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1. Inflation, Gas Prices Dip, But Rate Increases Will Continue
Optimism abounds on both Wall Street and Main Street as the latest Labor Department data shows inflation slowing and gas prices dipping in July. The Wall Street Journal reports the consumer-price index was up 8.5% year over year in July, still historically high but lower than the 9.1% recorded in June. The month also marked the first time the CPI was flat from month to month in 25 months.
A big reason for that was a 7% drop in gas prices, which The New York Times noted fell below $4 nationally, according to AAA data. Gas prices have been on the decline for 58 consecutive days.
Despite all of this economic optimism, Federal Reserve officials still believe additional rate increases are necessary and likely, Reuters reports.
Speaking at the Aspent Ideas Conference, Minneapolis Federal Reserve Bank President Neel Kashkari said The Fed is still "far away from declaring victory" on inflation.
2. Choice Closes Acquisition of Radisson Hotels Americas
Rockville, Maryland-based hotel brand company Choice Hotels International announced today that it has completed its acquisition of Radisson Hotels Americas, which adds nine brands and 67,000 rooms from Radisson Hotel Group's portfolio in the Americas region, according to a news release. The deal, announced on June 13, is valued at $675 million, including the real estate value of three owned hotels.
The nine brands added to Choice's 12 are Radisson Blu, Radisson, Radisson Individuals, Park Plaza, Radisson RED, Country Inn & Suites by Radisson, Park Inn by Radisson, Radisson Inn & Suites and Radisson Collection.
"Choice Hotels will independently own and control the brands in the Americas and looks forward to working with Radisson Hotel Group to drive the growth, continuity and success of these global brands," the company said in the news release. "The close of this transaction is not anticipated to change Choice Hotels' current capital allocation strategy related to dividend payment policy and planned share repurchases."
3. Ovolo Claims Title of World's First Vegetarian Hotel Group
Executives with Hong Kong-based Ovolo Hotel Group have heralded their move to all-vegetarian menus as the first of its type across the globe, but they aren't just making the move for ethical or sustainability reasons, HNN contributor Selena Oh reports. They believe the move gives them a path to greater profits.
“[We] thrive in doing things a little differently, and it’s incredible what can be achieved where there is no creative barrier. … We have always been confident in our flavors and menu," CEO Dave Baswal said. “Going fully vegetarian was a bold strategic move to showcase that these same flavors can be applied to non-meat dishes as well. We have a team of world-class chefs who have perfected this initiative to satisfy a range of palates."
The company, with 12 hotels and 10 restaurants, began its still ongoing shift to vegetarian menus in 2020.
4. Hotel Rooms for 2023 Super Bowl Already Scarce
Six months out from Super Bowl LVII in Glendale, Arizona, it's already hard to find a Phoenix Area hotel for the event, AZCentral reports, and those with availability are selling at significant rate premiums.
"One of our salespeople was trying to bring a small group for a meeting around Super Bowl time and the cheapest rate was around $1,200 per night," Eric Kerr, vice president of insights and development with Visit Phoenix, told the news outlet. "We know a lot of places have their sites filled up."
The Super Bowl will be played on Feb. 12, 2023, at State Farm Stadium, home of the NFL's Arizona Cardinals.
5. What Top Hotel Execs Think About a Possible Recession
Leaders of the publicly traded hotel companies simply don't believe they'll be sunk by a possible recession. Speaking during the recent second-quarter earnings season, several told analysts they believe travel demand will continue unabated even in the event of broad economic contraction, HNN's Bryan Wroten reports.
Wyndham Hotels & Resorts President and CEO Geoff Ballotti thinks it's much more likely that demand grows rather than shrinks.
“In terms of our customers, they are not lower-end consumers," he said. "They are squarely in the middle class. They represent the vast demographic of America. And what we are seeing is they're earning more, and they are spending more and certainly. With unemployment at historic lows and their wages up from where it was back in 2019, we believe they have ample savings and resources and they are wanting to travel more than ever this year."