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1. Winter Storm Grounds Thousands of US Flights
As of Tuesday morning, nearly 2,900 flights across the U.S. have been canceled and another 1,600 delayed due the deadly winter storm that brought heavy snow, high winds and below freezing temperatures, according to the New York Times.
Flight tracking service FlightAware notes most of the cancellations — more than 2,500 — were from Southwest Airlines. On Monday, more than 4,000 U.S. flights, a majority operated by Southwest, were canceled and more than 8,500 others set back, the news outlet reports.
The U.S. Department of Transportation released a statement Monday that it will examine Southwest's "disproportionate and unacceptable rate of cancellations and delays as well as the failure to properly support customers experiencing a cancellation or delay," Reuters reports.
2. China To Suspend COVID-19 Quarantine for Incoming Travelers
Starting Jan. 8, 2023, China will end its quarantine requirements for international arrivals, marking a significant step toward easing border restrictions since the onset of the COVID-19 pandemic, CNN reports.
Under the new rules, inbound passengers will only need to show proof of a negative COVID test results 48 hours prior to departure, according to China's National Health Commission. Inbound travelers now are required to undergo five days of hotel quarantine and three days of self-isolation at home.
3. Expectations for Hotel Deals Pace Rise in 2023
Though 2022 was set to be a big year for transactions in the U.S. hotel industry, Hotel News Now's Bryan Wroten reports the rising cost of debt instead had some buyers pumping the brakes, but there are some signs pace could pick back up in 2023.
Daniel Lesser, president and CEO of LW Hospitality Advisors, said it could be an impetus for transactions when mortgages comes due over the next 12 to 24 months. Owners will then have to make a choice between refinancing or selling.
“’Do we want to put more cash in? Do we want to sell the hotel?’ Are they going to end up having to do a workout?" he said.
4. Schroders Buys Two Hoxton Hotels for $267 Million
London-based investment manager Schroders has purchased the 172-room Hoxton Paris and 111-room Hoxton Amsterdam for a total of 260 million euros ($267 million) or 919,000 euros per room from Sharan Pasricha, the founder of Ennismore Group, reports Hotel News Now's Bryan Wroten.
The deal "is thought to be the biggest per-room price ever paid in Europe for a lifestyle hotel without suites. The deal underlines the growing investor appetite for lifestyle hotels," a news release states.
Both hotels will be managed by Ennismore. Ennismore entered into a joint venture with France-based Accor in 2021 to operate Accor's lifestyle hotel brands as well as Pasricha's Hoxton and Gleneagles brands.
5. Vici Properties To Provide Mezzanine Financing for Las Vegas Hotel
New York-based real estate investment trust Vici Properties has agreed to provide up to $350 million in mezzanine loan financing to the partnership of Fontainebleau Development and Koch Real Estate Investments to finish the construction of Fontainebleau Las Vegas, according to a news release.
The 67-story Las Vegas hotel will have roughly 3,700 hotel rooms, 550,000 square feet of convention and meeting space as well as gaming, dining, retail, lifestyle and health and wellness experiences. It is slated to open in the fourth quarter of 2023.
"We believe the addition of the property will contribute to the increasing vitality of the north end of the Las Vegas Strip. This transaction further strengthens Vici's track record of creatively structuring and investing our capital to generate [adjusted funds from operations] growth for our stockholders," David Kieske, executive vice president and chief financial officer of Vici Properties, said in the news release.