An update on the US labor rules that could affect hotel operators
The new year brings with it a renewed agenda for the federal government’s approach to U.S. labor laws.
The U.S. Department of Labor and other federal labor-related organizations will all take actions and make decisions this year that will affect workplace rules and operations. In a podcast interview, Sylvia St. Clair, partner in the labor and employment group at law firm Faegre Drinker Biddle & Reath, said “it’s been an interesting last couple of months,” referring to its opinion letters interpreting the Fair Labor Standards Act.
In the tip-pooling opinion letter, the Labor Department reviewed whether front-of-house oyster shuckers at seafood restaurants are considered eligible employees along with servers, bartenders and other typically tipped workers.
The acting wage and hour administrator stated there’s a rule to consider as to whether a shucker is someone who would customarily receive tips, she said. It also asks whether they're engaging in the type of service with regular interaction with customers that would qualify them to regularly share in that tip.
“Ultimately, the department agreed that for our purposes for tip pooling, oyster shuckers in the front of the house may participate in tip pooling,” she said.
The joint-employer opinion letter dealt with a hostess who worked in the restaurant operations of a hotel as well as at a members’-only lounge on another floor, St. Clair said. The issue at hand was if the two were found to be a joint-employer of the hostess, it would affect the hourly employee’s overtime calculations.
The two entities tried to argue they were separate legal companies, had different payroll systems and different time-keeping systems, so the Labor Department should not consider them as a joint employer, she said. The Labor Department disagreed.
“They said that what they look at is not necessarily corporate formalities, but instead they look at shared management and ownership,” she said. “They looked at the fact that the hostess was working in both locations. There was some type of coordination in scheduling. There were similar/identical rates of pay. In all essence, they were operating as one entity.”
Minimum wage increases
Federal changes aren’t the only things in store for hotel employers this year. The federal minimum wage remains at $7.25 per hour for non-tipped employees, but there are at least 19 states that have increased their own minimum wage amounts as of Jan. 1.
“One thing that's really important for employers to pay attention to is that it's not just the states, but what we're seeing more and more is that cities and counties now have their own minimum wage,” she said.
The means having to pay attention to the federal minimum wage as well as state and, if applicable, local minimum wages if they are higher than the state or federal levels, she said. That also means taking into account minimum wage levels for employees eligible for the tip credit.
For more from Sylvia St. Clair on newer developments in U.S. labor laws, listen to the podcast episode embedded above.
One of the biggest factors steering hotel design trends for 2026 is the same headwind that hoteliers faced for much of this past year.
"I think the economy is the big driver for the 2026 trends in design — both on the aesthetic, interior design side and on the construction side," said Kevin Warwick, vice president of design and construction at Vision Hospitality Group.
With some of the uncertainty around tariffs and how it's prompted the rise in cost for furniture, fixtures and equipment coming into focus, Warwick said he's having to make decisions on new suppliers and sourcing materials for hotel construction projects.
"As we as we look at these new suppliers, new chains, new materials, we're having to go to our design teams and say, 'How do we accomplish what we want with new and innovative approaches to materials?'" he said. "We're not doing the same finishes on the walls, the same sourcing for cabinets and materials."
Some building materials that have been more economic in the past are the more expensive option now, so everything needs to be reevaluated. Warwick added he's having to get creative with sourcing materials.
Continuing collaboration
One silver lining to this reimagining of the supply chain is more collaboration with hotel brands on design, something Warwick said he's seen increase over the past few years.
"As long as we are true to all of those signature brand identity elements, they're giving us more leeway on on wallpapers, finishes, fabric selections, even furniture and material suppliers. ... So, we're looking forward to 2026 being kind of a new cooperative phase for us," he said.
Scott LaMont, CEO of EDSA — a design firm focused on planning, landscape architecture, and urban design — agreed that he's seen more flexibility from the hotel brand companies. In the past, LaMont and his team have had to more closely consult a brand manual for design decisions. Now, it's been a while since he's had to reference one.
"From a landscape architect's point of view, dialogue is healthy," he said. "While it may come from a point of stress in the supply chain and in the marketplace, it leads to some better outcomes."
Being able to source materials locally for cheaper by avoiding tariffs also helps tie the hotel into the local presence as well — another trend LaMont said he's seeing in hotel design.
"When you're visiting a hotel or a destination, you really want to be of that place, right? And you want to create an environment that is unique to that destination," LaMont said. "One of the ways we can accomplish that is by bringing the materials that are from that region or from that area."
Embracing 'quiet luxury'
With the bifurcation occurring in the hotel industry, the luxury segment is more well-funded and therefore more attractive for development and design business.
"In general, we're seeing a lot more focus in the hotel industry on the luxury brands," Warwick said. "The luxury sector has a little bit more spending money right now than a lot of the middle class, the more economically challenged classes. So, I think luxury hotels are the trend that some of the larger developers are going for."
However, tapping into luxury design elements can make sense at any chain scale, and hoteliers can expect to see some of the design trends from luxury bleed into other hotel segments.
"Good design doesn't have to be expensive — it has to be thoughtful," Warwick said.
Pantone recently announced Cloud Dancer white as its 2026 color of the year. Molly Forman, interior designer at Washington, D.C.-based boutique design firm //3877, said she didn't care about the color itself — white is notorious in the hotel industry for being hard to keep clean. Rather, she focused on the psychology of the selection.
