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5 Things To Know for April 10

Today's Headlines: NYC Won't Renew Migrant Services Operator; Phoenix Hotel Employees Strike; Miami Beach Hoteliers Adjust to Spring Break Rules; Inflation Up in March; Hotel Designers Return to Murphy Beds
More hotel designers are turning to the Murphy bed to maximize the space available in hotel rooms. Pictured is the Motto by Hilton New York City Times Square Flex Bed Queen Guest Room. (Joe Thomas/Hilton)
More hotel designers are turning to the Murphy bed to maximize the space available in hotel rooms. Pictured is the Motto by Hilton New York City Times Square Flex Bed Queen Guest Room. (Joe Thomas/Hilton)
CoStar News Hotels
April 10, 2024 | 2:47 P.M.

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1. NYC Won’t Renew Migrant Services Operator

New York City has chosen to not renew its contract with DocGo, the company that has provided services such as housing in hotels to migrants for the past year, the New York Times reports. The city agreed to a $432 million contract with DocGo last spring.

The company faced allegations of mistreating migrants along with a litany of other infractions during its tenure. The contract will expire this May, and Texas-based Garner Environmental Services will inherit the services temporarily. New York Attorney General Letitia James has started an investigation into DocGo for possible violations of state or federal laws.

ā€œThis will ultimately allow the city to save more money and will allow others, including nonprofits and internationally recognized resettlement providers, to apply to do this critical work, and ensures we are continuing to use city funds as efficiently and effectively as possible,ā€ said Camille Joseph Varlack, chief of staff for Mayor Eric Adams.

2. Phoenix Hotel Employees Strike

Several employees from the Sheraton Phoenix Downtown started picket lines on Tuesday to protest the property’s labor practices, The Arizona Republic reports. This continues a growing trend of hotel employee protests in Phoenix after workers from the Sheraton, Renaissance Phoenix Downtown Hotel and The Westin Phoenix Downtown picketed last week as the city hosted the men’s NCAA Final Four.

"Workers at this point are fed up and tired, and they are ready for a contract. They're ready to get their raises, and they're ready to get their health insurance and pensions," said Victoria Stahl, spokeswoman for Unite Here Local 11.

3. Miami Hoteliers Adjust to Spring Break Rules

Hoteliers still view the new spring break rules in Miami Beach, Florida, as a work in progress, but they are starting to see some positives already, HNN’s Bryan Wroten reports. The city started to enforce rules on nightly curfews, public intoxication, loud music and more this year.

While hoteliers initially worried that demand would severely decrease without the usual spring break demand, properties performed well and saw more family, group and international travel coming in to supplement demand.

ā€œMiami is going to benefit because we are going to be able to shift the mindset that spring break is a fun place to go for everybody, not just people looking to break rules and follow illegal practices,ā€ said Craig Haas, area director of operations at Concord Hospitality.

4. Inflation Up in March

The U.S. Department of Labor reported on Wednesday that the consumer price index was up 3.5% year over year in March, according to the Wall Street Journal. It’s also up compared to February’s 3.2% year-over-year increase.

Even as inflation continues to rise, Federal Reserve Chair Jerome Powell said last week that the current figures haven’t changed his outlook on the economy, the news outlet reports. He said rate cuts are still likely, but investors are bracing for fewer cuts than previously expected this year.

5. Hotel Designers Return to Murphy Beds

Hotel developers trying to make the most out of smaller hotel rooms have turned to the Murphy bed to maximize the space, the Wall Street Journal reports. Motto by Hilton and Disney are among those that offer room options featuring a Murphy bed.

Some hoteliers are hesitant to embrace the fold-out bed because of the cost and concerns over guest safety when folding down the bed, the news outlet reports.

ā€œThe thing that we’re seeing a lot of hoteliers still be nervous about is the guest doing that function themselves,ā€ says Molly Forman, a senior associate at //3877, an architecture and design firm based in Washington, D.C.

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