The Briad Group Follows up Recent Hotel OPenings with an Aggressive Development Program

. October 14, 2008

LIVINGSTON, NJ, September I4, 2005. Having successfully developed five Hilton and Marriott hotels to date in 2005, The Briad Hotel Division of The Briad Group announces the development of 12 additional projects for 2006 and 2007.

The 2005 openings include the 123-room Homewood Suites in Somerset, NJ and 104-room Homewood Suites in Wallingford, CT, under the Hilton brand, and, under the Marriott brand, the 119-room Courtyard in Farmington, CT, and two Residence Inns, one with 96 rooms in Rocky Hill, CT, and one with 123 rooms in Mt. Olive, NJ.

Twelve other projects in the pipeline are slated to open in 2006 and 2007. Construction will begin on four of these hotels by year-end 2005: a 100-room Marriott Residence Inn in Neptune, NJ, 108-room Residence Inn in Mt. Laurel, NJ, 113-room Courtyard by Marriott in Wall Township, NJ, and a 113-room Hilton Homewood Suites in Bethlehem, PA.

In addition to developing and owning franchises under long-term agreements with Hilton and Marriott, The Briad Group has the ability to manage properties under its hotel management subsidiary Briad Hospitality, L.L.C. "Our Hotel Division is a key element of Briad's continued success and growth. We value the strong relationships we have with these two great companies," said Brad Honigfeld, Chairman and CEO of The Briad Group. The Briad Group has been developing extended- and limited-stay hotels across the Northeast and Mid-Atlantic states for the past five years, with thirteen hotels developed from the ground up. The company has developed properties under the Residence Inn, Courtyard and Spring Hill Suites brands for Marriott; and the Homewood Suites and Hilton Garden Inn brands for Hilton.

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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.