Financing Backs New Boutique Hotel in San Francisco 24 CHLA Marketplace 31 CHLA Partners OUR MISSION CHLA is the indispensable resource for communicating and protecting the rights and interests of the California lodging industry, for providing educational training and cost-saving programs for all segments of the industry, and for supporting strategic alliances to promote the value of California tourism and travel. 22 20 6 LODGING NEWS TABLE OF CONTENTS ON THE COVER Cover photo by: Kevin Roznowski Certified Professional Photographer, PPA Kevin Roznowski Photography www.kevinrozphoto.com

2 CALIFORNIA LODGING NEWS 414 29th Street Sacramento, CA 95816 916.444.5780 www.calodging.com EXECUTIVE COMMITTEE CHAIR Hee-Won Lim- Grosvenor Pacific Palms Hotel VICE CHAIR Dhruv Patel Ridgemont Hospitality IMMEDIATE PAST CHAIR Tom Patton, CHA Ramada by Wyndham Santa Barbara SECRETARY/TREASURER Cormac O’Modhrain Sunstone Hotel Investors GOVERNMENT & LEGAL RELATIONS CHAIR Javier Cano JW Marriott at L.A. LIVE AUDIT & INVESTMENT COMMITTEE CHAIR Laurenne Douglas Pacific Plaza Hotels, Inc. 2023 BOARD OF DIRECTORS Kristi Allen Ensemble Real Estate Solutions & Investments Laura Lee Blake AAHOA Justin Boutwell Pebblebrook Hotel Trust Javier Cano JW Marriott at L.A. LIVE Vipul Dayal Days Inn San Francisco Airport West Laurenne Douglas Pacific Plaza Hotels, Inc. Ross Gimpel Encore Terri Haack Lowe Enterprises Investors Jon Handlery, CHA Handlery Union Square Hotel Niles Harris InterContinental Los Angeles Downtown Nic Hockman Disney’s Grand Californian Matt Humphreys Hyatt Regency San Francisco Daniel Kuperschmid Manchester Grand Hyatt San Diego Mark LeBlanc Aimbridge Hospitality Franck Legrand Cornell Hotel De France Michelle Millar University of San Francisco Michael Pace InterContinental Mark Hopkins Hotel Bijal Patel, CHA Coast Redwood Hospitality Bimal Patel, CHA Hotel Zico Perry Patel Radiate Hospitality Pragna Patel-Mueller Samata Management Joe Piantedosi Park Hotels & Resorts Chip Rogers American Hotel & Lodging Association John Spear Hotel Drisco Jeffrey Thurrell Fisher Phillips Wes Tyler, CHA Chancellor Hotel on Union Square Mike Tweeten Ace Parking Management Bobby Walia Marriott International Corporation ADVERTISING & DESIGN LLM Publications 503.445.2220 | 800.647.1511 www.llmpubs.com Design & Layout Sales Representative Katie Jo Stewart Grandt Mansfield grandt@llmpubs.com Copyright © 2023. Al l Rights Reserved I AM HONORED TO HAVE been selected as the chair of the California Hotel and Lodging Association for 2023, and to take the mantle from Tom Patton, CHA after his outstanding and dedicated work as chair in 2022. This year is historic in two ways. First, CHLA will be celebrating its 130 year anniversary later this year. It was on November 15 back in 1893, that 36 visionaries organized the first statewide association of California innkeepers as the Southern California Hotel Association, to share ideas and socialize. Back then, Los Angeles had just set a record when its population topped 50,000; San Diego was a town of 16,000. I have seen some of the old photos from meetings over 80 years ago. Let us just say, CHLA, California, and hospitality all have come a long way since then. The second historic mark for 2023 is that I will be the first Asian-American woman to be CHLA’s chair. This speaks volumes about the strength of California hospitality, and the diversity of CHLA’s members that in turn represent the amazing diversity of our members and our state. I am grateful for the opportunity and very mindful of the work done by those that came before me to make this moment possible. In recent years, we have seen CHLA—under the skillful guidance of President and CEO Lynn Mohrfeld, step forward leaning into advocacy on issues critical that often define how our hotels operate. As the general manager of an independent hotel, I saw first-hand the benefits of being a CHLA member during the global pandemic. Within a month after COVID shut down the state, CHLA distributed its operational guidance, one of the first in the state for any industry. It was an essential resource for me and my team at the Pacific Palms Resort. We quickly came to depend on CHLA’s updates so we could manage and prepare to reopen safely. That moment crystallized for me the two subjects I plan to focus on as chair: the diversity that makes us strong, and the membership growth that will translate that strength into success for us on so many fronts. MESSAGE FROM THE CHAIR Hee-Won Lim-Grosvenor CHLA Chair continues on next page  I am grateful for the opportunity and very mindful of the work done by those that came before me to make this moment possible.

www.calodging.com January/February 2023 3 The cliché is that any organization is only as strong as the sum of its parts. This is so true for CHLA and our hospitality industry. Our guests count on each of us to anticipate and provide for their needs during their stay. When we deliver hospitality that is authentic in its understanding of what our guests are thinking—it resonates and is rewarded. Delivering that level of hospitality requires diversity of backgrounds, ideas, and skills. All of which, when blended together, give our guests the best experiences possible. I am equally mindful of the critical moment our industry has this coming year to step forward with confidence as a collection of members united behind what’s best for hospitality, and by extension, what’s best for our communities. The need for us to be proactive as members has become less of an option. We no longer can let others define the public conversation about hotels. When we do, we lose. When we speak up, we are heard. We may not always win, but we guarantee we won’t always lose. This happens only when we have strong and engaged members. We need to earn the membership of all of California’s 6,000 hotels to show legislators, regulators, and each of our communities that our voices matter. Growing CHLA and engaging our members in the conversations that impact our hotels and our employees is critical as we recover from almost two years of being closed. We all see how travel is changing. Let us redefine it together, leading the agenda for our employees, our communities, and our guests. I am so grateful to be the 2023 chair of the California Hotel and Lodging Association, and I look forward to working with you and for you this year to build upon our amazing 130-year history. 

