From the desks of the Hotel News Now editorial staff:
- Hurricane Harvey could make Texas landfall by Saturday
- US credit rating at risk in debt-ceiling debate
- The factors that come into play during hotel consolidation
- Some central bankers push for policy easing, not tightening
- San Francisco preparing for weekend of protests
Hurricane Harvey could make Texas landfall by Saturday: Hurricane Harvey is making its way toward Corpus Christi, Texas, as a Category 2 hurricane with the potential to strengthen to Category 3 when it makes landfall, possibly by Saturday, The New York Times reports. The hurricane could drop more than 35 inches of rain in some areas.
Seven Texan coastal cities have ordered mandatory evacuations of some areas, the newspaper reports, and some school districts have canceled classes today. As the exact path of the hurricane is unknown, governors of Louisiana and Texas have declared emergencies.
U.S. credit rating at risk in debt-ceiling debate: Playing chicken with the U.S. debt ceiling could put the country’s AAA credit rating in peril, The Wall Street Journal reports.
“Brinkmanship over the debt limit could ultimately have rating consequences, as failure to raise it would jeopardize the Treasury’s ability to meet debt service and other obligations,” the newspaper reported Fitch Rating’s sovereign rating group wrote.
Some Republicans in Congress are pushing the government to make payments to bondholders while delaying other payments, such as Social Security and veterans benefits, to avoid a technical default—something the Treasury secretary has argued against, The Journal reports.
The factors that come into play during hotel consolidation: When a hotel company looks to acquire or merge with another company, it needs to assess the other company’s culture and decide how that would play out in the process, panelists at the 2017 Hotel Data Conference said. In many cases, it’s important to make sure the two cultures will mesh well, but that’s not always necessary, writes HNN’s Dana Miller.
“We did a small acquisition a few years ago where we were acquiring a portfolio,” said Bernie Moyle, EVP and COO of RLH Corporation. “We weren’t worried about the culture, we were interested in the portfolio, and when we acquired the contracts, we took over the portfolio and we exited within six months. Everyone was gone … because we knew the culture wasn’t going to work.”
Some central bankers push for policy easing, not tightening: Central bankers from emerging markets—many in Latin America and Asia—are seeking lowered interest rates during policy meetings with representatives from central banks around the world, The Wall Street Journal reports. The annual banking summit is taking place at Jackson Hole, Wyoming.
Indonesia’s central bank lowered its benchmark rate from 4.75% to 4.5%, the newspaper reports, and this was after India’s bank reduced its lending rate to the lowest it’s been in more than six years.
Higher interest rates in emerging markets have helped attract foreign capital, so lowering rates at this point “might seem risky,” according to The Journal article. However, low inflation in India and Indonesia has provided some flexibility in different avenues for growth, and lowered rates across the continent haven’t come with negative consequences or signs of heavy capital outflow.
San Francisco preparing for weekend of protests: San Francisco is the latest large city expecting days of protests to fill its streets, Reuters reports, with groups on the far right and left likely to clash. Previous protests of this nature have included acts of violence, most notably the death of a counter-protester and injuries to 19 others when a man “thought to have neo-Nazi sympathies” drove his car into a crowd in Charlottesville, Virginia.
San Francisco Mayor Ed Lee has told residents to boycott the rally by Patriot Prayer, a white nationalist group.
“I ask our public and our residents of the San Francisco Bay Area to honor our request to not dignify people who are coming in here under the guise of patriot and prayer words to really preach violence and hatred,” Lee said during a press conference.
Compiled by Bryan Wroten.