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1. Government Shutdown Could Stop Air Travel
While the potential issues stemming from a government are varied and significant, perhaps the largest for the hotel industry would be wide-scale disruptions to air travel, The New York Times reports. Although air traffic controllers and Transportation Security Administration employees would still be on the hook to work during a shutdown, they would do so unpaid, which would be problematic at a period where flight cancellations are common and staffing shortages persist.
“There is no good time for a government shutdown, but this is a particularly bad time for a government shutdown, especially when it comes to transportation,” Transportation Secretary Pete Buttigieg said. “The consequences would be disruptive and dangerous.”
2. Amsterdam Increases Tourism Tax
Finance officials in Amsterdam have confirmed the city will soon have the highest tourist tax in the European Union with plan to increase the tax on overnight stays to 12.5% and cruise ship passengers paying 11 euros rather than eight.
Finance chief Hester van Buren said the city is trying to find the balance of driving tax revenue and not discouraging visitors.
“It is a balancing act, and an estimate,” Van Buren said. “Of course it would be good if the high tax helped against over-tourism, but then you would also bring in less money.”
3. Marriott Outlines Growth Strategy at Investor Day
Hosting the company's first investor day since before the COVID-19 pandemic, Marriott International officials discussed how they plan to continue the company's growth, including a record high 547,000-room pipeline, HNN's Bryan Wroten reports.
While hotel construction has grown more difficult and more expensive in recent years, Noah Silverman, global development officer for U.S. and Canada, said the company is still seeing projects progressing in a meaningful way. Roughly 44% of the pipeline is under construction and 76% is coming via conversions.
“Our strong-performing brands and relationships have historically helped owners secure financing, and we've stepped up our efforts to assist our owners and franchisees in today's challenging environment,” he said.
4. Evergrande Halts Trading Amid Issues
With the latest wave of troubling news hitting the company, Chinese real estate development firm China Evergrande has suspended trading on the Hong Kong Stock Index, the New York Times reports.
The company recently pulled back on plans to restructure its debt, and government officials have announced China Evergrande's founder and chairman is under police watch.
"The fast-moving events add to mounting pressure for policymakers in Beijing trying to address China’s property crisis," the newspaper reports. "Two years ago, Evergrande’s collapse under $300 billion of debt put the world on edge. Now the company is back in the spotlight, and its inability to resolve matters with its lenders is casting a pall over China’s property landscape, already littered with signs of insolvency."
5. LA Company Buys InterContinental Houston
CoStar News' Parimal Rohit reports Los Angeles-based Stockdale Capital Partners has bought The InterContinental House for an undisclosed price. The 354-room hotel was built in 2019 and was last owned by Houston-based Medistar Corp., according to CoStar records.
"We intend to build even further upon [The InterContinental Houston's] strong track record of success,” Bill Doak, Stockdale’s managing director for hospitality, said in the statement.