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1. Stocks Start the Week with a Slide
Following a 2.5% drop for U.S. stocks Friday, international markets have taken a hit this morning as worries linger over the possibility of a global recession, Reuters reports.
Officials in Europe, in particular, are worried about a domino-effect recession coming from bans on Russian oil and gas, and the news outlet reports that China's economy is "spluttering."
"We had German officials saying last week that if there was an immediate embargo of Russian energy then it would cause a recession in Germany. And if there was a recession in Germany, that would drag the rest of Europe down and have knock-on effects for the rest of the world," Rabobank senior FX strategist Jane Foley said.
2. Summer Optimism To Dominate Hotel Earnings Calls
Even though first quarter performance was uneven for publicly traded hotel companies, analysts expect executives to hit an optimistic tone during earnings calls starting this week as they look forward to a strong summer travel season, reports HNN's Sean McCracken.
"It's not really about the quarter," Michael Bellisario, senior research analyst at Baird said. "It's really about the trajectory of March to April and what May and June are going to look like."
Wyndham Hotels & Resorts and Pebblebrook Hotel Trust are among the first hotel companies to report earnings results this week.
3. Wall Street More Focused on Cash than Ever
Wall Street analysts are seeing more and more value in companies holding on to cash as there's increasing uncertainty around the globe, the Wall Street Journal reports. The newspaper notes that marks a shift in attitude on Wall Street, which has urged companies to not leave cash on their balance sheets, historically.
BlackRock Inc. is among the companies increasing its cash holdings, with managing director Rick Rieder saying he expects stocks to remain volatile for up to six months.
“For now, one of the most attractive things you can do is have patience, and if you can get paid to have patience that’s a pretty good place to be,” Rieder said.
4. Hotel Companies Say They're Severing Contracts in Russia
The Financial Times reports increasing pressure on hotel companies to fully sever ties in Russia have pushed some companies, including BWH Hotel Group and Hyatt Hotels Corporation, to terminate contracts for Russian hotels. Hotel News Now had previously reported several companies that had plans to pull back from business in Russia had yet to do so.
The Ukrainian Hotel and Resort Association has praised Best Western for pulling its six Russian properties from the brand's website this month.
Hyatt announced it has ended its contract with a Hyatt Regency in Moscow and "suspended the provision of services" to the Hyatt Regency Sochi.
5. Net-Zero Hotels Vital for Sustainable Travel
National Geographic reports that hotels scaling back their carbon impact is important in making travel more climate friendly. One example is the adaptive reuse of The Marcel in New Haven, Connecticut.
"The Marcel — named for its celebrated modernist architect Marcel Breuer — opens in New Haven in May as an all-electric hotel that generates its own power with a rooftop solar array and solar parking canopies," National Geographic reports. "It holds lithium-ion batteries that store power created during the day to use at night."
Sustainability efforts are increasingly on the minds of hoteliers as travelers demand more accountability on climate change.