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1. Recession No Longer a Sure Thing
Many economists believed the U.S., and most of the global economy by extension, would be in recession by this point, but now the Wall Street Journal reports the idea that a recession is unavoidable is less en vogue due to drops in energy prices and a greater degree of resiliency to high interest rates than expected.
"An inverted yield curve tells us one thing with reasonable certainty: Investors don’t think the current level of interest rates can last," the newspaper notes. "At some point rates bite, the economy slows, inflation comes down and the [U.S. Federal Reserve] cuts rates again. There’s a complication in that Fed holdings of long-term Treasurys may be suppressing their yields, but the basic point is that markets and most economists agree that at some point rates are going to come down again."
2. Accor Sells Its HQ for €460 Million
Officials with Paris-based Accor have announced the €460 million ($505 million) sale of the company's global headquarters to The Valesco Group, HNN's Terence Baker reports. Accor bought the building in 2018 for €363 million and will lease the offices for 12 years.
Foucault de la Rochère, Accor’s chief efficiency officer, said: “This sale reflects both our ability to execute strategic initiatives on behalf of shareholders and the quality of our signature.”
3. Hoteliers Expected To Prep for Active Shooter Scenarios
HNN's Bryan Wroten reports security experts believe hotels are underprepared for active shooter situations and collectively the industry should be doing more.
“It’s an unfortunate set of circumstances, but we have to look the devil in the eyes, so to speak, and be prepared,” said Sal Caccavale, principal at Global Hospitality Security Solutions.
He added hotels have a reasonable duty of care, which includes creating crisis plans and active plans and educating employees.
4. Summit Refinances Credit Facility
Hotel-focused real estate investment trust Summit Hotel Properties refinanced its $600 million senior unsecured credit facility, HNN's Bryan Wroten reports. The refinancing came in the form of a $400 million new unsecured revolving credit facility and a $200 million senior unsecured term loan.
“The credit facility further enhances our well-positioned balance sheet by extending maturity dates, maintaining pricing, and preserving overall flexibility to execute on our strategic initiatives,” said Trey Conkling, executive vice president and chief financial officer, in the news release.
5. Union Workers Demonstrate in LA
Nearly 200 hotel workers demonstrated in Los Angeles Thursday following Unite Here Local 11's authorization to strike earlier this month. Union officials said they were pushing for better wages "required to afford housing in Los Angeles."
"The union is seeking to create a hospitality workforce housing fund, in addition to better wages, healthcare benefits, pension and safer workloads," the union said in a news release. "Contracts expire June 30, and employers like Hyatt, IHG, Hilton and Marriott have failed to agree to anything close to the wages workers say they need to live with dignity in the cities where they work. The union could call for a strike at dozens of hotels with more than 15,000 workers as early as July 4th weekend. This would be the largest hotel worker strike in modern U.S. industry."