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1. Spain Sees Tourism Spike, Hotel Rates Jump
An influx of foreign tourists drove up hotel rates in Spain 36% in April, Reuters reports. Rates for that month were 15% higher than pre-pandemic levels, according to the country's National Statistics Institute.
Hotel demand grew five-fold in March and April compared to the year prior, with 40% of guests traveling domestically. At the same time, tourist arrivals have climbed back to 86% of pre-pandemic levels, with travelers from the U.K. and Germany leading the way.
2. Stocks Fluctuate Over Fed Worries
Stocks reflected investors' anxiety this morning as they waited for the latest minutes from the Federal Reserve, Bloomberg reports.
The news outlet noted investors are worried about a dramatic slowing of growth.
“Our central scenario remains that a recession can be avoided and that geopolitical risks will moderate over the course of the year, allowing equities to move higher,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “But recent market falls have underlined the importance of being selective and considering strategies that mitigate volatility.”
3. Apple Leisure Says Hawaiian, Florida All-Inclusive Resorts Are Inevitable
It has long been the common line of thinking that all-inclusive resorts are too expensive to operate within the borders of the U.S., and have traditionally been more popular in low labor cost markets in the Caribbean and Latin America. But speaking with Hotel News Now at the recent International Hospitality Investment Forum, Javier Coll, group president of global business development for Apple Leisure, said it's a matter of when, not if, his company will operate resorts in Hawaii and Florida.
"It's just a question of can you charge the rates to overcome the additional expense with labor and all those things, and our conclusion is yes, you can," he said.
4. High Interest Rates Lead to Lender Layoffs
The Wall Street Journal reports there has been a hidden cost for the Fed's efforts to cool inflation: a wave of layoffs and cuts at mortgage lenders. The newspaper notes the end of a hot market for refinancing has led to a 41% drop-off at new loan originations, with mortgage volume expected to drop 37% for the balance of 2022.
"The pain is expected to be especially bad for nonbank mortgage lenders," the Journal reports. "Unlike banks, they don’t have numerous business lines to carry them through mortgage downturns. They also don’t take deposits, which means they are reliant on short-term loans. Seven of the 10 largest refinance lenders in 2021 were nonbanks, according to Inside Mortgage Finance."
5. Kessler Announces $150 Million Development in North Carolina
The Kessler Collection, which has a portfolio of 12 boutique hotels, has announced plans for a $150 million mixed-use development in Cashiers, North Carolina, with a boutique lodge, mountain cottages and luxury glamping cabins, HNN's Bryan Wroten reports.
The 24.5-acre project is expected to break ground in 2023 with the first phase slated to open in 2025.
"Along with community members and key stakeholders we worked diligently with, I am thrilled for the Kessler Collection to bring a destination resort with art, music and culinary adventures to the mountain charm of Cashiers, North Carolina," said Mark Kessler, president and chief operating officer of the Kessler Collection. "Everything we do is uniquely tailored to the community we are in, and the Kessler Collection plans to honor the existing landscape of Cashiers while providing an elevated resort experience."