Duff on Hospitality Law

Given the recent attention paid by clients to local security issues (including the recent and well received Hotel Industry Security Forum sponsored with the Washington Lodging Association – see Ruth Walter’s recent post on this event), I thought it a good time to review the obligations imposed by law on hoteliers and restaurateurs in Washington and Oregon to protect their guests and customers from crimes committed by third parties.  In other words, what responsibility does a hotel or restaurant owner have for guests or customers who are injured (or whose property is damaged or stolen) by criminals.  As I explain below, the more a hotel or restaurant owners knows about potential criminal conduct at her establishment, the more likely it is that she may be held responsible for not warning and/or protecting her guests or clients against it.

For those of you that routinely purchase split cases of wine, December 8 is an important date. On December 8, the Washington State Liquor Control Board will hold public hearings in Olympia on proposed regulatory changes that would authorize wine distributors to collect handling fees from hotels, restaurants and other retail licensees that order and receive split cases of wine. As you may have already guessed, the newly proposed rule is the result of a request made by the Washington Beer and Wine Wholesalers Association.

Missouri governor Jay Nixon signed HB 4211 into law on July 8, adding another point in the travel agent column in the contest with hoteliers, cities, counties and states over hotel/motel occupancy tax issues. The Missouri law codifies the current practice of all municipalities that assess occupancy taxes, namely, the hotels pay tax on the income they receive for their rooms and the travel agents (primarily on-line travel agents or OTAs) pay nothing. No occupancy tax, that is. Normal corporate income tax applies.

A pair of recently effected state laws makes clear that information security remains a significant issue that receives and will continue to receive considerable legislative and commercial attention. Hoteliers, restaurateurs and others in the hospitality industry use personally identifiable information (PII) of their guests and customers to improve services and create a personalized experience.

Greg and I attended the annual Hospitality Law Conference in Houston this February, which devoted an entire track to data privacy issues. It’s the definition of a hot topic, and important, so please take note!