AAHOA Welcomes Governor Newsom’s Veto of California Hotel Guest Disclosure Bill

SACRAMENTO, CA, October 1, 2026 — AAHOA (Asian American Hotel Owners Association) welcomes Governor Gavin Newsom’s veto of AB 2721, legislation that would have imposed new disclosure and notice requirements on California hotels when federal immigration enforcement agencies stayed at their properties. AAHOA Members own some 61% of hotels in the state.

The veto marks an important development for California’s hotel industry and follows advocacy from AAHOA and its industry partners throughout the legislative process. Following the bill’s passage, AAHOA submitted a formal veto request to Governor Newsom, outlining concerns about the practical challenges the legislation would create for hotel owners and operators.

“AAHOA appreciates Governor Newsom’s decision to veto AB 2721 and recognizes the importance of listening to the hotel owners and businesses that would have been responsible for implementing this legislation,” said AAHOA Chairman Rahul Patel. “Hotel owners need clear and workable requirements that allow them to focus on serving their guests and operating their businesses. We appreciate the opportunity to make our members’ concerns heard throughout this process.”

AB 2721 would have required hotels to provide public notice when they knew or should have known that federal immigration enforcement agencies, including U.S. Immigration and Customs Enforcement (ICE) or Customs and Border Protection (CBP), had reservations or contracts at the property. The proposed requirements raised concerns about guest confidentiality, operational responsibilities, and potential legal uncertainty for hotel owners.

“This veto is a clear win for California hotel owners and common sense,” said AAHOA President & CEO Laura Lee Blake. “Hotel owners should never be put in a position where they are expected to disclose information about who may be staying at their hotel, potentially compromising the privacy and safety of their guests. We thank Governor Newsom for hearing the hospitality industry’s concerns and taking action.”

AAHOA’s advocacy emphasized the real-world challenges hotel owners could face in implementing the proposed requirements, including determining when a reservation fell under the law, complying with public notice requirements, and protecting guest confidentiality.

The outcome also highlights the importance of industry engagement, as similar proposals are emerging in other states. AAHOA will continue working with industry partners and policymakers to communicate the potential impact of legislation on hotel owners, employees, and guests.