Arguably Greece’s most iconic island group, the Cyclades got their name because, if you squint, the 30-odd main islands form a circle, or , around the sacred island of Delos, birthplace of the twin gods Artemis and Apollo. In the southwestern curve of that circle sit Milos, Sifnos and Serifos, three Aegean islands that share a stark, wild beauty owing in part to the minerals that made them mining hubs well into the last century. (Mining continues on Milos, where it vies with tourism as one of the island’s main industries.)
Hotel Sector Impacts if the Fed Cuts Interest Rates
23.08.2024 - 22:57 / skift.com / Sean Oneill / Seth Borko
A cycle of interest rate cuts could start as soon as September, according to comments Friday by Jay Powell, the chairman of the U.S. Federal Reserve: “The time has come for policy to adjust,” Powell said.
After more than two years of elevated rates, the hotel industry is optimistic that cuts could spark a rush to negotiation tables, speeding up acquisitions, hotel development, and refinancings.
“A Fed rate cut cycle could help stabilize the economy, which would be a boost to both consumer and business sentiment,” said Seth Borko, head of research at Skift Research.
Here are 9 likely impacts on the hotel sector.
An interest rate cut in September will be positive for the market in two respects, according to Kevin Davis, group Americas CEO at JLL Hotels & Hospitality, an investment advisory firm that has helped trade more than $83 billion in hotel assets in the past five years.
“First, it will improve the investment return math,” Davis said. “Second, and perhaps more importantly, it will improve investor psychology, leading to a greater willingness to buy and sell assets.”
Any additional cuts later in the year could “significantly jumpstart investment activity,” he said.
Last year, global hotel transactions hit their second-lowest volume in a decade. Only the 2020 pandemic year was worse, according to JLL.
High interest rates have prompted many buyers and sellers to wait. Dealmakers signed only $50.5 billion of hotel transactions last year, compared with $77.8 billion in 2019.
“We certainly hope and anticipate that the rate cut will result in more hospitality transactions that pencil and provide a small measure of relief to existing owners with floating rate loans,” said Mark Rutter, attorney, at the global hospitality and leisure practice group at law firm Paul Hastings.
Some investment analysts speculate that in-play assets could include Marriott International’s 20 remaining hotels, which it would like to sell to become as asset-light as possible.
Lower interest rates can lead to lower debt servicing costs, which can benefit the bottom line of a hotel operator.
A case in point: Apple Leisure Group, a real-estate investment trust that owns about 225 hotels, estimated earlier this year that an interest rate cut of 1 percentage point (100 basis points) would boost its annual net income by $1.5 million a year.
That gain to its bottom line would be representative of what many hotel asset owners would enjoy.
One caveat: Gains from lower interest rates may be partly offset by rising operational costs elsewhere. Record-high property insurance costs, partly due to extreme weather caused by climate change, have pinched hotel cash flows, primarily in top gateway markets, said CBRE Research.
On the construction
The website maxtravelz.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.
Top Autors
Popular Topics
insider.com
27.08.2024 / 16:05
I've stayed in hostels in 9 different countries. Here's why they're my preferred option — especially for solo travel.
Hostels are my preferred option when I'm traveling alone.
cntraveler.com
27.08.2024 / 07:48
8 New Airline Routes Launching From the US This Fall
Thoughts of fall travel might conjure up images of cozy cabins and hiking through fiery red foliage. This autumn, however, a wave of new airline routes from the US is shaking up the usual pumpkin-spice-laced doldrums and offering easy new ways to access exciting destinations. Think city escapes in Northern Africa, beaches on tiny Caribbean islands, and lush nature in Oceania.
insider.com
24.08.2024 / 12:50
A stretch of Florida beaches has soared from a lesser-known gem to 'the Hamptons of the South'
It once was one of the South's best-kept secrets, but now the word is out.
euronews.com
24.08.2024 / 02:17
New Brussels to Venice night train: The 9 cities en route, what it will cost and how to book
The night train boom is continuing with a new sleeper across Europe launching in 2025.
thepointsguy.com
22.08.2024 / 13:40
A hotel inside a theme park: First look at Universal Helios Grand Hotel coming to new Epic Universe
Universal Orlando currently boasts eight on-site hotels, offering guests easy access to the fun of Universal's theme parks. Next year, they'll add three more to that lineup to accommodate the influx of guests likely to flock to Orlando when Universal Epic Universe, the resort's newest theme park, opens in 2025. Epic Universe is being built on a 750-acre site a few miles away from Universal's existing parks and hotels and will nearly double the size of Universal Orlando Resort, further exacerbating the need for additional hotels.
lonelyplanet.com
21.08.2024 / 23:28
10 of the best places to go in Europe in autumn
Aug 21, 2024 • 10 min read
breakingtravelnews.com
21.08.2024 / 11:38
Catch the Last of Summer in Türkiye’s Unmissable Destinations
With summer coming to an end, make the best of it by embarking on a holiday in Türkiye. Perfect for solo travels and family trips, Türkiye offers the most varied experiences in the Mediterranean. From the vibrant cultural tapestry of İstanbul to the sun-kissed shores of the Aegean and Mediterranean coasts, each Turkish destination offers a journey filled with many unforgettable experiences, complemented by world-famous Turkish hospitality and cuisine.
skift.com
20.08.2024 / 20:41
Hyatt to Buy Hotel Group Standard International for $150 Million
Hyatt Hotels said Tuesday it planned to buy the brands of Standard International, owner of 21 open hotels across five hospitality brands, including the luxury lifestyle brand The Standard.
skift.com
18.08.2024 / 16:24
Business Travel 2024: Hotels Bet on the New Road Warriors
Gloria Gonzalez, a travel agency account manager in Fort Worth, used to fly back-to-back business trips as a travel manager before the pandemic.
travelandleisure.com
15.08.2024 / 17:29
This Discount European Airline Just Unveiled an Unlimited Flight Pass — Here Are the Details
If the end of summer has you craving more vacation time, a new offer could be just the ticket. Wizz Air, based in Budapest, recently announced an «All You Can Fly» subscription pass that allows travelers to journey throughout the world for just a few hundred dollars. For a very limited time, the program is only €499 (approximately $537) per year, and the price jumps to €599 (approximately $657) from August 16, 2024. Travelers can begin using their flight pass for flights after September 25, 2024. While the program has the subscription fee, the flights are technically not free. Travelers are charged a small €10 (approximately $11) fee for each flight segment they book, according to the program's terms.
euronews.com
15.08.2024 / 06:36
Here’s everything you need to know about travelling to Greece as the wildfire risk remains high
Greece is still on high fire alert as temperatures are set to reach 40 degrees Celcius across the nation.