Pantone's Cloud Dancer selection "speaks to why we're seeing this integration of this quiet luxury idea and this calming idea because it ties into simplicity," Forman said.
Targeting simpler design elements and color stories is cheaper, Forman said, and she added that "given tariffs, we now have limited resources of where to see some of that work getting done."
Inside out and outside in
One of the other trends within design, especially from a landscape architecture standpoint, is merging the indoors with the outdoors, LaMont said. He explained this falls in line with biophilic design, or better connecting humans with the natural world.
Some parts of the world, such as the Middle East, are seeing more of a concerted effort to better sync with nature, but any market can use design to enhance guests' access to nature, LaMont said.
"Whether you're in an urban environment and you're interacting with the street and the public realm in a unique way, or you're in a resort environment where you're trying to interact with the natural environment, we're seeing a lot more of the blurring of the lines in those spaces, and a lot more attention paid to the exterior spaces, which has been a lot of fun for us," he said.
A focus on efficiency — both from a sustainability standpoint and in terms of optimizing operations for cost-saving reasons — is also key for 2026.
"Our focus is on making the buildings and the construction methods more efficient. ... If I look at a construction trend, I would say finding new, effective ways of designing the building, the mechanical systems, making them more efficient," Warwick said.
Other trends of note
There are several other design trends on Warwick's radar, including hoteliers tapping into modular design. LaMont added there's also an increased interest in multipurpose spaces being incorporated into hotels.
"We want to design space that is not just this one monolithic thing but create these pockets of interaction that allow for flexible programming for the operator," LaMont said.
And while new hotel development in 2026 might mostly reside in luxury projects, LaMont said hoteliers have a big opportunity to revisit and reposition hotels with the help of design experts.
"What's been interesting in the last couple of years is that the wait-and-see mode has pushed a lot of repositioning projects to the forefront. Getting new hotel deals have been more challenging to get financed over the last two to three years," he said. "And the cool part about that is ... we get the opportunity to come into these properties with a fresh set of eyes and kind of reimagine spaces in ways that maybe the operator or the owner hadn't thought about for many, many years."
Courtyard by Marriott Sand City Monterey and Residence Inn by Marriott Sand City Monterey has opened in Sand City, Calif. The dual-brand property is located at 800 Morgans Way and operates as a Marriott franchise developed by EKN Development and managed by Aqua-Aston Hospitality.
The 215-room hotel introduces two Marriott brands under one roof in Sand City, a community positioned near Monterey on California’s Central Coast. The property overlooks Sand City Beach and is located near the city’s arts district. It is situated a few miles east of Monterey and provides access to destinations including the Monterey Bay Aquarium, Cannery Row, Pebble Beach golf courses and Carmel-by-the-Sea.
“Sand City has emerged as Monterey County’s creative hub – in addition to locals, visitors from all over have taken note and want to be part of the energy,” said Fady Hanna, general manager, Courtyard by Marriott Sand City Monterey and Residence Inn by Marriott Sand City Monterey. “As the destination’s first and only hotel, the dual-brand hotel meets the diverse needs of travelers while also championing and providing a platform for Sand City’s homegrown creative energy, entrepreneurial spirit, and local culture.”
The dual-brand configuration allows guests to choose between Courtyard and Residence Inn accommodations based on length of stay and travel needs. Courtyard Sand City Monterey includes 127 guest rooms designed for short-stay leisure and business travelers. Each room includes a workstation, complimentary Wi-Fi and a refreshment center. Residence Inn Sand City Monterey offers 88 suites designed for extended stays, each with a fully equipped kitchen. Residence Inn guests also have access to complimentary daily hot breakfast, laundry facilities and shared social spaces.
At the center of the property is an open-air piazza featuring the Lido Stage, an outdoor venue intended for live music and community programming. The piazza connects to the hotel’s onsite restaurant, the Bistro. The Bistro serves cooked-to-order breakfast, offers a market for food and beverages throughout the day and transitions to evening dining service. Residence Inn guests have access to a complimentary breakfast buffet.
The property includes an outdoor swimming pool, an oversized hot tub, a 24-hour fitness center, guest laundry facilities and more than 8,000 square feet of indoor and outdoor meeting and event space designed for corporate and social functions of up to 500 people. The hotel also incorporates garage-style doors that allow vehicles to access the interior courtyard pool deck.
“EKN Development creates hotels that ignite a unique spark in every location. We build with purpose, design with vision, bring new dimension to the brand experience, and craft places that are specifically tailored to each community,” said Ebbie Nakhjavani, president and CEO of EKN Development. “In Sand City, our inspiration came from classic Italian open-air design, with a vibrant piazza and the Lido Stage at its heart. These elements come together to form a dynamic gathering space programmed with ongoing events and activities, including live performances and community-driven programming, for guests and locals to enjoy.”
The hotel incorporates energy-efficient systems across HVAC, lighting, plumbing and building operations. Features include insulated windows, high-efficiency HVAC units, water-conserving fixtures, LED lighting with adaptive controls and a recirculating hot-water system. The property also includes 14 electric vehicle charging stations.
Courtyard Sand City Monterey and Residence Inn Sand City Monterey participate in the Marriott Bonvoy loyalty program, allowing members to earn and redeem points at the property and across the Marriott portfolio.
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