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1. Bain Capital acquires Pullman Paris Montparnasse for roughly €300 million
Boston-based Bain Capital, in partnership with Columbia Threadneedle and QuinSpark Investment Partners, reached a definitive agreement to acquire the Pullman Paris Montparnasse for just more than €300 million ($353.22 million), CoStar News' Terence Baker reports.
The hotel is the largest French property in the Pullman Hotels & Resorts brand at 953 rooms and more than 550,000 square feet of gross building area, according to CoStar data. The asset will be managed by Columbia Threadneedle and QuinSpark.
"The European hotel industry is one of our major investment themes, where we see long-term structural demand in markets that are highly constrained in supply," said Rafael Coste Campos, partner at Bain Capital. "The current macroeconomic situation creates a rare window to acquire strategic assets in major European cities."
2. Bifurcation of US economy continues
One of the lingering trends in the U.S. hotel industry is the bifurcation of hotel classes, with upper-end properties performing well while economy hotels are struggling. The U.S. economy is no different, the Wall Street Journal reports.
High-earning individuals are seeing their 401(k) accounts and homes soar in value, and they are spending at a high clip. Momentum has stalled or reversed for others, though, as workers are spending less and some are struggling to find jobs in a tough market.
The difference between the two is widening, with wages for the top third of U.S. earners growing at a faster pace than the bottom third.
3. The vital role of housekeeping in hotel operations
Housekeeping is an essential role in hotel operations, and in some cases it can be the starting point for an illustrious career in the industry.
On the latest episode of the CoStar News Hotels podcast, Sean McCracken spoke with Harry Carr, senior vice president of revenue management for Pivot Hotels & Resorts, and Robert Morse, vice president of revenue management at Davidson Hotels and Resorts, about their experiences working in housekeeping and how it shaped their careers.
"My favorite thing about it, other than the hardworking men and women down in that department, was no matter where I was in the hotel, I was always in my work area," Morse said. "So whether I was walking the guestroom floors or outside the banquet room or the lobby area, I was always out there and looking at cleanliness and looking at different things."
4. US importers, exporters worry over port fees on Chinese ships
American businesses are concerned about price increases on both imports and exports next month on Chinese ships at U.S. seaports, even though ocean shipping companies say there will be no surcharges, the Wall Street Journal reports.
Peter Friedmann, executive director of the Agriculture Transportation Coalition, said it wouldn't be tenable for ocean carriers to redistribute extra costs on them.
“They are increasing their own internal costs,” Friedmann said. “It’s not sustainable.“
5. Consumers feel stress of inflation
The overall national FICO score in the U.S. has dipped by about 2 points, indicating consumers are feeling the pressures of inflation and higher interest rates, Reuters reports.
Gen Z adults are seeing the sharpest declines in their scores, driven mostly by student loan pressures.
"Overall, many consumers’ credit health remains strong as the average credit score of 715 is still near historical highs," the FICO report said. "However, the average FICO Score is a lagging indicator of credit health, and there are certainly many risks to the future average credit score."