CALIFORNIA REGULATIONS California Clampdown on Hidden Fees The Official Magazine of the California Hotel + Lodging Association FEATURE Taking a Holistic Approach to Safety of the Industry 2023 AWARDS STARS PREVENTION Stopping Human Trafficking JANUARY + FEBRUARY 2024 Denette Henry, Director of Housekeeping at the Rosewood Miramar Beach
page 10 COVER STORY 2023 CHLA STARS OF THE INDUSTRY AWARDS
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. California Hotel & Lodging Association 414 29th Street, Sacramento, CA 95816 916.444.5780 | www.calodging.com EXECUTIVE COMMITTEE CHAIR Dhruv Patel Ridgemont Hospitality VICE CHAIR Cormac O’Modhrain Sunstone Hotel Investors IMMEDIATE PAST CHAIR Hee-Won Lim-Grosvenor Pacific Palms Hotel SECRETARY/TREASURER Daniel Kuperschmid Manchester Grand Hyatt San Diego GOVERNMENT & LEGAL RELATIONS CHAIR Javier Cano JW Marriott at L.A. LIVE AUDIT & INVESTMENT COMMITTEE CHAIR Laurenne Douglas Pacific Plaza Hotels, Inc. 2024 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 David Craig Pebblebrook Hotels Vipul Dayal Days Inn San Francisco Airport West Laurenne Douglas Pacific Plaza Hotels, Inc. Marina Dutton Irvine Marriott Troy Flanagan AHLA Ross Gimpel Encore Jon Handlery, CHA Handlery Union Square Hotel Nic Hockman Disney’s Grand Californian Matt Humphreys Hyatt Regency San Francisco 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 Stacey Rivera Evolution Hospitality Tejal Sood Bayside Hotel Group 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 | www.llmpubs.com Design & Layout Juliette Miratsky Advertising Sales Marcia Bakst | marcia@llmpubs.com Copyright © 2024. All Rights Reserved CONTENTS CAL I FORNIA January + February 2024 FEATURED 18 Stopping the Traffic in Human Trafficking 20 California Clampdown on Hidden Fees 22 A fter Fires and Floods, The Insurance Drought 16 Scholarship Awards Gala 08 130th Anniversary Annual Meeting 04 Taking a Holistic Approach to Safety in 2024 02 Message from the Chair 23 C HLA Marketplace 28 U pcoming Events 29 C HLA Partners EDITORIAL DEPARTMENTS
2 CALIFORNIA LODGING NEWS www.calodging.com Dhruv Patel CHLA Chair MESSAGE FROM THE CHAIR As I begin my year as Chair of the California Hotel & Lodging Association, I want to look ahead to 2024 by looking back at 2023. Our industry nationwide, but more so in California, has faced a lot of challenges lately. We are still trying to get back to pre-pandemic levels of occupancy and revenue. At the same time, we have had to fend off unsustainable demands by unions and local governments. Sometimes we have faced an existential challenge, as in Anaheim last summer when the city asked voters to approve a minimum wage mandate for hotels. That union-backed effort, ostensibly a “living wage” issue, would have been ruinous to our business—and somehow making us singlehandedly responsible for addressing the complex issue of affordable housing. Yet, we were able to defeat that mandate at the polls because of the efforts of small, local property owners who worked hard and passionately to convince voters how that measure would destroy local small businesses along with the jobs and economic activity they support. So, if there is one overriding theme that I want to stress in my role this year, it is the vital importance of local engagement. If we want to continue to grow, prosper, and succeed as we did in Anaheim, we need every CHLA member—especially small owners and operators—to be proactive in that effort. As a local hotelier in Oakland, I learned early on the importance of being engaged in order to ensure the business my family built one property at a time would have an environment where we could continue to succeed. I spent a great deal of time building relationships with local elected and other civic leaders, getting to know members of the City Council. Importantly, I took it as part of my job as an owner to educate them about what we actually do as an industry. Instead of them seeing us strictly as a source of TOT revenue, I worked to help them understand how much benefit we provide not only from taxes, but from the jobs we create, the local businesses we support with our spending, and enabling the city to have a vibrant tourism economy. We can’t take for granted that local officials understand the scope of our contribution to the community. It’s important to let them know— in terms of dollars and cents—what those contributions are. It’s also important to remind them of the connection between those dollars and their policy decisions—every event that doesn’t rebook has a direct negative impact on local government coffers. There’s another, intangible benefit to this kind of education and engagement. Instead of being a building or a brand, we become real people, faces, and names. It is much harder for someone to say no to you when they know you, when they see you at the grocery store or the next council meeting. And it’s so important to build those relationships before there is a contentious issue, when it will be much harder to be heard. I am proud of our industry, of the hard work of so many people—owners, managers, staff—that together maintain a vital part of California’s economy. I am proud of the fact that our industry is one of the few in our state that offers a solid and rewarding career path without the need for a college degree. I am proud of the diversity of our industry and for the many acts of kindness and goodwill our people do behind the scenes for guests, the community, and each other—not to gain public recognition, but simply because service is what we do every day. So I start my tenure here not only asking for you to be engaged, but also with the pledge to be an engaged Chair in service to my fellow CHLA members. I am excited to have this opportunity to give back to the industry that has given so much to me.
www.calodging.com January + February 2024 3 Contact us today! Marcia Bakst | 503-445-2231 marcia@llmpubs.com Advertise to Support Your Association!
