U.S. hotel industry associations have praised the signing of President Trump's One Big Beautiful Bill Act, citing provisions that they say will help small-business operators.
The American Hotel & Lodging Association (AHLA), which represents more than 32,000 lodging properties nationwide, issued a statement in support of the reconciliation package, which the group says will "prevent major tax increases on both hotel employees and businesses."
The legislation makes permanent the Small Business Deduction under Section 199A, which the AHLA said is crucial for hotel owners who operate as small businesses under licensing agreements with national brands. The expiration of this deduction would have significantly increased taxes for these operators.
The bill also permanently extends 100% bonus depreciation and expanded business interest deductibility, which the AHLA said will incentivize capital improvements and property modernization.
Additionally, the legislation preserves Like-Kind Exchange provisions under Section 1031, enabling real estate owners to defer capital gains taxes when purchasing replacement properties.
The Asian American Hotel Owners Association (AAHOA), which represents nearly 20,000 U.S. hoteliers, echoed the AHLA's support, with AAHOA chairman Kamalesh Patel calling the bill "a strong step in the right direction for hotel owners and the broader small-business community."
According to AAHOA CEO Laura Lee Blake, AAHOA members own more than 60% of hotels in the U.S.