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Tag: lodging

  • Report: Short-Term Rental Co. Zeus Living to Shutter

    Report: Short-Term Rental Co. Zeus Living to Shutter

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    Zeus Living, a furnished apartment provider tailored to business travelers staying 30 days or longer, is reportedly “winding down operations” due to financial struggles amid an increasingly challenging real estate landscape, according to The Information.

    According to the report, Zeus Living representatives purportedly told landlords in an email that the company was “winding down operations.” Zeus Living has yet to announce when it will cease operations. 

    Founded in 2015 in San Francisco, Zeus Living has received more than $110 million in funding over the years. 

    In 2019, the company secured $55 million in Series B funding from investors, including property rental company Airbnb, Comcast, CEAS Investments and TI Platform Management. Following its Series B funding round in 2019, Zeus Living expanded to the New York City area, with openings in Manhattan and Long Island City. Shortly after its expansion, Zeus reduced its staff by 30 percent amid the Covid-19 pandemic.

    In 2021, the company seemingly bounced back and received another $55 million in Series C funding. During that time, the company reported 2021 revenue per available room to be 21 percent higher than 2020.

    Zeus Living did not immediately respond to a request for comment. 

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    aplatas@thebtngroup.com (Angelique Platas)

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    November 10, 2023
  • Choice ‘Confident’ in Wyndham Quest as Q3 RevPAR Slips

    Choice ‘Confident’ in Wyndham Quest as Q3 RevPAR Slips

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    Choice Hotels International’s third-quarter revenue per available room and occupancy slipped year over year alongside lean average-daily-rate growth, the company reported Tuesday. Meanwhile, Choice remains confident it will complete its proposed acquisition of Wyndham Hotels & Resorts, Choice president and CEO Patrick Pacious said Tuesday during an earnings call, despite the opposition of Wyndham’s board.

    Choice made its $7.8 billion bid to acquire Wyndham public in October following stalled negotiations between the two hotel companies. Since then, Wyndham late last month detailed its “well-substantiated reasons” to decline the offer during its third-quarter earnings call, reasons that Choice executives said Tuesday they can remedy at the negotiation table.  

    “The top priority is to get reengagement, to come back to table,” Pacious said, adding that “every issue that’s been identified can be solved by coming back to the table and negotiating.”

    Choice remains “very committed” to this transaction, according to Pacious, calling it “too compelling not to see it all the way through.” There “can be additional value unlocked if Wyndham reengages,” he said, and he is “confident we’ll get the transaction completed.” 

    One benefit to Choice making its Wyndham bid public has been what Pacious called encouraging conversations with franchisees who “support” the potential acquisition. One group of franchisees, the Asian American Hotel Owners Association, stated it “doesn’t support the deal” in a statement on its website in October.

    Following its 2022 acquisition of Radisson Hotel Group Americas, Choice has migrated 75 percent of Radisson Americas’ properties onto its program, and of the company expects that process to be complete by the end of the year, Choice executives said on the call. 

    The Radisson Americas acquisition experience shows Choice “knows how to acquire companies and get them integrated,” Choice CFO Scott Oaksmith said during his first earnings call with the hotel company since being promoted in August.

    Q3 Results

    In Q3, Choice’s systemwide average daily rate was $103.33, up 1.3 percent year over year. The hotel company’s occupancy slipped 1.3 percentage points to 62 percent. 

    Also down slightly was revenue per available room. RevPAR in Q3 was $64.02, a 0.8 percent decrease year over year, but still up from 2019 levels.

    The company still believes there is the “ability to push rate” Oaksmith said, highlighting that business transient will continue to accelerate through the “second quarter and beyond” next year. “It’s a function of the economy as we ride through this … the prognosticators said we feel like we avoided a recession,” Oaksmith said.

    Choice’s total revenue in Q3 was $425 million, up from $414 million in 2022 but down from the company’s “quarterly record” of $427.4 million in Q2. The hotel company’s net income was approximately $92 million in Q3, down from $103.8 million in 2022. 

    Business Performance

    The company continued to improve its international business performance; a sector Choice eyed as “white space” for growth opportunities last quarter. 

    “Our international portfolio-wide third-quarter RevPAR increased 14 percent, with the Americas region growing 25 percent compared to the same period of 2019,” Pacious said, adding that the company believes it has a “significant opportunity” to grow international market share.

    The company also highlighted its pipeline growth, with new hotel openings growing 24 percent year over year. 

    Extended-stay hotel openings grew 13 percent year over year, according to Oaksmith, and conversion properties grew 36 percent year over year. Two-thirds of the company’s hotel openings come from conversion, hotel executives said on the call. 

    RELATED: Choice Q2 results

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    aplatas@thebtngroup.com (Angelique Platas)

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    November 7, 2023
  • Survey: Most Buyers Project 2024 Corp. Travel Budgets to Grow

    Survey: Most Buyers Project 2024 Corp. Travel Budgets to Grow

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    Corporate travel managers on average expect their organizations’ travel budgets in 2024 to grow approximately 8 percent year over year as expectations for virtual meetings decrease, according to a new Morgan Stanley survey released Monday.

    Morgan Stanley in October surveyed 135 corporate travel managers from organizations that collectively account for approximately $8 billion in global travel spend. Their travel budget expectations for 2024 “look promising,” according to Morgan Stanley. Overall, 78 percent of respondents project their travel budgets to increase in 2024 compared to the year prior, the highest such figure in the survey since 2011, the report noted.

    Respondents also project hotel rates to rise, at increases “not dissimilar” to 2023, according to Morgan Stanley. 

    Globally, respondent travel managers project room rates in 2024 to increase 5 percent year over year. Rates in the United States and U.K. are expected by respondents to increase 4 percent to 5 percent year over year, while rates in Greater China are projected to drop 1 percent.

    Meanwhile, corporates have tapered their expectations for virtual meetings in 2024, and some are opting to trade down to lower lodging service tiers to save on costs.

    Respondents projected that about 12 percent of their organizations’ events that would have been in-person prior to the pandemic would be virtual in 2024 and 2025. That figure decreased 5 percentage points from the 2022 survey.

    “This suggests a degree of permanence in the shift to virtual, but the ongoing decline in expectations could provide a tailwind to spend,” report authors wrote. Virtual meetings have a larger presence in Europe, where they are expected to rise in 2025 year over year, according to the report. 

    To mitigate potential “tailwind to spend,” more than one-third of respondents are trading down to lower-tier hotels, according to Morgan Stanley. Compared to 2022, this percentage has increased 11 percentage points. Approximately 62 percent of respondents said they are not swapping accommodations to cut costs, according to the report. 

    Additionally, the use of alternative accommodations for corporate travel appears to be “stable,” according to the report.

    “While 39 percent of respondents used alternative accommodation such as Airbnb in the last 12 months—up from 28 percent last year—32 percent expect to use alternative accommodation in the next 12 months, which is stable vs. last year, presenting a lessening competitive threat to traditional hotels,” according to Morgan Stanley.

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    aplatas@thebtngroup.com (Angelique Platas)

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    November 6, 2023
  • U.S. Hotel Q3 Pipeline Climbs, Led by Dallas, Midscale

    U.S. Hotel Q3 Pipeline Climbs, Led by Dallas, Midscale

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    The U.S. hotel pipeline in the third quarter increased 7 percent year over year, with 5,704 projects in the development pipeline, led by midscale properties, according to a new Lodging Econometrics report. Dallas again reported the largest hotel construction pipeline among major U.S. markets with a record-high 189 projects in Q3.

    While Q3 U.S. hotel pipeline growth mirrored Q2’s year-over-year 7 percent increase, the hotel construction pipeline “continues to grow at a moderate pace,” according to Lodging Econometrics. 

    In Q3, U.S. hotels under construction totaled 1,063 projects and more than 140,000 guest rooms, up 8 percent and 4 percent year over year, respectively. Projects scheduled to start construction in the next 12 months also increased, with 2,234 projects and nearly 258,000 rooms in the pipeline, up 8 percent and 9 percent, respectively.

    There are 2,407 projects in the early planning stages, up 7 percent year over year and just 27 projects shy of the “all-time high,” according to LE. Accompanying those projects, there are nearly 275,000 rooms in the early planning stages, also up 7 percent year over year.

    Midscale Leads

    According to the Lodging Econometrics, the upper midscale tier represents 38 percent of the total U.S. construction pipeline with 2,149 projects, which total nearly 210,000 rooms. Behind is the upscale sector, which accounts for approximately 24 percent of the total U.S. construction pipeline, with 1,376 projects, which total nearly 171,000 rooms in the pipeline. Together, upper midscale and upscale chains account for 57 percent of rooms in the pipeline.

    The extended-stay segment also made its mark in Q3, with 2,176 projects and nearly 224,000 rooms in the U.S. construction pipeline. Extended-stay projects account for 38 percent of total project pipeline, the majority of which are mid-tier brands, according to Lodging Econometrics. 

    Together, conversion and renovation projects totaled 1,912 in Q3 with nearly 286,000 rooms—a peak total room count at the end of Q3, according to Lodging Econometrics, which expects steady growth to continue through 2025.

    Through the end of Q3, 345 new hotels and more than 41,000 rooms have opened in the United States in 2023. 

    “LE analysts forecast a total of 527 new hotels with 65,905 rooms to open in 2023, representing a 1.2 percent increase in new hotel supply,” according to the report. This trend is also expected to continue, according to LE, through 2025.

