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1. New Owner of Former DC Trump Hotel Defaults on Loan
CGI Merchant Group purchased the Trump International Hotel in Washington, D.C., for $375 million in May 2022 and rebranded the property as a Waldorf Astoria. Less than two years later, CGI is defaulting on a $285 million loan related to the property, the Wall Street Journal reports.
Raoul Thomas, CEO of CGI, said he’s lining up $100 million in new financing for the property, and Mavik Capital Management is in talks to provide $75 million to the efforts. Hilton, which manages the property, has been talking to other firms and has to approve any new partners, the WSJ reports.
2. AHLA Pushes Back on New Jersey Hotel Franchising Bill
Members of the American Hotel & Lodging Association are pushing back against the New Jersey bill that would alter the state’s hotel franchising rules, New Jersey Monitor reports. Eric Orlando, a lobbyist for AHLA, said the bill would be a bad look ahead of the 2026 World Cup, since New Jersey will host the tournament's final.
“Our state in future years is going to host numerous large events, things like the World Cup, things like the 250th anniversary of our country,” Orlando said. “When folks come here and if this bill were signed, [it] lowers the standards of our hotels, gives our state a bad reputation.”
The bill would affect the sourcing of goods and services, brand standards, logistics of brand-wide loyalty programs and more, HNN’s Bryan Wroten reports.
3. Hyatt Sells Majority Stake of Unlimited Vacation Club
Hyatt Hotels Corp. announced the sale of 80% of its stake in the Unlimited Vacation Club in accordance with the company’s fourth-quarter and full-year 2023 earnings report, HNN’s Sean McCracken reports. The brand didn’t name the buyer, but President and CEO Mark Hoplamazian said Hyatt will retain control of the business through a “long-term management agreement and license and royalty agreement.”
Hoplamazian said the deal was done in part due to confusion from investors about the membership-based accounting metrics.
"We've been working on this transaction for more than six months, and we're very pleased to continue to manage UVC under a long-term management agreement," he said. "This will ensure a seamless transition for colleagues, UVC members and hotel owners."
4. War Weighs on Global Economy
World Trade Organization Director-General Ngozi Okonjo-Iweala said Monday that war, uncertainty and instability are weighing down the global economy amid an election year for nearly half the world’s population, the Associated Press reports. Okonjo-Iweala said higher prices for food, energy and essentials are “fueling political frustration.”
“People everywhere are feeling anxious about the future and this will be felt at the ballot box this year,” she said.
5. Forecasters Raise US Economy Outlook
The National Association for Business Economics is projecting the U.S. economy will grow 2.2% this year after adjusting for inflation, up from 1.3% in its last survey conducted in November, the Associated Press reports.
“But even with [interest] rates very high, the job market and U.S. household spending have remained remarkably resilient. That in turn has raised expectations going forward. Ellen Zentner, chief U.S. economist at Morgan Stanley and president of the NABE, said a wide range of factors are behind the 2024 upgrade, including spending by both the government and households,” the AP reports.