Editor's Note: Some linked articles may be behind subscription paywalls.
1. Spanish hotel chain halts business in Cuba
Melia, a Spanish hotel group, reported Wednesday that it will exit operations — including managing, marketing and providing brand services — in 15 hotels in Cuba due to geopolitical concerns, according to Reuters.
"Melia, one of the largest foreign hotel operators in Cuba, has had a major presence on the island since 1990. It said it had informed hotel owners of its decision on May 26, with confirmation issued on Wednesday. The hotels were run through its Portuguese subsidiary Ilha Bela Gestao E Turismo," according to Reuters.
Cuba is among Melia's largest markets based on number of hotels. The company cited "a combination of unforeseen circumstances" leading to this decision based on its regulatory filing.
2. Organization warns of major disruptions to hospitality labor workforce during World Cup
Across the 11 U.S. World Cup host cities, a wide range of labor disputes have the potential to negatively affect the increased amount of travelers this summer, Unite Here warns in a news release.
“The World Cup should be a major economic opportunity for the hospitality industry, and a chance to recover some from decreased tourism numbers and lower-than-projected demand for hotel rooms, restaurant reservations and the like that are caused by disastrous Trump immigration policies,” said Unite Here President Gwen Mills in the release. “Unite Here members across the country are prepared to give a warm welcome to fans to their cities, but they may not be able to do so if they are still struggling for good union contracts that ensure good wages and benefits.”
Unite Here pointed to union contract disputes and pay increase advocacy in Los Angeles' SoFi Stadium, hotels in Philadelphia, the Miami International Airport and more. The organization also raises concerns about the ever-present threat of the U.S. Immigration and Customs Enforcement raids.
3. Hotels CEOs dissect recent bump in travel
Despite the various economic challenges the global hotel industry is facing, travel demand has been resilient. A panel of hospitality CEOs discussed the current business climate at a general session at the NYU International Hospitality Investment Forum, CoStar News' Bryan Wroten reports.
Hilton President and CEO Chris Nassetta said that all hotel segments were doing well coming out of the pandemic, and lately there’s been a K-shaped economy with the higher end doing well but the middle and lower segments of the business have struggled with inflation. However, he sees a shift happening this year.
“You’re starting to see what I’ve tried to get people to pick up on as more of a C-shaped economy — C for convergence, where the high end is still doing well, you’re starting to see the mid-chain-scale segments and even the lower chain-scale segments come up,” he said.
4. New Delhi hotel fire kills 21 people
At least 21 people are dead with dozens more injured due to a fire at Flourish Stay B&B in Malviya Nagar, a hotel in the southern part of New Delhi, according to The New York Times.
Fire trucks responded to a call received at 8:48 a.m. local time and reportedly rescued more than 40 people. A witness reported seeing the fire quickly engulf the full building, forcing people to jump from the hotel's higher floors. The NYT reports that the cause of the fire is unknown but it has been extinguished.
5. IHG rolls out AI trip planning
IHG Hotels & Resorts has introduced a new IHG app in ChatGPT that enables artificial intelligence-driven trip planning. The hotel brand company revealed the new tool in a news release that also announced plans for "AI-powered conversational search within IHG.com and the IHG One Rewards app."
“Guest expectations are evolving quickly, and we’re evolving with them," IHG's Chief Product & Technology Officer Jolie Fleming said in the release. "With more than 1 million guests staying with us every night around the world, we’re using AI to make the travel experience more seamless from planning and booking through to their stay. Pairing AI with the warmth of human hospitality ultimately helps us deliver a more exceptional live experience — one that feels personal, responsive and connected to each guest in the moment.”