    Dallas Leads, Again

    In Q3, the U.S. construction pipeline again was led by Dallas, “an all-time high” of 189 projects and nearly 21,800 rooms, according to LE. Close behind, Atlanta had 140 projects and nearly 17,800 rooms in the pipeline, and Nashville totaled 122 projects and more than 16,000 rooms. 

    Dallas also represented the largest number of projects scheduled to started in the next 12 months (80), and greatest number of projects in the early planning stages (84).

    New York City, however, took the top spot of projects under construction, totaling 46 projects and nearly 8,400 rooms.

    Lodging Econometrics did not release U.S. pipeline counts by brand report this quarter, a company spokesperson told BTN.

    RELATED: Q2 U.S. pipeline details

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    aplatas@thebtngroup.com (Angelique Platas)

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    November 3, 2023
  • Hyatt Q3 Corp. Demand Up as Transient, Group Lines Blur

    Hyatt Q3 Corp. Demand Up as Transient, Group Lines Blur

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    Hyatt Hotels Corp.’s third-quarter transient business travel revenue increased 19 percent year over year and has recovered to approximately 90 percent of 2019 levels, hotel executives said Thursday during an earnings call.

    Although most of the hotel company’s corporate accounts use a dynamic pricing model, CEO Mark Hoplamazian said, Hyatt is “about halfway through our discussions for our fixed-rate accounts,” and he expects “rates to increase in the high single-digit range in 2024 compared to 2023.” 

    Meanwhile, demand for all customer segments “remains solid,” Hoplamazian said, adding that the lines between business transient and group are increasingly blurring.

    Hyatt has about 70 percent of its 2024 group business booked—a typical booking level for the hotel company by this time, Hoplamazian said—representing “equal measure of growth” across corporate, association, regional and specialty groups. While the corporate group segment is showing the highest level of growth, “they’re all strong and it’s balanced,” he said.

    Hyatt’s business mix now features “a continued blurring of the line between what means group and what means business transient,” Hoplamazian added. “Some of the use cases have continued to move from what we used to call business transient into what we would call group,” which is 10 or more rooms and a room block.

    Overall, “whether you want to call it business transient or group in corporate, that total demand level is going to be higher and grow over time from 2019 levels,” he added.

    In Q3, group room revenue increased 10 percent year over year and was up 5 percent from 2019 levels, according to Hyatt. Growth in group revenue “accelerated during the quarter” and was up 13 percent year over year.

    Q3 Results

    Hyatt’s systemwide revenue per available room in the third quarter was $145.40, up 8.9 percent year over year. Average daily rate was $202.13, up 2.6 percent. Revenue growth was driven by “strong rates and meaningful occupancy growth,” Hyatt executives said, highlighting the Asia-Pacific region as a standout performer. 

    Systemwide occupancy also was on the up, at 71.9 percent in the quarter with a year-over-year increase of 4.2 percentage points. Occupancy levels continued to recover, according to Hyatt, with the month of September slightly below 2019 levels. 

    In Q3, Hyatt reported $1.62 billion in revenue, up from $1.54 billion in 2022. The hotel company’s net income was $68 million, an increase over $28 million in 2022.

    RELATED: Hyatt Q2 results

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    aplatas@thebtngroup.com (Angelique Platas)

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    November 2, 2023
  • Marriott: Q3 Corp. Growth ‘Slow and Steady,’ Higher Rates Next

    Marriott: Q3 Corp. Growth ‘Slow and Steady,’ Higher Rates Next

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    Marriott International’s third-quarter business transient revenue increased at a “slow and steady” year-over-year pace, executives said Thursday during an earnings call. Meanwhile, Marriott expects “to see another year of strong growth in our special corporate rate on top of very strong growth in that rate in 2023,” CFO and executive VP of business operations Leeny Oberg said.

    Revenue from the business transient sector, which accounted for one-third of the hotel company’s global room nights in the quarter, increased about 4 percent year over year in the U.S. and Canada, Marriott president and CEO Anthony Capuano said.

    Small and midsize enterprises have continued to “show strength” in the business transient sector, according to Capuano, but large managed corporate accounts have yet to fully recover.

    “There are a number of factors that are impacting some of the big corporates,” he said, citing macroeconomic conditions and sustainability goals. “Whatever it might be, it is having some impact on the pace at which their travel volumes recover.”

    Still, Capuano added, “I absolutely don’t think travel is permanently impaired. I just think it’s going to look a little different.” 

    While day-of-the-week numbers and travel segments may look different—i.e. SMEs, group or blended travel offsetting business—”overall volumes are encouraging,” Capuano said.

    A standout performer for Marriott in the third quarter was group business, a sector which Capuano said has been “remarkable” coming out of the pandemic and is “expected to continue to be a meaningful driver of revenue growth going forward,” he said, but at a more normalized pace, executives said on the call.

    According to Marriott, group room night-share stood at 23 percent in Q3, and global group revenue increased nearly 9 percent year over year. Group revenue in the U.S. and Canada increased 5 percent year over year, also representing a sense of seasonal normalization, according to Marriott executives. 

    Group business is back to approximately the same percentage of Marriott’s business that it was pre-Covid, Oberg said.

    Q3 Results

    Overall, third-quarter travel demand “remained strong,” for Marriott. Systemwide revenue per available room was $129.73, up 8.8 percent year over year. Worldwide average daily rate was $179.84, up 4.1 percent. Systemwide occupancy increased 3.2 percentage points to 72.1 percent.

    In the U.S. and Canada, Marriott’s Q3 RevPAR was $133.92, up 4.3 percent year over year. ADR was $183.28, up 2.7 percent. Occupancy was 73.1 percent, up 1.1 percentage points.

    In Q3, Marriott reported $5.93 billion in revenue, up 11.7 percent year over year. The hotel company’s net income was $752 million, up from $630 million in 2022.

    Looking Ahead

    Marriott executives remain optimistic about travel demand, citing the company’s “record-high pipeline” in the quarter, totaling nearly 557,000 rooms, excluding MGM rooms. Capuano pointed to “real momentum” with its City Express brand and “global opportunity” for midscale. 

    With that said, Marriott’s strategy going forward is “to continue to strengthen our leadership position in luxury and upper upscale, while expanding our growth potential in a new segment for us, which is midscale,” Capuano said.

    RELATED: Marriott Q2 results

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    aplatas@thebtngroup.com (Angelique Platas)

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    November 2, 2023
  • AHLA Pushes to Defeat L.A. Hotel Homeless Housing Initiative

    AHLA Pushes to Defeat L.A. Hotel Homeless Housing Initiative

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    The American Hotel & Lodging Association has launched a campaign to defeat a Los Angeles municipal ballot initiative posed by a union representing L.A.-based hospitality workers that would, among other elements, allow individuals experiencing homelessness to stay in vacant hotel rooms across the city alongside occupied rooms through a voucher system. 

    This move, according to AHLA, would be an “absolute failure,” and put “hotel guests and hotel employees in physical danger,” AHLA president and CEO Chip Rogers told BTN. 

    The initiative, formally known as “Initiative A, Hotel Developer Land Use and Replacement Housing Initiative,” as of now will appear on a March 5, 2024, Los Angeles municipal ballot. If it passes, L.A. would be the first city in the U.S. to have such a law.

    The Proposal 

    According to proposal from Unite Here Local 11, the hospitality workers’ union, the initiative would require new and existing hotels in Los Angeles to adhere to “responsible business practices, including making guest rooms available to unhoused Angelenos on a non-discriminatory basis, and be subject to city oversight.”

    This would require L.A. hotels to report the number of same-day vacant rooms to City Hall each day—by 2:00 p.m., according to Rogers, a time he noted typically is before hotel check-in time—along with average daily rates. Once reported and processed, the Los Angeles city housing department would then provide unhoused individuals with vouchers for that same night’s stay in a Los Angeles hotel. Hotels would not be able to discriminate, or refuse vouchers or service to these guests, who would have access to hotel amenities. Furthermore, hotels would have to adhere to obtain specific permits based on the property’s total number of guest rooms.

    Unite Here Local 11 did not respond for further detail or comment.

    AHLA has formed a committee to lobby against the initiative, dubbed Angelenos Protecting Hospitality. Rogers serves as president of that committee. APH is working to defeat the initiative through education and paid advertising before the election. Rogers said Unite Here could remove the initiative from the ballot by Dec. 8.

    While this proposal may sound familiar to Californians following Project Roomkey, a statewide initiative launched during the Covid-19 pandemic to house unhoused individuals in vacant hotels, this program is “apples and oranges,” Rogers said. Project Roomkey, he said, incorporated the entire hotel, not just vacant rooms next to occupied rooms within a property. 

    Project Roomkey, Rogers said, “used the entire hotel, rented out the entire property [and] provided wrap-around services, including health and security services to essentially turn those [hotels] into homeless shelters.” Still, there were “lots of problems” with that program, Rogers said, including payouts to the Hotel Whitcomb in San Francisco and the Mayfair Hotel in Los Angeles, collecting $19 million and $11.5 million, respectively, in damages from their respective cities. 

    Unlike Project Roomkey, the L.A. homeless housing Initiative does not seem to include health and security services for guests, hotel staff or unhoused individuals. What the new initiative does include, however, is a replacement housing regulation process to be overseen by the city.

