Donohoe Hospitality Services Adding Six New Hotels to Its Management Portfolio

USA, Bethesda, Maryland. October 07, 2019

Thomas Penny, III, President of Donohoe Hospitality Services, a division of Donohoe, today announced the addition of six new hotels to its management portfolio. The hotels that are all new builds include:

· The dual branded 250 guestroom Hampton Inn & Suites/Home2 Suites by Hilton Las Vegas, NV, opening in the first quarter of 2020.

· The 156 guestroom Canopy by Hilton Harbor Point, Baltimore, MD, opening in the second quarter of 2020.

· The 138 guest suite Homewood Suites by Hilton, Reston, VA, opening in the third quarter of 2020.

· The 154 guestroom Cambria Hotel Capitol Riverfront, Washington D.C., opening in the first quarter 2021.

· The 138 guestroom Cambria Hotel, Portland, ME, opening in the third quarter 2021

· The dual branded 270 guestroom AC & Residence Inn Reston, VA opening in the first quarter 2022.

"This is an exciting time for Donohoe Hospitality Services as we experience unprecedented growth to our portfolio," said Penny. "Originally founded as a division of Donohoe to manage its own hotel developments, Donohoe Hospitality Services is now well recognized as a leader in innovative hospitality management. We are gaining notice from developers and owners throughout the industry and our success is leading to the acquisition of third party management agreements across the U.S."

Penny added, "Our entire portfolio outperforms its competitive set in each market, not only leading in RevPAR and guest satisfaction, but in employee retention and community involvement." In the next 36 months Donohoe Hospitality Services' management portfolio will have more than doubled in size to include 14 hotels and 3,142 guestroom across five states.

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Hotel Law: A Labor Crisis and Cyber Security

According to a recent study, the hospitality industry accounted for 2.9 trillion dollars in sales and in the U.S. alone, was responsible for 1 in 9 jobs. In an industry of that scope and dimension, legal issues touch every aspect of a hotel's operation, and legal services are required in order to conform to all prevailing laws and regulations. Though not all hotels face the same issues, there are some industry-wide subjects that are of concern more broadly. One of those matters is the issue of immigration and how it affects the ability of hotels to recruit qualified employees. The hotel industry is currently facing a labor crisis; the U.S. Labor Department estimates that there are 600,000 unfilled jobs in the industry. Part of the problem contributing to this labor shortage is the lack of H2B visas for low-skilled workers, combined with the difficulty in obtaining J-1 visas for temporary workers. Because comprehensive immigration reform is not being addressed politically, hotel managers expect things are going to get worse before they get better. Corporate cyber security is another major legal issue the industry must address. Hotels are under enormous pressure in this area given the large volume of customer financial transactions they handle daily. Recently, a federal court ruled that the Federal Trade Commission had the power to regulate corporate cyber security, so it is incumbent on hotels to establish data security programs in order to prevent data breaches. The lack of such programs could cause hotels to face legal threats from government agencies, class action lawsuits, and damage to their brand image if a data breach should occur. These are just two of the critical issues that the December issue of Hotel Business Review will examine in the area of hotel law.