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1. Energy Prices Increase Amid Ukraine-Russia Tension
The price of oil — namely Brent crude — reached a seven-year high of $99.38 as tensions increase over a possible invasion of Ukraine by Russia, a continuation of global diplomacy concerning spheres of influence, according to the BBC.
Additionally, the West is proposing a range of sanctions against Russian interests. This could be hugely impactful in London, with the BBC adding “such is the scale of Russian money in banks and property in the United Kingdom that the capital has been dubbed 'Londongrad.'"
It's also possible the U.S. could blacklist Russian banks, the article stated, "making it almost impossible for anyone in the world to conduct transactions with them."
2. IHG Not Back to 2019 Numbers but Resumes Dividends
Officials with IHG Hotels & Resorts in its full-year 2021 earnings results announced an operating profit of $494 million and revenue of $1.39 billion as well as the resumption of dividend payments, with CEO Keith Barr stating significant improvements in trading, especially in the U.S. Revenue per available room recovered to approximately 70% of 2019 levels.
The company announce dividend payments will resume at a rate of 85.9 cents per share. The hotel firm also opened approximately 44,000 rooms in 291 hotels across the 12 months and has a pipeline approximately 271,000 rooms in 1,797 hotels.
3. UK Proposes End to All COVID-19 Rules
Citing successful vaccination and booster rollouts and decreased hospitalizations, U.K. Prime Minister Boris Johnson received support from Parliament for the ending of all COVID-19 rules and regulations. In an address, he said "from … 24 February, we will end the legal requirement to self-isolate following a positive test. … We will end routine contact tracing and no longer ask fully vaccinated close contacts and those under 18 to test daily for seven days.”
He added it is still the government’s advice that those testing positive should stay at home. Businesses have said the strategy might place onus on them when positive cases arise, while some in the medical profession feel the move is too early. Political commentators add that Johnson’s move is to deflect criticism and Member of Parliament disapproval away from recent allegations that he broke the laws he set and pleaded with U.K. citizens to abide to.
4. Atlas Adds Six Scottish Hotels in $272 Million Push
Leicester, England-based Atlas Hotels — supported by its affiliate London + Regional Hotels — has acquired Chardon Group and its portfolio of six hotels in the Scottish cities of Dunfermline, Edinburgh, Glasgow and Perth, a total of 569 keys, according to a news release.
The deal increases Atlas’ portfolio to approximately 7,400 rooms in 60 hotels across the U.K. Desmond Taljaard, managing director of L+R, said “We have earmarked over 200 million pounds sterling [$272 million] to expand Atlas Hotels. … We want to be the easiest buyer to deal with.”
5. San Francisco Hotel Changes Name to End “Slave Trader” Connection
The Sir Francis Drake Hotel in San Francisco, which dates to 1928, changed its name to the Beacon Grand and ended controversial connotations with Sir Francis Drake, who "was among England's first slave traders," the San Francisco Chronicle and SFGATE report.
The 416-room hotel, closed since the start of the pandemic, now is owned by Northview Hotel Group, which it purchased from real estate investment trust Pebblebrook Hotel Trust for $157 million in April 2021. It is slated to reopen this spring, according to the San Francisco Chronicle.