Cal/OSHA’s COVID-19 Standards in 2023 and Beyond Over the past several years, Cal/OSHA has issued several different emergency operational requirements in response to the COVID-19 pandemic. However, as the state prepares to draw down its pandemic response and activate its “SMARTER” plan, the Cal/OSHA Standards Board is finalizing a semi-permanent COVID-19 regulation, which will take effect on January 1, 2023 and end on January 1, 2025. These guidelines take on a form similar to the emergency standards issued over the past few years. For example, the new regulations will still require employers to investigate COVID-19 cases in the workplace, provide free testing to exposed employees, and maximize airflow within the workplace. However, after months of intense advocacy efforts, there are also some major changes. For example, the new regulations do not include a mandate for employers to provide exclusion pay, eliminate employer obligations to provide COVID-19 testing at no cost during company time to employees who did not have a close contact within the workplace, and permits employers to use Injury Illness Prevention Programs to address COVID-19 in the workplace. While CHLA has consistently advocated in accordance with the idea that COVID-19 safety requirements are already covered by businesses’ Injury and Illness Prevention Plans, the new operational requirements represent a large step towards normalizing and simplifying business operations. Additionally, since the new regulations are set to be passed under the normal notice and comment procedure, employers will not be forced to learn and re-learn, the new requirements (as we saw during the height of the pandemic). Instead, the new regulations will remain largely unchanged for the next two years. While not an ideal set of operational requirement, the new Cal/OSHA Standards Board Regulations are a step in the right direction. As we start the new year, we urge hoteliers to review the latest regulations from Cal/OSHA and guidance published by CHLA.  4 CALIFORNIA LODGING NEWS www.calodging.com COVID-19 may be gone, but new regulations are here.

www.calodging.com January/February 2023 5 RECONNECT WITH YOUR LEGISLATORS MARCH 21, 2023 SAC RAME N TO Join us in Sacramento to meet with elected oicials and address the most significant topics aecting California’s lodging industry.

6 CALIFORNIA LODGING NEWS www.calodging.com CHLA Leadership Reception Jennifer Flohr, CHLA, Pragna Patel-Mueller, Samata Management, and Kathy Janega-Dykes, Visit Santa Barbara enjoyed the sunset. November 16, 2022 | Hilton Beachfront Resort On November 16 the CHLA held a Board Meeting at the Hilton Beachfront Resort, and afterward enjoyed the beautiful Santa Barbara weather, sunset, food, and networking.

Santa Barbara’s San Roque Trio entertained the group. CHLA Chair Tom Patton, CHA and CHLA Board Member Mark LeBlanc, Aimbridge Hospitality.

THE CALIFORNIA HOTEL & LODGING ASSOCIATION elected its first Asian-American woman as Chair of its 2023 Board of Directors during its annual meeting at the Hilton Santa Barbara Beachfront Resort. Hee-Won Lim-Grosvenor, Vice President and General Manager of the Pacific Palms Resort in the City of Industry, will lead the Board and the Executive Committee as CHLA celebrates its 130-year anniversary in 2023. CHLA’S 2023 Chair, Hee-Won Lim-Grosvenor plans to focus on diversity and membership engagement during her one-year term, leading the executive committee, whose members include: Past Chair: Tom Patton, CHA, Ramada by Wyndham Santa Barbara Vice Chair: Dhruv Patel, Ridgemont Hospitality Meeting Chair Hee-Won Lim-Grosvenor Annual 8 CALIFORNIA LODGING NEWS www.calodging.com Secretary/Treasurer: Cormac O’Modhrain, Sunstone Hotel Investors

Lynn Mohrfeld, CHA, CHLA’s president & CEO welcomes everyone to the Annual Business Meeting and Stars of the Industry Luncheon. Tom Patton, CHA gave his outgoing chair speech and thanked everyone for their support. Thank you Tom Patton, CHA for your leadership as CHLA Chair for 2022! Pictured with his family & team. Dhruv Patel, President, Ridgemont Hospitality presented the 2023 Nomination Report. www.calodging.com January/February 2023 9

Stars Indus of the 10 CALIFORNIA LODGING NEWS www.calodging.com

www.calodging.com January/February 2023 11 stry

12 CALIFORNIA LODGING NEWS www.calodging.com Stars of th Maria has been with the property for 16 years, and is instrumental in how our housekeeping department operates. She is the go-to person for all questions, training, and translation between staff and Spanish speaking customers. While Maria has more than earned her right to take her weekends off, she is the first person to volunteer to work weekends and holidays and is always thinking about other staff members. During the pandemic, we lost all our staff, yet Maria stayed working full time and helped in various departments. Maria does extra things for our routine business without even asking. When she notices that we have construction workers as guests, she will place extra disposable rags in their rooms for their muddy boots. When she knows we have events, she will make decor out of the towels to make that room extra special. Maria Medina is a great example of the heart of hospitality! In the short amount of time he’s been with the property, Mario has demonstrated a genuine care and concern for his new housekeeping team that have immediately welcomed him in. On one notable day, one of our guests traveling with small children departed for Santa Monica and forgot her passports in the hotel safe. Mario took it upon himself to drive the passports to Santa Monica from Huntington Beach after work. Without an ounce of hesitation, he requested permission to do so all on his own. We received an email from the guest who was completely amazed by his genuine care and nature and she said, “I was honestly blown away. He did not want anything from me, only to make sure that we received the passports…My husband and I travel a lot with our family, and I have never known someone who has gone out of their way to do something nice for us without expecting anything in return.” By exceeding the guest’s expectations, Mario has created a lifetime Hilton guest. HD Supply Housekeeping Award, Small/Medium Property Maria Medina, Best Western Plus Villa Del Lago Inn Accepting the Award on her behalf, Sunny Patel, Owner HD Supply Housekeeping Award, Medium/Large Property Mario Escobar, The Waterfront Beach Resort

