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1. Economic headwinds shift from inflation to politics
Bloomberg Economics projects a slowing in global GDP growth for full-year 2024 compared to 2023, and the news outlet believes the concerns about broad economic growth are shifting from inflation to worries about politics and debt levels.
The wide disparity in economic policy between former President Donald Trump and Vice President Kamala Harris adds a layer of unpredictability to the U.S. presidential election.
Increasing government debt levels could also prove problematic in the event of an economic downturn.
"Whenever the next slowdown does come, governments will have fewer options on how to respond," the news agency reports. "The IMF has tallied that global public debt is set to reach $100 trillion, or 93% of global gross domestic product, by the end of this year and has warned governments will need to make tough decisions to stabilize borrowing."
2. San Francisco hotel strikes expand, some Boston workers sign contracts
Hotel strikes are growing in San Francisco at the same time some are resolving in Boston. Workers at the Palace Hotel began striking over the weekend, bringing the total number of hotel workers on strike in the market up to roughly 2,000 at five hotels, KRON4 in San Francisco reports.
WBZ NewsRadio in Boston reports that workers at the Omni Boston Seaport and Omni Parker House unanimously ratified a new contract, including a $10 wage increase over the span of four years.
Unite Here Local 26 President Carlos Aramayo praised Omni Hotels & Resorts' willingness to negotiate.
“Omni had, frankly, the guts to step up and to bargain and to realize that these folks around me are the folks that make these hotels great hotels for people to come to,” Aramayo said.
3. Hotel earnings season to kick off this week
Supply-demand dynamics remain soft as publicly traded hotel companies face headwinds from storm disruptions and hotel strikes, setting up a choppy third-quarter earnings season.
The impacts of both storms and strikes will be different depending on companies' portfolios, said Michael Bellisario, senior hotel research analyst and director at Baird, and that can make it hard to broadly project how the quarter will shake out.
"It's pretty idiosyncratic," he said. "And then the most challenging part with the strike is you don't know when it's going to end."
4. China lowers interest rates again
Chinese officials have announced their latest rounds of economic stimulus, trimming another 25 basis points from interest rates and promising a lowering of cash-on-hand requirements for banks, CNBC reports.
Outside observers say they expect more cuts to come, with Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, telling the news outlet that Chinese interest rates are still "too high."
“I expect more rate cuts next year as the Fed rate declines,” he said.
Meanwhile, some U.S. based hotel companies have announced growth plans in China in the last week, with Hyatt Hotels Corp. announcing a joint venture with China Land Resources for growth across the country and Marriott International announcing plans to bring The Luxury Collection and AC Hotels by Marriott to Shenzhen.
5. MGM, Marriott to convert portion of Mandalay Bay to W brand
MGM Resorts International and Marriott International will convert a portion of the Mandalay Bay campus into a W Hotels property later this year, noting the move is an expansion on their long-term licensing agreement signed in 2023.
Marriott officials have confirmed to HNN that the property being converted to a W hotel is the current Delano Las Vegas.
"Our relationship with Marriott has far exceeded our expectations, demonstrating the power of its brand portfolio and the strength of their distribution channels," Steve Zanella, president of MGM Resorts Operations, said in a news release announcing the deal. "W Las Vegas, the latest hotel to come to life as part of our collaboration, will allow our guests to access a new luxury lifestyle experience recognized worldwide for its distinct personality, dynamic programming and elevated service culture."
The combination of the new W property and the licensing agreement means Marriott Bonvoy members can book at 12 different spots on the Las Vegas Strip, and officials with both companies say bookings for Strip properties have outpaced expectations since launching in March of this year.
The city previously had a W Hotel, but the hotel-in-a-hotel left the Lux Tower at SLS Las Vegas in 2018 to become the SLS Grand Tower, the Los Angeles Times reports. The SLS Las Vegas is now known as the Sahara Las Vegas.