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The $199.5 Billion Battle: 7 Critical Ways The Texas Hotel Lodging Association Is Shaping Your 2025 Stay

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The Texas Hotel & Lodging Association (THLA) is currently at the forefront of the state's massive, nearly $200 billion travel industry, driving critical policy changes that will directly impact how and where you stay in the Lone Star State throughout 2025 and beyond. As the largest hotel association in the nation, THLA's work is not just about hotels; it's about protecting the state’s economic engine, which saw a record-breaking $97.5 billion in visitor spending in 2024.

The association is navigating a complex legislative landscape, tackling everything from the contentious debate over short-term rentals (STRs) to critical workforce challenges and the security of the Hotel Occupancy Tax (HOT). This in-depth analysis, updated for December 2025, reveals the seven most critical initiatives THLA is pursuing to ensure the long-term health and growth of Texas hospitality.

The Central Figures and Massive Economic Footprint of Texas Hospitality

The Texas lodging industry is a powerhouse, and the Texas Hotel & Lodging Association (THLA) serves as its primary advocate. Understanding the scale of their influence requires recognizing the key players and the sheer economic weight they carry.

THLA Leadership and Profile

  • Primary Role: Non-profit hotel trade association representing every facet of the lodging industry across Texas.
  • President & CEO: Scott Joslove, who has served as the industry's leading advocate for over 24 years.
  • National Standing: Recognized as the largest hotel association in the United States.
  • Core Mission: Advocacy, education, and providing resources for its members, including major hotel brands and independent operators.

Texas Tourism: The $199.5 Billion Economic Engine

The travel and tourism sector is a foundational pillar of the Texas economy. Recent statistics highlight just how vital the lodging industry is to the state’s fiscal health:

  • Total Economic Impact (2024): The travel industry generated a colossal $199.5 billion impact on the Texas economy.
  • Visitor Spending (2024): Texas saw a record $97.5 billion in visitor spending.
  • Local Impact: Major metropolitan areas benefit tremendously. For example, the total economic impact of visitors in the City of Houston reached $16.6 billion in 2024, while Fort Worth’s tourism impact exceeded $3.5 billion.

This massive economic footprint is the foundation for THLA’s aggressive legislative agenda, as even minor regulatory changes can have billion-dollar consequences.

7 Critical Initiatives and Legislative Battles Shaping Texas Lodging (2025)

THLA’s advocacy agenda for the 89th Legislative Session is comprehensive, focusing on protecting the industry’s financial stability and ensuring a competitive playing field. They are tracking over 820 bills, but the following issues are the most critical.

1. The Short-Term Rental (STR) Regulatory Fight

The regulation of platforms like Airbnb and Vrbo is arguably the most contentious issue for THLA. The debate pits traditional hotels against the growing short-term rental market, which often operates under different regulatory and taxation standards.

THLA's Stance: THLA, working with the American Hotel & Lodging Association (AHLA) and major hotel brands, advocates for a balanced approach. While they oppose blanket bans on STRs, they are fighting to ensure local governments retain the authority to impose reasonable regulations on STR properties.

The Battle Line: Many bills being tracked relate to preemption, where state legislation would prohibit local governments in cities like Austin, San Antonio, and Galveston from imposing location, density, or operational requirements on STRs. THLA is actively working to protect local control to ensure neighborhood integrity and safety standards are maintained.

2. Protecting Hotel Occupancy Tax (HOT) Integrity

The Hotel Occupancy Tax (HOT) is a vital funding source for local tourism promotion, convention centers, and cultural arts. THLA is a staunch defender of the intended use of these funds.

The Advocacy Goal: The association works to prevent the diversion of HOT funds away from tourism-related projects, ensuring that the revenue generated by the lodging industry is reinvested back into attracting more visitors to Texas destinations. This effort is crucial for the Texas Travel Alliance and local Convention and Visitors Bureaus (CVBs).

3. Addressing Critical Workforce Challenges

The hospitality industry, like many sectors, faces persistent labor shortages. THLA has made "Workforce challenges and solutions" a key focus area in collaboration with the AHLA and state agencies.

Solutions and Initiatives: THLA partners with the Texas Workforce Commission (TWC) and Texas Workforce Solutions to develop programs aimed at recruiting, training, and retaining talent. This includes participation in industry summits, such as the one in Corpus Christi, to prepare the next generation of hospitality professionals.

4. Property Tax Reform Support

High property taxes directly impact the operational costs of hotels, which are then passed on to consumers. THLA supports legislative efforts aimed at property tax relief to help keep Texas a competitive and affordable travel destination.

5. Launching the National Hospitality Safety Security Program

In a major safety initiative, THLA partnered with G6 Hospitality in December 2025 to launch a National Hospitality Safety Security Program. This program is built on real cases and legal precedents, providing hotels with comprehensive training and resources to enhance guest and employee safety.

6. Full Funding for Texas Tourism Promotion

THLA, alongside groups like the Asian American Hotel Owners Association (AAHOA), actively lobbies the State Capitol for full and robust funding for Texas tourism promotion. Adequate state marketing is seen as essential to maintaining the state's record-breaking visitor numbers and economic impact.

7. Navigating Federal Regulatory Updates

THLA keeps its members informed on federal changes that affect their bottom line, such as the increase in the federal CONUS per diem rate for lodging for Fiscal Year 2025, and updates to the Department of Labor's Overtime Ruling. This ensures Texas hoteliers remain compliant and competitive on a national level.

The Future of Lodging: Events and Education

Beyond the legislative session, THLA’s work centers on professional development and networking, ensuring the industry remains educated on best practices for revenue generation and policy compliance.

Key Industry Events (2025-2026)

THLA hosts and co-hosts several major events that serve as crucial networking and educational forums for the industry, from local operators to large management companies like Coury Hospitality, Phoenix Hospitality Group, and The Plasencia Group.

  • Texas Hotel Conference: A key event powered by THLA and AHLA, focusing on policy issues, workforce solutions, and national industry initiatives.
  • 2025 AAHOA South Central Texas Town Hall: Scheduled for November 13, 2025, in San Antonio, this event connects Texas hoteliers with national advocacy and ownership perspectives.
  • 79th Annual Texas Hotel & Lodging Association Hotel Short Course: A long-running, intensive educational program scheduled for January 12–16, 2026, in Houston, TX.

These events cover a wide range of topics essential for the modern hotelier, from revenue management best practices to navigating complex regulatory environments. The association’s reach ensures that even niche groups, such as the Bunkhouse Group in Austin or Texas Hotel Management, benefit from the collective knowledge and advocacy power of the largest association in the nation.

The Texas Hotel & Lodging Association is far more than a trade group; it is the strategic backbone of the state's tourism economy. By aggressively tackling issues like STR regulation, workforce development, and tax integrity, THLA is not just protecting the interests of its members—it is actively securing the future of the $199.5 billion travel industry that defines a significant part of the modern Texas identity. Their work in 2025 will determine the regulatory landscape for years to come.

The $199.5 Billion Battle: 7 Critical Ways The Texas Hotel Lodging Association Is Shaping Your 2025 Stay
texas hotel lodging association
texas hotel lodging association

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