www.calodging.com January/February 2023 13 he Industry Outstanding Lodging Employee of the Year, Small Property Miguel Lopez, Bernardus Lodge & Spa For more than 20 years, Tim Sherman, as Bell Captain and Miguel Lopez as valet were the pillars of the arrival and departure experience. They were brothers in arms, embodying loyalty and dedication above all else, and their daily duet became an essential Bernardus experience for loyal guests and locals alike. Last July, Tim tragically passed away without warning. As in shock as he was, Miguel was resilient, calm and open-hearted. From his home, he fastened a simple black ribbon to his uniform as a symbol of remembrance and mourning, and returned to work. Every local, every returning guest, every associate has a story about Tim. And Miguel gave them each the gift of an open ear, along with grace and dignity as he took the time to truly hear what they were saying. More than anything, Miguel showed us all that it is possible to live, smile and grieve at the same time. Many Bernardus employees wore and continue to wear black ribbons on their uniform to honor the leader we lost—and in support of the leader that has emerged. Miguel exemplifies what it is to have a heart of hospitality and a soul of a leader. Outstanding Lodging Employee of the Year, Medium/Large Property Keith Defiebre, Monterey Plaza Hotel & Spa Keith demonstrates his commitment to memorable service every shift. One example of his thoughtful and outstanding service happened when a guest called for a wheelchair to be delivered to their room. Keith was on the job. He not only brought them the chair as requested but was later observed pushing the woman who requested assistance to a restaurant on nearby Cannery Row. He let them know to call for him when they were ready to come back. He then went back to the restaurant and wheeled her back and this was several blocks away. Keith also has been an elite level cyclist for over two decades competing professionally and representing the U.S. Recently he was in the Philippines to promote women’s bicycle racing. He supplies his team there, the Keith DeFiebre cycling team, with bikes and equipment, enabling them to train while he is back home, an expense that comes out of his pocket each year. He is an outstanding example of a hospitality professional who represents the best in our profession in Monterey County, but also represents the state proudly.

14 CALIFORNIA LODGING NEWS www.calodging.com Stars of th Natalie joined Aelius Management Group in 2021 when our company had just acquired the Holiday Inn Express & Suites in Dinuba. At the time the property was in a bit of a distressed situation. Natalie, who has lived in Dinuba almost her entire life, applied for the GM position. She was a 30-year hospitality veteran who had taken a leave because of the death of a close friend. But when she came in for her interview with us, her energy was screaming hospitality. Our property at that time had an empty feeling. Since joining the team, she has made the property so inviting where all our guests constantly feel welcomed, appreciated, and taken care of. She has gone out of her way day in and day out to make sure she is meeting the demands. Not only has she shown that effort to our guests, but our staff feel it too. We have received multiple recognitions from IHG on our customer service and cleanliness levels. Natalie has also earned AAA Three Diamond designation. Throughout the year she consistently shows her true hospitality nature by hosting events that the guests can participate in, staff feeling appreciated, and ownership being able to take pride in. We truly feel that she embodies the true meaning of hospitality. Being a proud union member, I have never thought I would nominate a member of management, but John doesn’t act like a typical member of management. During the pandemic, John made himself available to all the laid off members to assist them with applying for and securing our unemployment payments and helping us get through the mess that was the EDD. He continues to help members with problems with the EDD. After the hotel reopened, he worked hard to welcome us back and did more than any other HR director in the city to educate us on Covid Safety Protocols. And since then, he has volunteered to lead free training sessions on the new Responsible Beverage Server law open to any server or bartender in the city of San Francisco. He has helped over 200 people outside of the Hilton and Parc 55 continue to work without interruption and benefits every hotel in San Francisco who use extra servers and bartenders from the union hiring hall. John is someone we in the union refer to as a “brother”. This is a rare honor ever given to a member of management from a union, but he has earned it. Outstanding Manager of the Year, Small Property Natalie Salinas, Holiday Inn Express & Suites Outstanding Manager of the Year, Large Property John Bernier, Hilton San Francisco and Parc 55 San Francisco

www.calodging.com January/February 2023 15 he Industry Outstanding General Manager, Small Property Kurt Bjorkman, The Ranch at Laguna Beach If you look up the word hospitality in the dictionary, Kurt Bjorkman’s name will be listed. Kurt lives and breathes hospitality and has a true heart. For Kurt, service starts with taking care of his team. In Kurt’s words “In order to take care of our guests, we need to take care of each other first.” An example of this is Kurt never wants to see a team member be stressed on the job, either due to high business levels, short on staff, or a team member that encounters a discerning guest. With this Kurt has trained in each department to learn the jobs, so if we are down a team member or are busy, he can easily step in to relieve the staff and serve our guests. If there’s a guest that needs special attention, Kurt is the first to step in and smooth things over, while not undermining our staff or taking credit for resolving and issue. Kurt’s servant heart doesn’t stop with serving guests. He’s also very passionate about sustainability and has put in to place many sustainability programs. In a nutshell, Kurt is one of us, he’s on our level and is admired and adored by all his team. He is kind, thoughtful, generous, and welcoming. He really is the true definition of hospitality.” Outstanding General Manager, Medium Property Chris Sommers, Monterey Plaza Hotel & Spa Within a year of taking his position, Chris had to make the heartbreaking decision to close the property due to the pandemic. While this was the most difficult time of his career, he advocated for the hourly associates, he oversaw the distribution of food to staff as the kitchen closed, and then spent the next two months patrolling each day to ensure the property was secured during the closure. He personally filled bags with food and essentials, such as toilet paper and hand sanitizers, in preparation for delivery to the hotel associates. When the hotel reopened, he was there to greet associates who were returning and, on many days, he was working alongside them—clearing tables, folding towels, and parking cars. Throughout it all, he maintained a positive attitude and his encouraging spirit helped the staff get comfortable in the new paradigm of mandatory masks, social distancing, and deep cleaning. Chris’ leadership has also been instrumental in growing our management staff. He continually challenges them with a “you can do it” spirit. While other properties struggle to staff and are unable to reopen fully, Chris focused all efforts to safely open as many services as possible with the end goal of rehiring as many associates as possible and getting the team back to work. Chris has the heart and passion of a true hotelier.

