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1. Summer Travel Highlights Economic Divide
A new report by the New York Times uses summer travel as the barometer for an increasing divide between economic haves and have-nots in the U.S. economy.
"The gulf between higher- and lower-income consumers has been widening for years, but it is expected to show up especially clearly in travel this summer," the newspaper reports. "Surveys show that richer households are more optimistic about their ability to take trips, and services that they are more likely to use — like full-service hotels — are flourishing. Budget hotel chains, by contrast, are expected to report a pullback."
2. Hurricane Beryl Draws Closer To Jamaica
As of press time, the latest information from the National Hurricane Center indicates there's some hope that Jamaica could avoid a direct landfall by Hurricane Beryl, which CNN reports would mark just the third hurricane to hit the Caribbean island nation in the past 40 years. But the storm will have devastating effects either way, with heavy winds and storm surge up to 9 feet.
The news outlet notes relief agencies are already lining up aid for Jamaica and other hurricane-impacted islands — including Barbados, St. Vincent & The Grenadines, St Lucia and Grenada.
3. How Some Miami Hotels Even Out Summer Demand Mix
The latest episode of the Hotel News Now podcast, hosted by HNN's Bryan Wroten, highlights how a pair of Miami-area hotels navigate getting the best possible demand mix during the summer offseason.
Jonathan Wikse, complex general manager for the AC Hotel Miami Aventura and Aloft Miami Aventura, said his properties have filled in the blanks during a typically slower summer with corporate transient until leisure demand picks back up in the fall.
He noted the properties have seen significant pickup around the Fourth of July holiday, but with an abbreviated booking window.
“Some of that is locals that are just now making their plans for what they're going to be doing for the weekend, but we're actually seeing a surprising amount of people coming from out of state, too," he said.
4. Layoffs, Job Openings Both on the Rise
New data from the U.S. Department of Labor shows an increase in job openings — the first in three months — along with an increase in layoffs, Reuters reports.
The contrasting data points leaves the Federal Reserve in a position to try to pull off a delicate balancing act.
"The data are pointing to an ongoing normalization between supply and demand for labor," Rubeela Farooqi, chief U.S. economist at High Frequency Economics, told the news agency. "From a policy perspective, the Fed's challenge going forward will be to keep rates at a level that not only helps keep inflation in check but also prevents unnecessary damage to the labor market."
5. After Accusations of 'Buffoonery,' Blackwells, Braemar Announce Cooperation Agreement
Hotel-focused real estate investment trust Braemar Hotels & Resorts announced a new cooperation agreement with activist investor group Blackwells Capital after a period where Blackwells would regularly throw public and pointed barbs at Braemar Chairman and Ashford Inc. CEO Monty Bennett, accusing him of "buffoonery" and "corporate piracy."
An announcement from Braemar notes the new cooperation agreement calls for Blackwells to "withdraw its director nomination notice and proposals, cease soliciting proxies and vote in favor of all Braemar directors and proposals at the 2024 Annual Meeting of Stockholders. Braemar and Blackwells have agreed to release all legal claims arising prior to the settlement and dismiss their respective actions."
Blackwells will also buy 3.5 million shares of Braemar stock, financed in part by Braemar. The REIT will add an additional independent director on the company's board and "will consider Blackwells' input in this selection."