    The Response

    To understand public opinion around this initiative, AHLA commissioned a survey conducted Sept. 18-20 by Morning Consult of 2,203 U.S. adults. About 72 percent of respondents said they would be deterred from booking a hotel room in Los Angeles if the initiative passes and takes effect, and 42 percent said it would be a “major” deterrent. 

    About 70 percent of respondents said they would be deterred from attending a business conference in L.A. if the initiative passes and takes effect, and more than half of them said it would be a “major” deterrent. 

    Of those who felt the program would deter them from booking a hotel room in the city, 34 percent said they would “definitely” stay outside of L.A., and 20 percent said they would probably stay outside city limits. These numbers, according to Rogers, are indicative of potential dropping in hotel occupancy in Los Angeles.

    Potential Impact on Hotels and Staff

    If that comes to fruition, “the number of people staying at hotels in Los Angeles is going to drop precipitously and, with that, hotel staff are going to lose their jobs,” Rogers said.

    Another element of the proposal that would impact hotel staff are the program’s regulatory tasks added to their plate. Those tasks include, Per the initiative’s stipulations, hotels would have to calculate vacant rooms and average daily rate. Then, hotel staff would have to call City Hall and process this information. 

    Housing individuals experiencing homelessness in hotels is a process with variables, according to Rogers.

    “What happens if there’s damage? You don’t know who the person is—there’s no credit card to back it up,” Rogers said. The program would not require identification or payment method for unhoused individuals. “The voucher is only good for one night. What happens if they decide they’re not going to leave? Now [hotel employees] must call law enforcement,” he added. “None of this was thought out,” he said.

    Rogers also cited results from a June 2023 University of California at San Francisco study, which reported that mental health challenges are prevalent within the unhoused community, suggesting they could create an unsafe work environment for hospitality employees. According to the study, which included responses from individuals experiencing homelessness, two-thirds of respondents reported current mental health symptoms, and more than one-third had visited an emergency department in the prior six months. According to Rogers, this data further points to ways in which the city needs a “realistic solution” to solve the homelessness crisis, and this ballot measure is “not a realistic solution.”

    “Using taxpayer dollars to house homeless individuals alongside paying guests in hotels for one night does nothing to solve the homelessness crisis facing L.A. It would only endanger L.A. hotel employees, devastate tourism in the city, and ultimately destroy L.A.’s hotel industry,” according to APH.

    While highlighting these potential impacts from the program, Rogers highlighted the program’s lack of consideration for both hotel employees and unhoused individuals.

    “Now you’re taking a population that needs attention, needs medical care, and putting them in hotel rooms to be taken care of by hotel employees who are not trained in any way to deal with this population,” Rogers said. “We find it a little interesting that the Union would be supporting a measure that would create job loss among its own members,” he added.

    Unite Here Local 11 has yet to respond publicly to discourse around the ballot initiative, nor has the Union communicated with AHLA or APH representatives. 

    Next Steps

    For corporates who would be deterred from hosting events in L.A., or any corporate entity looking to book significant rooms in the city, Rogers suggests they contact elected officials and the Union and “tell them they have grave concerns about this policy and that they would look elsewhere to book their rooms and hold their events.”

    Other organizations joining APH and AHLA in challenging the L.A. homeless housing ballot initiative include the California Hotel & Lodging Association, the Hotel Association of Los Angeles, the Los Angeles County Business Federation, the Greater Los Angeles Area Chamber of Commerce, the Northeast Los Angeles Hotel Owners Association and the LAX Coastal Chamber of Commerce.

    “L.A.’s homeless population needs long-term solutions and specialized care that only social and health care workers can provide,” Rogers reiterated. “It’s dangerous to force untrained hotel employees and guests to shoulder these responsibilities.”

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    aplatas@thebtngroup.com (Angelique Platas)

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    October 27, 2023
  • Accor: Q3 ‘Strong’ but U.S. ‘Leveling Off’

    Accor: Q3 ‘Strong’ but U.S. ‘Leveling Off’

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    Accor Group’s third-quarter revenue per available room, occupancy and average daily rates all increased year over year, Accor CFO Martine Gerow said Thursday during an earnings call.

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    aplatas@thebtngroup.com (Angelique Platas)

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    October 26, 2023
  • Wyndham Details Choice Rejection, Q3 Results

    Wyndham Details Choice Rejection, Q3 Results

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    Wyndham Hotels & Resorts’ third-quarter systemwide revenue per available room increased year over year due to “higher occupancy levels and stronger pricing power,” adding to the hotel company’s list of “well substantiated reasons” to refuse Choice Hotels International’s acquisition bid, Wyndham executives said Thursday during an earnings call. 

    In Q3, Wyndham’s systemwide RevPAR was $49.71, up 3 percent year over year. International RevPAR was $38.05, up 16 percent year over year, while U.S. RevPAR decreased 1 percent year over year to $58.46. Wyndham attributed the decline in U.S. RevPAR to a more normalized environment following a record-breaking year in 2022. Wyndham’s U.S. RevPAR in Q3 exceeded 2019 levels by 9 percent.

    Wyndham president and CEO Geoffrey Ballotti on the call said, “revenue growth from our general infrastructure-related business accounts” helped the company’s economy brands “to gain market share, outperforming their competitors by another 100 basis points this quarter.”

    Wyndham executives also detailed the company’s decision to refuse Choice’s proposal, which was made public this month. Wyndham executives “strongly believe that Wyndham’s standalone plan and multiple levers of growth provide a more compelling proposition compared to Choice’s offer,” Wyndham board chairman Stephen Holmes said on the call. 

    For its part, Choice on Wednesday issued a press release calling on Wyndham “to engage in good faith discussions so that shareholders of both companies can benefit from the compelling combination.”

    “We respect Wyndham’s desire to achieve the best outcome for its shareholders, but that can’t happen if Wyndham unilaterally ends our discussions,” Choice president and CEO Patrick Pacious said in the statement. “Choice is ready to move expeditiously to negotiate binding terms, including mechanisms to provide market standard protections for Wyndham shareholders.”

    Ballotti said Choice’s offer did not include market volatility protection, which Wyndham specified was necessary, company executives said. The hotel company requested “creative and appropriate protections for shareholders.” 

    Ballotti noted offer is now “worth less” than when it was originally proposed due to a drop in Choice’s stock after the hotel company made its proposal public. Choice’s stock was trading at just below $112 per share Wednesday afternoon, down from a high of $124.90 on Oct. 16, the day before Choice made its acquisition offer public.

    Holmes highlighted areas of concern regarding Choice’s offer, such as the lack of “organic growth, less vibrant loyalty program and virtually no international capabilities in Choice’s platform.”

    Ballotti also underscored these differentiators by highlighting Choice’s “declining pipeline” against Wyndham’s growing one. 

    As of Sept. 30, Wyndham’s global pipeline reached 858,000, up 3 percent year over year. The hotel company’s international pipeline increased 6 percent, and its U.S. pipeline grew 1 percent. The company opened more than 14,500 new rooms in the third quarter, Ballotti said, with 5,900 opening in the United States. 

    Regarding next steps with Choice, Holmes called the publicity of the proposal an “amazing distraction” for both businesses, adding that Wyndham has not heard from Choice since last week. 

    “They’re not growing, they have some serious issues within their organization… they’re trying to address that by making us the elixir to their problems,” Holmes said. He added that the hotel company has offered multiple solutions to the deal, to which Choice cannot accommodate.

    “Their plan seems to be to put out repetitive press releases and churn the water enough to make it interesting for us … that’s a bit of a desperate plan,” Holmes said. 

    “The ball is in their court,” he added.

    Additional Q3 Metrics

    In Q3, Wyndham reported $402 million in revenue, down 1.2 percent year over year.  The company’s net income in the quarter was $103 million, up from $101 million during the same period in 2022.

    — Chris Davis contributed to this report.

    RELATED: Q2 Wyndham results

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    aplatas@thebtngroup.com (Angelique Platas)

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    October 26, 2023
  • Sonesta Names Former IHG Exec CFO

    Sonesta Names Former IHG Exec CFO

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    Sonesta International Hotels Corp. has named former IHG Hotels & Resorts executive Bob Gunkel its new chief financial officer, effective immediately, the hotel company announced Tuesday. 

    Gunkel through 2014 was CFO of the Americas region of IHG, according to his LinkedIn. He most recently served as an adjunct professor of finance at Georgia State University in Atlanta.

    Gunkel succeeds former Sonesta CFO Stephen Miano, who joined Graduate Hospitality as CFO in August, according to his LinkedIn.

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    aplatas@thebtngroup.com (Angelique Platas)

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    October 26, 2023
  • Hilton: Q3 Corp. Travel Demand Up, Group ‘Off the Hook’

    Hilton: Q3 Corp. Travel Demand Up, Group ‘Off the Hook’

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    Hilton Worldwide’s third-quarter business travel demand continued to recover, with business transient revenue per available room up about 5 percent year over year, Hilton president and CEO Christopher Nassetta said Wednesday during an earnings call. 

    Meanwhile, Nassetta suggested that the average percentage index in 2024 corporate rates, currently in negotiations by some corporate clients, likely would be in the “upper single digits.” He noted that contracted corporate business comprised about “6 percent of our business,” compared with small and midsize businesses, which he said comprise “85 percent of the business.” Most 2024 contracted corporate pricing would include dynamic rates, he said.

