From the desks of the Hotel News Now editorial staff:
- Pebblebrook-LaSalle deal gets shareholder approval
- Strike ends in Honolulu
- Accor officials reaffirm earnings goals
- Trump mad at Fed over interest rates
- Foster shortage leads to hotel stays in Seattle
Pebblebrook-LaSalle deal gets shareholder approval: In a near unanimous vote, shareholders for both Pebblebrook Hotel Trust and LaSalle Hotel Properties approved the former company’s acquisition of the latter, writes Hotel News Now senior reporter Bryan Wroten. The deal is expected to officially close on Friday.
While Pebblebrook’s purchase is expected to give it considerably more scale, the deal isn’t expected to spark a wave of mergers and acquisitions activity among hotel real estate investment trusts, analysts said.
“It certainly was not smooth sailing,” said Mike Bellisario, VP and equity research senior analyst at Baird. “It’s unique to these two names. It’s not a sign of more public-to-public deals to come.”
Strike ends in Honolulu: Hotel workers in Hawaii approved a deal to with the Kyo-ya ownership group to end a 51-day strike at several properties in Hawaii managed by Marriott International, according to the Honolulu Star Advertiser. The strike, which impacted 2,700 workers in the market, was one of many affecting hotels across the U.S. in recent weeks that have since been resolved.
The new deal covers four years and includes a $6.13 per hour increase in pay and benefits over that period.
A statement from Kyo-ya to the newspaper noted the ownership group looks “forward to welcoming (employees) back and look forward to more years of working together to successfully provide world-class service to our guests.”
Accor officials reaffirm earnings goals: Executives with AccorHotels have reiterated they plan to double earnings before interest, taxes, depreciation and amortization to €1.2 billion ($1.35 billion) by 2022, according to a report from Reuters. AccorHotels was one of the few companies to increase its guidance numbers during the third-quarter earnings season.
“Our targets are ambitious yet achievable. AccorHotels is more agile, more profitable, and more global, with a well-balanced brand portfolio,” Chairman and CEO Sébastien Bazin told Reuters.
Trump mad at Fed over interest rates: U.S. President Donald Trump isn’t being coy about his feelings on Federal Reserve policy and the people making those decisions, saying he’s “not even a little bit happy with my selection of” Jerome Powell as chair of the Fed, amid continued interest rate increases, CNBC reports.
"I'm doing deals and I'm not being accommodated by the Fed," Trump told The Washington Post. "They're making a mistake because I have a gut and my gut tells me more sometimes than anybody else's brain can ever tell me."
Foster shortage leads to hotel stays in Washington: Hotels in Washington are seeing a spike in stays from foster children lacking foster homes, according to a report from the Seattle Times. The problem is particularly acute in King County, which has seen more than 1,000 children housed at hotels in the past year.
The newspaper notes the practices of housing these homeless children in hotels has grown tenfold since 2015.
Compiled by Sean McCracken.