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1. Sell-off of chip stocks slumps global stock markets
Global stock markets fell on Tuesday notably due to the selling of chip stocks. Markets trembled following data from the U.S. that “highlighted ongoing weakness in the manufacturing sector” and nervousness over the next release of U.S. job numbers on Friday, according to the Wall Street Journal.
The newspaper added that Silicon Valley-based IT company Nvidia — which since July the world’s most valuable publicly traded company — lost $279 million of its market capitalization, “the biggest one-day market cap decline on record for any U.S. company.”
2. Ireland’s Dalata posts 6% revenue boost despite softening consumer spend
In its first-half 2024 earnings results, Irish hotel firm Dalata Hotel Group posted 6% year-over-year revenue growth to €302.3 million ($334 million) and a 4% increase in adjusted earnings before interest, taxes, depreciation and amortization to €107.6 million. Executives warned that in the United Kingdom and Ireland there is a “softening from more cost-conscious domestic customers relative to last year. We continue to see periods of good leisure demand around events.”
In the first six months of the year, Dalata opened four new hotels in the U.K., where it now has more than 5,000 rooms.
3. Baltimore, Seattle hotel employees return to work
Hotel employees in Baltimore and Seattle have returned to work, according to Unite Here. But the union added its strike that began on Sept. 1 continues in seven cities and consists of 9,376 members, according to Reuters.
The strike action involves employment contracts of members employed at three hotel firms — Hilton, Hyatt Hotels Corp. and Marriott International. The union added “about 40,000 … hotel workers across 20 cities face expiring contracts this year.”
4. Blackstone acquires Grand Hyatt Regency on Clearwater Beach for $137 million
Blackstone has acquired the 286-room Hyatt Regency Clearwater Beach Resort & Spa, in Clearwater Beach, Florida, for $137 million, or $479,021 per room. The sale was first reported in the Tampa Bay Business Journal, which cited a Pinellas County deed filed on Sept. 3. The hotel's seller is Mississauga, Canada-based Westmont Hospitality Group.
The Tampa Bay Business Journal said the total price “is likely higher than what’s publicly available” and that “the sale could total $200 million.” Westmont bought the 17-floor hotel in 2016 for a “recorded $120.5 million,” it added, and two years later added 37 rooms as part of a renovation.
5. US tops world’s travel markets, but China sees robust recovery
In its 2024 Economic Impact Trends Report, the World Travel & Tourism Council said the U.S. stands out as the world’s most powerful travel, tourism and hospitality market, “contributing a record-breaking $2.36 trillion” in 2023, almost double the economic contribution of its nearest rival, China. It added the U.S. remains in front despite the slow return of spending from international travelers.
The WTTC said the sector’s contribution to China, which has “an astounding year-on-year growth of 135.8%,” came in at $1.3 trillion, “underscoring its impressive rebound, despite the late reopening of its borders.” Overall, the report said that emerging markets have gained ground in the sector but that it is the traditional powerhouses that have maintained their positions of strength.
“As we look forward to a record-breaking 2024, it’s clear that travel and tourism is not only back on track, but also set to achieve unprecedented growth,” said Julia Simpson, president and CEO of the WTTC.