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1. AHLA survey finds costs, labor remain top challenges
A new survey conducted by the American Hotel & Lodging Association found that rising operating costs and staffing challenges remain the top concerns for hotel owners across the U.S., according to a news release.
Among those surveyed, 71% said their financial pressures include costs of goods and supplies, 65% said labor costs, 59% said fluctuating demand and occupancy, 50% said utility and energy costs, 43% said insurance premiums and 42% said workforce shortages.
More than half of the respondents said their properties are somewhat or severely understaffed. To attract and retain employees, they said they have offered higher wages (70%), flexible scheduling (54%), hotel discounts (54%) and enhanced benefits (31%).
2. TSA warns small airports may close
Adam Stahl, acting deputy administrator of the Transportation Security Administration, said if the partial government shutdown continues, smaller airports may be forced to close, the New York Times reports. The partial shutdown primarily affects the U.S. Department of Homeland Security, over which Democrats and Republicans are arguing about funding as it relates to immigration enforcement.
Nick Dyer, a spokesperson for the TSA, clarified airports would only close if not enough TSA officers show up to work to fully staff a checkpoint. Roughly 50,000 TSA officers have been working without pay for about a month due to the shutdown. More than 10% of TSA officers did not report to work on Sunday or Monday.
3. Hotel sustainability, climate resilience of key importance
A panel of hotel industry experts at the Hotel Industry Development Event in London spoke about how sustainability and climate resilience are becoming increasingly important to governments, lenders and insurers, reports CoStar News Hotels' Terence Baker. These factors affect pricing, valuations, property investment plans and more.
“Real estate is the largest asset class globally. If valuations destabilize because assets are uninsurable, non-compliant or facing escalating penalties, the impact is systemic,” said Marc Lepere, professor in practice of sustainability, lead in environmental, social and governance and sustainability at King’s Business School at King's College London.
4. Fed expected to hold rates steady
The U.S. Federal Reserve's Federal Open Markets Committee is expected to vote today to hold interest rates steady at about 3.6%, but questions remain about its quarterly projections, the Associated Press reports. This is Federal Reserve Chair Jerome Powell's second-to-last meeting as the chair before stepping down into the role of a Fed governor in May.
Economists expect the Fed will project inflation to remain as high as 3% even later into the year, making it hard to justify more rate cuts. The price of gas has increased significantly since the start of the war with Iran, which may slow the economy, resulting in a possible increase in the unemployment rate.
"Those two outcomes — higher inflation and higher unemployment — typically lead the Fed in opposite directions," the AP reports. "The central bank keeps its key rate unchanged — or even increases it — to fight inflation, while it cuts rates to boost spending and hiring. A combination of rising prices and higher unemployment is generally the worst-case scenario for central bankers."
5. Strike at Berlin airport cancels hundreds of flights
A trade union strike at the Berlin Brandenburg Airport has caused operations at the airport to cease for the day, requiring the canceling of 445 planned flights, Euro News reports. The 2,000 employees involved in the strike work in fire service, traffic management and terminal management.
The next round of negotiations between the union and the airport is scheduled for March 25. The union rejected a previous offer that include wage increases of 1% to 1.5% each year for the three-year contract. The union is seeking, among other things, a 6% wage increase, arguing that increases of 1% per year do not keep up with the rising cost of living.