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1. US inflation hit from Iran conflict expected to be milder compared to 2022 spike
New analysis from the Financial Times finds that the inflation shock the United States is currently experiencing due to the Iran war is likely not to reach highs seen in 2022 at the beginning of Russia's invasion of Ukraine.
"An FT review of forecasts collated by Consensus Economics shows that inflation projections have on average increased by 0.8 percentage points since the Middle East conflict began in late February," reads the article. "This is far below the 2.3 percentage point rise in economists’ forecasts three months after Russia’s full-scale invasion of Ukraine in February 2022, which triggered a race in Europe to secure alternative gas supplies."
Economists are reportedly optimistic that the conflict is short-lived and deeper disruptions to the global oil market will be avoided, per the FT article.
2. Hilton debuts another brand targeting college towns
Hilton is planning on growing its presence in college towns with the unveiling of Undergraduate by Hilton, a new upper-midscale lifestyle hotel brand that will work in parallel with its Graduate by Hilton brand, CoStar News Hotels' Sean McCracken reports.
"There's certain flexibilities that come with an Undergraduate — proximity to campus might be one of those," said Kevin Osterhaus, Hilton's president of global lifestyle brands. "The size of the market is something that certainly might differentiate between where a Graduate is based, either on the size of the university or the market, but I can see markets based on the dynamics where we would have both."
Hilton is looking for both conversion and new-build opportunities for the new brand and expects the first Undergraduate hotel to open in 2027.
3. MGM Resorts attracts acquisition offer from People Inc.
People Inc., led by Barry Diller, is gearing up to make an offer on casino hotel company MGM Resorts, The New York Times reports. People Inc. already owns a 26.1% stake in MGM, and Diller — who sits on MGM's board — is expected to bid $48.30 a share in cash for the remaining 73.9%.
In a letter to People Inc.'s shareholders in April, Diller said: "MGM Resorts is an extraordinary operation powered by a compelling mix of iconic resort destinations, scalable digital platforms, premium brands, an expanding global presence, and, under its CEO Bill Hornbuckle, an outstanding management team. MGM owns 40% of the Las Vegas Strip — an entertainment nucleus that simply cannot be replicated anywhere in the world."
4. Japanese tiny hotel room company eyes US expansion
Known for its small rooms and high-quality amenities, Japanese company APA Hotels is expected to expand into major U.S. gateway cities, The Japan Times reports. CEO Isshi Motoya said he plans to boost international revenue and push further into upscale hospitality, marking a new phase for a brand long associated with snug spaces and hyper-efficient design.
APA Hotels' expansion into North America began with an acquisition of Vancouver-based Coast Hotels about a decade ago. Coast has 44 franchised properties in North America. APA also purchased and rebranded a hotel in Seattle in 2024, marking its first directly operated hotel in the U.S.
5. Hawaii's tourism expected to struggle this summer
Devastating storms and a decline in international inbound travelers are affecting Hawaii's tourism activity ahead of its summer peak season, according to SFGate. The state's two storms in March caused severe flooding and an estimated $300 million loss in tourism revenue.
“Since the Kona Low storms this spring, our booking pace has been averaging down per day, and that trend has continued through today,” David Hu, president and CEO of A|T Collective, the parent company behind vacation wholesaler Pleasant Holidays, told SFGate in an email. “With summer now weeks away and little recovery in sight, it’s shaping up to be a difficult season.”
On top of the recent storms, Hawaii also faces existing challenges from slow post-pandemic rebound, recovery from the Lahaina wildfire and a decline in Japanese visitors. According to the article, "visitors from the West Coast, Hawaii’s largest market, dropped 4.8%" in April.