4 CALIFORNIA LODGING NEWS www.calodging.com O SAFETY IN 2024 FEATURE At the Grand Hyatt SFO, safety isn’t a specialty. It’s everyone’s job. “We operate under the premise that we are constantly being tested,” said Director of Security Harold Harris. The safety and well-being of guests and staff are always top of mind for hospitality leaders like Harris. With potential risks from slips, falls, and theft to more serious threats like human trafficking and natural disasters, TAKING A HOLISTIC APPROACH
www.calodging.com January + February 2024 5 FEATURE properties can face costly reputational and financial losses. Security experts like Harris say the solution is for properties to adopt proactive, holistic practices designed to avoid those risks—and it starts with comprehensive training. Consistent Employee Training In an era where staff and guest safety have increasing risks to budgets and reputation, safety has to be a full-time responsibility for all staff. That means one of the most important factors in a safe hospitality workplace is for properties to have an effective and comprehensive training program. The program should cover a wide range of safety issues, everything from proper lifting technique to how to deal with the unfortunate potential of violence occurring on a property. “Attentive staff trained to recognize and communicate their observations of suspicious activity can complement a good security team,” said Harris, who has been in the security field for nearly 40 years. He recommends that all hotels institute a safety and wellness committee made up of leaders and at least one non-manager from each department. The committees should identify target safety areas to improve, and because consistency is critical, they should meet monthly to follow up on progress. In some cases, training is not just a good idea, but is mandated by law. Properties need to conduct training that meets state and local requirements in areas from injury prevention to sexual harassment and workplace violence. “It gives our associates great practice and confidence that they can act quickly during an emergency,” said Gerardo Alvarez, Director of Loss Prevention at The U.S. Grant Hotel in San Diego. Make Safety Part of Your Culture Training courses and webinars are essential tools—but safety also has to be an ongoing part of the culture at the property, says Nicole Edwards-Peña, general manager of the Hilton Garden Inn in Temecula. Throughout her career, she has made safety a top priority for her staff, and notes that it succeeds when the people who work at the property truly feel that it is a priority. “When you talk about safety with your team, it’s not just about doing the training and having them sign something, it’s also about things like room leaders walking down halls and making sure people are using the right techniques,” Edwards-Peña said. “It’s really about culture, so people know that you’re taking their safety into consideration every day.” One way to start effectively is by rewarding safe work practices. “When you are responsive to an associate’s safety concern or reinforce safe behavior, you help increase their willingness to participate in keeping the hotel safe,” Alvarez said. Transparency is also crucial to create and maintain a solid culture based on safety. Implementing a voting system where associates can elect their safety committee leaders will help ensure everyone’s voice is heard. “Something as simple as making sure all meeting notes, initiatives, and improvements are distributed to all staff as they occur will help everyone feel included,” Harris added. In addition to training for everyday safety issues, it also pays to think about the unusual but potential safety issues. For example, prior to last fall’s severe weather, she made sure to stock the hotel with enough flashlights, batteries, glow sticks, and water to ride out a power outage—and made sure everyone on the staff knew where to find them. Managers also made sure to remain close to the property even off duty in case they were needed in a hurry. She also created “failsafe” key cards “ Attentive staff trained to recognize and communicate their observations of suspicious activity can complement a good security team. –Harold Harris, Directory of Security, Grand Hyatt SFO
6 CALIFORNIA LODGING NEWS www.calodging.com that would enable guest room access in case of a power failure. It’s also important not simply to tell people how to be safer—it’s also important to ask them what they need, Edwards-Peña said. “We have fire drills, we show videos about bedbugs and pathogens, but on top of that at the end of every single safety meeting we ask every staff member, is there anything you need to make your job better,” she says. “Better supplies? More vacuums? I feel that the better quality of life they have on the job, the more productive they are, and the more productive they are the happier they are—and happier people are safer people.” The Role of Technology While having a well-trained staff is at the core of safety, the task can be augmented by the use of technology. In an age where safety technology is continuously evolving and becoming more accessible, hoteliers have countless options depending on their needs. For instance, high-quality surveillance cameras can catch crime in real-time as well as act as a deterrent. If a property is looking to take its visual surveillance up a notch, companies like Code 4 Private Security in Los Angeles even offer drone service that “provides a level of monitoring that ground-based efforts may not achieve,” said Operations Director John Garcia. Harris similarly emphasized the importance of a robust communication system inside the property. Radios reduce response lag time; online texting apps like Zingle or ALICE enable managers to quickly send a text to the whole team. For extra room safety, mobile keyless entry provides a safeguard against unwanted access. Digital key usage is easily monitored by staff, who can also deactivate them in an emergency. Artificial Intelligence (AI) and biometric technology are also becoming increasingly accessible. Security teams can utilize AI to analyze