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5 Things To Know for June 21

Today’s Headlines: Widespread Rail Strike Hampers UK Transit; US Hoteliers Ponder What Comes After Summer; Hundreds in Quarantine after COVID Outbreak at Macau Hotel; German Hoteliers Warn about Tough Winter; JetBlue-Spirit Saga Continues
Central Station in Glasgow, Scotland, sits empty on June 21 amid the U.K.'s largest rail strike in 30 years. (Getty Images)
Central Station in Glasgow, Scotland, sits empty on June 21 amid the U.K.'s largest rail strike in 30 years. (Getty Images)
CoStar News
June 21, 2022 | 2:25 P.M.

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1. Widespread Rail Strike Hampers UK Transit

Travel across the United Kingdom has been severely disrupted today — and will likely continue to be throughout this week — amid the country's largest rail strike in more than 30 years, the BBC reports.

The news outlet reports the National Union of Rail, Maritime and Transport Workers is striking over "job cuts, pay and conditions," claiming a current offer for a 2% pay increase doesn't keep up with the rapidly rising cost of living.

The strike has left no passenger trains moving in Glasgow and Edinburgh, with "very little service" in London.

2. US Hoteliers Ponder What Comes After Summer

The hotel industry is enjoying a historically strong period for leisure demand, but U.S. hoteliers say the current pace can't continue forever and they need to prepare for a fall travel season with more typical demand patterns.

Speaking with HNN, hotel operators said they're seeing signs of life for corporate and group demand, which is a positive sign for when the white-hot leisure travel wave begins to cool.

"There has to be a bubble," Rob Smith, executive vice president for full-service hotels and resorts at Aimbridge Hospitality, said. "Leisure transient can't be at these levels forever. But our market mix will change. I don't think things will go back to normal from pre-pandemic. Things changed during the pandemic, but business travel will return — at least in segments where there is competition. If I need to get out to sell my wares, I can't do that via Zoom. That's all coming back."

3. Hundreds in Quarantine after COVID Outbreak at Macau Hotel

Roughly 700 people were locked down in a hotel and casino resort in Macau after an apparent COVID outbreak there, Reuters reports citing Chinese media sources.

The affected hotel is Fortuna, which is located on Macau's main peninsula and is owned by SLM Holdings.

"Footage obtained by the broadcaster and industry publications showed police officers in protective gear sealing the complex to prevent people from entering or leaving," the news outlet reports. "Government officials were also preparing COVID-19 tests for the hundreds of people inside."

4. German Hoteliers Warn about Tough Winter

A German hospitality association warned that hotels in the country could be in store for a third-straight extremely difficult winter unless steps are taken to address issues such as a severe labor shortage, Reuters reports.

At a news conference Tuesday, DEHOGA President Guido Zoellick asked for clearer and more unified rules around COVID-19 policies.

"The mistakes of the past cannot be repeated," he said.

5. JetBlue-Spirit Saga Continues

As Spirit Airlines moves toward a shareholder vote on its proposed merger with Frontier Group, JetBlue Airways continues to sweeten its rival deal for the discount airline, increasing its offer to buy Spirit from $31.50 a share to $33.50, The Wall Street Journal reports.

The newspaper notes that while JetBlue's offer comes in significantly higher than Frontier's, a JetBlue-Spirit combination would also face significantly greater regulatory hurdles, which is why Spirit officials are reluctant to change course.

JetBlue has been successful in wooing shareholders, though, with Institutional Shareholders Services coming out against the Spirit-Frontier deal.

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News | 5 Things To Know for June 21