16 CALIFORNIA LODGING NEWS www.calodging.com Stars of th Younes’ impact to the industry, Santa Monica community, and people around him was immediately felt when he arrived in Santa Monica over two years ago. He’s made it a priority to not only serve the staff and guests at Loews, but the businesses and residents of the Santa Monica Community. Since 2020 he’s served as a member and is currently Chair, of the Tourism Marketing District Committee. In May 2021, Younes was appointed to the SMTT Board of Directors as a member and now serves as our Vice Chair. He also serves on the Santa Monica Chamber of Commerce Board of Directors and supports many local non-profits. Younes has thrust Loews Santa Monica Beach hotel back into the spotlight by bringing in cutting edge artists, designers, and providing unique experiences. Loews Santa Monica Beach Hotel is once again “the place to be” throughout the year by offering a series of events that are both new and innovative. No matter what he’s planned, he always includes a giving back to the community component which spotlights his giving nature. He prides himself on the smallest of details, he’s reasonable and caring to each person he encounters. I’ve seen the changes in employee morale, and hotel performance demonstrates the level of service offered at the property since Younes took the helm. I personally can’t wait to see what Younes and his team do next. Elisabeth, or better known to her colleagues as Lizzy, began her hospitality career at a young age watching her mother host dinners and parties at their home. As she grew up, she knew she wanted to be a part of the industry that her mother, a Director of Catering, had worked in. Upon graduation from Cal Poly Pomona, she was hired by the Caruso Group, a prominent real estate development company, to be part of the Caruso Accelerated Management Program and participated in their first CAMPer program. Placed at Rosewood Miramar Beach, a Caruso property, she started her first job in food & beverage as an assistant manager running the pool & beach operation. From there, she moved to various outlets including Malibu Farm, the resort’s 3-meal restaurant. Eventually she was given the opportunity to be the assistant director of banquets. However, within a few months of being placed in the banquets department, her director left, and she was tasked with running the department. It is her dedication, commitment, and drive that during those six months on her own, she was able to run the $14 million 60+ person operation on her own with the assistance of two banquet captains that she was promoted to director of banquets. The resort is proud of “Lizzy” Balourdas. Outstanding General Manager, Large Property Younes Atallah, Loews Santa Monica Beach Stevan Porter Emerging Hospitality Leader of the Year Elisabeth Balourdas, Rosewood Miramar Beach

www.calodging.com January/February 2023 17 he Industry Women in Lodging Connect Leader of the Year Joan Harvey, Fairmont Sonoma Mission Inn & Spa Beach Joan has been our Director, Sales & Marketing at Fairmont Sonoma Mission Inn & Spa for four years now and has worked with Accor for over 23 years. Amazing, respectful, empowering, and strategic are just some of the words shared by Joan Harvey’s team when asked to describe her leadership style. We’d say she is the perfect recipe for a well-balanced leader and mentor - thoughtful with her messages, leads with her head and her heart, smart, effective and drives results. Joan puts her team first. There is no greater example of this than when the pandemic hit and her decision to take a furlough herself so that a few of her team members could stay on board and continue to work. When it came to building back after the pandemic, Joan adapted and pivoted time and time again. Joan encouraged the team to look for additional revenue streams and unique ways to connect with guests. Joan has assisted in improving the guest room collateral and content, enhancing our website along with other third party websites, and successfully launched a new social membership club. This will be the best year of performance in the Hotel’s history. But you can still find Joan out and about on property when she has a few minutes picking up trash and showing a sense of pride in our resort. Community Service Award Melissa Begin, Hotel Paradox, Autograph Collection Hotel Paradox team member Melissa Begin initiated a community service on behalf of the Hotel Paradox in 2019 that remains in practice. With the goal of maintaining the health and beauty of the San Lorenzo Park, which is between the hotel and business in downtown, she created a program called “Bridging the Gap”, which allows hotels to “adopt” a block of the San Lorenzo Park and commit to clean it up on a quarterly basis. Melissa has engaged with many different businesses in the downtown area and, because of her efforts, the clean-ups have been conducted on a consistent quarterly basis. The Bridging the Gap River beautification project collects approximately 200lbs of garbage per clean-up and is a great success for the hotel, community, and businesses in the area. Congratulations Melissa and congratulations Hotel Paradox on this beautiful and successful project.

