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1. New Fed chair confirmed, but rate cuts could be on hold
Kevin Warsh has been officially confirmed as the new chairman of the U.S. Federal Reserve, but conservatives close to President Donald Trump are indicating interest rate cuts might take longer than some hope to materialize, The Washington Post reports.
The news outlet notes Trump ally Stephen Bannon sees near-term rate cuts as "highly unlikely" due to persistent inflation.
“This makes it very difficult for Warsh,” Bannon said on his podcast of 3.8% inflation in April.
2. Trump library hotel plan in Miami faces lawsuit
The plan to develop Donald Trump's presidential library in Miami as a hotel project faces a lawsuit from nearby residents claiming the state violated the constitution, The New York Times reports.
The hotel portion of the project seems to be the point of contention, with the fact that a for-profit business would operate on the site potentially making it a violation of the Constitution's emoluments clause prohibiting gifts from states to the president, the lawsuit alleges.
“It has been clear from the start — and has only become clearer in recent months — that President Trump intends to monetize this land for immense personal financial gain,” Miriam Becker-Cohen, a senior appellate lawyer for the Constitutional Accountability Center, which filed the lawsuit on behalf of Miami residents.
3. Caribbean, Latin America hotels could benefit from geopolitical strife
The stars could be aligning for travel to the Caribbean and Latin America, with hoteliers active in the region seeing some signs travelers could opt to go there amid conflict in the Middle East, CoStar News' Bryan Wroten reports.
“We all as an industry have an opportunity to convince people that have not thought about our region that we should be their main, leading destination for travel,” Juan Corvinos, president of Hotel Equities CALA said at the recent Americas Lodging Investment Summit CALA conference. “That’s all of our challenges. … I can’t think about a better time for us that we rely on the North American market, both Canada and U.S. and intra-country, to benefit form this surge in travel as fuel costs rise, as things are happening in the Middle East. It is the best time that I’ve ever seen in my career.”
4. AIB Group gets €190 million refi package for Irish hotels
AIB Group has announced the refinancing of a four-hotel portfolio in Ireland for €190 million ($222.3 million), CoStar News' Terence Baker reports.
The portfolio of MHL Hotel Collection properties includes the 191-room College Green Hotel and 262-room Trinity City Hotel in Dublin; 184-room Limerick Strand Hotel in Limerick, and 275-room Galmont Hotel & Spa in Galway.
5. Budget airlines Allegiant, Sun Country complete merger
ABC News reports American budget airlines Allegiant Air and Sun Country Airlines have merged, just on the heels of U.S. travelers losing major budget carrier Spirit Airlines.
The combined company now has roughly 195 aircraft traveling to nearly 175 cities with more than 650 routes, although the two will remain operating separately until Sun Country's operations can be absorbed into Allegiant over time.