and recognize suspicious behavior on video surveillance. At the same time, biometric authentication methods, known as facial recognition or fingerprinting, ensure that only authorized individuals can access secure areas on a property. While these gadgets can reinforce security efforts, they are only effective if properly maintained. Garcia emphasized that hoteliers should check that software and access control systems are up to date and that devices are routinely charged and tested. Consider Cyber Security Physical security isn’t the only concern for the hospitality industry: There’s also an increased risk around data, especially related to guests. Hotels are constantly collecting sensitive data from a guest’s credit card number and email address to an employee’s W-2. Systems also can contain confidential business data, from financials to sensitive emails. So, it’s crucial to safeguard against cyberattacks. According to a 2022 IBM Security study, the average cost of a data breach in the hospitality industry is $2.94 million. Hoteliers can utilize virtual private networks (VPN), multi-factor authentication methods, and encryption services to prevent data breaches. Training staff to recognize signs of ransomware attacks and phishing is another way for hotels to mitigate risk. Collaboration with Local Law Enforcement According to Harris and Alvarez, having a good working relationship with local law enforcement is essential. Harris participates in a weekly conference call with local San Francisco law enforcement agencies and said maintaining a friendly relationship has benefited his property FEATURE
www.calodging.com January + February 2024 7 FEATURE in reducing the number of incidents and resolving issues quickly. “Your local law enforcement should feel very comfortable and welcome when entering your hotel,” he said. “The sharing of incident information can be more accessible when a good relationship with law enforcement is in place,” added Alvarez. Strategies for Smaller Properties While having an on-site security team is great for preventing and dealing with safety issues, smaller properties may not have access to the same resources or personnel. Still, there are many ways smaller hotels can effectively prioritize guest and staff safety. Brittney Beck owns and operates Beck’s Motor Lodge, a small property in San Francisco’s Castro neighborhood. She said her approach to safety relies on teamwork and communication. “For us, it’s very basic: security cameras, walkie-talkies, locked doors, and all employees’ watchful eyes,” she said. Beck utilizes a network of security cameras that monitor in real-time so that one person can keep an eye on all areas of the property. Simply chit-chatting with guests can also go a long way. “Our staff is very friendly, so they are constantly talking and interacting with guests to hear any concerns and enjoyments and to weed out persons who perhaps should not be on site,” Beck said. “Saying ‘Hi, how can I help you?’ gives you more information than you can ever imagine! And if someone doesn’t answer and walks off, another safety measure has just been implemented.” Beck also relies on outside help to support her team. A security guard is present during all weeknights and helps staff with any noise concerns, suspicious activity, or anything else that comes up. “It’s pricey, but it’s worth it because it puts our guests and my staff at ease,” Beck said. A strong working relationship with emergency services may also be beneficial for small properties. Beck added that learning to talk to emergency services effectively can lead to a quicker response. “Teaching staff how to call in and speak to emergency services calmly and clearly makes a difference in the outcome of the call,” said Beck. Using All Your Resources The breadth and complexity of training needs is the reason CHLA has developed a collection of safety training programs for our members. These programs can be found on our website at https://calodging.com/resources/ member-benefits/human-resources-benefits. They include: • ServSafe Alcohol Responsible Beverage Service, providing training that complies with the Responsible Beverage Service (RBS) Training Act that went into effect in 2022. The training helps staff identify signs of intoxication and prevent service to minors. It’s required for alcohol servers and their managers—anyone who takes orders for, pours, or delivers alcoholic beverages, checks IDs, or trains those people, and needs to be renewed every three years. • Injury prevention programs, that will enable properties to comply with the Cal/OSHA Hotel Housekeeping Musculoskeletal Injury Prevention standard. CHLA also offers a sample Injury and Illness Prevention Program (IIPP), a basic written workplace safety program that Title 8 of the California Code of Regulations (Title 8 CCR) section 3203, requires every employer to develop and implement. • Courses that cover the California requirements for sexual harassment prevention training for both supervisors and staff. The training, provided at low cost through a CHLA partner, is part of a larger package of training materials that also cover safety related to bloodborne pathogens as well as handling an active shooter situation. • The site will soon also cover the latest addition to state training mandates, the enactment last year of SB 553, a workplace violence law signed by Gov. Gavin Newsom in September. When the law takes effect this year on July 1, it will require every California employer— not just in hospitality—to implement a comprehensive workplace violence prevention program with specific requirements. In addition, CHLA conducts webinars during the year on safety topics, including one focused on hotel safety and homelessness. The most recent webinar on the topic gave attendees valuable insights on how to effectively communicate with law enforcement to deescalate threatening situations, mitigate violence and property damage, and avoid a compromised guest experience. The discussion includes the latest on California’s pepper spray laws and accommodating minors. CHLA will also be repeating this session in-person at our next SAFE Conference schedule for March in San Francisco. Our staff is very friendly, so they are constantly talking and interacting with guests to hear any concerns and enjoyments and to weed out persons who perhaps should not be on site. –Brittney Beck, Owner, Beck’s Motor Lodge “