18 CALIFORNIA LODGING NEWS www.calodging.com Stars of th Hilton is not just a company committed to diversity, equity, and inclusion; we embody it. One example is Nancy Lopez, AKA “Chef Fancy Nancy.” Here’s what she had to say: “I am a transgender woman with a passion for culinary arts. My motivation and inspiration have always been my mother. From the age of five I used to make tortillas, do housework, and even make my clothes… This is when I began to realize that a boy had been born with the feelings and soul of a girl. My biggest obstacle had to be my father who, in seeing me engage in “feminine” activities, would be angry with my mother for allowing me to do so. His solution was to take me to the fields to do more labor-intensive jobs. I sowed and picked for years of my childhood, and during this time is when I realized that my life was not going to be easy. But in the end, that work made me the great worker and fighter I am today and have been throughout my life. Today, I am 50 years old, and I continue to work hard in the kitchen to get ahead, but I do it with great pride and joy because I know I have a purpose. Besides cooking for people, being of service brings me the greatest joy. Honestly, my well-being depends on the work I do as a volunteer and in building community. It’s important to me to help the community the way the community has helped me. I am so thankful for my Hilton Family! I have found a HOME at the DoubleTree by Hilton San Jose! They CARE, and it shows!” The Argonaut is committed to environmental sustainability by participating in numerous programs/initiatives, committees, and investing in the property to remain a leader in “Good Earthkeeping” in San Francisco. To assist other properties with their green efforts, Regional Vice President Stefan Mühle, co-founder/former chair of the San Francisco Hotel Council’s Sustainability Committee, consistently encourages and educates other hotels to participate in the many available initiatives. The Hotel is very active in working with vendors and leaders of the industry who have taken an active approach to greening their businesses. Most importantly, though, the property openly shares field tests and findings (including successes and failures) and encourages as many team members as possible and other hotels to participate to push the proverbial envelope. The Inaugural CHLA DEI Award Doubletree by Hilton San Jose (Pictured with Lynn Mohrfeld: Misoon Kong) Good Earthkeeping Award Argonaut Hotel (Pictured with Lynn Mohrfeld: Ruth D’Franco and Tony Roumph)

www.calodging.com January/February 2023 19 he Industry Guest Relations Award Magic Castle Hotel (Pictured with Lynn Mohrfeld: Darren Ross, Rod Lipman, Katie Williams, Allison Steward, and Regan Kline) While our independent hotel isn’t fancy, we’re proud of what we’ve achieved by being creative and taking a different approach to guest service. We’re currently the #6 hotel on TripAdvisor out of 409 in all of Los Angeles. This is not easy and is a result of giving our guests an experience that is so far beyond what they expected, that by the time they leave, they feel compelled to tell people about us.... and to write about their experience. Here’s just one such review: “The service is without equal. The vibe of this hotel is unmatched. The staff never failed to impress us, and always went above and beyond to accommodate our requests and to make our stay enjoyable.” And another: “This hotel is a sanctuary from the bustle of LA and feels like home.” We live “service” at Magic Castle Hotel and guests tell me almost every day how they don’t want to leave.

