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1. Brookfield To Acquire Watermark Lodging Trust for $3.8 Billion
Non-traded real estate investment trust Watermark Lodging Trust announced Friday it has entered into a definitive agreement with private real estate funds managed by Brookfield, according to a news release. Brookfield will purchase all of the outstanding shares of common stock of Watermark in an all-cash buy valued at $3.8 billion, with an expected closing date in the fourth quarter of this year.
Watermark's portfolio includes 25 luxury and upper-upscale properties totaling more than 8,000 rooms located in drive-to leisure markets and gateway urban cities.
"We are very pleased to reach this agreement with Brookfield, as it achieves our longer-term objective of a liquidity event, while providing our stockholders with an immediate and certain cash value," said Michael Medzigian, chairman and CEO of Watermark, in the news release. "The transaction's premium to our most recently published net asset values per share represents the strong execution of our entire team who have demonstrated the ability to find innovative solutions to address the challenges brought on by the COVID-19 pandemic. I would like to thank the members of our Watermark team, across all functions, for their dedication and hard work over the past several years."
2. Bill Marriott Steps Down from Chairman Role
Bill Marriott, company founder and most recently executive chairman of Marriott International's board of directors, has officially stepped back from the company after 66 years of service, including 37 years leading the board. He now transitions to chairman emeritus.
In a LinkedIn post, chairman of the board David Marriott writes, "My dad, at the age of 34, oversaw [Marriott's first hotel]. His vision was the catalyst for the company, one of growth and expansion putting us on the road to where we are today — more than 8,000 hotels in 139 countries and territories around the globe.
"As an adult, I now realize that my dad was modeling for me the effort and sacrifice required to build a successful company, to truly take care of your people, and to always do the right thing even when it may be the hardest thing — just as his parents had done for him. What an amazing education it has been," he continued.
3. Global Hotel Leaders Say Enjoyment of Work Key To Solving Labor Issues
Global hotel CEOs said that continued struggles surrounding staffing can be alleviated by a focus on building career paths for associates, training and taking time for enjoyment, reports HNN's Terence Baker from the International Hotel Investment Forum in Berlin.
Speaking during the keynote CEO session, Dillip Rajakarier, CEO of Minor Hotels, and group CEO of Minor International, said that hotel firms can't hold back talent in restrained work environments.
“You can't tie them up and then ask them to swim,” he said.
“Yes, some people cannot adapt to that way of doing things, but we need those creative elements. Also, it is going to be about what employees see hotel companies doing for their societies, communities and in [environmental, social and governance],” he added.
4. China's Trade Slows, Global Economic Worries Spur Stock Sell-Offs
China's trade in April endured a significant slow down with the rest of the world as continued COVID-19 lockdowns "shut factories and crippled supply chains," the Wall Street Journal reports. China's exports grew 3.9% last month compared to a year ago, falling from the 14.7% growth recorded in March.
Julian Evans-Pritchard, senior China economist at Capital Economics, said in a note to clients he doesn't anticipate exports will recover much even if pandemic restrictions ease. Additionally, he said demand for consumer goods will keep dropping "as consumers tilt spending back toward eating out, vacations and other services," the newspaper notes.
U.S. stock futures dropped at the start of Monday as a result of concerns over news that China's exports heavily slowed in April, the New York Times reports.
5. Workers Grapple With New Return- to-Office Stresses
More companies are mandating a return to office, meaning workers must adjust to pre-pandemic routines while also facing new factors such as increased exposure to COVID-19 and higher costs for food and transportation, the Associated Press reports.
A poll conducted in April by the Associated Press-NORC Center for Public Affairs Research shows 39% of employed adults say things have gotten better since returning in-person, while 23% say things have gotten worse and 38% say things have stayed the same. In terms of stress, 41% say it's increased since shifting back to in-office work.
“A lot of people have gotten accustomed to working from home. It’s been two years,” said Jessica Edwards, national director of strategic alliances and development at the National Alliance on Mental Illness, a U.S.-based advocacy group. “For companies, it’s all about prioritizing mental health and being communicative about it. They should not be afraid of asking their employees how are they really doing.”