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1. Sortis Holdings To Buy Ace Hotels Brand
Hospitality operator Ace Group International has agreed to sell its Ace brand and hotel management company to Portland, Oregon-based hospitality firm Sortis Holdings for $85 million in all cash, Hotel News Now's Bryan Wroten reports. The deal was first reported by the Wall Street Journal.
Ace has 11 hotels in operation, in locations such as Los Angeles; New York; and Kyoto, Japan. It also has one in New Orleans under its new brand Maison de la Luz.
Sortis Holdings Executive Chairman Paul Brenneke told the Wall Street Journal that he sees potential to grow the Ace brand.
2. Singapore Expects Tourism Boost from China
Singapore Tourism Board expects that China's decision to drop COVID-19-related travel restrictions could cause tourism to double this year and reach between 12-14 million visitors, Bloomberg reports.
“We’re in a very good place to continue to have Chinese arrivals come back strongly,” STB Assistant Chief Executive Juliana Kua said at a briefing.
Chinese travelers could bring in as much as 21 billion Singapore dollars in 2023 ($16 billion) in tourism spending compared to 14 billion Singapore dollars the previous year, when visitors totaled 6.3 million.
3. How European Hotel Leaders Tackle Labor Challenges
Hotel industry leaders say limited staff does not have to result in limited guest experience, reports Terence Baker from the Atlantic Ocean Hotel Investors' Summit in Madrid.
Panelists at the summit said creative strategies, such as outsourcing talent, can enhance staffing camaraderie and the guest experience.
“You have to analyze the value of each component. Outsourcing can be the perfect solution to both increase rent to the operator and security for staff [employment],” said María Rosa Barcia Garzolini, asset manager at GMA Corporate.
4. Developers Bid for New York City Casino Licenses
With the bidding process for three casino licenses in the New York City region officially open this month, developers are hoping to increase their odds of winning by proposing projects heavily focused on amenities rather than gambling, the New York Times reports.
Related Companies, the developer of Hudson Yards in Manhattan, with its partner Wynn Resorts is proposing a development where "the gaming will be less than 10% of the resort," Jon Weinstein, a spokesman for Related Companies, said. Instead, it would be a "pre-eminent convention and entertainment district."
"Bidders in New York City will first have to persuade the majority of a six-member community advisory committee to back their projects," the newspaper reports.
5. Inflation Could Slow in 2023
Some companies say they are done boosting prices for now as consumers limit their buying, the Wall Street Journal reports.
"Many companies raised their prices substantially last year to offset higher fuel costs and higher prices for ingredients, parts and labor. As fuel prices have dropped and pandemic supply-chain snarls have eased, some of those costs have come down," the newspaper reports.
However, the Fed is worried consumers could expect rising inflation to persist. As a result, workers could continue seeking larger raises, which would result in higher labor costs for businesses.