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1. Wyndham Rejects Latest Choice Acquisition Attempt
The Board of Directors for Wyndham Hotels & Resorts has rejected Choice Hotels International's latest letter in support of an acquisition, calling it a "step backwards," according to a news release.
"Choice continues to ignore our major concerns around value, consideration mix, and asymmetrical risk to our shareholders given the uncertainty around regulatory timeline and outcome," said Stephen Holmes, chairman of Wyndham's board, in the release. "In addition, Choice’s existing proposal is valued at $86 per share, lower than the unsolicited public proposal of $90 per share they made a month ago."
2. Paris Hotel Prices Forecast To Jump for Olympics
Paris' tourism office expects hotel prices will rise by 314% between the summers of 2023 and 2024 because of next year's Olympic games, Reuters reports. Accompanying that increase will be a crackdown on illegal short-term rentals.
City officials worry about the projected jump in prices, and the report also notes that 66% of Paris' hotels have not yet opened their books to reservations for when the games will take place from July 26 to Aug. 11.
"At the London Games, the prices were too high and the occupation rate of hotels went 12% down," said Frédéric Hocquard, Paris' deputy mayor for tourism and nightlife. "You can't triple the price of the rooms. Maybe you can allow a 10%, 15% increase, but tripling the prices won't work."
3. Hotel Transactions Slow in Caribbean
The performance metrics of hotels in the Caribbean are at record levels, but there are few properties changing hands, resulting in less investment across the region, reports HNN's Stephanie Ricca from the Caribbean Hotel Investment Conference & Operations Summit.
“It’s such an interesting time in the Caribbean,” said Rebecca Cocchiola, senior vice president of Chicago-based private equity firm Singerman Real Estate. “We see bullish data about operating performance here. There’s a lot of positive momentum, but sellers also are seeing that and not moderating expectations to settle an asset based on financing. So there’s a big spread.”
4. Hotel Unions Reach Deals in Las Vegas, Los Angeles
The Culinary Workers and Bartenders Unions in Las Vegas ratified a new five-year contract for 10,000 employees with Caesars Entertainment, Reuters reports. The unions have reached tentative deals with Wynn Resorts and MGM Resorts International that are not ratified yet.
The new contract with Caesars reduces housekeeping room quotas, requires daily room cleanings and extends recall rights for workers, the news agency reports.
In Los Angeles, Unite Here Local 11 reached a tentative deal with Le Merigot Santa Monica, the Los Angeles Times reports. This is the fifth hotel in the region to reach a deal with the union. The others are the Westin Bonaventure, the Biltmore Los Angeles, the Loews Hollywood and the Laguna Cliffs Marriott in Dana Point.
5. Increased Supply Helps Chances of Soft Landing
The easing of supply bottlenecks, an increase in the labor force and rising productivity could be the factors that deliver a soft landing for the U.S. economy, the Wall Street Journal reports.
"The question is whether this higher potential persists," according to the newspaper. "If it does, it would increase the central bank’s confidence that inflation returns to its 2% target, and perhaps bring forward when it can start to lower interest rates from 22-year highs of around 5.3%."