ANNUAL MEETING 8 CALIFORNIA LODGING NEWS www.calodging.com 130TH ANNIVERSARY ANNUAL MEETING
HEADER The California Hotel & Lodging Association (CHLA) elected its 2024 Board of Directors during the 130th Anniversary annual meeting at the Claremont Club & Spa in Berkeley, California on December 1, 2023. Dhruv Patel (President and COO of Ridgemont Hospitality) is stepping in as the 2024 CHLA Board Chair, with Hee-Won Lim (Vice President and General Manager of Pacific Palms Resort) becoming the immediate Past Chair. Patel will be supported by Vice Chair Cormac O’Modhrain (Group Vice President Asset Management, Sunstone Hotel Investors) and Secretary/ Treasurer, Daniel Kuperschmid (Area Vice President and General Manager, Manchester Grand Hyatt). “This group of leaders represents the tremendous diversity and strength of our industry,” said Lynn S. Mohrfeld, CHLA President & CEO. “As we look ahead to 2024, CHLA’s leadership is committed to actively engaging in local communities to overcome challenges and ensure California’s lodging industry continues to grow and thrive.” “I’m proud to serve as the next CHLA Chair for 2024 and will continue to work to increase our engagement with communities and remind our members to do the same,” Board Chair Dhruv Patel added. “To continue to prosper and grow our influence as an industry, we need every CHLA member to accept the challenge and engage on the issues that matter most to our hotel community.” The board also voted to add Marina Dutton (General Manager, Irvine Marriott), Stacey Rivera (Vice President of Operations, Evolution Hospitality) and Tejal Sood (Managing Partner, Bayside Hotel Group) as new board members and renew the terms of five board members with expiring terms. ANNUAL MEETING www.calodging.com January + February 2024 9
STARS OF THE INDUSTRY S T A R S OF THE INDUSTRY A W A R D C H & L A CONGRATULATIONS TO THE CHLA 2023 STARS OF THE INDUSTRY AWARD WINNERS! Thank you to everyone who joined us to celebrate our 2023 Stars, and we look forward to seeing you at the 2024 ceremony. 10 CALIFORNIA LODGING NEWS www.calodging.com
www.calodging.com January + February 2024 11 HD SUPPLY HOUSEKEEPING AWARD WINNER RAQUEL REYES, THE LODGE AT TORREY PINES Throughout her career, Raquel Reyes has dealt with and overcome many challenges to be a mentor to her team, an example for her children, and a supporter of the less fortunate in the community. OUTSTANDING LODGING EMPLOYEE OF THE YEAR AWARD FOR SMALL PROPERTY JOSEPH MANGIARACINA, THE LODGE AT BODEGA BAY Guests and employees alike adore Joseph Mangiaracina and give him rave reviews about his considerate personality and detail-oriented work ethic. OUTSTANDING LODGING EMPLOYEE OF THE YEAR FOR MEDIUM PROPERTY CHELSEA CORONA, MONTEREY PLAZA HOTEL & SPA During the 2022 holiday season, a family came to the hotel in the wake of a terrible tragedy, the loss of their young son in a car accident, but still wanted to make the holidays special for their two toddler daughters. Thanks to Chelsea, the family arrived to an upgraded suite turned into a winter wonderland. STARS OF THE INDUSTRY
12 CALIFORNIA LODGING NEWS www.calodging.com OUTSTANDING MANAGER OF THE YEAR FOR MEDIUM PROPERTY AWARD DENETTE HENRY, ROSEWOOD MIRAMAR BEACH Denette Henry always champions the importance of Housekeepers and how they truly are the heart of the hotel. She also recently notched the highest associate engagement survey score ever: a whopping 95.4% in overall satisfaction. OUTSTANDING LODGING EMPLOYEE OF THE YEAR FOR LARGE PROPERTY RYAN OCHS, WYNDHAM SAN DIEGO BAYSIDE Ryan Ochs stands out in customer care, development efforts, community service, diversity and inclusion in the workplace, social media promotor, recruiter extraordinaire, and team player. OUTSTANDING MANAGER OF THE YEAR FOR SMALL PROPERTY AWARD NANCY MORGAN, NAPA VALLEY LODGE Nancy is passionate about making people feel special and creating memorable experiences and defines the Napa Valley Lodge’s philosophy and spirit of welcoming our guests with genuine and gracious hospitality. STARS OF THE INDUSTRY
www.calodging.com January + February 2024 13 OUTSTANDING GENERAL MANAGER LARGE PROPERTY AWARD TERRY LEWIS, HILTON SAN FRANCISCO UNION SQUARE & PARC 55 Terry Lewis has a constant curiosity to learn from those around her, to be a connective thread across all departments, and to influence communication, collaboration, and camaraderie. OUTSTANDING MANAGER OF THE YEAR FOR LARGE PROPERTY AWARD FIRAS MUHEISEN, INTERCONTINENTAL MARK HOPKINS In addition to being a focused and dedicated leader, Firas Muheisen is admired by every single team member that he oversees. His humility and kindness to his colleagues set him apart from the rest. OUTSTANDING GENERAL MANAGER SMALL/MEDIUM PROPERTY AWARD JULIE OLIFF, SENSEI PORCUPINE CREEK Julie Oliff joined the Sensei Porcupine Creek with only a tight 75-day countdown to the grand opening. She hit the ground running from day one and has never lost her positive attitude and her willingness to serve the Sensei Porcupine Creek team and the community. STARS OF THE INDUSTRY
14 CALIFORNIA LODGING NEWS www.calodging.com STEVAN PORTER EMERGING HOSPITALITY LEADER OF THE YEAR AWARD SUNNY ARUNKUMAR PATEL, AELIUS MANAGEMENT GROUP Over the past five years, Sunny has taken his family’s hotel portfolio from two hotels to seven, with a further two under development. Along with all this growth, he has invested a lot of blood, sweat, and tears into building his portfolio’s management company and is a champion for his associates. 2023 WOMEN IN LODGING CONNECT LEADER OF THE YEAR AWARD HELEN SIMMONS, OMNI HOTELS & RESORTS Helen Simmons stands out because of her extraordinary ability to lead with an open mind, a compassionate heart, a warrior’s will, a competitive spirit, a sense of humor and humility, and a steadfast commitment to exceeding the expectations of guests, associates, and Omni Hotels & Resorts. COMMUNITY SERVICE AWARD SILVERADO RESORT, NAPA Team Silverado has been busy making sure the Napa Community knows how important they are by raising awareness about human trafficking, initiating a Summer Mentor Program for local high school students, organizing a Backpack Drive for families in need, and hosting an annual “Silverado Walks to End Alzheimer’s.” STARS OF THE INDUSTRY
