From the desks of the Hotel News Now editorial staff:
- New NYC rules could spur closures
- Hotel REITs offer updates
- Leaders paint a dreary picture at NABHOOD
- Record rainfalls expected from Hurricane Sally
- Global economy fares better than expected
New NYC rules could spur closures: A bill in front of New York City Council mandating that hotels must keep their staffs employed for 90 days in the event of a sale has some concerned the industry could be hurt and hotels will continue struggling through a period of low demand and more closures, The Wall Street Journal reports.
Councilman Mark Levine said the bill, which requires hotels to notify guests about service disruptions including hotel strikes, also gives guests important information about their stays.
“They should be given an opportunity to make that decision (to not cross a picket line). It’s not something that would be sprung on them when they get off the plane and show up,” Levine said.
Hotel REITs offer updates: Both Host Hotels & Resorts and Park Hotels & Resorts have offered business updates this week, detailing recent performance at their portfolios.
Host executives said they’ve continued to see revenue per available room improve on a month-to-month basis. Increasing 10.4% in July and 33.7% in August. The company now has 70 of 80 properties open, accounting for 88% of its total room count.
Park officials said they now have 46 of 60 properties open—or 59% by room count—with occupancy reaching 38.8% in August despite their portfolio being largely group focused.
Leaders paint a dreary picture at NABHOOD: Speaking during the online conference for the National Association of Black Hotel Owners, Operators and Developers, hotel industry leaders said there is pain ahead for hoteliers trying to survive the ongoing crisis, HNN’s Robert McCune reports.
“If you’re (a hotel owner with a property) running 30% occupancy … you’re not paying debt service. … Leisure destinations are doing better than the urban locations, but it’s still not enough to weather the storm, so eventually things are going to come to an end, I believe,” Pyramid Hotel Group Principal and CEO Warren Fields said on the “View from the top” session.
Record rainfalls expected from Hurricane Sally: As Hurricane Sally makes landfall in Alabama as a Category 2 storm, experts warn of “historic, life-threatening flooding,” USA Today reports.
Sally made landfall at about 5:45 EST in Gulf Shores, Alabama, the news outlet writes, and is forecast to produce up to 35 inches of rain in some areas. “Almost 500,000 homes and businesses were without power in Alabama, Florida and Louisiana. Those numbers were expected to rise as Sally moved deeper inland.”
Global economy fares better than expected: The Organization for Economic Cooperation & Development has increased its 2020 outlook, now projecting the global economy will shrink 4.5% for the year, after earlier projections of a 6% contraction, Bloomberg reports.
“The better view reflects the strong economic pickup in recent months and the vast injection of public resources,” the news agency reports. “The U.S. unemployment rate fell more than forecast in August, while China this week reported positive retail and industrial-production data.”
Compiled by Sean McCracken.