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1. The death of the hotel minibar
Minibars were once a mainstay in hotels across the U.S., and CNBC recently took a look at why that's no longer the case.
The minibar became a widespread concept in the mid-1970s, pioneered by a Hilton property in Hong Kong. Minibars helped Hilton see overall revenue grow by 5% soon after amid a 500% jump in drink sales.
Now, they suffer because of an array of convenient drink and dining options for guests.
"Instead, hotels have started to shift their focus toward modern alternatives: contactless lobby marketplaces, hotel bars and strategic partnerships with delivery apps," the news outlet reports. "Wyndham teamed up with DoorDash in 2019, offering $0 delivery fees and 2,000 sign-up points at its more than 3,700 U.S. locations. Marriott and Uber began their partnership in 2021, letting guests earn hotel points when ordering with Uber Eats from designated hotels. In 2024, Hilton named Grubhub its go-to delivery service, giving guests perks like a free month of Grubhub+."
2. Investors banking on more favorable interest rate policy
Markets seem to be expecting a lower interest rate environment by 2026 as President Donald Trump openly talks about replacements for current Federal Reserve Chairman Jerome Powell, Reuters reports.
"Powell's term is up in May, and he could be replaced by someone super friendly to the administration," said Jack Ablin, chief investment officer of Cresset Capital in Chicago. "I think this is probably a bigger factor than a lot of investors believe."
3. Why the transaction market could soon open up
The stubbornly quiet hotel deals market could soon get more active as more investors make peace with the current environment, said Kevin Davis, Americas CEO at JLL Hotels & Hospitality.
CoStar News' Natalie Harms interviewed Davis at the NYU International Hospitality Investment Forum, where he said the second half of this year could see elevated transaction activity.
"I think what's going on is there's a bit of a resetting and reframing as to how investors are thinking about the market," he said. "As we get into probably late third quarter, fourth quarter, we can start to see some resolution, and people start to just transact and again, supported by the sales market, supported by a strong debt market."
4. San Francisco's next big hotel deal could be a major sign for market
While there have been signs that San Francisco could be turning the corner as a hotel market, SFGate reports the looming sales of two of the city's largest hotels — the Hilton San Francisco Union Square and the Parc 55 — could be harbingers of the city's tourism fate. The properties were formerly owned by Park Hotels & Resorts but were put into receivership as the real estate investment trust struggled with the high costs of the properties amid a low demand environment in the city.
The receiver running the hotels has asked for an extension to find a sale of the properties.
"If the court does not extend the deadline, and a deal can’t be finalized, it is expected that lenders would begin foreclosure proceedings," the news outlet reports. "Some hotel consultants have suggested that the hotels become residential housing if a deal cannot be struck to continue them as hotels."
5. London Heathrow officials warn of business demand drop from US
Officials with Heathrow airport in London see a "challenging" environment for transatlantic flights due to economic uncertainty in the U.S. and there has already been signs of declining business travel from the U.S. to the U.K., The Financial Times reports.
Heathrow officials added "while passenger and cargo volumes on North American routes had risen for the first five months of the year compared with 2024, the impact of 'economic uncertainty across North America' had made this market 'more challenging,"' according to the news outlet.