Editor's Note: Some linked articles may be behind subscription paywalls.
1. UK keeps interest rates at 5%
The United Kingdom’s central bank, the Bank of England, did not follow the lead of the U.S. Federal Reserve and lower interest rates, deciding instead to maintain them at 5%, according to a news release. The nine-person committee of the bank voted 8 to 1 to keep the rate static but unanimously decided to “reduce the stock of UK government bond purchases held for monetary policy purposes, and financed by the issuance of central bank reserves, by £100 billion ($132.9 million) over the next 12 months, to a total of £558 billion."
The bank said not all geographies have acted alike, stating that “UK-weighted global [gross domestic product] was estimated to have grown by 0.5% in [the second quarter of] 2024, broadly in line with the projection in the August Monetary Policy Report, and consistent with steady growth over recent quarters. US GDP had grown more strongly than had been anticipated, while GDP growth had moderated in the Euro area and in China in the second quarter.”
The next meeting of the Bank of England is on Nov. 7.
2. Israel Canada acquires Brown Hotels for $25 million
Publicly traded real-estate firm Israel Canada has acquired the operations, management and portfolio of Israeli hotel firm Brown Hotels Collection, which has approximately 25 hotels, mostly in Israel, but also in Croatia and Greece, for approximately $25 million. Brown will become part of Israel Canada Hotels, which is 68% owned by Israel Canada but not publicly traded, writes Hotel News Now’s Terence Baker.
Sources said Brown Hotels has seen performance suffer due to the continued war between Israel and Hamas and that its model of boutique hotels with limited food and beverage and long leases has not been able to flourish amid dramatically reduced tourist numbers. All the properties are independently owned, but Brown Hotels does have some ownership in its non-Israeli properties.
Joseph Fischer, owner of business consultancy Vision International, said tourism in Israel currently is non-existent.
“Even if the war stops immediately … it will take 12 to 18 months, a very cautious view, for the country to get back its tourism," he said. "Israeli tourism always has been a roller coaster, and the distances between the highs and lows are shortening.”
3. BC, Hova acquire 2,308-key AccorInvest portfolio
BC Partners Real Estate and Hova Hospitality together have acquired 30 hotels in Germany held by AccorInvest. The deal consists of 2,308 rooms which added the properties would undergo renovation and energy-efficiency upgrades.
A news release announcing the deal stated “the entire portfolio will be operated by B&B Hotels via long-term, consumer price index-linked leases."
The deal also increases Hova’s management muscle, with Dominique Ozanne, its chairman, stating following the completion of the deal the firm “will have 120 B&B hotels under management. In total we will achieve assets under management of €2.5 billion ($2.78 billion) with a portfolio of 200 hotels in nine countries.”
4. UK consumer confidence drops amid 'painful' budget worries
The monthly GfK Consumer Confidence Barometer, which began in January 1974, posted in its September summary that public confidence in the U.K. is at its lowest ebb since the beginning of the year. The barometer dropped seven points to -20, the BBC reports.
The new Labour Party government, which took over from 14 years of Conservative Party government in July, has warned the country that what it considered mismanagement has led to huge debt for the nation and will lead to tough decisions in the upcoming Oct. 30 budget. The BBC reports such comments have raised “concerns that the government's warning that the Budget will be 'painful' has shaken people's confidence.”
The highest value for the index was in January 1978 (+21), and the two lowest scores were in September 2022 (-49) as inflation started creeping up and in July 2008 (-39%) during the global financial crisis.
5. $153 million financing secured for five US hotels
Business advisory JLL reports that $153 million in senior financing has been secured for five full-service Hilton and Marriott International hotels in Arizona, California, Colorado and Georgia with a combined room count of 1,140. It added that the financing has been secured via a “three-year, floating-rate loan through a debt fund.”
The hotels are the Embassy Suites Phoenix Downtown North, Embassy Suites San Rafael Marin County, Highline Vail DoubleTree by Hilton, Embassy Suites Atlanta Perimeter Center and Marriott Atlanta Northeast Emory Area. JLL said the hotels were “acquired between 2016 and 2018 and renovated between 2018 and 2020.”
Mike Huth, managing director of hotels and hospitality at JLL, said “the transaction provided additional loan term across the portfolio at a cash-neutral advance rate, enabling the properties to season cash flow.”