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1. India's Leela hotels owner to seek smaller IPO
The owner of Indian luxury hotel chain The Leela has cut its company's initial public offering size by 30% to $409 million due to a smaller debt load, Reuters reports. Schloss Bangalore is seeking a valuation of up to $1.7 billion.
The IPO prospectus shows Schloss is selling shares worth a total of 25 billion rupees ($292.2 million), down 17% from its original plans. Brookfield Asset Management is selling shares worth 10 billion rupees, about 8% of its overall stake.
The company filed its IPO in September 2024 to service its debt but has been able to lower those debt obligations in the months since, CEO Anuraag Bhatnagar told the news agency.
2. UK inflation rose 3.5% in April
Inflation rose 3.5% on an annual basis in April in the United Kingdom, up from 2.6% in March, the BBC reports. The main drivers of the increase were water, gas and electricity prices going up April 1 alongside other bills.
The cost of services rose 5.4% in April, and some economists say that is due to the rise in National Insurance contributions for employers as well as a higher minimum wage going into effect, according to the article.
The Bank of England previously projected inflation to peak at 3.7% between July and September before falling.
3. Extended-stay hotels feel effects of normalization
In a Hotel News Now podcast interview, Colin Sherman, director of hospitality market analytics for CoStar Group in Texas and the U.S. South, said the extended-stay hotel sector is starting to see performance normalize after years of strong demand following the pandemic.
U.S. extended-stay hotel room supply grew 4% year over year in the first quarter, which coupled with a year-over-year decline in occupancy of 74% to 70% led to revenue per available room averaging $84, a 1% year-over-year increase.
"There's the added pressure of supply, but also, just in general, demand as well, so I can't say it's fully supply," Sherman said. "There's been some normalcy coming back to the extended-stay sector, as with traditional hotels, that we're seeing. That's also a major component of that RevPAR downgrade."
4. Americans pull back on international travel
Several international travel and tour organizations have pointed out a decline in demand from Americans, the BBC reports. There's growing concern among American travelers over flight safety and disruptions, the number of U.S. citizens being detained when reentering the country and anti-American sentiment abroad.
"Lawful permanent residents who are worried they will not be allowed to reenter the United States based on changing immigration enforcement are just canceling trips," said Tamara Lidbom, owner of Anytime Travel Agency. "They have decided it is safer to vacation in the United States and avoid the potential risks associated with leaving the country and attempting to reenter."
5. FAA says Newark airport will reduce flights
Following major disruptions at Newark Liberty International Airport, the Federal Aviation Administration said it's requiring the airport to reduce the number of flights it manages, Reuters reports. It did not specify which flights would be cut but that it would amount to three to seven flights per hour based on the time of day.
Flights at the airport in recent weeks have faced delays up to five hours and many cancellations, according to the article. The airport has working through equipment outages, runway construction and air traffic control staffing issues.