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1. Spirit Airlines Rejects JetBlue Bid
Spirit Airlines’ board of directors has rejected JetBlue Airway Corp.’s $3.6 billion cash bid, stating the revised proposal involved “an unacceptable level of closing risk,” the Wall Street Journal reports. Spirit will continue with plans to merge with its rival carrier Frontier Group Holdings in a deal originally valued at $2.9 billion.
Along with its cash bid, JetBlue had offered to sell assets to receive regulatory approval and pay a $200 million break-up fee if it couldn’t complete its acquisition for antitrust reasons, the article states.
2. MGM Resorts Closes on Sale of MGM Growth Properties REIT
MGM Resorts International has closed on its previously announced deal with real estate investment trust Vici Properties for MGM Resorts' spin-off REIT, MGM Growth Properties, according to a news release. Vici has redeemed a majority of MGP units at $43 per unit, about $4.4 billion in cash, and has acquired 100% of the outstanding class A shares of MGP in a stock-for-stock transaction.
"Our partnership with MGP over the last six years has provided significant value to our shareholders and I would like to thank the MGP team and its leadership for their efforts throughout this process," MGM Resorts President and CEO Bill Hornbuckle said in the release. "This transaction has provided us with significant financial flexibility that will allow us to continue to invest in and grow our business to further maximize shareholder value. We look forward to a productive relationship with Vici."
The deal, amending the existing master lease, provides for an initial term of 25 years with three 10-year renewals and an initial annual rent of $860 million, the release states.
3. 20 Years of Helping Through Crises Drives Magnuson Hotels' Growth
Through its 20 years of operations, hotel brand company Magnuson Hotels has focused on helping hotel owners work through crises, growing its portfolio along the way, HNN’s Robert McCune reports. The company started with a handful of hotels and now has about 200 branded and independent properties.
"When we first started, my desk was in my 5-year-old son's bedroom, next to his bunk bed. We had 12 hotels; they were friends and family. We built a technology platform that was a central reservations system — the first company to bring that technology to independent hotels," Magnuson Hotels co-founder and CEO Tom Magnuson said.
4. Unionization Efforts Spread Across US
The National Labor Relations Board reported the number of union election petitions increased 57% year over year for the first half of the 2022 fiscal year, NPR reports. Petitions for Starbucks locations account for almost a quarter of those filed since January.
An analysis of union election petitions filed with the NLRB over the past 10 years found that fewer than 4% of petitions came from the accommodations and food services industry, the article states. So far this year, however, that industry now makes up 27.5% of all union election petitions.
5. Airlines Attempt To Get Customer Call Wait Times Under Control
Airline customer service call wait times hit a peak of 12 hours last summer, but airline executives said the industry will be better prepared for the expected level of travel demand this summer, the Wall Street Journal reports.
The airlines have hired thousands of new employees, raised starting pay, offered remote-work options and invested in new technology, the article states. The improved chat and self-service options have helped relieve some of the issues, many customers are calling about issues that require human intervention.