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1. Fed Expected To Continue Rate Increases
Bloomberg reports The Federal Reserve is expected to make its fourth consecutive large interest-rate increase Wednesday, but there are some signs that Chairman Jerome Powell is opening up to the idea of scaling back on further increases.
This increase is expected to be another 75 basis points, pushing rates to a range of 3.75% to 4%, the highest level since the Great Recession. The Fed's decision will be announced at 2 p.m. Eastern.
“They may want to go slower just in the interest of financial stability,” Julia Coronado, the founder of MacroPolicy Perspectives LLC, told the news outlet. “It’s a challenge for messaging because they don’t want to ease financial conditions significantly. They need tight financial conditions to keep cooling the economy off. So he doesn’t want to sound dovish, but he may want to go slower.”
2. Hong Kong Banks Urged To Revive Hub Status
Hong Kong officials are actively reminding large bank executives that the city is directly connected to China, the world's second largest economy, Reuters reports. Traditionally the financial hub of Asia, the city has largely been stripped of that status due to China's strict COVID-19 restrictions and a wave of anti-government protests starting in 2019.
The news agency notes the city hosted its biggest corporate event since the onset of the pandemic with about 250 business executives coming together for the Hong Kong Monetary Authority's Global Financial Leaders' Investment Summit.
"Hong Kong remains the only place in the world where the global advantage and the China advantage come together in a single city," Hong Kong Chief Executive John Lee said at the event.
3. How the Pandemic Changed Room Service
Hotel News Now's Trevor Simpson reports that hotels have used the pandemic as an opportunity to streamline in-room dining options, with a focus on convenience and simplicity.
John Beck, general manager of the Crowne Plaza HY36 in New York, said hotels have been forced to change in part by competition from food delivery services such as DoorDash and UberEats.
“You can get any food you want delivered to the hotel, delivered to any hotel, whether from the best restaurant in the city or a nice dive spot,” he said.
4. International, Urban Travel Bolster Airbnb
While Airbnb has been largely getting by with domestic demand outside of urban markets, the return of travel across borders and into large cities again pushed the company to record profits in the third quarter. During an earnings call with investors, co-founder and CEO Brian Chesky said the more broad-based travel demand recovery is giving executives greater optimism even in the face of a possible recession.
"Cross-border gross nights booked increased 58% compared to a year ago," he said. "High-density urban nights booked were up 27%."
5. Do Healthy Amenities Boost Hotel Demand?
The Wall Street Journal takes a look at the trend of hotel companies increasing fitness and wellness offerings "betting that travelers want hotels that help them take their pandemic-inspired fitness routines on the road."
"Consider Room 3317 at the luxe Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch," the newspaper reports. "It looks like a regular guest room from the carpeted hallway. Inside, trendy gym equipment takes the space where a bed would normally be. There’s a Peloton bike, Precor treadmill, weight bench, kettlebells, medicine balls, resistance bands and foam rollers. Lemon Lysol wipes sit on the entry table."