Projecting economic impact of second COVID-19 wave: The Organization for Economic Co-operation and Development has released a stark picture of what a second wave of COVID-19 cases could mean if governments were forced to return to full lockdowns. The OECD predicts world economic output would fall 7.6% in 2020 before climbing back 2.8% next year. If a second wave of infections is avoided, global economic activity is expected to fall by 6% in 2020.
If a second wave occurs, gross domestic product in the Eurozone is expected to decline 11.5% in 2020, while GDP in the U.S. will decline 8.5%. The Paris-based body said a second wave at its peak would result in unemployment in the OECD economies more than double the rate prior to the outbreaks, with little recovery in jobs next year.
Premier Inn completes new share allocation: Whitbread PLC, the parent company of Premier Inn, the United Kingdom’s largest economy hotel brand, has completed its one-for-two share issue announced in May to help it through the COVID-19 crisis with an approximately £1 billion ($1.27 billion) cash boost, according to a news release on the London Stock Exchange.
The firm said 61,452,547 new ordinary shares out of an available 67,277,416, or 91.4%, started trading Wednesday at a starting price of £15 ($19.06) each. CEO Alison Brittain said the issue demonstrated “the high level of confidence in our strategy from both our institutional and retail shareholders.”
IHG continues deals amid COVID-19 turbulence: InterContinental Hotels Group, while facing challenges due to the COVID-19 crisis, remains active in deals and development, Elie Maalouf, the company’s CEO of the Americas, told Hotel News Now’s Dana Miller. In the first quarter of 2020, he said, the British firm globally executed more than 100 deals, which was a pace “in line with the overall industry but slower than previous years.”
“Even in the first quarter, we had 20 deals in the Americas for our newest brands Avid and Atwell. That shows you—people (are) still willing to commit to new brands. … We’re going to continue to grow those two brands even during these times,” he added.
“(The hotel industry is) such an important part of the U.S. economy. We may not be a big part of the stock market capitalization … but in terms of employment and (gross domestic product), we’re a big part.”
MGM announces further Las Vegas hotel reopenings: Following the 4 June decision by MGM Resorts International to reopen its Bellagio, Excalibur, MGM Grand Las Vegas, New York-New York and The Signature properties in Las Vegas, the firm announced Wednesday that additional MGM hotels will reopen in the next few weeks, according to a news release.
Its Aria and Luxor hotels are scheduled to reopen on 25 June, while its Four Seasons Las Vegas and Mandalay Bay hotels will follow on 1 July. Acting CEO and President Bill Hornbuckle said “it was exciting and emotional to see the energy in Las Vegas last week as we welcomed back our employees and reopened our doors.”
U.S. recession officially began in February, experts say: According to the National Bureau of Economic Research, the United States officially entered a recession in February that marked the end of 128 months of consecutive expansion, the longest period since reliable records began in 1854, The Wall Street Journal reports.
The newspaper reports that the NBER “typically waits until a recession is well under way before declaring it has started,” as economic indicators such as the Dow Jones Industrial Average show a rise of “461 points on Monday, up 1.7% and just 6.7% shy of its February highs.”
Compiled by Terence Baker.