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1. Interest Rate Cut Hopes Diminish
Market watchers entered the year hopeful for a series of interest rate cuts through the course of 2024, coming perhaps as early as the first quarter. But now, the Wall Street Journal reports that persistent inflation is eroding those hopes.
"Individual readings on growth and prices so far this year haven’t been enough on their own to dramatically change the outlook for the Federal Reserve," the newspaper reports. "But the cumulative effect of those serial disappointments has been notable. In particular, inflation data has consistently been firmer than expected, with recent months getting revised somewhat higher in subsequent reports. This trend has led investors and Fed officials to rethink whether rate cuts will be appropriate this year."
2. Signa Sells Venice Hotel
Austria's financially beleaguered Signa — and more specific property company Signa Prime Collection — has off-loaded the luxury Hotel Bauer in Venice to the German Schoeller Group in hopes of dealing with some of the company's billions in debt, Reuters reports. No price was disclosed in the deal.
According to the news outlet, Signa Prime holds some of the group's "most prized properties." It had owned the Bauer since 2020. The hotel is currently under conversion to a Rosewood Hotel Group flag.
3. Accor Sees Growth Across the Globe
Accor officials touted strong across-the-board performance in their latest earnings results, HNN's Terence Baker reports, highlighted by 8.7% revenue growth in the first quarter and 3.1% net unit growth.
“Accor once again delivered a solid performance, increasing revenue in all regions, notably in the Middle East and Asia-Pacific," Accor CEO and Chairman Sébastien Bazin said in a news release.
4. Union Strength Affecting Hotel Industry
Speaking at the Hospitality Law Conference in Houston this week, Fisher Phillips partner Andria Ryan said the growth of labor unions across the U.S. is having an impact on the hospitality industry, and unionization efforts are growing more popular, HNN's Bryan Wroten reports.
She referenced a a 2023 Gallup poll in which unions got a 67% approval rating, which skewed even higher for younger respondents.
“What do 19-year-olds even know about labor unions?” she asked. “We’re really not talking about folks that are working in the steel industry and working on the assembly line at General Motors. That’s the traditional idea we have of unions, but we’re starting to see a major shift really back to 1976 levels.”
5. FCC Reinstates Net Neutrality
Seven years after a controversial FCC ruling ended it, net neutrality has been reinstated by the FCC board in a 3-2 vote, although the Associated Press notes consumers shouldn't expect to see major differences in behavior from internet providers.
Several states, most notably California, have instituted their own net neutrality rules in the intervening period, forcing providers to mostly behave in a similar way and not favor some forms of internet traffic over others.