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1. Consumer pressures continue to grow despite lack of recession
Hiring is slowing to Great Recession levels and more consumers are falling behind on utility bills as they struggle with inflation, the Associated Press reports.
The hiring rate in August — the last available data prior to the government shutdown — was down to 3.2%, the lowest mark since March 2013, not including the pandemic. The silver lining is unemployment stayed relatively low at 4.3% compared to the the 7.5% observed in the prior period.
Meanwhile, past-due balances for utilities have climbed 9.7% year over year to $789 between April and June. During the same period, energy bills grew 12%.
2. Virgin Hotels CEO departs
Virgin Hotels Collection is currently searching for a new CEO after the departure of James Bermingham, CoStar News' Terence Baker reports. Chief Commercial Officer Joe Margison will lead the company in an interim role for the next year.
Bermingham came to Virgin as CEO in 2021 after working as head of Visit California. The hotel brand now has eight hotels and a number of experiential luxury properties around the globe after struggling to find a footing prior to his leadership. Four of Virgin's hotels opened under Bermingham's tenure, representing 46% of the company's current room count.
In the announcement of his departure, Virgin officials lauded Bermingham as having “played a pivotal role in developing Virgin Hotels Collection."
3. What's pressuring hoteliers this budget season
Labor, renovations, and food and beverage are the items pushing up costs in this year's hotel budgeting season, CoStar News' Bryan Wroten reports. Hoteliers by and large are baking a higher degree of realism into their 2026 budgets.
Chad Sorensen, managing director and CEO of hotel asset management firm CHMWarnick, said the pace of wage increases has slowed across the industry, but growth is now coming from a higher pace after the massive increases following the pandemic. He also noted the pace of change in 2026 is likely to be uneven.
“As we think about 2026, you really do need to look at it on a granular basis, quarter by quarter, especially what you’re compared to year over year because the metrics are different depending on which quarter you’re looking at,” he said.
4. Sonder files petitions to liquidate
Filings with the Securities and Exchange Commission show Sonder Holdings is officially moving toward liquidation, continuing an eventful two-week period for the company which saw the end of its partnership with Marriott International and the announcement it was immediately winding down operations.
The company filed voluntary petitions to begin Chapter 7 bankruptcy proceedings on Nov. 14, which temporarily freezes collection on its debts while the company is liquidated. Those debts include a $5.3 million principal amount owed to Marriott.
5. UK travelers could face new tax
The Guardian reports new taxes in the U.K. could include nightly taxes on both hotel and Airbnb stays, and the taxes could be part of the budget announced next week.
Money collected via a 5% holiday tax could be used to "invest in transport and public services," the news outlet reports.
UKHospitality estimates the tax could cost Brits £518 million ($682.3 million) and would be likely to cause negative effects on the industry and economy.
“Brits take more than 89m overnight trips in England, and stay for a total of 255m nights," UKHospitality Chair Kate Nicholls said. "This is a bill we will all have to pay, and will only serve to ramp up prices and drive inflation.”