Editor's Note: Some linked articles may be behind subscription paywalls.
1. UK inflation falls to 2.8%
Inflation in the United Kingdom fell to 2.8% in April, down from 3.3% in March, according to the Office for National Statistics. But experts predict U.K. inflation will increase due to the ongoing U.S.-Iran war.
The BBC added that “analysts expect inflation to rise and reach about 4% by the end of the year, as the Middle East conflict continues to add pressure on global prices.”
2. IHG selected to operate hotels on US Air Force bases
The U.S. Air Force has selected IHG Hotels & Resorts to operate accommodations at bases across the country, with a 50-year agreement due to be completed next year, according to a news release. IHG will partner with Nashville-based Centinel Public Partnerships, which will own, develop and asset-manage the properties.
The initial phase of the plan is to open 23 hotels at U.S. Air Force bases. IHG and Centinel have “worked together to serve military communities through the Privatization of Army Lodging program since 2009, with a portfolio of 70-plus hotels and 12,000-plus hotel rooms across 40 installations.”
3. Hoteliers face legal risks with ambiguous service charges
U.S. legal experts said the lack of transparency in where service charges in a customer’s bill actually go is leading to expensive legal troubles for hospitality operators, CoStar News’ Bryan Wroten reports. The key issue is whether a “reasonable customer understands what that mandatory fee actually means,” according to Amanda Monroe, partner and labor and employment practice group leader at Michelman Robinson.
“It’s necessary to know whether any portion of a service charge is gratuity because of laws that prohibit an employer from taking any of those funds, diverting those funds or holding on to them because they are considered wages of the employees,” Monroe said.
4. New York City hotels avoid 25,000-employee strike
Union officials and hoteliers in New York City have reached an eight-year labor deal involving approximately 25,000 employees, Reuters reports. Differences between the two sides threatened to disrupt hospitality in the city ahead of the FIFA World Cup, which starts in mid-June.
Vijay Dandapani, president and CEO, Hotel Association of New York City and president and chief operating officer of Apple Core Hotels, said the “mood among owners was overall positive after weeks of negotiations.” He added FIFA was not involved in the talks and that “the potential walkout was a very real threat.”
5. Spread of Ebola virus crisis 'unchecked for several weeks'
The Ebola virus crisis in the Democratic Republic of Congo and Uganda is set to last for the foreseeable future, according to the World Health Organization. The last time there was an Ebola outbreak, it lasted for two years. The New York Times added the virus “appears to have been spreading unchecked for several weeks in an area where contact tracing is likely to be very difficult.”
The Africa Centers for Disease Control & Prevention has officially declared the ongoing outbreak a “public health emergency of continental security.” It added that by “May 18, … about 395 suspected cases and 106 associated deaths have been reported in the DRC and in Kampala, Uganda, where two cases and one death have been reported so far.” The U.K. and US have travel warnings in place for the country due to conflict as well as due to the new outbreak.