Editor's Note: Some linked articles may be behind subscription paywalls.
1. Aimbridge CEO expresses hope as lenders take ownership of company
Aimbridge Hospitality CEO Craig Smith said his company is embarking on a new era of opportunity after freeing itself of more than $1.1 billion in debt in a deal that hands over majority ownership of the company to its lenders and will take "weight off our shoulders," HNN's Bryan Wroten reports. The deal also gives Aimbridge — the world's largest third-party hotel operator — a $100 million cash infusion and brings its overall debt level from $1.3 billion to no more than $210 million.
"It gives us the capital we need to further invest in our long-term strategies, and its also gives us the opportunity to invest in ourselves," Smith said.
Aimbridge took on much of its debt in 2019 when it was bought by private equity firm Advent International and soon after expanded significantly through the acquisition of Interstate Hotels & Resorts. Aimbridge then made a series of smaller acquisitions while simultaneously coping with the hotel demand drop-off from the COVID-19 pandemic.
2. China saw 5% GDP growth in 2024
Stimulus efforts seemingly have borne fruit in China as the country's National Bureau of Statistic announced 5% gross-domestic-product growth for 2024, the Wall Street Journal reports. But some experts note there is still a lot of economic turmoil hidden by that headline number due in part because of weak consumer spending.
Some others doubt the truthfulness of Chinese data.
“These growth figures stretch the bounds of credibility and will do little to build confidence or alter the picture of an economy that is on the ropes,” said Eswar Prasad, professor of trade policy and economics at Cornell University and a former head of the International Monetary Fund’s China division.
3. Conferences to see heightened security in 2025
Conferences across the U.S. are expected to have higher levels of security in 2025 after the killing of the UnitedHealthcare CEO Brian Thompson at an investor meeting in December, Reuters reports.
The Detroit Auto Show, for example, now has metal detectors and bomb-sniffing dogs.
"If you're going to pay [$10,000] — which is cheap — for somebody to come speak at a conference, you're going to pay an extra, probably two grand, for an executive protection agent," Michael Julian, president of security firm MPS Security & Protection, told the news agency.
4. Airlines hope to resume some Middle East flights
With Israeli officials on the verge of a ceasefire deal in their war with Hamas, Lufthansa Group is among a handful of airlines that is planning to soon resume some Middle East flights halted by conflicts, including London to Tel Aviv itineraries, Reuters reports.
Airlines have generally avoided flights to Tel Aviv and Beirut along with routes in Iraqi and Iranian airspace.
Lufthansa Tel Aviv routes are slated to resume Feb. 1 with Wizz Air already resuming travel to that city.
5. Experts hopeful for a strong year for European hotels
There are no shortage of headwinds across the United Kingdom and Europe, but experts are hopeful that the hotel industry in that region is set up for another strong year in 2025, HNN's Terence Baker reports from the 20th Whitebridge New Year Hotel Investment Summit.
Nick Pattie, managing director of Whitebridge Hospitality, said hoteliers benefited from better-than-expected cost structures in 2024.
“Last year at this time, I commented that the minimum wage had increased by 28% over the previous three years and predicted it would hit small businesses particularly hard … [but] that payroll costs per available room will increased by about 4.5% on average, that is, less than expected, and that is presumably due to better productivity and squeezing the headcount and the hours,” he said.