From the desks of the Hotel News Now editorial staff:
- Anbang walks away from Starwood deal
- Illegal hotels drive Airbnb revenue in LA
- Brussels attacks affect travel in Europe
- Oil prices tumble; Saudi Arabia hesitant to curb output
- New York, California push for $15 minimum wage
Anbang walks away from Starwood deal: Starwood Hotels & Resorts Worldwide announced Thursday that the consortium led by Anbang Insurance Group has withdrawn its non-binding proposal to acquire Starwood “as a result of market considerations” and “does not intend to make another proposal,” according to a Starwood news release.
After making an offer of $82.75 per share for Starwood on 28 March, the consortium withdrew its offer before the stock market closed Thursday.
Marriott International also published a news release Thursday, which stated Marriott and Starwood encourage shareholders to approve the merger between the two companies on 8 April. Marriott’s current offer for Starwood is the same bid from 21 March, which is valued at approximately $13.3 billion ($77.94-per-share price) and includes $9.7 billion of Marriott stock and $3.6 billion in cash.
Illegal hotels drive Airbnb revenue in LA: Airbnb revenue in Los Angeles is driven by a growing number of commercial landlords running unregulated “illegal hotels,” according to a news release from the American Hotel & Lodging Association and the Pennsylvania State School of Hospitality Management.
Key findings from the study show that 4.36% of commercial operators listed properties for rent more than 360 days per year, and accounted for nearly $80 million, which is more than 30% of Airbnb’s Los Angeles revenue. A total of 84% of operators listed properties for rent for more than 30 days per year, accounting for more than $250 million or 98% of Los Angeles revenue, according to the release.
Brussels attacks affect travel in Europe: Last week’s terrorist attacks in Brussels are expected to lower international visitor numbers across Europe in future months, according CNBC.
Data from travel intelligence provider Forwardkeys predicts that international arrivals in Europe between 14 April and 31 August will be 5% lower than during the same period last year based on airplane seat bookings, CNBC reports.
Forwardkeys data also expects international arrivals will be down 24% in Brussels, CNBC reports.
Oil prices tumble, Saudi Arabia hesitant to curb output: Oil prices fell on Friday after reports that Saudi Arabia might not curb production unless other large oil producers, including Iran, joined efforts to stop oversupply, according to The Wall Street Journal.
Brent crude fell 4% to $38.73 a barrel on London’s ICE Futures exchange, according to the newspaper. Light, sweet crude for May delivery dropped 3.9% to $36.85 a barrel on the New York Mercantile Exchange.
New York, California push for $15 minimum wage: California and New York are pushing to become the first states to raise minimum wage to $15 an hour, according to The Wall Street Journal.
On Thursday, lawmakers in California passed a $15 pay floor for large businesses by 2022 and all firms by 2023, The Wall Street Journal reports. In New York, officials agreed to bring the $15-an-hour minimum wage requirement to New York City by 2019 and the rest of the state in years to follow.
The push of higher minimum wage in California and New York—two out of four of the most populous states in the U.S.—could widen a debate about the benefits and risks of higher minimum wages during election season, The Wall Street Journal reports.
Compiled by Danielle Hess.