From the desks of the Hotel News Now editorial staff:
- Fed’s rate approach remains unclear
- Deutsche Bank announces sweeping changes
- Accor, Katara investments spark new era for Kasada
- Hotel stocks up 6.2% in June
- Cancún megaresort gets approval
Fed’s rate approach remains unclear: While it seemed like the Federal Reserve was moving toward a likely interest-rate cut to help stimulate the U.S., recent positive jobs numbers have left members of the Fed wondering whether a cut would be needed, Reuters reports.
Outside sentiment could play into the decision as well.
“They are in a bit of a bind,” said Karim Basta, chief economist at III Capital Management, told the news outlet. “On the surface, the data, in my opinion, doesn’t really support an imminent cut, but markets are expecting it, and I do think there’s a risk at this stage that they disappoint.”
Deutsche Bank announces sweeping changes: Deutsche Bank AG, Germany’s largest bank, has announced a slate of company-altering changes, including an exit from equity sales and trading, Bloomberg reports. The move includes plans to lay off about 18,000 of the company’s workforce to approximately 74,000 employees.
The company also plans to wind down what it views as non-core investments and cut €6 billion ($6.73 billion) in costs.
The global bank is expected to come out of its restructuring efforts much smaller, said CEO Christian Sewing.
Accor, Katara investments spark new era for Kasada: Katara Hospitality and Accor combined to put $500 million into Kasada Hospitality Management to help spur a wave of growth across sub-Saharan Africa, and HNN’s Terence Baker reports Kasada CEO Olivier Granet is feeling optimistic about the future.
“The origin of the fund is based on analysis on the market and what is needed,” he said. “There is a lot of expectation about Africa, especially sub-Saharan Africa, but the reality is that there is a limited number of hotels. We are an independent platform identifying opportunity and putting into place the right financing structure.”
Hotel stocks up 6.2% in June: The Baird/STR Hotel Stock Index saw a 6.2% increase for the month of June, according to a news release from HNN’s parent company STR. The index is up 21.3% since the beginning of the year.
In the release, Michael Bellisario, senior hotel research analyst and VP at Baird, said the increases are indicative of the health of not just the hotel industry.
“The broader stock market rebounded in June on optimism about a trade deal and that lifted the hotel brands more than the hotel REITs, although both sub-indices still were relative outperformers during the month,” he said. “However, RevPAR growth expectations remain fairly muted heading into the second half of the year.”
Cancún megaresort gets approval: A 3,000-room hotel in Cancún, Mexico, has received environmental approval from the Mexican government, Mexico News Daily reports. The $526-million Gran Island Hotel will be built in two phases, with 2,000 rooms online when it is expected to open in three years, according to the news outlet.
It’s expected the resort will create jobs for as many as 4,650 workers.
Compiled by Sean McCracken.