20 CALIFORNIA LODGING NEWS www.calodging.com MANY OF THE SERVICES CHLA provides its members are readily apparent, such as our human trafficking prevention training, discount healthcare benefits, and our conferences and events. However, there is one less well understood, yet incredibly important, asset that we provide for our members which shapes every facet of your property’s daily operations— CHLA’s advocacy program. Under this program, CHLA is involved in supporting or opposing various laws proposed by elected members of the state legislature. Often, we urge CHLA members to become involved at various stages in the legislative process to help amplify our position to legislators. You may wonder why we ask for your involvement at certain times— and that’s understandable, because for many outside observers, the legislative process can seem overly complex and opaque. In fact, while there are a number of steps for any bill to become law, the process itself is fairly straightforward. Understanding how it works can help our members understand when it is most helpful and effective for them to make their voices heard. A proposed new law, or bill, can be introduced in either the Assembly or a Senate by one or more members of the chamber. Often, bills are the result of a suggestion by an industry association, a union, or a citizen’s group to address an issue of concern to them and introduced by a legislator who shares their concerns. Once a bill is introduced, it is assigned a number in sequence for that legislative session, preceded by “AB” if introduced in the Assembly, or “SB” if introduced in the Senate. While many bills have names or even clever acronyms, the number is how the bill will be formally identified and how it can be tracked throughout the legislative process. The first step for any bill is the Rules Committee in the chamber where it was introduced. That committee determines which of the several policy committees will be involved in debating and revising the original bill, based on the policy committee’s focus. The policy committee will consider the bill and may hold hearings and listen to presentations by interested individuals who are either in favor of or oppose the bill. This is one of the most important times to attempt to influence the language of the proposed law or attempt to persuade the committee to reject the bill. If a bill involves government spending or revenue, it also will be heard by the Appropriations Committee, which will consider the fiscal effects of the measure. If the bill passes the policy committee (and the Appropriations Committee, if needed), it then goes to the floor of that chamber for a vote, possibly with a debate on the floor. Some of the proposed amendments may change the nature of the bill in a way that changes our position on it, and so it may be crucial at this stage for our members to once again speak out, either for or against the amendment. Once all the amendments have been considered and either approved or rejected, the entire bill is voted on by the full Assembly or Senate. If it passes (usually with a simple majority), it is sent to the other chamber for consideration, repeating the entire process of committee hearings, amendments and a floor vote. Follow That Bill Note: Interactive Article! Click here to view a flowchart that you can use to follow along with this article. HELD IN COMMITTEE PASSAGE REFUSED PASSAGE REFUSED HELD IN COMMITTEE COMMITTEE RECOMENDATIONS PASS Proposed Amendments Revised Third Reading Analysis TO ASSEMBLY COMMITTEE RECOMENDATIONS PASS HELD IN COMMITTEE COMMITTEE RECOMENDATIONS PASS ASSEMBLY BILL PREPARED BY LEGISLATIVE COUNSEL SENATE BILL PREPARED BY LEGISLATIVE COUNSEL RULES COMMITTEE ASSIGNS BILL TO COMMITTEE Bill may not be heard by committee until 31st day after introduction COMMITTEE HEARING: Policy or Appropriations CHAIRPERSON AND MEMBERS TESTIFY: BILL AUTHOR CITIZENS EXPERTS LOBBYISTS RULES COMMITTEE ASSIGNS BILLS TO COMMITTEE SECOND SENATE READING THIRD SENATE READING DEBATE VOTE FIRST ASSEMBLY READING COMMITTEE HEARING: Policy or Appropriations CHAIRPERSON AND MEMBERS TESTIMONY BY: BILL AUTHOR CITIZENS EXPERTS LOBBYISTS THIRD ASSEMBLY READING DEBATE VOTE THE LIFE CYCLE OF LEGISLATION From Idea into Law INTRODUCED BY MEMBER, NUMBERED, FIRST READING, PRINTED RULES COMMITTEE ASSIGNS BILL TO COMMITTEE Bill may not be heard by committee until 31st day after introduction COMMITTEE HEARING: Policy or Appropriations CHAIRPERSON AND MEMBERS TESTIFY: BILL AUTHOR CITIZENS EXPERTS LOBBYISTS RULES ASSIGNS BILLS TO COMMITTEE THE CALIFORNIA LEGISLATURE A S S E M B LY RU L E S C OMM I T T E E Although the procedure can become complicated, this chart shows the essential steps for passage of a bill. Typical committee actions are used to simplify charting the course of legislation. Some bills require hearings by more than one committee, in which case a committee may re–refer the bill to another committee. For example, bills with monetary implications must be re–referred to the proper fiscal committee in each House before they are sent to the second reading file and final action. A bill may be amended at various times as it moves through the Houses. The bill must be reprinted each time an amendment is adopted by either house. All bill actions are printed in the DAILY FILES, JOURNALS and HISTORIES. If a bill is amended in the opposite House, it is returned to the House of Origin for concurrence in amendments. If House of Origin does not concur, a Conference Committee Report must then be adopted by each House before the bill can be sent to the Governor. SUGGESTIONS FOR NEEDED LEGISLATION FROM Agencies, Citizens, Governor, Lobbyists ASSEMBLY MEMBER SENATOR SECOND ASSEMBLY READING THIRD ASSEMBLY READING DEBATE VOTE FIRST SENATE READING COMMITTEE HEARING: Policy or Appropriations CHAIRPERSON AND MEMBERS TESTIMONY BY: BILL AUTHOR CITIZENS EXPERTS LOBBYISTS THIRD SENATE READING DEBATE VOTE Revised Third Reading Analysis GOVERNOR RETURN TO ASSEMBLY FLOOR Concurrence in Senate Amendments YES NO CONFERENCE COMMITTEE 3 Assembly Members 3 Senate Members CONFERENCE REPORT ASSEMBLY and SENATE Adopt Conference Report YES NO *Follow same procedures as in the Assembly RETURN TO SENATE FLOOR Concurrence in Assembly Amendments LEGISLATURE HAS 60 DAYS (not including joint recesses) TO OVERRIDE VETO WITH 2/3 VOTE IN EACH HOUSE BILL IS CHAPTERED BY SECRETARY OF STATE Bill becomes law January 1st of the following year unless it contains an urgency clause (takes effect immediately) or specifies its own effective date. Proposed Amendments PASSED WITH SENATE AMENDMENTS WITHOUT SENATE AMENDMENTS SIGN PASSED WITH ASSEMBLY AMENDMENTS WITHOUT ASSEMBLY AMENDMENTS BECOMES LAW WITHOUT SIGNATURE VETO Proposed Amendments Revised Third Reading Analysis SECOND SENATE READING SECOND ASSEMBLY READING ** Assembly policy committee will do Governor's Veto analysis PASSAGE REFUSED INTRODUCED BY MEMBER, NUMBERED, FIRST READING, PRINTED TO SENATE PASSAGE REFUSED HELD IN COMMITTEE COMMITTEE RECOMENDATIONS PASS Revised Third Reading Analysis Proposed Amendments

www.calodging.com January/February 2023 21 If the second chamber approves the bill as received, without any amendments, it will then be sent to the governor for signature or veto. If the second chamber has made changes, then it goes back to the house of origin for a “Concurrence” vote, where the original chamber will vote on whether to approve the changes made in the other house. If the house of origin refuses to concur in the amendments made by the other house, then a special committee known as “conference committee,” made up of members of both chambers, will gather in an attempt to align the language between the two versions. If they can do so, the bill goes back to each chamber for an up-or-down vote, and if it passes, goes to the governor. If the governor signs the bill or allows the signature period to lapse without signing the bill, it becomes law. If the governor vetoes the bill, it is sent back to the legislature, which can vote to override the veto with a 2/3 vote in each chamber. Otherwise, the bill does not become law. The Governor’s office is the last opportunity for interested parties to speak out for, or against, the bill in order to persuade the governor to sign or veto the measure, although if a bill remains controversial enough at this point that the governor is undecided, it will take a great deal of effort to overcome the opposing side. So, at this point, you may wonder—what role can you play in shaping California legislation? Well, as noted above, CHLA often calls on hotels to voice their support or opposition to good or bad bills, respectively. These calls to action can appear at nearly any point in the legislative process and are sent out when conditions are best suited to moving the needle in the right direction. In addition to participating in our calls to action, CHLA invites hoteliers from across the state to join our Legislative Action Summit every March. This summit draws veteran advocates and new hoteliers alike and provides hoteliers with the inside scoop on legislation, as well as the opportunity to engage directly with legislators and demonstrate the unity within our industry.  To learn more about the 2023 Legislative Action Summit, click here.

