From the desks of the Hotel News Now editorial staff:
- Some positive signs for the tax-reform bill
- Are cycles a thing of the past?
- A peek into the mind of the Fed
- October performance around the globe
- Regulations slow deals in India
Some positive signs for the tax-reform bill: Senate Republicans managed to secure a big win Tuesday when Alaska Senator Lisa Murkowski signed on for a plan to eliminate the requirement that individuals carry health insurance as part of the sweeping tax-reform legislation working its way through Congress, Bloomberg reports.
The bill has faced some public criticism among a select group of Senate Republicans, leaving the delegation perilously close to not having enough votes for passage, but Murkowski’s support is a positive sign in that regard.
Bloomberg reports she wrote an op-ed published late Tuesday that notes she believes “that the federal government should not force anyone to buy something they do not wish to buy in order to avoid being taxed.”
Are cycles a thing of the past?: Stonebridge Companies President and CEO Navin Dimond sees the cyclical nature of the hotel industry as a thing of the past, reports HNN’s Danielle Hess. Dimond instead thinks the industry will operate more like the Japanese economy of roughly the past 25 years, which saw sustained modest growth as opposed to peaks and valleys.
“I think we’re in a different place,” he said. “The economy in the United States is very mature. … it’s very similar to Japan … very similar to northern Europe, to western Europe, and we’re just one generation behind what happened in Japan 25 years ago.”
A peek into the mind of the Fed: The Wall Street Journal writes the business community will get a sneak peek into the thinking of The Federal Reserve later today when the central banks releases minutes from its 31 October and 1 November meeting.
At that meeting, the Fed left rates unchanged but seemed optimistic about the economy, causing some to think a rate increase is likely in December.
October performance around the globe: The latest data from HNN’s parent company STR indicates mostly positive results for hoteliers in different regions around the globe. Here’s a quick look at how different regions fared.
Europe: Occupancy increased 1.7% year over year to 76%. Average daily rate went up 4% to €112.75 ($132.60), and revenue per available room was up 5.8% to €85.68 ($100.77).
Asia/Pacific: Occupancy was up 0.7% to 71.7%; ADR increased 2.3% to $104.15; and RevPAR was up 2.9% to $74.68.
Middle East/Africa: The Middle East had occupancy increase 3.3% to 64.9%, while ADR dropped 4% to $163.27 and RevPAR fell 0.8% to $106.04. African hoteliers reported a 7.6% increase in occupancy to 62.5%; ADR was up 8.4% to $105.89; and RevPAR was up 16.7% to $66.14.
Central/South America: Occupancy increased 7.3% to 60.6%, while ADR was up 13% to $108.91 and RevPAR jumped 21.3% to $66.01.
Regulations slow deals in India: Laws governing property and bankruptcy are having a chilling effect on deals pace in India, according to a report from The Economic Times.
“Essentially, most hotels have debt on their books. With the insolvency and bankruptcy code kicking in, if you are going to be taking over a hotel, then you also assume the liability as far as the debt is concerned,” Siddharth Thaker, managing partner at Prognosis Global Consulting, told the news outlet.
Compiled by Sean McCracken.