www.calodging.com January + February 2024 15 DIVERSITY, EQUITY & INCLUSION AWARD ARGONAUT HOTEL, SAN FRANCISCO The Argonaut actively promotes diversity and inclusion through initiatives like the “Everyone is Welcome” Mural Project, participation in the San Francisco AIDS Walk, mentoring and promoting eight female professionals, inclusive recruitment efforts reflecting San Francisco’s diverse demographics, and collaboration with local nonprofits and educational institutions. GOOD EARTHKEEPING AWARD TEMECULA CREEK INN, TEMECULA Temecula Creek Inn is recognized for its exceptional efforts to be greener and reduce waste in all areas, including reducing golf course water usage, eliminating all single-use plastics, and creating a butterfly habitat to provide a sanctuary for the endangered Monarch butterfly. GUEST RELATIONS AWARD MAGIC CASTLE HOTEL As a small hotel that once was an apartment building, Magic Castle’s philosophy is never to let a limited facility prevent them from being, in their words, a “moment-creating machine.” Rather than provide incentives to upsell rooms, the team is given incentives to create stories—something that will have guests talking about it long after they leave the hotel. STARS OF THE INDUSTRY
16 CALIFORNIA LODGING NEWS www.calodging.com The CHLA Hospitality Foundation hosted its Annual Scholarship Gala at the Parc 55, a Hilton Hotel in San Francisco on November 2, 2023. All of this year’s scholarship recipients were invited to attend this industry event known for its networking and were presented by school to the event attendees. CHLA HOSPITALITY FOUNDATION SAN DIEGO STATE UNIVERSITY Abdullah Aljashash, Alexis Zbinden, Brodie Snyer, Camila Trejo, Emma Curtis, Eric Pardo, Farah Lakhani, Fiona Gmeiner, Hannah Barnes, Nicole Quessenberry, Rose Bradford, Skylar Dryden, Casey Salamone, Lillian Wendel, Sydney Tatevossian, Maria Buscio, with Foundation Chair Michael Pace
www.calodging.com January + February 2024 17 CALIFORNIA STATE UNIVERSITY, EAST BAY Aaliyah Perillo, with Foundation Chair Michael Pace CALIFORNIA STATE POLYTECHNIC UNIVERSITY POMONA Grace Fisher, Jordan Garcia-Nazarit, Ruth Kent, Brandon Oceguera, Nicholas Lau, Christy Brown, Julia Jauregui, Lex Fuller, Maddy Trester, Rani Hamamoto, Daniel Villalovos, Odin Metzher, with Foundation Chair Michael Pace CALIFORNIA STATE UNIVERSITY, LONG BEACH Manuel Sifuentes and Jaime Cruz, with Foundation Chair Michael Pace; (not pictured) Asziah McAfee, Joseph Jaime, Brianna Koster CALIFORNIA STATE UNIVERSITY, MONTEREY BAY Jasmine Alvarez-Morales, Nezley Chavez, Julian Lopez, Carson Meachim, Marina Melgar, Ovette Olivas, Cierra Verdone, with Foundation Chair Michael Pace CITY COLLEGE OF SAN FRANCISCO Tyree Booker, with Foundation Chair Michael Pace MONTEREY PENINSULA COLLEGE DyEsha Sanders, with Foundation Chair Michael Pace SAN FRANCISCO STATE UNIVERSITY Masho Khabazashvili, with Foundation Chair Michael Pace SAN JOSE STATE UNIVERSITY Josie Hammar and Pengfei Guan, with Foundation Chair Michael Pace UNIVERSITY OF SAN FRANCISCO Brad Cho and Jhanalei Sales, with Foundation Chair Michael Pace; (not pictured) Najashi Belcher
18 CALIFORNIA LODGING NEWS www.calodging.com STOPPING THE TRAFFIC IN HUMAN TRAFFICKING PREVENTION January is National Human Trafficking Prevention Month, a designation since 2010 to call attention to the global crime of human trafficking, which ranks among the world’s fastest growing criminal enterprises. The U.S. State Department estimates that there are more than 27.6 million people, both children and adults, who are victims of human trafficking around the world. It is estimated that traffickers generate $150 billion in global profits annually. The crime can take many forms, but federal law defines it as any form of labor or commercial sex that is induced by force, fraud, or coercion. It also covers using anyone under 18 to perform commercial sex acts, regardless of whether force, fraud, or coercion are involved. In California, state laws include similar definitions. While cases of human trafficking in California have declined somewhat in recent years, the stat remains one of the largest sites for human trafficking in the United States, according to the Attorney General’s office, with nearly 1,700 reported cases in 2018. The vast majority of those reports were related to sex trafficking, although a significant number of cases involved forced labor. With increased attention focused on the issue, local governments are also taking action: The City of Los Angeles’ Public Safety Committee in October passed a CHLA-supported motion to require the Chief of Police and Police Commission to report on existing resources and ways to augment those resources to help individuals that have been victims of human trafficking and reduce the occurrence of human trafficking throughout the city. The hotel industry can play a significant role in combating this form of exploitation, especially if the staff at a property are trained about how to spot potential human trafficking and what to do about it. And as a whole, the industry has responded strongly to the challenge. “The hotel industry has really led [the] private sector in addressing this issue,” said Kirsten Foot, CEO & Executive Director of BEST (Businesses Ending Slavery & Trafficking), an organization devoted to combating the practice. “The industry was the first to recognize its need for support against human trafficking and to arm employees with training and knowledge.” In fact, since the passage of a state law in 2018, every lodging establishment in California is required to provide a minimum of annual human trafficking training to its employees, one of the first states to have such a requirement. CHLA offers its members a training program developed