22 CALIFORNIA LODGING NEWS www.calodging.com CREATING A NEW BOUTIQUE HOTEL PROPERTY is always a challenge, even more so when it involves new construction in San Francisco. So, it was no surprise when the team behind The Hotel Castro found it impossible to get conventional bank financing for the $7.5 million project in one of the city’s iconic neighborhoods. It didn’t help that the hotel’s General Partner, Gannon Tidwell, made his pitch during the early months of the COVID pandemic. With the market shaky and the prospects for tourism uncertain, banks were averse to taking the risk to fund Tidwell’s project. Yet, the unique hotel tucked onto a residential street a block from the center of the Castro neighborhood is welcoming guests today, thanks to more unconventional financing. The partnership obtained their need with money from the Small Business Administration’s SBA 504 program, which offers in the SBA’s words, “longterm, fixed rate financing for major fixed assets that promote business growth and job creation.” The Hotel Castro’s loan was facilitated by TMC Financing, an Oakland-based lender that is one of the Certified Development Companies that have access to SBA 504 funding. TMC noted that this financing option is ideal for smaller properties as well as new establishments without the operating history that conventional lenders might want to see. “Conventional lenders prefer flag hotels from big brands, and obtaining the required permits can be difficult,” said Anna Rummelein who administered the SBA 504 loan on TMC Financing’s behalf. “Without SBA financing, independent hospitality properties struggle to get financing even at the best of times.” The SBA 504 Loan Program empowers business owners to purchase fixed assets such as owner- occupied commercial real estate and equipment. The program boasts low down payments and below-market, long term, fixed interest rates. “I’ve been financing real estate for more than 20 years and this is probably the hardest financing request that I’ve ever worked on,” Tidwell says. “Anna and I worked together to figure out how to do it.” A construction project that was initially planned to take 18 months was ultimately completed in 30. During that time, Tidwell saw other hospitality properties close down and new construction called off or abandoned. But his partnership with TMC Financing saw him through to the end and a successful launch. “Hotel Castro can now take advantage of San Francisco’s economic rebound,” said Rummelein. The total project cost for Hotel Castro was $7.5 million, with $1.5 million going to the cost of land and $6 million to construction. The SBA 504 loan was structured as a 25-year term loan with a 20 percent down payment. The property opened its doors to the public in early 2022. The future looks bright for The Hotel Castro in its beloved Castro neighborhood. As a new anchor business, it is delivering economic opportunities and introducing hundreds of guests to San Francisco every month. “I am pleased to report that the hotel is in its eleventh month of operation, we’re profitable, and we’ve been getting really good reviews. We keep growing our client base and we’re excited for San Francisco’s tourism industry to continue to recover,” said Tidwell. “We are optimistic that every year is going to get better.”  SBA

www.calodging.com January/February 2023 23

24 CALIFORNIA LODGING NEWS www.calodging.com Marketplace CHLA ACCESSIBILITY/ ADA COMPLIANCE ADA Compliance Consultants, Inc...........................916.608.0961 ACCOUNTING SERVICES Nimble Accounting, Inc.......... 866.964.6253 ACOUSTICAL CONTROL/ SOUND MASKING Sound Solution Group.............916.256.4207 AMENITIES/ROOM & HOTEL AMENITIES Chadsworth & Haig................... 843.675.8250 APPRAISERS HVS......................................................415.268.0351 ASSOCIATIONS Hotel Council of San Francisco...............................415.391.5197 Visit California Caroline Beteta 916.444.0410 cbeteta@visitcalifornia.com www.visitcalifornia.com Visit California is a nonprofit organization with a mission to develop and maintain marketing programs that keep California top-of-mind as a premier travel destination. AUDIO/VISUAL California Commercial Satellite (ComSAT AV)................................ 619.795.9444 Encore Ross Gimpel 530.559.0700 ross.gimpel@encoreglobal.com www.encoreglobal.com Encore is a leading provider in the global event technology services industry delivering creative production, advanced technology, and staging to help customers deliver more dynamic experiences. BANKS/BANKING SERVICES TMC Financing............................. 415.989.8855 BANQUET SEATING/ TABLES & EQUIPMENT Southern Aluminum................. 870.234.8660 BARTERING/TRADING IMS Barter........................800.287.3874 x1730 BATHROOM ACCESSORIES & SERVICES Green Suites Hotel Solutions............................ 909.334.4004 Samson Shower Systems, LLC............................... 817.228.0619 VersaTraction, Inc...................... 714.973.4589 BEDS/MATTRESSES Ortho Mattress............................ 310.844.4860 BENEFITS ADMINISTRATION Hotel Effectiveness Solutions......................................... 678.325.1150 BEVERAGES/BEVERAGE DISPENSING SERVICES Twinings North America, Inc................................... 973.574.2228 CARPET & FLOORING SALES & SERVICE Embassy Carpets.......................800.366.7847 CLEAN TECHNOLOGY CONTRACTORS Panasonic Life Solutions...... 510.203.3630 CLEANING SUPPLIES/ SYSTEMS HD Supply Facilities Maintenance................................. 800.431.3000 Innovative Building Energy Control............................ 949.267.9095 Renegade Brands USA, Inc........................................... 216.789.0535 COMPUTER HARDWARE Dell...................................................... 512.723.6063