    The standout in Q3 for Hilton, Nassetta said, was group demand, which he said was “off the hook.”

    Group RevPAR in Q3 grew 8 percent year over year and outperformed both leisure and business transient RevPAR growth, which each increased 5 percent year over year, Nassetta said. In Q3, group RevPAR exceeded 2019 peak levels for the first full quarter since the pandemic. 

    The company continues to see positive group booking trends for “all future periods,” Nassetta said on the call, noting that on-the-books group business for next year is up 18 percent year over year. Small- and medium-sized groups make up 85 percent of Hilton’s group business, he said. 

    “[Group] has always been dominated by small and medium groups,” Nassetta said, adding that the company expects to see the return in 2024 of “the mega groups” and large corporate groups, which “have a huge amount of pent-up demand that needs to be satiated.”

    Despite discussion around economic impact on business, Nassetta said the company “has not seen any real impact in terms of group demand.”

    Q3 Metrics 

    Overall, Hilton reported growth across all RevPAR sectors, both year over year and against 2019 levels. Compared to 2019 in Q3 with “all segments accelerating sequentially against the second quarter,” Nassetta said. This performance was driven by occupancy and rate, he added.

    Hilton’s third-quarter systemwide RevPAR was $121.37, up 6.8 percent year over year, and 11.4 percent higher than 2019 levels. 

    Average daily rate in the quarter was $161.20, up 3,6 percent year over year.  

    Demand also increased across all segments and regions. Systemwide occupancy was 75.3 percent in Q3, up 2.2 percentage points year over year and the company’s highest level post-pandemic, Nassetta said. In September, occupancy was just one point shy of 2019 levels, he added. 

    Nassetta called strong group demand the “last leg of the stool” that would allow Hilton to “get back to occupancy levels comparable to 2019,” and predicted the company in 2024 would reach 2019 occupancy levels, driven mostly by SMEs. 

    In the third quarter, Hilton reported $2.67 billion in revenue, up 12.7 percent year over year. The hotel company’s net income in the quarter was $379 million, up from $346 million in the same period in 2022.

    Regional and Pipeline Growth

    International growth was most notable in the Asia-Pacific region, which recorded 39 percent year-over-year Q3 RevPAR growth. This was bolstered by continued demand in China, ,” Hilton CFO and president of global development Kevin Jacobs said, where third-quarter RevPAR was up 38 percent year over year 12 percent over 2019 levels. 

    Domestically, third-quarter U.S. RevPAR grew 3 percent year over year, driven by group and business transient demand. 

    Hilton’s pipeline is also on the rise. In Q3, Hilton’s pipeline grew 10 percent year over year and 4 percent over Q2. 

    RELATED: Hilton Q2 performance

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    aplatas@thebtngroup.com (Angelique Platas)

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    October 25, 2023
  • IHG: Q3 Corp. Transient Revenue Exceeds ’19

    IHG: Q3 Corp. Transient Revenue Exceeds ’19

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    Business transient revenue at IHG Hotels & Resorts worldwide increased 6 percent year over year and was 3 percent higher than the third quarter of 2019, hotel company executives said Friday during an earnings call. 

    “Business revenue is above 2019 levels and the further normalization of global working habits has seen the return of more meetings, conferences and events, IHG CEO Elie Maalouf said on the call.

    As has been the case throughout 2023 and across hotel companies, the post-pandemic recovery primarily has been driven by rising rates. IHG’s systemwide third-quarter average daily rate increased 4.1 percent to $130.20, helping to increase revenue per available room 10.5 percent to $93.22.

    IHG systemwide third-quarter occupancy increased 4.1 percentage points to 71.6 percent, a figure largely driven by a 14.1 percent increase in China, which still is rebounding from the depths of its Covid-19 lockdowns. 

    In the Americas, occupancy increased 0.7 percentage points to 72.2 percent, while ADR rose 3.1 percent to $140.28 and RevPAR increased 4.1 percent to $101.26.

    “As well as year on year RevPAR growth in each of our three regions, it was also pleasing to see rooms revenue growth for each of leisure, business and group travel,” Maalouf said in a statement.

    IHG has nearly 1,980 hotels in its pipeline, totaling more than 292,000 rooms, the latter figure up 5.1 percent year over year.

    RELATED: IHG Q2 performance

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    cdavis@thebtngroup.com (Chris Davis)

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    October 20, 2023
  • One Global Taps Above & Beyond as Hotel Program Provider

    One Global Taps Above & Beyond as Hotel Program Provider

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    Travel management joint venture One Global has named hotel distribution provider Above & Beyond as its “exclusive hotel program provider,” One Global announced.

    Part of U.K.-based Snowstorm Technologies, the Above & Beyond program provides white-label hotel programs and technology for agencies and travel management companies and reports 14 million room nights booked annually, according to Snowstorm commercial director Julie Janzen. The program will enable One Global TMC members “to work closely with chains and individual hotels to mutually grow their business together,” One Global general manager Jodie Gentles said in a statement.

    One Global formed last year as a joint venture between World Travel and Clarity Business Travel, and it since has announced several partner TMCs including Brickell Travel in Brazil and Mexico, Blanco Viajes in Chile, Ontario-based Travelpath, Stockholm-based Big Travel, Singapore-based Citystate Travel and Australia-based Globetrotter Corporate Travel. Above & Beyond is the group’s first announced product partner.

    Above & Beyond works with other TMC networks including Lufthansa City Center and GlobalStar.

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    mbaker@thebtngroup.com (Michael B. Baker)

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    October 19, 2023
  • Crews work to identify many of the 93 victims found so far in Maui wildfires, now the deadliest US fire in over a century | CNN

    Crews work to identify many of the 93 victims found so far in Maui wildfires, now the deadliest US fire in over a century | CNN

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    CNN
     — 

    The death toll from the Maui wildfires climbed to at least 93 Saturday as authorities work to identify the victims and sift through the burned communities of western Maui.

    The fire is now the deadliest US wildfire in more than 100 years, according to research from the National Fire Protection Association.

    “This is the largest natural disaster we’ve ever experienced,” Hawaii Gov. Josh Green said at a Saturday night news conference. “It’s going to also be a natural disaster that’s going to take an incredible amount of time to recover from.”

    Whipped by winds from Hurricane Dora hundreds of miles offshore, fast-moving wildfires wiped out entire neighborhoods, burned historic landmarks to the ground and displaced thousands. As searches of the burned ruins continue, officials warn they do not know exactly how many people are still missing in the torched areas.

    Only about 3% of the fire zone has been searched with cadaver dogs, Maui Police Chief John Pelletier said, and authorities expect the already staggering death toll to rise.

    “None of us really know the size of it yet,” Pelletier said at Saturday night’s news conference.

    Only two of the people whose remains have been found have been identified, according to an update from Maui County.

    “We need to find your loved ones,” Pelletier said, urging those with missing family members to coordinate with authorities to do a DNA test.

    “The remains we’re finding is through a fire that melted metal.”

    Meanwhile, firefighters who continue to battle the flames – practically nonstop in some instances – have made some progress in containing the blazes. Of the three largest wildfires that crews have been combating, the deadly fire in hard-hit Lahaina has not grown, but is still not fully under control, Maui County Fire Chief Brad Ventura said.

    The Pulehu fire – located farther east in Kihei – was declared 100% contained Saturday, according to Maui County. A third inferno in the hills of Maui’s central Upcountry was 50% contained on Friday, officials said.

    As firefighting efforts continue, the state is surveying the immense destruction in once vibrant, beloved communities.

    Around 2,200 structures have been destroyed or damaged by the fires in West Maui, about 86% of them residential, Green said Saturday.

    While the Federal Emergency Management Agency earlier on Saturday said it was premature to assign even an approximate dollar amount to the damage done on Maui, the governor estimated that “the losses approach $6 billion.”

    “The devastation is so complete, that you see metals twisted in ways that you can’t imagine,” Green said. “And you see nothing from organic structures left whatsoever.”

    “We’ve gone through tsunamis, earthquakes and volcanic eruptions, but this event was much more catastrophic than any of those here,” Green said.

    Here’s the latest as of Saturday evening:

    • Police are restricting access into West Maui: The one highway into the hard-hit Lahaina area remains highly restricted. Residents slept in a mile-long line of cars overnight Saturday, hoping to enter.
    • Thousands displaced: The fires have displaced thousands of people, FEMA Administrator Deanne Criswell told CNN on Thursday. A total of 1,418 people are at emergency evacuation shelters, according to Maui County officials.
    • Hotel rooms for evacuees: Around 1,000 hotel rooms were secured for evacuees and first responders, Green said, but it’s a challenge to get people into hotel rooms that have enough electricity. Long term housing solutions were also being sought.
    • Cellphone services coming back: While the fires initially knocked down communications and made it hard for residents to call 911 or update loved ones, county officials said Friday that cellphone services are becoming available. People are still advised to limit calls.
    • Maui’s warning sirens were not activated: State records show Maui’s warning sirens were not activated, and the emergency communications with residents was largely limited to mobile phones and broadcasters at a time when most power and cell service was already cut.
    • Disaster response under review: Hawaii Attorney General Anne Lopez will lead a comprehensive review of officials’ response to the catastrophic wildfires, her office said Friday. “My Department is committed to understanding the decisions that were made before and during the wildfires and to sharing with the public the results of this review,” Lopez said in a statement.

