Connecticut Lodging Association
Coronavirus Update 6/8/2021
Connecticut Lodging Association Contact Information Update
Over the past year, we have had many changes within our hotels. To ensure we have the correct contact information, please complete this quick survey. This will help us correctly communicate with you and your staff.
President Biden’s Budget Proposal
President Joe Biden released his budget for FY 2022 late last week which includes $6 trillion in infrastructure and social safety net spending. The proposal provides additional details for the President’s ambitious American Jobs and American Families plans introduced earlier this year. Included are significant investments in traditional infrastructure such as roads, bridges, rail, airports, ports, and broadband. It also expands the priorities to family care, public schools, and healthcare.
 
To pay for these and other expenditures, the budget outlines tax increases and changes to the code that may impact hoteliers, including:
  • Raising the corporate tax rate from 21% to 28%;
  • Returning the individual income tax rate to 39.6%;
  • Taxing capital gains as ordinary income; and
  • Capping like-kind exchanges at $500,000 per year.
 
Ultimately, the White House budget is a non-binding policy document delineating the president’s spending priorities. Congress will develop its own budget resolution and appropriations bills to fund the government for the next fiscal year. 
 
AHLA is closely following the budget discussions and will continue to provide critical updates as they occur. Read more about the tax implications of the administration’s FY 2022 budget proposal.
Paolino Public Affairs Consulting, Inc. Legislative Report - 6/4/21
The constitutional adjournment is this Wednesday, June 9th; but there is still plenty of work to be done in the House of Representatives and the Senate. This week, a variety of legislative proposals were passed, including free phone calls for inmates, the 'bottle bill' which doubles deposit fees, domestic violence reform legislation, and a bill to curb hunting of African animals. There are four more session days total, with the House, and possibly Senate, meeting over the weekend to conduct business. 
 
Connecticut ranks third among states regarding fewest new COVID-19 cases per capita. “Let’s see if we can keep it up, let’s see if people keep getting vaccinated,” Governor Ned Lamont said Thursday. “Because this is a precondition to getting our economy moving again.” Governor Lamont on Thursday reported 70 new COVID-19 cases out of 7,736 tests for a positivity rate of 0.9%, dropping the state’s seven-day positivity rate to 0.89%. It has been two weeks since Connecticut has (almost) returned to pre-pandemic normalcy, and the state has so far shown no signs of increased COVID-19 transmission.
STR: U.S. hotel results for week ending 29 May
Boosted by the Friday and Saturday of Memorial Day weekend, U.S. weekly hotel occupancy reached its highest level since late-February 2020, according to STR‘s latest data through 29 May. 
23-29 May 2021 (percentage change from comparable week in 2019*):

  • Occupancy: 61.8% (-4.2%)
  • Average daily rate (ADR): US$122.06 (-1.6%)
  • Revenue per available room (RevPAR): US$75.42 (-5.7%)

Percentage changes were skewed more to the positive because the 2019 comparable was the week after Memorial Day. Regardless, this past Saturday’s 83.0% occupancy level was the country’s highest since October 2019. Weekly ADR and RevPAR were boosted to pandemic-era highs as well. STR analysts note that while the positives around leisure demand are obvious headed into the summer, the path to recovery remains a rollercoaster with a lack of business travel, both domestic and international, preventing hotels in many markets from making up more of the ground lost in 2020. Read more.
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