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1. Price Cuts Could Lead to Rate Cuts
While public comments from members of the Federal Reserve have given the market pause and reason to expect slower-than-hoped-for rate cuts, Reuters reports increasing news of consumer-facing price cuts could give the Fed more confidence.
"Softer overall demand and lower inflation in the first quarter should be more of a relief for the Fed and the market rather than a concern" of a fast economic slide, Tuan Nguyen, an economist at RSM US, told the news outlet.
In related news, the latest inflation data shows personal consumption expenditures increased month over month 0.3% in April and 2.7% on an annualized rate, matching economists' expectations.
2. Pensions Struggle Along with Commercial Real Estate
One of the biggest groups suffering due to the continued weakness in commercial real estate is government pension funds, with the the Wall Street Journal reporting pension managers are being forced to sell properties at a loss.
"Canada’s national pension plan said in May that it is selling stakes in Manhattan and San Francisco office towers for $225 million less than it paid for them," the newspaper reports. "In April, California’s government worker pension fund said it had unloaded a Sacramento property it had been trying to develop for almost two decades. In March, consultants warned California’s teacher pension that office holdings would continue to drag down returns, even after a 9% real estate loss in 2023."
3. A Closer Look at the Recently Sold Arizona Biltmore
The Arizona Biltmore has already been the prize in one of the biggest hotel transactions of the year, and HNN's Bryan Wroten took a closer look at the property, which is celebrating its 95th anniversary this month.
General Manager Michael Hoffmann said the resort's nine buildings help the property feel more like a neighborhood than a large hotel.
"You know that you're in the Paradise neighborhood or you're in the Cottage neighborhood," he said. "Every area in the hotel is almost like a little independent subdivision. It has its own little personality."
4. Houston Hotels Lead Nation in Weekly Performance
U.S. hotels saw moderate growth for the week ending May 25, according to the latest data from CoStar. Occupancy increased 1.6% to 67.7%, while average daily rate grew 2.3% to $160.67, and revenue per available room was up 3.9% to $108.73.
Among the top 25 markets, Houston lead in performance, with a 20.9% increase in occupancy to 74.1% and a 29.2% increase in RevPAR to $89.15.
5. Stonebridge Names New CEO
Denver-based Stonebridge Companies has announced Rob Smith will take over as the firm's president and CEO in July, taking the position held by founder Navin Dimond since 1991. Smith was most recently a division president at Aimbridge Hospitality.
Dimond will move to chairman of Stonebridge's Board of Directors.