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5 Things To Know for Feb. 9

Today's Headlines: With LA Rams in Super Bowl, LA Hotels May Lose Out on Business; US Households Add $1 Trillion in New Debt in 2021; Brands Push To Restore Amenities While Owners Want To Cut Costs; US States Ease COVID-19 Protocols; COVID-19 Cases Fall 17% Globally
Los Angeles-area hoteliers were expecting a surge in demand for the upcoming Super Bowl, but they may get less than they hoped for with the LA Rams competing for the championship. (Getty Images)
Los Angeles-area hoteliers were expecting a surge in demand for the upcoming Super Bowl, but they may get less than they hoped for with the LA Rams competing for the championship. (Getty Images)
CoStar News
February 9, 2022 | 3:31 P.M.

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1. With LA Rams in Super Bowl, LA Hotels May Lose Out on Business

Hotels in the city hosting the Super Bowl each year usually can count on a surge in demand as fans travel across the country to watch their favorite teams compete. This year, however, one of the teams in the Super Bowl is the home team, the LA Rams, and that’s expected to cut into hotel demand because many Rams fans can just drive from home, the Wall Street Journal reports.

While Kevin Escoto, general manager of the DoubleTree by Hilton Los Angeles-Commerce, said he expects his hotel to reach full occupancy over Super Bowl weekend, he lowered the hotel’s minimum-stay requirement from five nights to three and reduced rates to between $300 and $400 a night.

“I am a Rams fan, so I am secretly rooting for them,” Escoto said. “From the hotel side, it’s obviously not a win for us.”

2. US Households Add $1 Trillion in New Debt in 2021

New data from the Federal Reserve Bank of New York shows Americans added $1.02 trillion in new debt in 2021, the largest increase since 2007, the Wall Street Journal reports. Higher home prices and auto loans played a major part in this increase.

While that much new debt may seem a cause for concern, the Federal Reserve reported wealth has increased across all income levels. Delinquency levels among consumers also remain around record lows.

3. Brands Push To Restore Amenities While Owners Want To Cut Costs

Hotel owners say the pandemic has created an opportunity to hit the reset button on amenity creep to control costs and adjust to the labor shortage, reports HNN’s Sean McCracken. The hotel brand companies, however, want offerings to return what they were previously.

During a panel discussion at the Americas Lodging Investment Summit, IBF Hospitality CEO and Chairman Ray Bhai said the scaled-back operating model has been important for full-service properties, and these changes might need to become permanent to protect profitability.

"We're seeing from the brands that they are pushing to try to take things back to normal. It's a work in progress, and will depend market by market where the demand is and what the situation is," he said.

4. US States Ease COVID-19 Protocols

New York Gov. Kathy Hochul will end the state’s indoor mask mandate, joining a list of other states relaxing COVID-19 rules as case numbers drop, the New York Times reports. The rule had required businesses to ask customers for proof of vaccination or have them wear a mask while inside.

Similar moves have been made in New Jersey, California, Connecticut, Delaware and Oregon, the article states. Other states and cities have indicated interest in making changes to their masking requirements as well.

Hawaii Gov. David Ige has said he will not require travelers coming to the islands to receive a COVID-19 booster shot, the Associated Press reports. However, he will keep the state’s indoor mask mandate in place.

5. COVID-19 Cases Fall 17% Globally

The World Health Organization announced worldwide COVID-19 cases dropped 17% over the past week compared to the previous week, the Associated Press reports. That includes a 50% drop in the U.S.

“The prevalence of the omicron variant has increased globally and is now detected in almost all countries,” according to a statement from WHO. “However, many of the countries which reported an early rise in the number of cases due to the omicron variant have now reported a decline in the total number of new cases since the beginning of January 2022.”

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