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1. Pound Sterling Falls to 37-Year Low Against US Dollar
The pound sterling, the currency of the United Kingdom, has fallen to a 37-year low against the U.S. dollar, its value dropping by 0.64% on Wednesday to $1.145, according to the BBC. Bank of England Governor Andrew Bailey said “little could be done to stop the U.K. falling into a recession this year as the war in Ukraine continued.”
The BBC reported some economists believe that a recession will be partially averted by new government policy announced Wednesday to offset an average household's energy price increases by 1,000 pounds sterling ($1,148.50). Bailey added “the cost of living is rising at its fastest rate in 40 years, at 10.1%, with food, fuel and energy prices all up.”
2. Canada Raises Interest Rates to a 14-Year High
On Wednesday, Canada raised interest rates by 75 basis points to 3.25% — a 14-year high — following earlier rate increases in the U.S. and the U.K., according to Reuters. Canada’s senior bankers stated interest rates might need to be increased again.
Bank of Canada officials said that “while headline inflation fell to 7.6% in July from 8.1%, that was due to gasoline prices, with the core measures continuing to move higher. Prices in Canada are increasing at rates not seen since the early 1980s.”
3. Wyndham Acquires Vienna House Brand for $44m
Wyndham Hotels & Resorts has announced it has acquired the Vienna House hotel brand for 44 million euros ($44 million) from Berlin-based owner HR Group, HNN's Robert McCune reports. HR Group will continue owning some hotels and leasing others.
The brand has 44 hotels, including 28 in Germany and two in development — one in Mannheim, Germany, the other in Katowice, Poland. The acquisition grows Wyndham's portfolio to more than 400 hotels across Europe.
4. China’s R&F Buys Back London Mixed-Use, Hotel Development
Guangzhou, China-based R&F Group has bought back 100% of a Vauxhall, London, development site that will include a hotel from peer Chinese firm Far East Consortium. The buyer sold the property in March to help balance its books but had a clause in that agreement that enabled it to buy back the site within six months, according to a Hong Kong Stock Exchange filing.
In March, R&F sold the property for 95.7 million pounds sterling, a discount of 68.8 million pounds sterling, according to Shanghai business news site Mingtiandi, which said R&F has had mixed success with two other London developments with planned hotels. In May, for example, R&F sold its 50% ownership in Nine Elms Square, now renamed Thames City, but Mingtiandi reported the company has reorganized its finances with funds from Précis Capital Partners, Apollo Global Management and Carlyle Group’s Crosstree Real Estate Partners.
5. NewcrestImage Acquires 45-Hotel Portfolio
Texas hotel owner NewcrestImage has acquired a portfolio of 45 hotels, which included 35 Marriott International properties for an undisclosed price. Nearly a year ago, NewcrestImage sold 27 of its hotel holdings for $822 million to hotel real estate investment trust Summit Hotel Properties and its joint venture partner, Singaporean wealth fund GIC.
The newly acquired hotels will be managed by Aimbridge Hospitality. NewcrestImage CEO Mehul Patel said he plans “to remodel the undervalued hotels, mostly located in suburban areas.”