5 things to know: 4 June 2018
5 things to know: 4 June 2018
04 JUNE 2018 9:53 AM

From the desks of the Hotel News Now editorial staff:

  • MGM Resorts, Las Vegas union reach tentative agreement
  • Marriott showcases new vision for Sheraton
  • Rapid growth in the works for Capella Hotel Group
  • Volcano erupts in Guatemala, kills dozens
  • AccorHotels considers stake in French airline 

 MGM Resorts, Las Vegas union reach tentative agreement: A tentative agreement was reached over the weekend between the Culinary Workers Union Local 226 and MGM Resorts International, which covers “nearly half of the 50,000 employees threating to strike in Las Vegas,” the Chicago Tribune reports.

The union announced in a Tweet late Saturday: “BREAKING. We are pleased to announce that a tentative agreement has been reached with @MGMResortsIntl. The historic new 5-year contract covers approximately 24,000 workers at 10 casino resorts on the Las Vegas Strip.” 

This comes after a tentative agreement was reached on Friday between the union and Caesars Entertainment. Still, negotiations continued Monday between the culinary and bartenders unions and other resort and casino operators in Las Vegas. 

Until the deals are finalized, and as negotiations with other operators continue, there remains the prospect of a citywide labor strike, but a legal expert in the city told HNN’s Bryan Wroten for a story last week that as long as talks continue in good faith, it’s likely there will be no call to walk out or picket. 

Keep watching Hotel News Now for updates on this story.

 Marriott showcases new vision for Sheraton: Marriott International is showcasing its “transformation vision” for Sheraton Hotels and Resorts at this week’s NYU International Hospitality Investment Conference through a 4,200-square-foot vignette, according to a news release. Owners are responding well to the new vision, the release states, and are committing “an estimated half-a-billion dollars in renovations of hotels across the U.S.,” while “globally, 25% of Sheraton hotels have committed to renovations with some already underway.”

“From the moment we closed the Starwood merger in late 2016, the revitalization of Sheraton has been a top priority for our company,” Arne Sorenson, president and CEO of Marriott, said in the release. “We knew that the way to restore this incredible brand was focus and collaboration with our hotel owners.”

For coverage from the NYU conference, check back with HNN during the week.

 Rapid growth in the works for Capella Hotel Group: With nine properties in operation, Singapore-based Capella Hotel Group has plans for rapid growth that include adding a third brand to its offerings, CEO Nicholas Clayton told HNN contributor Harvey Chipkin.

The company plans to open three hotels over the span of the next eight months and has 10 properties in the development pipeline, Clayton said. He added that he sees Asia as a “ripe market” for expansion and tourism, with the company’s next three openings taking place in Bali; Sanya, China; and Bangkok.

Volcano erupts in Guatemala, kills dozens: The Fuego volcano in Guatemala, which last erupted in February, erupted again on Sunday, killing at least 25 people and leaving hundreds injured and missing, BBC News reports.

In response, Guatemala President Jimmy Morales has declared three days of national mourning, the news outlet reports.

Thousands of travelers have also been stranded at La Aurora airport, on the southern part of Guatemala City, after the airport closed following the eruption, the Independent reports. Departures to Atlanta, Houston, Los Angeles and Miami are cancelled. Authorities say they are working to re-open the airport.

In similar news, Reuters reports Hawaii’s recent volcanic eruption has caused a “modest drop in bookings” with Hawaiian Airlines, and summer bookings for hotels on Hawaii’s Big Island have dropped nearly 50% as a result. 

AccorHotels considers stake in French airline: AccorHotels most recently completed its sale of 57.8% of the capital of AccorInvest for 4.6 billion ($5.4 billion). Now the company is weighing the option of taking a minority stake in “troubled airline Air France KLM to compete better with the broader travel packages offered by online rivals such as Expedia and Booking.com,” Reuters reports.

Some analysts are questioning the logic of this stake purchase, the news outlet reports.

“While the strategic rationale for Accor is there, we wonder why this cannot be achieved by a commercial partnership without any equity stake,” Bernstein analyst Caius Slater told Reuters.

Compiled by Dana Miller.

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