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1. Consumer prices dipped an unexpected amount in June
Business Insider reports the annual inflation rate in the United States was lower than expected last month based on consumer price index data released Tuesday by the Bureau of Labor Statistics. The inflation rate cooled to 3.5%, which is down from 4.2% and lower even than the predicted 3.8%.
Energy prices fell 5.7% in June, driving some of the dip in inflation, and that trend is not expected to continue.
"June's dip in energy costs may not last," said Atsi Sheth, chief credit officer at Moody's Ratings. "Revived geopolitical tensions in the Strait of Hormuz could reverse that relief quickly."
2. Hotel financing expert weighs in on higher-for-longer interest rate trend
Hoteliers are starting to get used to the higher-for-longer interest rate policy, said Peachtree Group Managing Principal and CEO Greg Friedman on the latest episode of the "CoStar News Hotels Podcast."
While he expected rates to stabilize at a lower level, Friedman said people are wrapping their heads around rates not going back to the historic lows seen during the pandemic, reports CoStar News' Sean McCracken.
"New financings were slow over the last several years, and now it's starting to pick up because people — owners and investors of real estate — are starting to realize this is the new normal," Friedman said, noting geopolitical tension and inflation are unlikely to allow for much in the way of rate cuts in the immediate future.
3. World Cup economic impact crescendos as field narrows
The World Cup is down to its last few contenders, and the remaining host markets stand to benefit from a rise in travel demand, CNBC reports. According to Bank of America Institute data, every host city saw an economic lift from fans traveling in for games.
“You can see the World Cup effect on the ground,” said David Tinsley, senior economist at Bank of America Institute. “Spending picked up after the tournament kicked off, with restaurants and bars seeing some of the strongest gains as consumers turned matches into social events.”
Dallas hosts its semifinal game between France and Spain on Tuesday while England and Argentina face off in Atlanta on Wednesday. The tournament concludes with the final at New York New Jersey Stadium on July 19.
4. Accor plans significant growth in Vietnam
In a development deal with its long-term partner Sun Group, Accor will add 5,300 rooms to its portfolio of hotels in Vietnam, reports CoStar News' Terence Baker.
The deal's first phase includes the 180-room Ruby Beach Hotel MGallery Collection; 250-room Bana Hills Hotel Danang MGallery Collection; 250-room Grand Mercure Phú Quốc Ruby Beach; 300-room SO/ Phú Quốc Ruby Beach; 321-room Tribe Hon Thom Phú Quốc, and 588-room Ibis Styles Hon Thom Phú Quốc.
“Vietnam’s rapid evolution makes it a key growth engine for our region, and this milestone agreement with Sun Group highlights the strength of our joint development ambitions,” said Duncan O’Rourke, Accor’s CEO for premium, midscale and economy brands in the Middle East, Africa and Asia-Pacific in a news release.
5. Events drive June hotel performance in two European markets
Madrid and Monaco saw hotel performance gains in June thanks to music and sporting events.
Madrid was the latest winner of the "Bad Bunny effect" as the artist hosted a 10-show residency during the first two weeks of the month. Korean pop sensation BTS ended June in Madrid on a high note with two shows that were a part of the group's world tour. Year over year, occupancy was up 2.2% to 82.2% and average daily rate rose 4.8% to €199.97 and revenue per available room increased 7.1% to €164.32, according to CoStar data.
Meanwhile in Monaco, CoStar reported a 9.6% year-over-year increase in occupancy to 81.4% and ADR growth of 85.6% to €1,267.48. RevPAR also grew 103.4% to €1,031.52 in June. The 2026 Monaco Grand Prix took place June 5 to 7, driving the market's highest June occupancy since 2013 on Saturday, June 6. Last year the race took place in May.