From the desks of the Hotel News Now editorial staff:
- China retaliates in tariff trade war with US
- UK productivity staggers in first quarter
- Mixed-use hotel developments must penetrate markets
- Rate continues to push RevPAR for US hotels
- Las Vegas hotel union to stage Friday pickets
China retaliates in tariff trade war with U.S.: As expected, China has replied to United States-imposed tariffs by applying their own tariffs on 545 U.S. goods and at the same rate of 25%, according to the BBC. The U.S. tariffs on certain Chinese goods, including steel, went into effect at midnight EDT Thursday.
The BBC quoted Chinese officials as stating the U.S. has started what they called “the largest trade war in economic history,” while the U.S. claims tariffs are necessary to protect U.S. jobs and to balance out unfair Chinese trade practices.
U.K. productivity staggers in first quarter: British productivity has contracted at its fastest rate in a year, according to the latest numbers from the United Kingdom’s Office for National Statistics. The fall has come amid chatter that the Bank of England might be considering an interest rate rise, with its governor Mark Carney stating Thursday that inflation pressure has continued to build, according to Reuters.
The ONS said U.K. productivity “is estimated to have fallen by 0.4% in the first three months of the year, as a result of continued strength in employment growth combined with weaker output growth.” The organization added that the decline was the first decline in output per hour since the second quarter of 2017, and that decline compared with the previous quarter in both the service industry (-0.2%) and manufacturing industry (-1.7 %).
Mixed-use developments must penetrate market: Investors and hoteliers are increasingly looking at developing and operating mixed-use projects to benefit both from business and leisure spend, but the process of identifying and launching such projects is not as easy as merely assuming profits will be generated by such complementary uses, writes Hotel News Now’s Bryan Wroten.
Ideal projects are ones that allow greater penetration into a market. Bob Olson, president and CEO of R.D. Olson Development, said a worthwhile project’s key factor is “what we call livability.”
He said guests need to integrate with the surroundings if they are going to stay at a hotel in a mixed-use development for a few days.
Rate continues to push RevPAR for U.S. hotels: The U.S. hotel industry reported positive year-over-year results in the three key performance metrics during the week ending 30 June, according to data from STR, HNN’s parent company.
Occupancy increased 2.1% to 75.8%, average daily rate rose 3.1% to $131.36 and revenue per available room increased 5.2% to $99.59.
Detroit reported the largest increases in each of the three key performance metrics. Occupancy grew 20.2% to 86.3%, ADR increased 12.9% to $114.17 and RevPAR rose 35.7% to $98.52.
Las Vegas hotel union to stage Friday pickets: Members of the Culinary Workers Union Local 226, which represents approximately 57,000 hospitality workers in Las Vegas and Reno, Nevada, are to stage two picket actions today at two Las Vegas hotels, the D Las Vegas Casino Hotel and the Westgate Resort & Casino.
The action, according to the union, is over negotiations concerning expired union contracts covering approximately 8,000 staff at 12 Las Vegas properties, including Treasure Island, Tropicana and the Golden Nugget.
Compiled by Terence Baker.