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1. European Central Bank Increases Rates for the First Time in a Decade
The European Central Bank raised interest rates 50 basis points today, exceeding expectations and marking the bank's first interest rate hike in more than a decade, Reuters reports. The ECB had previously advised a 25-basis-point hike was likely.
"Policymakers also agreed to provide extra help for the 19-country currency bloc's more indebted nations — among them Italy — with a new bond purchase scheme intended to cap the rise in their borrowing costs and so limit financial fragmentation," the news outlet reports.
2. Energy Prices Spike Due to Widespread Heat Wave
Natural gas prices are up 48% this month due largely to power plants struggling to keep up with energy demand from air conditioning as heat waves linger, the Wall Street Journal reports. The newspaper notes the spike in energy demand could threaten the recent good news of falling commodity prices.
"A forecast model that gas traders follow predicts that this week and next will be the hottest in four decades as gauged by cooling-degree days, a population-weighted measure of temperatures above 65 degrees Fahrenheit," the newspaper reports. "Traders and analysts expect Wednesday to have produced the highest daily reading ever."
The hot summer weather has been especially widespread this year, with record temperatures seen across Europe and wide swaths of the U.S. coping with prolonged heat and related energy issues. Gas prices have also been impacted by Russia's invasion of Ukraine and disruptions of natural gas pipelines between Russia and Europe.
3. Accor Execs Believe Meetings Must Be Enticing
With small meetings and group demand growing, executives with Accor say hotels must go above and beyond attendees' expectations to capture this emerging business, which could mean incorporating some kind of leisure component, HNN's Terence Baker reports.
Speaking at the company's Global Meeting Exchange conference, Emlyn Brown, Accor’s global vice president of well-being, said this is a chance to remind people of the wonder of travel.
“People have their eyes open. Travel has to become special again. The hotels that understand that will do well,” he said.
4. US Hotels Reverse Post-Holiday Lull
After a two-week period of lower demand following the Fourth of July, U.S. hoteliers recorded an uptick for the week ending July 16, albeit still down compared to 2019 performance.
CoStar's hospitality analytics firm STR recorded 72% occupancy for the week, which was down 7.4% from 2019, but strong growth in average daily rate — up 14.9% to $157.23 — managed to push up revenue per available room versus pre-pandemic numbers, with a 6.4% increase to $113.28.
In terms of demand, San Diego was the top performer among the top 25 markets, with a 1% occupancy increase to 89.9%.
5. Wyndham Adds 14 All-Inclusives Through Palladium Deal
Wyndham Hotels & Resorts announced the company is adding 14 all-inclusive resorts to its Registry Collection Hotels brand through a new commercial alliance with Spain-based Palladium Hotel Group, HNN's Dana Miller reports. The portfolio represents more than 6,500 rooms in locations such as Mexico, the Dominican Republic, Jamaica and Brazil.
“These unique, all-inclusive hotels are designed to ensure that guests — whether redeeming Wyndham Rewards points or booking directly — will enjoy an elevated vacation,” Wyndham President and CEO Geoff Ballotti said in the announcement.