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1. US Infrastructure Bill Set Back
A delayed vote in the U.S. Congress has set back infrastructure legislation that would provide $550 billion in new funding for projects including roads, bridges, airports and passenger rail service, and high-speed internet expansion, the New York Times reports.
The vote could still take place Friday, but that seems unlikely, the Times reports, as it would hinge on some agreement on a separate "expansive climate change and social safety net bill" that has divided moderate and liberal Democrats.
Legislation passed by the House and Senate, and signed by President Biden, did avert a government shutdown, providing "more than $28 billion in disaster relief and $6.3 billion to help relocate refugees from Afghanistan" and funding the government until Dec. 3, the Times reports.
2. Indian Hotel Chain Oyo Files for $1.1 Billion IPO
In an initial public offering, Indian hotel chain Oyo plans to raise 84.3 billion rupees ($1.14 billion) and issue new shares worth up to 70 billion rupees, CNBC reports.
Backers of the IPO include SoftBank Vision Fund, Lightspeed Venture Partners and Sequoia Capital India.
CNBC reports that Oyo is "the latest among a number of highly valued Indian tech start-ups to enter the public market."
3. Data Suggests Better-Than-Expected Business Demand at US Hotels
The latest weekly performance data from STR, CoStar's hospitality analytics firm, shows U.S. hotel demand and occupancy ticking up when it was expected to fall, STR analyst Isaac Collazo writes for Hotel News Now. This and other trends in the data point to better-than-expected business travel and hotel demand in the U.S.
The data also shows a shrinking gap between the latest weekly performance and what was achieved in the same week in 2019.
Trends indicating stronger business demand include improved performance in the U.S. top 25 markets and at group hotels in those markets.
Meanwhile, speaking at the 2021 Lodging Conference, economist Bernard Baumohl made the prediction that "90% of business travel will come back in the next year or so," which was just one factor giving him optimism for the recovery of the hotel industry, writes HNN's Stephanie Ricca.
4. Merged Benchmark Pyramid Has 210-Hotel Management Portfolio Worth More Than $3 Billion
A merger announced Thursday between third-party hotel management firms Benchmark Global Hospitality and Pyramid Hotel Group will create a company with "a portfolio of 210 properties operating in the U.S., Canada, Caribbean and Europe" with an annual operating budget of more than $3 billion, HNN's Bryan Wroten reports.
The new company, Benchmark Pyramid, is being backed by investment partners Gencom and TZP Group.
“Entertaining the idea of a merger has always been about finding the right fit in terms of both business strategy and employee culture,” Benchmark Pyramid CEO Warren Fields said in the merger announcement. “We recognized early in our discussions there were unique and exceptional advantages in combining the respective strengths of our organizations. Together, Benchmark Pyramid has the depth, capability and DNA to innovate and lead for years to come, which will significantly increase owner value, employee advancement opportunities, and portfolio growth.”
5. US Hotel Profitability Takes a Hit
The latest monthly profit-and-loss data from STR shows U.S. hotel profitability in decline as the summer leisure season ended.
U.S. hotel gross operating profit at the height of summer in July was 111% of what it was in July 2019, but in August was only 94% of the 2019 level, according to STR.
"The only key profitability metric to increase month over month was labor per available room," STR states in a news release, referring to labor costs.