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5 Things To Know for March 29

Today's Headlines: Global Economic Growth Could Slip; Crown Resorts Investigates Ransomware Group's Claims; Some Hoteliers Pause Development Deals; Las Vegas Hotels Accused of Price Fixing; UK City To Tax Tourists
World Bank warns global economic growth could decline to a three-decade low of 2.2% per year through 2030. Pictured is the World Bank building in Washington, D.C. (Getty Images)
World Bank warns global economic growth could decline to a three-decade low of 2.2% per year through 2030. Pictured is the World Bank building in Washington, D.C. (Getty Images)
Hotel News Now
March 29, 2023 | 2:18 P.M.

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1. Global Economic Growth Could Slip

World Bank warns that unless policymakers take significant steps to boost labor supply, productivity and investment, average potential global economic growth will decline to a three-decade low of 2.2% per year through 2030, resulting in a "lost decade" for the global economy, Reuters reports.

"The slowdown we are describing ... could be much sharper, if another global financial crisis erupts, especially if that crisis is accompanied by a global recession," Ayhan Kose, director of the World Bank's forecasting group, told the news outlet.

World Bank is monitoring developments in the banking sector.

2. Crown Resorts Investigates Ransomware Group's Claims

A ransomware group claimed to have gained access to some of Australia-based Crown Resorts' files after a data breach at third-party file transfer service GoAnywhere, Reuters reports.

"We can confirm no customer data has been compromised and our business operations have not been impacted," a Crown Resorts spokesperson said in a statement Monday.

The spokesperson said Crown Resorts is investigating the validity of the ransomware group's claims. Suspicious activity at GoAnywhere was first identified by a U.S. cybersecurity firm two months ago.

3. Some Hoteliers Pause Development Deals

Executives of privately held companies in the hospitality industry say construction loans are harder to get from regional banks and costs to build hotels from the ground up have increased, resulting in some companies choosing to pause development, Hotel News Now's Dana Miller reports.

Speaking during the “Main Street Talks” panel at the 2023 Hunter Hotel Investment Conference, Navin Dimond, chairman and CEO of Stonebridge Companies, said that his company typically looks to regional banks when in need of construction financing that’s $20 million or below.

“I think that’s out of the question for [now],” he said in response to how the banking crisis is affecting the ability to get construction financing. “I think it’s going to be harder. If you’re a good sponsor, good project, I think it can happen, but I think we have to take a pause pill right now for ground-up” construction financing.

4. Las Vegas Hotels Accused of Price Fixing

Caesars Entertainment, Treasure Island, Wynn Resorts Holdings, MGM Resorts International and more are asking a U.S. court to dismiss a lawsuit filed by two tourists in January accusing the companies of conspiring to keep room rates "artificially high through a revenue management platform," Reuters reports.

The Las Vegas companies said the lawsuit does not show any direct or circumstantial evidence supporting the tourists' claims. Hospitality industry tech company Cendyn Group and subsidiary Rainmaker Group were also named as defendants in the lawsuit.

"The complaint fails at the outset because it is missing every essential ingredient necessary to plead an antitrust conspiracy" under legal precedent, according to a joint statement submitted by attorneys in Nevada federal court.

5. UK City To Tax Tourists

Starting April 1, Manchester will become the first city in the United Kingdom to charge a tourist tax to all visitors who stay in an apartment, hotel or guesthouse in the city center, Yahoo News reports.

The 1 British pound ($1.23) charge will be applied per room, per night, and is expected to bring in 3 million British pounds per year.

"Revenue from the ‘City Visitor Charge’ will be invested in cultural and tourism initiatives, such as events and festivals. It will also be used to improve street cleanliness and the tourist experience," the news outlet reports.

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