From the desks of the Hotel News Now editorial staff:
- AccorHotels advances in home rentals, collaborative workspaces
- Senate votes against ACA repeal
- Execs pull no punches in Europe’s rate-parity debate
- Fed not expected to raise interest rates
- Thailand hotel investment nearly $320m this year
AccorHotels advances in home rentals, collaborative workspaces: AccorHotels has had a busy week with several announcements, the most recent including the company’s decision to bundle its three recent acquisitions (Onefinestay, Travel Keys and Squarebreak) under the Onefinestay brand, according to a news release, opening up more than 10,000 homes to travelers around the world. Javier Cedillo Espin has been appointed CEO of Onefinestay and will be responsible for the portfolio.
“With this new step in consolidating our leadership position, Onefinestay now has a sound platform combining brand excellence, a vast and complementary offer and distribution efficiency,” Cedillo Espin said in the news release. “We are hugely excited about the global development potential for our network. Our guests are always asking for more places where they can enjoy our professional hospitality and concierge experience and the integration of these three innovative brands is the answer.”
AccorHotels also entered into a joint venture to further grow collaborative workspace company Nextdoor in France and the rest of Europe, according to a news release. The company projects eight operational sights in France with more than 4,000 clients by the end of 2017.
Senate votes against ACA repeal: Despite a narrowly successful vote Tuesday in the Senate to open up debate about a bill to replace the Affordable Care Act, senators voted 43-57 in a vote later in the day to replace the health care legislation with the Senate Republicans’ “most comprehensive plan,” the New York Times reports.
“The fact that the comprehensive replacement plan came up well short of even 50 votes was an ominous sign for Republican leaders still seeking a formula to pass final health care legislation this week,” the article states.
The Senate will move forward with debates, amendments and likely another vote this week.
Execs pull no punches in Europe’s rate-parity debate: Leading revenue-management executives in Europe spoke with HNN’s Terence Baker about the rate-parity debate and what they hope to see come out of it. And while online travel agencies might not be in hoteliers’ favor, they remain a major partner in achieving revenue and profit goals, Baker writes.
“Insisting on rate parity across all distribution programs, including loyalty program customers, in my opinion is unfair,” said Gopakumar Menon, VP of revenue and distribution at Highgate Hotels. “The (online travel agency) world has undergone and is undergoing significant consolidation, where merely signing up to access exclusive rates has become a norm. Competing with these large loyal databases (of guests) with a rate higher than a rate they can access on an independent hotel website is extremely challenging and increases distribution costs.”
Fed not expected to raise interest rates: Federal Reserve officials are expected to conclude their two-day meeting today without increasing interest rates, The Wall Street Journal reports. Officials are reportedly concerned about low inflation, which means they aren’t likely to call for an increase at this time. Inflation has “undershot the Fed’s 2% target for three consecutive months,” the Journal states.
The CME Group reported federal-fund futures place a 96.9% likelihood the Federal Reserve will keep the federal-funds rate the same, the articles states. It also reports a 91.6% probability of an unchanged rate in September and an 87.9% probability of the same in November.
Thailand hotel investment nearly $320m this year: Jones Lang LaSalle Hotels & Hospitality Group reports that Thailand has seen 10.7 billion Thai baht ($319 million) invested in the nation’s hotel industry, according to a news release. Four transactions comprising five hotels are behind the country’s large investment volume.
“As a comparison, 2016's full-year investment volume was only THB 9.6 billion ($286.6 million),” Mike Batchelor, head of investment sales Asia at JLL Hotels and Hospitality Group, said in the release. “The robust investment activity recorded in the first half reflects investors' continued appetite for hospitality assets in Thailand and confidence in the long-term outlook for the country's tourism industry.”
JLL forecasts Thailand will see 14 billion Thai baht ($418 million) in hotel investment by the end of 2017.
Compiled by Bryan Wroten.