    More than a dozen federal agencies have been deployed to Hawaii to assist in the recovery efforts, including the National Guard, FEMA and the Department of Health and Human Services.

    Local sites and attractions meant for summer revelers are now being turned into relief beacons.

    Pacific Whale Foundation, which typically operates eco-tours across Maui, is instead using its ship to transport supplies like batteries, flashlights, water, food and diapers to people in need.

    And at the Lahaina Gateway and the Ritz-Carlton in Kapalua, food and water distribution sites have been set up, according to Green.

    Thousands of pounds of food have been donated and are on the way, the governor said Saturday.

    “We come at this like an ohana because it’s going to be, in the short term, heartbreaking. In the long term, people are going to need mental health care services. In the very long term, we’ll rebuild together,” Green said.

    The Hawaii Department of Transportation will set aside a runway at Kahului Airport – the primary airport on the island of Maui – to accommodate incoming relief supplies, officials announced Saturday.

    Volunteers unload supplies to be transported to people in need at Kahului Harbor in Maui, Hawaii, on Saturday.

    For those who’ve lost their homes, at least 1,000 rooms have been secured for them as well as support staff, the governor said.

    “Then coming after that, in the days that follow, we’ll have long term rentals. Those are the short term rentals turned long term now,” Green said.

    Meanwhile, tourism authorities are focused on helping visitors get out of Maui, alleviating the pressure on residents and traffic, so that “attention and resources” can be focused on the island’s recovery, Hawaii Tourism Authority spokesperson Ilihia Gionson said Saturday.

    Gionson, who is a native Hawaiian, said residents will draw strength from the deep history of Lahaina — a former capital of the Hawaiian Kingdom — and “the very powerful spirits of Maui.”

    “It’s really in the families and in the hearts of the Kama’aina, the residents of those places, that those kinds of stories, those kinds of histories live,” he told CNN. “So our hearts, our prayers, all of our Aloha is with those families who have lost loved ones, who have lost their homes, who have lost businesses, livelihoods, lifestyles — it’s just devastating.”

    In pictures: The deadly Maui wildfires

    Maui police have been restricting residents on-and-off from taking the Honoapi’ilani Highway – the main roadway into devastated Lahaina.

    Some residents slept in a mile-long line of cars overnight Saturday, hoping to enter by morning. But police told drivers that traffic is jammed on the main road and that conditions are too dangerous.

    Steven and Giulietta Daiker said they were nearly up to the main checkpoint after hours of waiting when they learned they were only going to be turned around. “They couldn’t have told us that three miles back, or couldn’t have been on a bullhorn or on the radio?” Steven asked.

    “It’s not just frustration. It feels sickening,” Giulietta added.

    Officials say they have to limit access as conditions remain hazardous where homes were leveled by the fires.

    “We’re not doing anybody any favors by letting them back in there quickly, just so they can go get sick,” Mayor Richard Bissen Jr. said at Saturday’s news conference.

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    August 13, 2023
  • New York lawmaker connected to nonprofit accused of lying about homeless vets being pushed out of hotel for migrants says he’s no longer affiliated with foundation | CNN

    New York lawmaker connected to nonprofit accused of lying about homeless vets being pushed out of hotel for migrants says he’s no longer affiliated with foundation | CNN

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    CNN
     — 

    A New York state assemblyman and former volunteer spokesperson for the nonprofit accused of lying about homeless veterans being pushed out of a hotel to make room for migrants is no longer affiliated with the foundation, he told CNN.

    Republican State Assemblyman Brian Maher said in a statement to CNN he was devastated and disheartened” to learn claims homeless veterans were pushed out of the hotel to make room for migrants were false.

    On Friday, CNN reported two homeless men said they were part of a group of 15 who were offered money to pose as veterans and say they were asked to leave the Crossroads Hotel in Newburgh, New York. They claimed Sharon Toney-Finch, a nonprofit leader who houses the homeless, was the person who allegedly offered the money and never paid up.

    Toney-Finch is the founder and chairman of the Yerik Israel Toney Foundation, which helps veterans in need of living assistance. On Friday, she denied the allegations to CNN, saying she never offered money to homeless men to say they had to leave the hotel.

    CNN reached out to Toney-Finch on Saturday regarding Maher’s statement and did not receive an immediate response.

    The situation elevated tensions between the area and New York City, as earlier this week a New York state Supreme Court judge granted a temporary restraining order blocking New York City Mayor Eric Adams’ plan to send asylum seekers to Orange County, where Newburgh is located.

    Maher said in his statement Saturday, “I am devastated and disheartened upon a conversation with Sharon Toney-Finch at approximately 3:15 p.m. Thursday, May 18, where I learned that the information regarding the YIT Foundation about homeless veterans being displaced is false. Their gross misrepresentation of the facts surrounding our homeless veterans is appalling.”

    “The YIT Foundation purports to protect and support veterans, but the dishonest claims and fabrication of the facts by YIT does enormous harm to our homeless veterans by creating mistrust,” the statement continued.

    On Friday, Toney-Finch said, “I never promised to pay anybody,” adding that she only told Maher that she had homeless veterans who were displaced, not that it was because of asylum seekers.

    Maher, who was a volunteer spokesperson for the nonprofit, said he is “no longer affiliated in any capacity with YIT nor offering it any more of my help.”

    The state assemblyman called for an investigation into the nonprofit by the New York State Attorney General’s office and the Orange County District Attorney “based on the new information that came to light today,” his statement said.

    A spokeswoman for New York State Attorney General Letitia James told CNN Friday the office is reviewing the details of the incident to determine whether they will open a formal investigation.

    “While I believed Sharon was telling the truth, I do want to apologize for those that have been negatively impacted since this news broke,” Maher wrote in the statement.

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    May 20, 2023
  • New York City plans to temporarily house migrants in hotels in other counties. Two counties are suing to stop it | CNN

    New York City plans to temporarily house migrants in hotels in other counties. Two counties are suing to stop it | CNN

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    CNN
     — 

    Following New York City Mayor Eric Adams’ announcement last week that the city will bus some migrants to hotels in nearby counties temporarily, officials in Orange County and Rockland counties filed lawsuits attempting to stop the plan – even as some migrants have already arrived.

    The counties have also issued executive orders barring the arrival of migrants and asylum seekers.

    Filed in state court in Orange County, one of the lawsuits obtained by CNN alleges that the city’s plan exceeds its authority, violates a county executive order and bypasses shelter licensing requirements. It asks the court to issue a preliminary injunction blocking the city’s plan while the proceeding is pending.

    Orange County officials “oppose the City Respondents’ illegal and misguided attempts to manage their burdens and assumed responsibilities within their borders by offloading them onto the County, which is already overburdened with responsibilities to its own citizens, with no planning whatsoever,” according to the lawsuit.

    Adams had said the new program intends to provide up to four months of temporary shelter for adult men seeking asylum who are already in the city’s care while they try to secure work permits.

    Days after Adams announced plans for Orange and Rockland counties, Orange County Executive Steven Neuhaus issued an executive order stating the migrants would not be permitted to stay in hotels there.

    Rockland County filed its own lawsuit on Tuesday night. The suit, filed in Rockland County Supreme Court, alleges Mayor Adams’ plan to bus migrants to a hotel in the exceeds the city’s legal authority.

    On Friday, a judge granted a temporary restraining order against the Adam’s plan, blocking the city from transporting migrants to a hotel in Rockland County. The city has said it plans to appeal the restraining order. A court hearing is scheduled for May 30 to determine if the order will be extended.

    The New York Civil Liberties Union filed a federal lawsuit on Thursday against Orange and Rockland counties for blocking the arrival of asylum seekers from New York City, according to court documents.

    In issuing orders “expressly seek[ing] to ‘bar migrants’ and ‘asylum seekers’ from coming to the counties from New York City and that further seek to bar local hotels from making their rooms available to migrants for any period of time,” the counties violated due process and equal protection clauses under the US Constitution, the lawsuit says.

    When reached by CNN for comment Thursday, Neuhaus said, “We have not been served with any lawsuit.” CNN on Saturday reached out to Rockland and Orange county officials for further comment on the NYCLU’s lawsuit.

    Rockland County officials said in a statement that while they don’t typically comment on pending litigation, they “feel strongly that what [they] are doing is right and legal as witnessed by the court’s Temporary Restraining Order granted Thursday.”

    The Orange County complaint details multiple examples of the city’s alleged “subterfuge.”

    Orange County authorities believed the city planned to move 60 people to one hotel in the county, according to the lawsuit, but then later learned the city planned to send more than 600 individuals to two hotels. The county claims this would more than double its homeless population, which was about 437 last month, according to the lawsuit.

    After the county issued its executive order, officials were “expressly assured” by the city that buses would not be sent for the time being, according to the lawsuit.

    “Nonetheless, and despite these assurances, busses showed up at the hotel on May 11, 2023, with no notice, and unloaded homeless men pursuant to the City’s illegal Proposed Transfer plan,” the lawsuit says.

    On Wednesday, a spokesperson for Mayor Adams’ office said that the city was “discussing legal and safety concerns with our state partners,” adding that while the city temporarily paused busing migrants to locations outside of New York City, their “plans have not changed.” A spokesperson for Mayor Adams’ office said Thursday that Neuhaus’ statement about alleged assurances that no asylum seekers from the city would arrive in Orange County is inaccurate.

