5 things to know: 30 October 2017
5 things to know: 30 October 2017
30 OCTOBER 2017 9:42 AM

From the desks of the Hotel News Now editorial staff:

  • Despite momentum, success of tax reform not guaranteed
  • Hotel bars finding success with non-alcoholic drinks
  • Assessing the current dynamics of hotel deals
  • Jerome Powell likely to be named as next Fed chairman
  • Truck bomb, gunmen kill at least 23 at Mogadishu hotel

Despite momentum, success of tax reform not guaranteed: The plan for the U.S. tax reform proposal is for the House of Representatives to take it upon them this week and have both the Senate and House pass bills before Thanksgiving, The Wall Street Journal reports, with the ultimate goal of putting a bill on President Donald Trump’s desk by 1 January 2018. The article notes there are three possible outcomes: a reformed tax system, a compromised version of the bill or “collapse.”

A reconciled bill faces risks in the Senate, where Republicans only hold 52 seats, and any changes could mean the loss of votes from key senators who have shown some hesitancy in their support, The Journal reports.

Hotel bars finding success with non-alcoholic drinks: High-end bars in hotels are selling non-alcoholic cocktails, and people are actually drinking them, The New York Times reports. The Dandelyan at Mondrian London at Sea Containers hotel offers four non-alcoholic drinks, and the bar sells 50 to 100 of them a day, according to The Times story.

“The people ordering them aren’t necessarily teetotalers,” Ryan Chetiyawardana, founder and owner of the Dandelyan, told the newspaper. “They’re often drinkers who want to take a night off from alcohol but still want to go out and socialize.”

The non-alcoholic drinks are considered “as complex” as their alcoholic counterparts, the newspaper reports, but also adding to their appeal is a much lower price point.

Assessing the current dynamics of hotel deals: There’s still room left for hotel owners, brokers and lenders to buy, sell and build hotels, but what are the conditions with which the industry has to work? During Hotel News Now’s recent Deals Roundtable discussion, players in the development and transaction spaces shared their insights into the current deals environment.

One of the main factors in the decision to buy, sell or develop a hotel is the brand of the hotel, which can bring stability to the deal as well as open up other options for the owner, writes HNN’s Bryan Wroten.

Jerome Powell likely to be named as next Fed chairman: Though the decision isn’t final, The Wall Street Journal reports through an anonymous source that President Donald Trump likely will name Federal Reserve governor Jerome Powell as his nominee for chairman of the Federal Reserve.

Powell served as a U.S. Treasury Department official during the George H.W. Bush administration before joining the Fed in 2012. He was an investment banker for the Carlyle Group and a scholar at the Bipartisan Policy Center before joining the Fed board. While it’s believed he would continue to gradually raise short-term interest rates, he’s also reported to be more open to loosening some financial rules the Fed has put in place since the recession, the newspaper reports.

If confirmed by the Senate, Powell would start in early February once Chairwoman Janet Yellen’s term is complete.

Truck bomb, gunmen kill at least 23 at Mogadishu hotel: Gunmen stormed the Nasa-Hablod hotel in Mogadishu, Somalia, by foot minutes after setting off a truck bomb just outside of the hotel, The New York Times reports. The hotel has been a popular location for government ministers, lawmakers and business leaders, according to the article.

The attack killed at least 23 people and wounded at least 30 others, The Times reports. This attack follows a truck bombing that killed 358 people in the city two weeks earlier. Al Qaeda-affiliated group The Shabab claimed responsibility for the hotel attack.

Compiled by Bryan Wroten. 

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