www.calodging.com January/February 2023 25 CHLA MARKETPLACE CONSTRUCTION – NEW Shawmut Design and Construction....................... 323.602.1000 CONSULTING & TRAINING Accurate Ergonomics............. 707.894.4544 Businesses Ending Slavery & Trafficking (BEST)................... 206.905.6843 Filigree Training Solutions, LLC.............................. 646.233.7769 Hogan Hospitality.......................415.331.1061 Hotel Financial Coach............. 949.791.2739 KML Hospitality............................925.212.0701 Petra Risk Solutions..................800.466.8951 Singer Associates, Inc............ 831.227.5984 STR..................................................... 615.824.8664 Wallace Hospitality Solutions........................................... 800.450.0082 CREDIT CARD SERVICES Casablanca Payments............ 203.253.7259 CASHDROP Ben Vear 253.987.6787 ben@cashdrop.biz https://cashdrop.biz Get all the premium features of ecommerce platforms like Shopify and Square with none of the monthly subscription costs and zero seller fees. CASHDROP is the easiest way for retailers, restaurants, and event organizers to start selling online through a custom link or in-person with a QR code. Chase Faheem Khan 800.288.9295 faheem.khan@chasepaymentech.com https://merchantservices.chase.com Chase Merchant Services offers CHLA members the best service and competitive rates. They are the global payment acceptance and merchant acquiring business of JPMorgan Chase & Co. and a leading provider of payment, fraud management, and data security solutions. Heartland Payment Systems........................................... 530.415.6850 Soar Payments, LLC. ............... 888.225.9405 DIRECT TV PROVIDER Commercial Connect Television, Inc............................... 877.789.7995 MTV, Inc........................................... 818.772.4200 ECO-FRIENDLY Evolve Charging Corp USA........................................ 604.314.6022 EDUCATIONAL INSTITUTIONS California State Polytechnical University – Pomona............................................ 909.869.3105 California State University – Long Beach. .................................. 562.985.4493 San Diego State University.......................... 619.594.4964 University of San Francisco...............................415.422.2581 EMPLOYEE RELATIONS/ BENEFITS Petra Risk Solutions..................800.466.8951 EMPLOYMENT AGENCIES/SITES Instawork. ....................................... 512.903.2579 Staff Pro Workforce Solutions......................................... 800.315.2219 ZipRecruiter, Inc.......................... 877.252.1062 ENERGY EFFICIENCY Franklin Energy............................ 312.940.9552 ENERGY MANAGEMENT Vector Energy Group............... 818.600.4348 ENTERTAINMENT Union Square Business Improvement District.............. 415.781.7880

26 CALIFORNIA LODGING NEWS www.calodging.com CHLA MARKETPLACE ENVIRONMENTAL CONSULTING APTIM................................................ 720.234.2093 Shred City, LLC...........................844.50.SHRED FINANCING/ FINANCIAL PLANNING Hallmark Funding Corporation................................... 916.784.2614 Hospitality Funding. ................. 650.740.9875 Pinnacle Bank............................... 408.637.6030 Ygrene Energy Fund................. 415.261.7578 FLOOR COVERINGS/ EQUIPMENT Gemeni Flooring......................... 559.356.9920 FOOD SUPPLIERS/ DISTRIBUTORS BruxMix. ........................................... 714.803.9060 Just ‘N’ Case Essentials Inc............................... 866.636.8225 Single Serve Solutions........... 707.532.0884 FRANCHISING Choice Hotels International.................................. 301.593.5600 InterContinental Hotels Group................................. 770.604.8149 Red Roof Franchising.............. 713.576.7459 FURNITURE/FIXTURES & EQUIPMENT (FF&E) Case Goods Refinishing........ 757.617.4459 Cassone. ......................................... 415.329.4932 ERS Hospitality.............................415.863.7191 Hospitality Designs.................. 604.248.1806 Interia. ............................................... 619.205.4489 GUEST SERVICE SOLUTIONS Akia..................................................... 650.644.8073 Hospitality Wellness Group................................................. 310.339.9042 HEATING Pro Star Mechanical Services............................................714.999.1177 HOTEL BROKERAGE NewGen Advisory – The Bowman Group...................818.667.0627 HOTEL MANAGEMENT Acme Hospitality.........................805.456.4291 Aelius Management Group................................................. 559.595.1500 Apple Hospitality REIT. ............804.344.8121 BRE Hotels & Resorts.............. 718.921.8124 Concept Hotel Group.............. 650.839.6274 Crescent Hotels & Resorts......................................... 703.279.7820 Davidson Hospitality Group................................................. 678.349.0909 Destination Properties, LLC........................... 760.250.0998 DiamondRock Hospitality Company............... 240.744.1150 Edward Thomas Collection. ...................................... 310.859.9366 Ellis Hospitality............................ 415.775.8116 Ensemble Hotel Partners...... 562.257.1005 Four Sisters Inns............831.649.0908 x114 G6 Hospitality, LLC. .................. 972.360.5916 Global Vision Hotels, Inc........ 650.504.4119 Hotel Managers Group, LLC. .................................... 858.673.1534 Hyatt Hotels Corporation..... 301.380.3000 Interstate Hotels & Resorts................................. Johnson Hospitality................. 925.730.4930 K&K Hotel Group........................ 281.530.1500 Loews................................................ 212.521.2000 Noble House Hotels & Resorts..........................................425.827.8737 OTO Development, LLC......... 949.246.9273 Pacific Plaza Hotels, Inc......... 510.832.6868 Pacifica Hotel Company........ 805.957.0095 Park Hotels & Resorts..............571.302.5757 Radiate Hospitality.................... 650.424.1400 Reneson Hotel Group.............. 415.883.4400 Ridgemont Hospitality............ 510.569.4400 RLJ Lodging Trust......................301.280.7777 Service Properties Trust....... 617.964.8389 Sonesta Hotels............................ 800.766.3782 Springboard Hospitality. ....... 818.905.8280 Stonebridge Companies....... 303.785.3100 Storey Hospitality...................... 650.880.1000 The Mayer Corporation...........949.759.8091 Xenia Hotels & Resorts........... 407.317.6950 HOTEL/RESTAURANT EQUIPMENT & SUPPLIES Frank & Ron Hotel–Motel Supply, Inc...................................... 510.568.4072 HUMAN RESOURCE SERVICES Carrera Lee Enterprises, Inc........................... 310.375.6033 Heartland Payroll Rodney Biggs 858.886.9440 rodney.biggs@heartland.us www.heartland.us Balance your business’ time and attendance, human resources administration, tax reporting, and more in one online, integrated suite. Whether you’re looking for an easier way to pay employees or maintain compliance with your state’s HR laws, Heartland provides payroll services to businesses large and small with our customization solutions. Endorsed by CHLA.

RkJQdWJsaXNoZXIy MTY1NDIzOQ==