    “New York City has cared for more than 65,000 migrants – sheltering, feeding, and caring for them, and we have done so largely without incident,” spokesperson Fabien Levy said in a statement on Friday.

    “We need the federal government to step up, but until they do, we need other elected officials around the state and country to do their part. Right now, we’re asking Orange County to manage less than ¼ of 1% of the asylum seekers who have come to New York City, with New York paying for shelter, food, and services. We are reviewing our legal options.”

    Orange County also filed a separate complaint Friday against the two hotels within the county planning to house migrants from New York City. The complaint seeks to block the hotels from accepting asylum seekers and “converting” into homeless shelters, alleging it violates the county’s executive order.

    The town of Newburgh, which is located in Orange County, also filed a complaint against one of the hotels. The lawsuit claims that housing the migrants is not permitted under the building’s certificate of occupancy and would violate the town’s municipal and building construction codes.

    “The Mayor’s program did not consider or address the local zoning, building, or fire codes governing the proposed or ‘selected’ housing sites,” the complaint says.

    After Orange County issued its executive order, Newburgh inspectors visited the hotel and noticed “the alterations of beds, insertion of additional bedding, and the alteration of room accommodations,” the lawsuit says. The next day, the hotel received two busloads of people from the city, according to the complaint.

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    May 13, 2023
  • Where to travel in 2023: The best destinations to visit | CNN

    Where to travel in 2023: The best destinations to visit | CNN

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    CNN
     — 

    As peak vacation season sails into view and the world shakes off the last shackles of the pandemic, it feels like the appetite for hitting the road has never been greater.

    International tourism reached 80% of pre-pandemic levels in the first quarter of 2023, according to the United Nations World Tourism Organization, with an estimated 235 million tourists traveling internationally in January, February and March. And experts are cautiously optimistic about a continued travel rebound.

    Demand is high, with many popular destinations booking out earlier in the year.

    Thankfully, there’s so much out there still to see and do.

    Travel expert explains why you should book your dream vacation now

    Here are 23 destination ideas from CNN Travel to get you started:

    From the main square in Krakow, pictured, to forests, lakes and mountains, Poland invites exploration.

    We could list new openings in Poland – such as Hotel Verte, the new Autograph Collection property in Warsaw, which threw open its gilded doors (it’s in a humongous Baroque palace) last August. But the reason you should visit Poland in 2023 isn’t for the chance to stay in a place fit for royalty. It’s to show solidarity with a country which has, in turn, shown solidarity to the people of Ukraine.

    Sharing a 300-plus-mile border with a country under attack has meant that Poland has taken in more Ukrainian refugees than anywhere else. Add to that plummeting tourist numbers (though they’re on the rise again), and you have a tricky situation.

    So whether you fancy that Warsaw palace, a city break to the likes of Krakow, Gdansk, Wrocław or Poznań – all hundreds of miles from the Ukrainian border – or to get away from it all in the forests, lakes and mountains of the countryside – now’s your chance to do some good by taking a vacation. – Julia Buckley

    A full solar eclipse will be visible in April in Exmouth, Western Australia. The landscape is worth a long look, too.

    Back in April, thousands of people descended on the town of Exmouth and the greater Ningaloo Peninsula, to witness a rare total solar eclipse as it became visible over the northwestern edge of Australia.

    Organizers spent more than a year planning for the event, which lasted about a minute, and featured musical performances, educational opportunities to learn about science and astronomy, and a three-day festival.

    But the state of Western Australia offers much more than some 60 seconds of wonder.

    Spanning one-third of the entire continent of Australia, it stretches from the lively, growing state capital of Perth across deserts including the Great Victoria and Great Sandy to the wine country of Margaret River, the dramatic clifftops of the Kimberley and the quokka-covered Rottnest Island. – Lilit Marcus

    Mersey paradise: Liverpool.

    England’s port city of Liverpool, best known around the world as the birthplace of The Beatles, has added another chapter to its musical legacy.

    It’s the host city of Eurovision 2023, the spangly extravaganza of song that brings an influx of thousands of flag-waving fans from across the continent. The annual event is an opportunity for the city to bounce back after the ignominy of being stripped of its UNESCO World Heritage status in 2021.

    In June, the city will celebrate 25 years of the Liverpool Biennial contemporary visual arts festival, as more than 30 international artists and collectives take over spaces in the city until September.

    England is also marking the Year of the Coast in 2023, with food festivals and beach cleans taking place along the country’s shores. Just a half hour from Liverpool city center by train, Crosby Beach is the permanent home of sculptor Antony Gormley’s “Another Place,” where 100 cast-iron figures stand facing out to sea. – Maureen O’Hare

    Charleston, a city of undeniable refined, historic beauty, is also looking more closely at its troubled past.

    Charleston parades its past like no other US city, but it often glossed over the history of its Black residents. It’s been taking steps to fix that.

    Enter the much-delayed International African American Museum, which is now expected to open in late June.

    Located on the shoreline of the Cooper River in the spot where many Africans first set foot in North America, it will explore the lives of slaves and their descendants.

    Visitors in late May and early June can enjoy the world-renowned Spoleto Festival featuring opera, theater, dance, musical acts and artist talks.

    In March, foodies headed to the Charleston Wine and Food Festival to sample Lowcountry favorites.

    For fancy Southern fare, try Magnolias. Opened in 1990, it helped spur the city’s culinary renaissance. For something informal, try Bertha’s Kitchen in North Charleston, where red rice with sausage, fried chicken and lima beans rule. The eatery even caught attention of “Roadfood” author Michael Stern. – Forrest Brown

    Self-effacing Vilnius admitted in an ad campaign this year that nobody really knows where it is. If their brilliant video didn’t make you want to book a trip there immediately, perhaps this will: the capital of Lithuania celebrated its 700th anniversary on January 25, 2023.

    To mark the milestone, a packed program of events, including music festivals and exhibitions, are being held throughout the year. But use the anniversary as a push to visit rather than following a program religiously.

    The entire city center is a UNESCO World Heritage Site – putting it up there with its fellow V-cities, Venice and Vienna. Vilnius makes it on the list thanks to its Gothic, Renaissance and Baroque buildings, all sitting on a medieval street plan, but it’s best known for its Baroque architecture.

    Don’t miss the frothy bell tower of St. John’s church (you can climb it for sweeping city views) or the church of St. Casimir, topped by a giant crown. Got an eye for social media? This is Europe’s only capital city that allows hot air balloons to cruise over the city skyline. – JB

    Scenes like this await visitors to Fiji.

    Brilliant blue waters, expansive coral reefs and hundreds of peaceful islands: Fiji is not a hard sell. But why go there in 2023? For one, the country only reopened post-Covid at the end of 2021, meaning that visitor numbers to the South Pacific paradise have yet to fully rebound.

    While the country is spoiled for underwater beauty, take an opportunity to explore its above-ground treasures, too. The country’s lone UNESCO World Heritage site is the town of Levuka, a former capital and an important port, which is studded with British colonial-era buildings amid coconut and mango trees.

    To learn about the local Indigenous communities, travelers can take part in a kava welcoming ceremony – named for the traditional drink at its center – or enjoy a lovo, a meal cooked by hot coals in an underground pit covered with banana leaves.

    Fiji Airways now has direct flights from Los Angeles and San Francisco, making it relatively easy to get to the islands. As the Fijians say, bula! – LM

    As the fate of the Amazon rainforest hangs in the balance, two eco-lodges around Manaus – the capital of Brazil’s Amazonas state, and gateway to the river – have used their pandemic pause to get even more environmentally friendly.

    Juma Amazon Lodge, about 50 miles south of the city, is now fully powered by a new $400,000 solar plant, whose 268 double panels swagger nearly 40 feet into the air above the canopy (meaning no trees had to be cut). They’ve also built a biogas system to increase the efficiency of organic waste treatment, reducing annual carbon emissions by eight tons.

    Meanwhile, Anavilhanas Jungle Lodge, northwest of Manaus on the Rio Negro river, opened an off-grid “advanced base” during the pandemic that’s 30 miles from the main lodge and accessible only via river.

    Guests can take long jungle hikes through territory home to jaguars, pumas and giant armadillos in what’s one of the Amazon region’s most remote hotel facilities, then spend the afternoon in a hammock or by the pool. For 2023, the lodge is planning overnight stays in a creekside tent for small groups.

    Don’t miss Manaus itself – eating behemoth Amazonian fish outside the pink 1896 opera house is a bucket list experience. – JB

    Enticing flavors, history and proximity to beaches and mountains are just a few factors working in this Greek city's favor.

    There’s been no shortage of reasons to visit Greece’s second city in recent times, with a UNESCO-endorsed local food scene that recently celebrated the refurb and reopening of its century-old Modiano food market.

    Throw in a popular waterfront and proximity to beautiful beaches and inland mountains, Thessaloniki is surely a contender for one of Europe’s best city-break destinations.

    What could make it even better? How about a gleaming new metro system? All being well, November 2023 should see the opening of the main line of an infrastructure megaproject that will eventually connect the city’s downtown to its international airport. Driverless trains will whisk passengers through tunnels whose excavation has added to Thessaloniki’s already rich catalog of archeological discoveries, many of which will be on display in specially created museum stations. – Barry Neild

    January 2023 saw the official opening of Rwanda’s most exciting hotel yet: Sextantio Rwanda, a collection of traditionally crafted huts on an island on Lake Kivu, one of Africa’s largest lakes.

