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1. EU To End Era of Negative Interest Rates
The European Central Bank will increase interest rates to 0% or higher after an eight-year stretch of negative rates, the bank's President Christine Lagarde said. The Wall Street Journal said the move is being made to combat record-high inflation.
“With the inflation outlook having shifted notably upward compared with the pre-pandemic period, it is appropriate for nominal variables to adjust — and that includes interest rates,” Lagarde wrote in a blog post.
2. Service Properties Trust Announces Planned Sale of 22 Hotels
Service Properties Trust officials announced the sale of a portfolio of 22 hotels for $141 million, as the company continues its efforts to sell off 68 Sonesta-branded properties. According to a news release, the company has sold 42 hotels so far for just shy of $400 million.
The sales of the majority of the 22 hotels are expected to close in the second quarter.
“The hotels we are selling are non-core to SVC," President and Chief Investment Officer Todd Hargreaves said in the release. "We expect that upon completion of this disposition initiative, SVC will have a higher-quality lodging portfolio and enhanced liquidity.”
3. Louvre Hotels Group Expects IT Investments To Fuel Growth
While looking to grow its midscale and extended-stay presence across Europe, Paris-based hotel brand Louvre Hotels Group is expecting to see dividends from its investment in technology and distribution, HNN's Terence Baker reports.
Max Cergneux, chief development officer at Louvre Hotels Group, said during a video interview with Hotel News Now at the International Hotel Investment Forum that improving technology is critical for his company's future, and a new distribution system will help Louvre connect with roughly 600 global online travel agencies.
4. Turkey Sees Tourist Surge
April saw the number of international tourists triple compared to 2021, Reuters reports. The country, long a destination for Russian and Ukrainian tourists, is now seeing arrivals driven by travelers from the U.K., Germany and the Netherlands. The news outlet reports part of the surge is driven by a drop in local currency value.
"We are really a cheap destination now. Not only Bodrum but Turkey itself, which has again become a very attractive destination because of the weak lira," said Ahmet Aras, mayor of resort city Bodrum.
5. Ukrainian President Pleads To Businesses in Davos
During the opening day of the World Economic Forum, Ukrainian President Volodymyr Zelensky asked for the backing of international businesses, The New York Times reports. In a video address to the forum, Zelensky said his country would be a great place for business once the war with Russia ends.
“It is necessary to set a precedent so that your brands will not be associated with war crimes,” he said. “We offer every company that leaves the Russian market to continue operating in Ukraine.”