by BEST that meets those state requirements. There are options for individual online employee trainings in both Spanish and English as well as online sessions for employers that include additional modules and resources for owners and managers. There also are group training options in both languages for in-person training sessions. The courses, along with supporting materials, are available to CHLA members at no cost; more information is available at https://www. calodging.com/resources/member-benefits/ human-trafficking-resources. BEST and others also offer more extensive trainings for properties where additional resources might be appropriate. Owners and managers can be challenged to keep abreast of the training requirement at the moment, Foot said, as they deal with staff shortages and turnover. California requires the training to be completed within six months of hire, which can put properties in the position of a constant schedule of training. For that reason, it can be helpful for managers to implement training that can be taken individually by each employee, rather than in group sessions. The training “is not about profiling people by demographics, but about behaviors, what kind of behaviors to look for,” Foot said. A room with many visitors coming and going, where those visitors appear uncomfortable being observed or won’t make eye contact are just some indications that something may be amiss. (See the accompanying chart for more details.) Foot cited the recent case of a “high-end” hotel in Seattle where a housekeeper observed suspicious behavior around a particular guest room involving an unusual number of male visitors. The housekeeper reported the situation to management, which believing there could be a minor involved, called law enforcement. That intervention discovered a minor female and led to the arrest of the individual responsible. What made that successful was not just training, but also good relationships between staff and management. “The housekeeping staff trusted management enough to go to them with these alarming indicators, and the manager responded quickly and effectively,” she said.
www.calodging.com January + February 2024 19 Human trafficking happens when force, fraud, or coercion are used to compel a person into work or prostitution. Or anytime a minor exchanges a sex act for anything of value—money, a place to stay, or food—that is human trafficking. One indicator alone may not signify a trafficking incident. IN AN EMERGENCY or if a child is involved, follow the company’s emergency protocols. In the U.S., call 911. If a trafficker or controller is present, do not intervene. Call law enforcement or your local victim services hotline. If an adult victim is alone, ask “Are you OK?” or “May I help you?” Offer assistance or a printed resource card. In the U.S., call 1-888-373-7888 For hotlines outside the U.S., go to: globalmodernslavery.org REPORT any details about individuals or vehicles involved to a manager or security. Managers take additional steps: B E S TAL LI A NC E . O RG EM A I L : I N F O@ B E S T A L L I A N C E . O R G | TR A I N I N G: B E S T - T R A I N I N G . O R G HUMAN TRAFFICKING INDICATORS • Threatening, isolating, tricking, lying, or speaking for others • Holding money or documentation • Watching or waiting in the lobby, hallway, or parking lot • Controlling lodging or movement • Requesting suspicious room location or number of keys • Concealing identities or license plates • Suspicious booking behaviors A person displays unusual control over another person or group of people CONTROL • Unsure of where they are, where they are going, who their companions are, or who they are meeting • Person did not receive pay they were promised, owes debt, or cannot keep wages • Answers sound rehearsed A person shows an unusual level of confusion CONFUSION • Arranging to buy sex from a person, talking or joking about it, requesting adult services, accessing websites to buy sex • Checking in without luggage • High level of calls or visits to a certain room, especially at regular intervals • People visiting or calling without knowing the name of the guest • Complaints from guests about unusual noises or door closing repeatedly A person solicits sex from a minor or a person coerced into the sex trade SEX BUYING • Distress or fear; discomfort with companions • Injury (bruising or a cut) • Malnourished, unusually fatigued • Signs of trauma (hostility, fleeing, freezing up) • Avoiding eye contact • Asking for help, free food, or money • Few or no personal items • Minor behaving like an adult (checking in, paying bill) A person appears distressed or injured DISTRESS or INJURY RESPONDING TO POTENTIAL TRAFFICKING INCIDENTS
20 CALIFORNIA LODGING NEWS www.calodging.com REGULATIONS California hoteliers face a new pricing regulation this summer that will affect how properties advertise their room rates to potential guests, part of a nationwide push to eliminate what some call “hidden” or “junk” fees. In 2023, Governor Gavin Newsom signed two measures into law that essentially require not only hotels but most businesses to inform consumers about the full cost of a purchase in advance. The two laws, Senate Bill 478 (Dodd, 2023) and Assembly Bill 537 (Berman, 2023), take effect on July 1, 2024. California’s new laws follow legal action that began in 2019 when three attorneys general—Karl A. Racine of Washington, D.C., Doug Peterson of Nebraska, and Michelle Henry of Pennsylvania—attacked what they called “deceptive resort fees” charged at some Marriott International and Hilton properties. Those fees were not included in the room rate initially quoted to guests but were added to their bills prior to checking out. That action drove national media coverage around the existence of those fees across many industries, such as transportation, and led to calls for legislation to require more transparent business practices, including hidden fees that are common in online shortterm rental sites. In President Joe Biden’s 2023 State of the Union Address he took a firm stance on tackling “junk” fees and “surprise resort fees that hotels tack on to your