    It’s the first project outside Italy for Daniele Kihlgren, whose part-hotel, part-living history projects keep local tradition alive. A nonprofit delivering money straight to local communities, Sextantio sees guests fishing on the 1,000-square-mile lake, paddling in dug-out canoes, trying local banana beer and wildlife-spotting – and not just the chickens, cows, pigs and goats that roam around the property.

    Of course, you’ll want to see gorillas. Adjoining Volcanoes National Park, the Dian Fossey Gorilla Fund opened the 4,500-square meter Ellen DeGeneres Campus in 2022. Its visitor center includes exhibits, virtual reality gorilla “encounters” and nature trails.

    Over in Akagera National Park, white rhinos – transferred from South Africa in 2021 to aid conservation – are already calving. It’s easier to get there, too. A new route from London joins Brussels, Dubai, Guangzhou and Mumbai as the only direct flights to Kigali from outside the African continent. – JB

    Voted the world’s most sustainable destination in the world for six years running, Sweden’s second-biggest city is finally emerging from the shadow of Stockholm.

    Once a major trading and shipping town, Gothenburg is now considered to be one of the greenest destinations in Europe, with 274 square meters (2,950 square feet) of green space per citizen, while 95% of its hotels are certified as eco-friendly.

    Although Gothenburg officially turned 400 in 2021, the celebrations were put on ice because of the global pandemic. But they’re finally taking place in 2023, so it’s a great time to visit.

    Sweden’s King Carl XVI Gustav, who celebrates 50 years on the throne this year, will be in town on June 4, Gothenburg’s official birthday, and the city’s major anniversary festival is being held in the Frihamnen port district from June 2 to 5, with concerts and art events among the activities on offer.

    The festivities will continue throughout the summer until the September 3 kick off of Göteborgsvarvet Marathon, a new 26-mile race following on from the city’s popular half marathon on May 13. – Tamara Hardingham-Gill

    The Dhayah Fort in Ras al-Khaimah is one of the few remaining hill forts in the United Arab Emirates.

    When travelers think of the United Arab Emirates, the dazzling skyline of Dubai is usually what springs to mind.

    But the UAE has a lot to offer nature lovers too – particularly the northernmost emirate Ras al-Khaimah, which is aiming to become the Middle East’s most sustainable destination by 2025 thanks to a new “Balanced Tourism” strategy.

    Just 45 minutes from Dubai, it’s often called the “adventure Emirate,” and for good reason. Offering beaches, deserts and mountains, outdoor attractions abound, such as sand boarding, trekking, wakeboarding, skydiving, scuba diving and even the world’s longest zipline.

    But it’s not all about the adrenaline rush. Ras Al Khaimah is where you’ll find the highest restaurant in the United Arab Emirates, 1484 by Puro, which sits in the emirate’s Jebel Jais Mountains. Culture seekers can head for the historic Dhayah Fort, which dates back to the Late Bronze Age (1600-1300 BC).

    Where to stay? Luxury hospitality brand Anantara is opening a fabulous new resort there later this year that will offer 174 guestrooms, suites and overwater villas along with specialty restaurants and a spa. – Karla Cripps

    Three-tiered Kuang Si Falls is just south of UNESCO-listed Luang Prabang.

    Sharing borders with Thailand, Cambodia, Vietnam, China and Myanmar, landlocked Laos has long been a must-hit spot for time-rich travelers making their way through the Southeast Asia circuit.

    But now, thanks to the 2021 opening of a semi-high-speed railway, it’s easier than ever to get around the country at a quicker pace, shaving hours off journeys that previously took full days to travel.

    You’re still going to have to make some hard choices – there’s a lot to see in Laos.

    Towering karst peaks await visitors to adventure-haven Vang Vieng, while UNESCO-listed Luang Prabang is filled with French-colonial heritage, Buddhist ritual and natural beauty. (Luxury seekers will want to check into the Rosewood Luang Prabang, with its stylish hilltop tents)

    The mysterious Plain of Jars, a megalithic archaeological site, can be found in the Xiangkhoang Plateau. For a once-in-a-lifetime experience that makes a difference, head for Bokeo Province and join one of the Gibbon Experience’s overnight treks. Guests of this tourism-based conservation project spend the night in the world’s tallest treehouses – only accessible by zipline – among wild, black-crested gibbons. – KC

    Rolling hills, medieval buildings – and the officially crowned world’s best cheese. Welcome to Gruyères, Switzerland.

    Everywhere you look in this tiny, hilltop town, there’s a different picture-perfect view – from the medieval market square to the turreted 13th-century castle. A doable day trip from Geneva, summer promises hiking opportunities aplenty, while winter allows for venturing to the nearby Moléson-sur-Gruyères ski resort.

    To taste Gruyères’ namesake fromage, stop off at the wood-lined Chalet de Gruyères. And to learn how cheesemakers perfect this creamy goodness, head to La Maison du Gruyère factory. For further foodie delights, there’s the Maison Cailler chocolate factory – from the outside it looks like something from a Wes Anderson movie, inside it offers a glimpse into the secrets of Swiss chocolate making.

    Gruyères is also home to the surreal HR Giger Museum, celebrating the work of the acclaimed Swiss artist behind the eponymous alien in the 1979 movie “Alien.” A drink at the museum’s bar, designed by Giger in an eerie skeletal aesthetic, offers an antidote to Gruyères’ fairytale vibe. – Francesca Street

    A modern Indigenous restaurant in Minneapolis has earned one of the culinary world’s highest honors, and it’s not alone in shining light on Native communities in the area.

    At Owamni, a James Beard Award winner for best new restaurant, Indigenous ingredients – trout, bison, sweet potatoes and more – make up “decolonized” menus where ingredients such as wheat flour and beef are absent. The restaurant is a partnership between chef Sean Sherman, Oglala Lakota and Dana Thompson, who is a lineal descendant of the Wahpeton-Sisseton and Mdewakanton Dakota tribes.

    Earlier this year, one of the pair’s community-owned initiatives, Indigenous Food Lab, opened a market in Minneapolis’ Midtown Global Market, a former Sears building housing businesses that represent more than 22 cultures.

    The open-air Four Sisters Farmers Market (Thursdays June through October) also focuses on Indigenous products. And at the Minnesota History Center in neighboring St. Paul, the exhibit “Our Home: Native Minnesota” looks at thousands of years of Native history in the state. – Marnie Hunter

    While Colomia's busy capital can be congested, it's also home to the historic neighborhood of La Candelaria.

    Caribbean coast destinations such as the Rosario archipelago or the UNESCO heritage list city of Cartagena are rightly top of most Colombia travel wish lists, but also deserving a look-in is the country’s somewhat unsung capital of Bogotá.

    Yes, it’s a messy, traffic-snarled urban sprawl, but it’s also a high-altitude crucible of culture and cuisine. There are tours that chart the city’s transformation from graffiti wild west to incredible street art gallery.

    Equally colorful are the restaurants that make the most of Colombia’s diverse natural larder of flora on menus that range from delicious peasant dishes to mind-blowing Michelin-level gastronomy. And then there’s the coffee!

    The congestion (except on regular cycle-only days) thins quickly on its outskirts, allowing day trips to see historic and modern treasures. Itineraries include Lake Guatavita, where conquistadors once plundered sunken gold offerings left by indigenous Muisca people, or the majestic subterranean Zipaquirá salt cathedral. – BN

    Famed for its mountain treks through ancient trails that once facilitated trade between the Himalayas and India, Nepal’s stunning Mustang Valley sits on the doorstep of Tibet.

    Expect to hear a lot more about this remote destination in the coming months thanks to the arrival of the soon-to-open Shinta Mani Mustang. Part of the Bensley Collection, this all-inclusive resort perched above the small town of Jomsom in the Lower Mustang will offer luxury seekers 29 suites inspired by traditional Tibetan homes.

    In addition to trekking, Mustang visitors can explore ancient villages and Buddhist monasteries. Also not to be missed, the man-made Mustang Caves sit above the Gandaki River and are filled with 2,000-year-old Buddhist sculptures and paintings.

    Getting to the Mustang Valley is part of the adventure. Travelers will need to take a 25-minute flight from capital Kathmandu to Pokhara then hop on another plane for the 20-minute journey to Jomsom. The views alone might make this option more pleasing to some than the alternative – a 12-hour drive from Kathmandu. – KC

    From the spectacular wildlife to the beautiful national parks and beaches, Tanzania is absolutely bursting with visual splendor.

    The East African country holds a seemingly endless list of incredible sights, with Mount Kilimanjaro, Africa’s highest mountain, UNESCO world heritage site Serengeti National Park, and the Zanzibar Archipelago, among its many highlights.

    This year, flag carrier Air Tanzania will launch new routes to West and Central Africa, along with the UK, in a bid to transform the country’s largest airport in Dar es Salaam into a transport and logistics hub, while construction on the country’s first toll expressway is also scheduled to begin.

    Meanwhile, the Delta Hotels by Marriott brand made its Africa debut with the opening of its Dar es Salaam Oyster Bay property earlier this year. –– THG

    Cairo is pulsing with life and a rich blend of cultures.

