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Josh Bernstein spoke to Law360 about the issues that could impact the hospitality sector in 2019, including Marriott’s recent data breach on an estimated 500 million of its guests, and rising labor demands.

In regards to Marriott’s data breach, Bernstein told Law360 that Europe’s adoption of the General Data Protection Regulation (GDPR) may complicate matters. Bernstein said, “My understanding is that GDPR would apply to European hotels that were affected by the data breach, like a Sheraton legacy hotel in Paris. But I don’t know the extent to which the Starwood system was compliant with GDPR when the breach happened. That is something that I’m sure the European regulators are looking at. This is probably one of the biggest things to watch in 2019.”

Bernstein also explained how employee pay weighs during the budget approval process between hotel owners and operators. He elaborated, “There have been significant increases over the years in the minimum wage required by law in New York and elsewhere in the country. The higher labor costs impact the bottom line of these hotels, and constant issues with respect to unionization of these hotels also significantly increases the costs of labor.”

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