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1. Fed holds rates steady, lowers economic outlook
The Federal Reserve's Federal Open Market Committee voted to hold interest rates at 4.25% to 4.5% and also reduced its gross domestic product growth outlook for 2025 to 1.7%, down from 2.1% in December, HNN reports. Both developments are unwelcome news for the U.S. hotel industry.
“With rising costs and ongoing market uncertainty, access to capital remains a critical issue for our industry," said Laura Lee Blake, president and CEO of the Asian American Hotel Owners Association, via email. "We urge policymakers to consider long-term strategies that foster economic growth, financial stability and greater opportunities for hotel owners."
The Bank of England also held interest rates at 4.5%, citing economic and global trade uncertainty, the BBC reports.
2. Hotel Equities partners with Pinnacle Hotel Group
Hotel Equities has formed a strategic partnership with Pinnacle Hotel Group, according to a news release. Pinnacle's existing hotel portfolio and development pipeline will join Hotel Equities' management platform May 1.
The two companies had a relationship prior to the strategic partnership, with Hotel Equities managing the AC Hotel by Marriott Kansas City Downtown for Pinnacle.
“We’ve had the privilege of witnessing Pinnacle’s leadership firsthand through our collaborations over recent years, and their track record speaks for itself," said Brad Rahinsky, president and CEO of Hotel Equities, in the news release. "With a foundation of trust, shared values, and a unified vision for long-term success, we look forward to strengthening this relationship and achieving great things together.”
3. Office market expected to rebound
As more companies are ending their work-from-home policies, the office commercial real estate sector is showing signs of a recovery, the New York Times reports.
Sales of office buildings in the U.S. reached $64.3 billion in 2024, an increase of nearly 21% compared to 2023, the newspaper reports. CBRE data shows last year had 6.5 million more square feet of office space leased than vacated.
“The best way to describe the office market is that it’s fragmented,” said Phil Mobley, national director of office analytics at CoStar. “I think the worst is probably over for owners of highly desirable buildings, but nondesirable buildings may continue to lose tenants.”
4. US weekly jobless claims rise slightly
The U.S. Department of Labor reported that initial jobless claims for the week ending March 15 rose by 2,000 to a seasonally adjusted 223,000, according to a news release. The four-week moving average was 227,000, an increase of 750 from the previous week's revised average.
The number of continued claims increased by 33,000 to a seasonally adjusted 1.89 million for the week ending March 8.
5. 'Buy Canadian' movement gains ground
In response to new tariffs from the U.S. and talks of turning Canada into the 51st state, Canadian consumers are increasingly buying Canadian-made products and shunning those from America, the Wall Street Journal reports. Though the "Buy Canadian" movement is still too new to fully measure its impact, retailers are responding by stocking more Canadian-made goods.
“Our expectation is that patriotic buying, traveling at home and businesses seeking out Canadian customers or suppliers to avoid tariffs will provide a nontrivial cushion for some parts of the economy,” said Avery Shenfeld, chief economist at CIBC Capital Markets.