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1. Egypt's Sovereign Fund To Sell Seven Hotels
Egypt's Sovereign Fund is set to close on the sale of seven hotels by the end of the year, Reuters reports. The buyer has not yet been named, but Ayman Soliman, head of the Sovereign Fund of Egypt, said there are plans to turn around the "trophy assets," most of which are historic.
The seven hotels in Egypt include the Cataract in Aswan, the Winter in Luxor, the Mena House in Cairo and the Cecil in Alexandria.
"In June, Qatar was reported to be in talks over their purchase, but the following month Egypt's planning minister announced Egypt had awarded a $700 million stake in the hotels company to a consortium that included local Talaat Moustafa Group Holding," the news outlet reports.
2. Wynn, MGM Reach Tentative Deal With Unions
Following Caesars Entertainment's action on Wednesday, Wynn Resorts and MGM Resorts International have also reached a tentative deal with the Las Vegas Culinary Workers and Bartenders Unions on new contracts for employees, CNBC reports.
Wynn Resorts said in a statement that its agreement "fulfills our shared goals of providing outstanding benefits and overall compensation to our employees in a work environment second to none."
According to the union, the proposed five-year contracts include historic wage increases, reduced workloads and mandated daily room cleanings.
3. The State of US Hotel Lending
The hotel sector has shown strength in a high-interest-rate environment, but it's been difficult for lenders to put loan dollars out in the U.S., according to Wells Fargo Securities' Mike Brown.
During a recent panel at the 2023 Indie Lodging Congress, Brown — managing director of real estate syndication at Wells Fargo Securities — said in the short term hotel financing will be harder to secure than other forms of real estate.
"It's a risk [with] interest rates, inflation, concerns about where the economy is going. Hotels are unfortunately going to be hindered a little bit more than other asset classes. Wells Fargo remains strategic and selective. Peeling that back at the end of the day, capital is very precious. The scrutiny that's being placed on lenders — especially commercial real estate lenders — it is hard. Also, we're not getting payoffs; balance sheets are not infinite in bank capital," he said.
4. Wellness Industry Worth $5.6 Trillion Globally
The global wellness industry generated $5.6 trillion in revenue in 2022, research from the Global Wellness Institute reveals. By 2027, the industry is expected to grow 57% to $8.5 trillion, Bloomberg reports.
Subsectors of the global wellness market include wellness tourism, which is a $651 billion industry, the report states.
Hospitality companies are increasingly implementing ways to capitalize on wellness tourism and demand for spas. Dubai, United Arab Emirates-based Kerzner International is launching the first hotel for its wellness-focused Siro brand in early 2024.
5. AHLA Sues Labor Board
The American Hotel & Lodging Association, along with the U.S. Chamber of Commerce and other plaintiffs with the U.S. District Court for the Eastern District of Texas, filed a lawsuit to challenge the legality of the National Labor Relation Board's new rule determining joint-employer status, reports HNN's Bryan Wroten.
AHLA and the other plaintiffs say the new rule determining when two companies can be considered joint employers of workers goes against the National Labor Relations Act and the Administrative Procedure Act.
“The goal of this lawsuit is to reestablish the rule of law that has governed joint-employment designation for nearly four decades. It will also prevent the destruction of the franchise business model that has provided prosperity for tens of thousands of American small business hoteliers,” AHLA President and CEO Chip Rogers said in a news release.