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1. UK cuts interest rate
The Bank of England has cut interest rates in the United Kingdom for the third time in six months. The new reduction brings the main interest rate down to 4.5% from 4.75%. The change was made in an effort to spark the country's economy, which has been lackluster lately, the Associated Press reports.
“It will be welcome news to many that we have been able to cut interest rates again today,” said Bank of England Gov. Andrew Bailey. “We’ll be monitoring the U.K. economy and global developments very closely and taking a gradual and careful approach to reducing rates further. Low and stable inflation is the foundation of a healthy economy and it’s the Bank of England’s job to ensure that.”
The Bank of England also cut its forecast on the country’s economic growth to 0.75% in the same announcement.
2. US hotel data reflects growth compared to 2024
CoStar’s latest hospitality data report shows that the United States hotel industry reported gains year over year for the week ending on Feb. 1. Occupancy was reportedly 56.5%, a 2.3% increase compared to the same period last year, and average daily rate increased 1.8% to $150.25. The week’s revenue per available room was $84.90, which represents a growth of 4.1%.
Orlando hotels saw the largest lift in average daily rate, a growth of 7.4% to $224.62. Minneapolis had the largest increase in occupancy, an increase of 13.6% to 47.4%, and RevPAR, a 16.7% jump to $56.67.
Las Vegas and New Orleans posted the nation’s steepest RevPAR declines, with Las Vegas dropping 15% to $137.63 and New Orleans by 6.2% to $98.23. New Orleans, as host of this week’s Super Bowl, should see a very different outcome over the next few weeks.
3. Hilton boasts positive year on its earnings call
Hilton kicked off the hotel industry’s earnings calls on a positive note, with President and CEO Chris Nassetta saying the fourth quarter exceeded his expectations. The hotel company’s RevPAR outperformed with “strong trends in leisure occupancy, as well as continued growth in business transient and group results.”
“We also delivered the highest number of approvals, construction starts and openings in our history in 2024, helping us achieve net unit growth of 7.3%,” he continued. “With a development pipeline of nearly half a million rooms, we are confident that we are well positioned to deliver net unit growth between 6% and 7% in 2025."
Nassetta also added that he expects continued growth throughout the year.
4. Greece declares state of emergency amid continued earthquakes
Santorini has been experiencing tremors for more than a week, and Greece declared a state of emergency for the island on Thursday. A 5.2-magnitude earthquake, the largest of all its recent seismic activity, triggered the decision by the Greek Civil Protection Ministry, and the state of emergency will remain in effect until March 3.
Santorini hosts 3.4 million tourists a year, per CNN, and is home to 20,000 permanent residents. An estimated 11,000 people have left the island.
“The whole state mechanism has been activated and I want to urge our citizens to cooperate with the authorities,” Prime Minister Kyriakos Mitsotakis said after a meeting of top officials on Wednesday.
5. British bank backs refinancing of 2 Marriott hotels
Leumi UK, headquartered in London, has completed a £70 million ($72.8 million) refinancing loan with owner Zetland Capital for it to refinance two Marriott International hotels in Edinburgh and Manchester, HNN’s Terence Baker reports.
Leumi also recently underwrote a £20 million loan to Beaconsfield, Buckinghamshire-based Starboard Hotels to refinance the 162-room Hampton by Hilton London Park Royal.
Editor’s note: Christopher J. Nassetta serves on the board of directors for Hotel News Now’s parent company, CoStar Group.