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1. US Inflation Forces Continue
Inflation is proving to be more persistent than many government officials and business people have hoped, with wholesale prices — as measured by the Bureau of Labor Statistics' producer price index — higher than expected, up 0.4%, CNBC reports.
The news worried investors this morning as some see it as a sign that the Federal Reserve will keep its current course on interest rate increases.
Fed Chairman Jerome Powell "has repeated, in what has become his mantra, that without price stability we cannot have a strong economy or a strong labor market,” Quincy Krosby, chief global strategist for LPL Financial, said. “Investors are concerned that restrictive monetary policy, that is, tighter financial conditions, could lead to the kind of financial accident that dries up liquidity and delivers more harm to the global economy.”
2. Reed To Step Down as Ryman CEO
After more than two decades at the helm of Ryman Hospitality Properties, Colin Reed will step away from the role of chief executive and into the position of executive chairman, the company said Tuesday. Current Ryman President Mark Fioravanti will take over as CEO starting on Jan. 1.
“With our businesses operating at record or near-record levels of performance and another strong year on the horizon, this is an ideal time for me to transition into a new role,” Reed said in a statement.
The real estate investment trust focuses on upscale convention center resorts and country music entertainment venues and its holdings include the Gaylord Opryland Resort & Convention Center in Nashville, Tennessee.
3. Hoteliers Maximize Transition to Fall
The transition from the high-leisure-demand summer months into the cooler fall can always be challenging for hoteliers, but HNN's Dana Miller reports some are using the opportunity to revisit sales strategies.
Spire Hospitality in particular recognizes this isn't a traditional, slower fall season, said Theresa Hajko, regional director of revenue management. The company's hotels in suburban Boston are reporting "crazy weekend demand," she said, although business travel is still lagging behind expectations.
Building guest packages and programming around leisure demand has been lucrative, with a Holiday Inn near Salem, Massachusetts, booking at rates of nearly $600.
“We were not getting those rates in 2019,” she said. “Events seem to be having bigger turnouts than in the past. So these fall events, even [on] the weekdays, in October are picking up better than they did in 2019.”
4. Companies Hold on to Employees Amid Economic Concerns
While economic uncertainty can often lead companies to cut employees, the New York Times reports many employers have been extremely reluctant to do that over fears that labor shortages will continue to loom.
"That may help prevent the kind of painful recession the Federal Reserve is hoping to avoid as it tries to combat persistent inflation," the newspaper reports. "America’s economy is facing a marked — and intentional — slowdown as the Fed raises interest rates to chill demand and drive down price increases, the kind of pullback that would usually result in notably higher unemployment. But officials are still hoping to achieve a soft landing in which growth moderates without causing widespread job losses. A few have speculated that today’s staffing woes will help them to pull it off, as companies try harder than they have in the past to weather a slowdown without cutting staff."
5. Boutique Hotels Lead in Performance
New research and data analysis from The Highland Group shows boutique hotels are leading the recovery in the hotel industry in several key metrics, with rates and revenues surpassing 2019 levels, contributor Kim Bardoul writes.
The recovery hasn't been even within the different types of boutique hotels, though.
"Demand did not recover to 2019 levels for all boutique hotel classes," Bardoul writes, citing data through June 2022. "Soft-brand luxury and independent upper-midscale, upscale and upper-upscale classes all report declines in demand compared to 2019, ranging from down 4% to down 7.7%. U.S. hotels in these classes also reported declines ranging from 1.7% to 13.3%."