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1. Uncertainty Around Macau's Gambling Industry Concerns Operators
U.S. casino company stocks dropped Tuesday following an announcement from Macau's government proposing tightened regulatory scrutiny over casino operators, the Wall Street Journal reports.
The goal of the new gambling laws is to create a "sustained and healthy development of the gambling industry" and enhance global competitiveness, according to the government.
"Six casino licenses in the Chinese territory, including Vegas-based operators Wynn Resorts Ltd., MGM Resorts International and Las Vegas Sands Corp., are set to expire in June 2022, and executives had been awaiting word on how the local government plans to handle new licenses," the article states.
The government's plans include "encouraging the expansion of nongambling activities — such as major international events — that could boost tourism and Macau’s economy," according to the article.
2. Huazhu Limited Announces CEO Change
Shanghai, China-based hotel management company Huazhu Group Limited announced Qi Ji will step down from the CEO role Oct. 1 and will continue to serve as the chairman of the board of directors, according to a company news release.
Replacing Ji on Oct. 1 will be Hui Jin, who is currently president. Xinxin Liu, the current chief digital officer, will then take over as president.
Huazhu as of June 30 operates 7,126 hotels, comprising 692,284 rooms.
3. Global Supply Chain Disruption Drives Innovation Among Hoteliers
Hotels, like many other industries, are at the mercy of delays in the global supply chain, writes HNN contributor Harvey Chipkin.
Kim Kushner, managing director of supply and studio design for Best Western Hotels & Resorts, said the company is experiencing an “unprecedented global disruption” to the supply chain.
To cope, experts are stressing the importance of adapting by allowing for time and planning.
"We don’t want to rush the process, but we do want to make sure everything is 100% approved and ready to go," said Sarah Churchill, senior manager of business development for procurement company Benjamin West. "We’re telling clients if you can’t do production until next year, at least get a model room process in gear right now.”
4. Investment Company Pimco Ramps Up Commercial Real Estate Holdings
One of the world's largest fixed-income investors, Pacific Investment Management Co., has been on a path to increase its commercial real estate holdings, the Wall Street Journal reports.
The Newport Beach, California-based firm has $2.2 trillion under management, "and has been seeking higher yields than those offered by investment-grade corporate bonds by buying hotels, office buildings and other property types that have lost value during the COVID-19 pandemic," according to the Journal.
Pimco's most recent hotel deals include the W Washington D.C., for more than $200 million.
5. US Weekly Hotel Performance Dips
According to a news release from STR, CoStar's hospitality analytics firm, U.S. hotel performance dropped slightly from the previous week.
For the week of Sept. 5-11, calculated in percentage change from the comparable week in 2019, occupancy declined 13.6% to 60%. Average daily rate slipped 1.4% to $130.82 and revenue per available room declined 14.8% to $78.46.