bill.” According to a 2019 survey by Consumer Reports, in the two years prior, only 34% of respondents reported experiencing a hidden hotel fee. The American Hotel & Lodging Association’s most recent data shows just 6% of hotels charge a mandatory fee nationwide, amounting to $26 per night for resort, destination, or amenity fees. While consumers have the private right of action, according to the Consumer Legal Remedies Act, Consumer Reports’ survey finds that just three in ten people who experienced a hidden charge fought it. California Attorney General Rob Bonta, who was instrumental in pushing for SB 478, asserts that California has implemented an “effective” piece of legislation aimed at addressing cost concealment for a product or service, positioning it as a significant legal ‘win’ for the state. SB 478 adds to the list of unfair and deceptive acts “Advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges,” excluding government assessed taxes and fees. The law covers any business providing goods or services in the state of California, including vacation rentals, airlines, entertainment CALIFORNIA CLAMPDOWN ON HIDDEN FEES
www.calodging.com January + February 2024 21 and sporting events, utility companies, restaurants, and more. The narrower of the two bills, AB 537, requires “short-term lodging” providers—including hotels, motels, and residential properties rented to a visitor for 30 days or less—to advertise the total price to be paid for a night’s stay during the booking process. Violations of the law are punishable by a civil penalty of up to $10,000 for each violation. Together, SB 478 and AB 537 attempt to create a comprehensive set of disclosure rules that create a level the playing field between hotels and short-term rental sites such as Airbnb and Vrbo. While hidden fees are not limited to short-term rentals, a study by the Los WHAT DOES THIS LOOK LIKE FOR MY PROPERTY?... Under these new regulations, the advertised price must strive for transparency. For example: Service Charges and Surcharges: These must be incorporated into the displayed pricing. For example, a hotel’s room service menu must now show the total price to include a 6% service charge on food delivered via room service. Packages and Specials: If a hotel offers a holiday special of 10% off regular room rates at the time of booking when a guest also purchases a fullpriced spa session, they must include the cost of the spa in the advertised special price. … WHAT DOES NOT APPLY TO MY PROPERTY? Local Fees: In a city which assesses a “health fee” on each room night, that health fee does not need to be included in the initial advertised price. Optional Services, Amenities, or Goods: In a hotel which offers on-site parking for $20/ night, spa services for $100/ hour, these services do not need to be included in the initial displayed price since they are voluntary. Angeles Times found that 83% of short-term rentals imposed “cleaning fees” on guests that ranged from $5 to as much as $1,500. That’s one reason CHLA supported these laws, after securing certain amendments, to create a single standard across the lodging ecosystem that will hold short-term rentals and other transient accommodations accountable to the same obligations as hotels. As questions linger about the practical enforcement of these new laws and the nuanced interpretations courts may render, they resonate in the pockets of consumers. As these laws take effect, they will create a clearer price comparison for consumers choosing between short-term rentals and traditional lodging establishments. Together, SB 478 and AB 537 attempt to create a comprehensive set of disclosure rules that create a level the playing field between hotels and short-term rental sites such as Airbnb and Vrbo. REGULATIONS
Paralyzing blizzards, torrential downpours, and thousands of wildfires swept through California in 2022 and 2023, causing significant damage to both homes and commercial properties. Facing growing losses from these natural disasters, many insurance providers have sought to reduce their potential risk in the state, leaving many hoteliers scrambling to secure coverage for their properties. State Farm and Allstate are among the carriers who have announced they will no longer issue new property and casualty policies in California, citing “rapidly growing catastrophic exposure” due to climate change. Others have increased rates significantly: The Council of Insurance Agents & Brokers reported that commercial properties had the highest premium increase of all lines, at over 18%. A combination of increased disaster losses and rising property values were among the primary drivers of these increases. Tanner Douthit, Commercial Lines Manager at Petra Risk Solutions, said catastrophic events, inflationary effects, state regulatory policies, and dwindling capacity from insurance markets are all impacting the pricing for hotels and commercial properties. One property, Mine + Farm, The Inn At Guerneville in Sonoma County, has seen its rates increase of 272% over the last four years. “We have had zero claims during those four years,” said Bryce Skolfield, Managing Partner. “Our insurance costs are now over 12% of our gross receipts, well above the industry standard of 3%.” Besides being a tourism destination, Guerneville and the surrounding region has been a recent hotspot for wildfires, with the Sonoma Kincade Fire in 2019 burning 77,758 acres alone. “Fire danger gives people pause and concern on whether to visit, and impacts our inn’s operability and our communities,” said Skolfield. Mine + Farm strongly believes in pricing integrity and not just passing costs onto the guest. So, runaway insurance costs have a significant impact on hotel budget forecasting and force the property to divert funds away from infrastructure improvements and other operational needs. “Yet, finding a balance within these financial variables all while providing a wonderful guest experience at an appropriate cost is getting extremely challenging,” Skolfield said. Rate increases further threaten the financial viability for small hoteliers to weather the storm, increasing downward pressure on