Hotels

Category Archives for Hotels.

Hyatt Loses Tax Court Ruling With Huge Implications For Loyalty Programs, IRS Sought To Tax $250 Million

hyatt hotel
Oct 03 2023

The IRS audited Hyatt for the tax years 2009 – 2011 and found that it wasn’t paying tax on loyalty program revenue. It didn’t include the revenue received for what was then Gold Passport (now World of Hyatt) in income, and didn’t include payments from the program as expenses. It just ignored the program, even though it collected money and invested it earning a return.

The IRS wanted Hyatt to not only pay up for those years but to go all the way back to the beginning of the program in 1987, with a quarter of a billion dollars of income at issue and a tax deficiency of $65 million.

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More Hyatt Hotels Are Ignoring Elite Breakfast Benefit Rules, And Getting Away With It

Oct 01 2023

A chain’s most valuable customers are its elite members, who deliver an outsized portion of room nights to hotels. To entice them, they’re promised benefits like upgrades and free breakfast.

Knowing that hotels are going to try to cheat, Hyatt spells out in its terms and conditions what the breakfast benefit is for Globalist members when no club lounge breakfast is offered.

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Hyatt Hotels Increasingly Getting Away With Not Cleaning Rooms

Sep 17 2023

Hotels are ignoring chain rules. Guests book properties assuming they’ll get what the brand promises, and then the individual property doesn’t deliver, choosing to cut costs instead. That devalues the brand, while helping the bottom line of the individual hotel.

This often manifests in properties skimping on or ignoring elite benefits like breakfast. But it also covers housekeeping. And it’s certainly not limited to the best-known offender, Marriott.

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World’s Dumbest Hotel Manager Caught Stealing From Aria Las Vegas

Sep 08 2023

A manager at MGM’s Aria hotel in Las Vegas has been arrested and charged with generating $770,000 in reservation refunds – that he put on his own personal credit card.

The 10 year operations manager with MGM Resorts spent the money “at Louis Vuitton and Versace, flying on private jets, doing spa visits, going to shows and even purchasing a home.”

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