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1. UK Government To Reverse Tax Cuts
Money markets in the United Kingdom continued to show some upheaval as the new Chancellor of the Exchequer, Jeremy Hunt, reversed nearly every one of the taxation policy changes made by Prime Minister Liz Truss’ “mini-budget," according to the BBC. The announcement is a huge U-turn for Truss, with numerous Conservative Members of Parliament outraged by the rollback of decades of Tory Party economic policy, even asking for the resignation of Truss. The BBC referred to Hunt’s announcement as an “un-budget.” The pound sterling is expected to rise in value following the news.
Former chancellor, Kwasi Kwarteng, who Truss promoted to that position following her election as prime minister on Sept. 6, was fired by Truss on Oct. 14, having been in his role for 38 days. This was the shortest tenure of any chancellor, save for Iain Macleod, who passed away 30 days after he became the U.K.’s treasury minister in 1970.
2. US Economists Predict Recession Within 12 Months
Following several months in which economists in the U.S. either said there would be no upcoming recession, or a very mild one, the thought now is that within the next 12 months a recession is probable as the result of continued high inflation, according to The Wall Street Journal.
In the last survey by the newspaper, 63% of those questioned said a recession is imminent, up from 49% in July. It is the first time there has been more than half of those surveyed who agreed that the economy will contract noticeably.
"On average, the economists now predict GDP will contract at a 0.2% annual rate in the first quarter of 2023 and shrink 0.1% in the second quarter. In July’s survey, they expected a 0.8% growth rate in the first quarter and 1% growth in the second," the news outlet reports.
3. Opening of World’s Tallest Hotel Delayed a Year
The Ciel in Dubai, which will be the tallest hotel in the world when it opens in the emirate’s Marina District, has had its debut delayed by a year to the beginning of 2024 by its development partners, First Group and the China Railway Construction Corp., according to Gulf News.
The hotel is expected to have more than 1,000 rooms and will rise more than 80 stories. Following completion, it will take over the title of tallest hotel from The Gevora, which is also in Dubai's Marina District.
4. Accor’s Ennismore To Enter Irish and Saudi Markets
Private-equity firm Deutsche Finance International and real estate management firm BCP Capital have signed a long-term agreement with Accor division Ennismore to operate Dublin’s former Central Hotel as Ireland’s first Hoxton Hotel. The property is currently closed.
The Irish asset, bought by the two investment houses in 2019 for an undisclosed price, will open as the Hoxton Dublin, with 129 keys, in 2024. Before then, it will undergo a renovation with capital provided by Apollo Global Management.
Deutsche Finance International also signed an agreement with Hotel Development, a division of Saudi Arabian mega-project NEOM, for two hotels there, a 25hours Hotel and a Morgans Originals.
5. Leonardo To Invest $100 Million in Revamp of London’s Dilly
Leonardo Hotels, part of Israeli hotel group Fattal, will invest more than $100 million into the renovation of the 280-room Dilly Hotel in London, which dates to 1908, according to Paul Norman at CoStar News.
Once a favorite retreat of King George V, the hotel will be added to Leonardo’s United Kingdom and Ireland portfolio of 52 assets. David Fattal, Fattal’s CEO and owner, said, “we believe our portfolio, our strategy and the proven capabilities of our people puts our group in a unique position to leverage and capitalize on the emerging opportunities we see across the U.K. hotel sector.”