operations. Historically, “the insurance industry has proven to be cyclical,” Douthit said. “However, given the current landscape, we do not see significant improvement in the near future.” While larger corporate flags may possess the means to self-insure, the looming insurance crisis raises a critical question for these smaller properties: How can affordable coverage be secured amid a shifting insurance landscape? One approach is to work with a broker that can customize coverage and combine it with loss control services. That’s the strategy at Petra Risk Solutions, which exclusively insures the hospitality industry. Navigating the waters of an insurance renewal in today’s market is “treacherous, with little room for error,” Douthit said, and advises clients to start their insurance search early. “Don’t wait until 30 days from your renewal date to formulate a strategy, and continually review your loss analysis reports throughout the year to stay in front of claims,” he said. That’s especially true for small, independently owned properties, which may have policies that renew annually, given that the few insurance carriers remaining have had dramatic increases. Unless action is taken to balance consumer protections and insurance companies’ operability in California, Skolfield believes the collective impact may have negative economic reverberations for years on local communities. “It seems we are at a tipping point of losing independent businesses due to closure or only being able to function under the control of investment groups and corporations,” he said. When owner-operated hospitality properties close, “you lose a lot more than dollars in the local economy and product diversity.” AFTER FIRES AND FLOODS, THE INSURANCE DROUGHT 22 CALIFORNIA LODGING NEWS www.calodging.com INSURANCE
www.calodging.com January + February 2024 23 MARKETPLACE ASSOCIATIONS Hotel Council of San Francisco............................. 415.391.5197 Visit California Caroline Beteta 916.444.4429 cbeteta@visitcalifornia.com www.visitcalifornia.com Visit California is a nonprofit organization with a mission to develop and maintain marketing programs that keep California topof-mind as a premier travel destination AUDIO/VISUAL Encore Global 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 BARTERING/TRADING IMS Barter..................800.287.3874 x1730 BATHROOM ACCESSORIES & SERVICES High Sierra Showerheads.....888.445.1941 Samson Shower Systems, LLC.............................817.228.0619 VersaTraction, Inc................... 714.973.4589 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 ADVERTISING/MARKETING/ PUBLIC RELATIONS Sojern........................................402.650.3807 AMENITIES/ROOM & HOTEL AMENITIES AM-PM Doc........................888.AM PM Doc Chadsworth & Haig..............843.675.8250 Groupe GM USA, Corp....... 805.245.0845 Marietta by Voyant Beauty.......................800.950.7772 ARCHITECTS Architectural Dimensions...510.463.8300 CHLA BENEFITS ADMINISTRATION Hotel Effectiveness Solutions.....................................678.325.1150 Salary.com................................ 480.237.6130 BEVERAGES/BEVERAGE DISPENSING SERVICES Everybody Water, Inc............ 917.583.7838 xBloom Coffee....................... 734.272.8679 BUILDING MAINTENANCE Public Storage....................... 214.505.0092 CARPET & FLOORING SALES & SERVICE Embassy Carpets..................800.366.7847 CLEAN TECHNOLOGY CONTRACTORS Panasonic Eco Systems North America (PESNA) - IAQ Division....... 510.203.3630 CLEANING SUPPLIES/SYSTEMS Ecolab, Inc...............................800.352.5326 HD Supply Hospitality........ 800.431.3000 Mobile-Pack............................206.947.4905 Pro Window Care (PWC).....877.278.3777 Renegade Brands USA, Inc.................................... 216.789.0535
24 CALIFORNIA LODGING NEWS www.calodging.com MARKETPLACE COFFEE/TEA SALES/ SUPPLIES/SERVICES Brown Eyed Girl Coffee Company, LLC...........408.332.6991 COMPUTER HARDWARE Dell..............................................512.723.6063 CONSULTING & TRAINING Accurate Ergonomics..........707.894.4544 Businesses Ending Slavery & Trafficking (BEST)...........206.905.6843 Hogan Hospitality..................... 415.331.1061 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 Heartland Payment Systems.....................................530.415.6850 Merchant Cost Consulting...617.306.2578 DIRECT TV PROVIDER Commercial Connect Television, Inc.......................... 877.789.7995 MTV, Inc.................................... 818.772.4200 EDUCATIONAL INSTITUTIONS California State Polytechnical University - Pomona.................................... 909.869.3105 California State University - Long Beach.............................562.985.4485 San Diego State University..................... 619.594.4964 University of San Francisco.......................... 415.422.2498 EMPLOYEE RELATIONS/BENEFITS Petra Risk Solutions.............800.466.8951 ENERGY MANAGEMENT Constellation Energy...............831.247.2723 INNCOM by Honeywell.......... 714.699.6131 ENTERTAINMENT Union Square Business Improvement District..............415.781.7880 FINANCING/FINANCIAL PLANNING Hallmark Funding Corporation.............................. 916.784.2614 Hospitality Funding.............. 650.740.9875 Pinnacle Bank........................ 408.637.6030 FLOOR COVERINGS/EQUIPMENT Durkan - Mohawk Group Hospitality.................... 706.483.8121 FOOD SUPPLIERS/DISTRIBUTORS Foodbuy Hospitality............. 513.225.4642 Just ‘N’ Case Essentials, Inc.........................866.636.8225 FRANCHISING Choice Hotels International........................... 301.593.5600 InterContinental Hotels Group.......................... 770.604.8149 Red Roof Franchising Stephanie Pina 713.576.7459 spina@redroof.com Red Roof is an award-winning leader in the lodging industry recognized for creating the innovative Upscale Economy segment serving millions of guests each year. Whether business or leisure, short trips or extended stays, in the hearts of cities or on the road, Red Roof has a property for every traveler.
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