    Could this finally be the year tourists can see the Grand Egyptian Museum? After delay upon delay, the museum is expecting a 2023 opening.

    GEM will be the largest museum dedicated to a single civilization, costing around $1 billion and holding the entire King Tut collection. See video here of a CNN insider visit.

    If you arrive in Cairo before it opens, the Egyptian Museum in Tahrir Square can still scratch your antiquity itch.

    While the Pyramids of Giza are the city’s tour-de-force, there’s still more to see. Start with Islamic Cairo. This area has one of the largest collections of historic Islamic architecture in the world. While there, visit the Al-Azhar mosque, which dates back to 970.

    The city also has a rich Christian tradition. Coptic Cairo, part of Old Cairo, has a concentration of Christian sites that pre-date the arrival of Islam.

    If you need a respite from Cairo’s cacophony, Al Azhar Park has a nice expanse of greenery and a design inspired by historic Islamic gardens. And the affluent neighborhood of Zamalek, which sits on an island in the Nile River, serves up restaurants, antique stores and swanky hotels. – FB

    Yayoi Kusama has the distinction of being the best-selling living female artist on the planet. In particular, she has become a global icon for her sculptures of giant polka-dotted pumpkins, one of which was reinstalled at the pier of Naoshima, one of Japan’s “art islands,” in 2022 after being swept into the sea the year before.

    However, Naoshima is so much more than its famous yellow gourd or its works by Kusama.

    There are five small, walkable “art islands” in the Seto Inland Sea, which is located between the main islands of Honshu, Kyushu and Shikoku in southeastern Japan. The largest collection of things to see – not to mention the only hotel – is on Naoshima. Together, the five champion modern and contemporary art, with emphasis on Japanese artists.

    Don’t come here expecting calligraphy and other classical forms. Instead, be awed by Tadao Ando’s massive stone monoliths, a tiny gallery where patrons can listen to nothing but the beats of human hearts, a makeshift thunderstorm created inside a wooden house and an exhibit where jumping in and taking a bath is intended to be part of the artistic experience. – LM

    With direct flights to Belize City from about a dozen North American airports, this Central American country is a low-hassle hop for many travelers during the November to April high season.

    Most visitors head directly to Belize’s Caribbean coastline. The country’s largest island, Ambergris Caye, sits next to Belize Barrier Reef – the world’s second largest coral reef system. Margaritaville Beach Resort opened on the island in March, and “eco-luxury” resort Alaia Belize opened in 2021.

    Farther south, the Great Blue Hole – a massive underwater sinkhole – is an aquatic magnet for both scuba divers and aerial photographers.

    But Belize offers way more than its enticing islands.

    Lush rainforests, cave networks, winding rivers and rich Mayan archaeological sites invite exploration in a country that’s had an evolving sustainable tourism master plan since 2012. Ruins of the Mayan city of Altun Ha are just about an hour north of Belize City. Or farther west, Lamanai is one of Belize’s largest and most fascinating Mayan sites. – MH

    Mexico is arguably as rich in culinary heritage as it is in Mesoamerican archaeological treasures, and Eva Longoria explores many distinctive flavors in her series “Searching for Mexico,” which aired on CNN this year.

    The state of Oaxaca, which Longoria visits, has an especially deep well of culinary traditions. Plus, Oaxaca produces most of the world’s mezcal.

    Tlayudas, known as Oaxacan pizzas, are a street food staple. A large corn tortilla is typically layered with lard, beans, traditional Oaxacan cheese, pork and other toppings such as avocado and tomato. The state is also renowned for its seven mole sauces, with recipes that may call for dozens of ingredients from chiles and sesame seeds to chocolate and dried fruit.

    In the city of Oaxaca, Mercado Benito Juárez is one of many markets across the state selling items such as dried chiles, fresh produce, handicrafts and crunchy grasshoppers. To sample the state’s increasingly popular beverage, the town of Santiago Matatlán is the place for mezcal distillery tours and tastings. – MH

    In the winter, the frozen Rideau Canal in Ottawa becomes the world's largest skaing rink.

    It doesn’t have Montreal’s French flair or Toronto’s international oomph, so the Canadian capital can get overlooked. That would be a mistake. Graceful and understated, Ottawa has its own draws.

    Music lovers should take note of two Ottawa Jazz Festivals. The winter edition took place in February, and the summer edition will run from June 23-30.

    If you love hockey, watch the Ottawa Senators do their NHL thing at the Canadian Tire Centre in the western suburbs. If that ticket is too pricey, check out the Ottawa 67’s, a more affordable option of junior men’s hockey games at downtown’s TD Place Arena.

    The Rideau Canal turns into the world’s largest skating rink from sometime in January to late February or early March, depending on ice thickness. It’s free and accessible 24/7. When it’s warmer, it’s a great spot for people and boat watching.

    A don’t-miss is Parliament Hill, home to Canada’s federal government and the visually striking Parliament buildings on a promontory overlooking the Ottawa River. – FB

    Treks through the Bwindi Impenetrable Forest are among Uganda's highlights.

    There’s considerable change brewing in Uganda’s travel offerings at the moment with the East African country looking beyond the traditional staples of safari and wildlife spotting to appeal to both regional and international visitors.

    Keen to revitalize post-Covid tourism in all corners of the country, not just the big-ticket businesses offering wealthy visitors a glimpse of the Big Five beasts or mountain gorillas, it’s turned to marketing its other attributes.

    And why not? From the expansive shores of Lake Victoria to the snowy Rwenzori Mountains, Uganda is a beautiful wilderness playground, with opportunities for adventure including treks through the Bwindi Impenetrable Forest or up to the craters of the Virunga volcano chain or whitewater rafting along the Victoria Nile.

    There’s also an emphasis on connecting visitors with Ugandan communities – promising tastes of Ugandan food, music and culture. Last year saw the launch of the Uganda Cycling Trail, a 1,600-kilometer mainly unpaved 22-stage route designed to appeal to all levels of cyclist from hardcore solo bikepackers to fully-guided easy riders. – BN

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    May 13, 2023
  • FBI and Army members raided the wrong hotel room during a training exercise and detained a guest inside | CNN

    FBI and Army members raided the wrong hotel room during a training exercise and detained a guest inside | CNN

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    CNN
     — 

    Members of the FBI and the US Army Special Operations Command who were conducting a training exercise in downtown Boston raided the wrong hotel room and detained the person inside before realizing their mistake, the FBI said in a statement to CNN.

    The FBI said its Boston division was helping the military with a training exercise around 10 p.m. Tuesday “to simulate a situation their personnel might encounter in a deployed environment.”

    “Based on inaccurate information, they were mistakenly sent to the wrong room and detained an individual, not the intended role player,” the FBI said.

    “First and foremost, we’d like to extend our deepest apologies to the individual who was affected by the training exercise,” USASOC Lt. Col. Mike Burns told CNN.

    The exercise was meant to “enhance soldiers’ skills to operate in realistic and unfamiliar environments,” Burns said, adding the incident is under review.

    No one was injured, the FBI said.

    The incident took place at the Revere Hotel Boston Common, according to the Boston Police Department. CNN has reached out to the hotel for comment.

    A Boston police incident report said officers were called to the hotel around 12:20 a.m. Wednesday, and were met by law enforcement agents conducting a training exercise.

    Local news reports said the person who was in the hotel room and detained by federal law enforcement is a Delta Air Lines employee.

    The Atlanta-based airline told CNN it is looking into the “alleged incident in Boston that may involve Delta people.”

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    April 6, 2023
  • Harvey Weinstein sued by woman who he was convicted of raping in Los Angeles criminal trial | CNN

    Harvey Weinstein sued by woman who he was convicted of raping in Los Angeles criminal trial | CNN

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    CNN
     — 

    A woman has filed a civil lawsuit against disgraced former film producer Harvey Weinstein for sexual battery, false imprisonment and other claims after he was convicted of raping her last December in Los Angeles.

    The model and actress, who is identified as Jane Doe 1 in court documents, was the first to testify in Weinstein’s Los Angeles trial in 2022.

    The three charges Weinstein was convicted of last December – rape, sexual penetration by a foreign object and forcible oral copulation – were all tied to Jane Doe 1, who testified the movie mogul assaulted her in a Beverly Hills hotel room in 2013.

    But the jury deadlocked on the alleged aggravating factors attached to the charges, which could have increased his sentence and the judge declared a mistrial on those allegations.

    Weinstein is set to be sentenced on February 23, at which time the judge will consider a motion from defense attorneys asking for a new trial.

    The new lawsuit, filed February 9 in the Superior Court of California for Los Angeles County, alleges Weinstein met Jane Doe 1 briefly at a film festival and then showed up at her hotel room later that evening and assaulted her in February 2013.

    The plaintiff is suing Weinstein for sexual battery, false imprisonment, intentional infliction of emotional distress and negligence. She is also seeking an undisclosed amount in punitive and other damages.

    “Harvey has always denied the allegations, and even more, has maintained that he was never together with her in Mr. Cs hotel at all and that these events never happened. Certain witnesses lied about crucial evidence that could have exonerated Mr. Weinstein, and it was deemed unnecessary by the court for the jury to hear or know about these facts,” Juda Engelmayer, a representative for Weinstein, told CNN in a statement.

    Engelmayer added that Weinstein’s attorneys have “submitted a motion detailing those facts and contend that the jury would not have convicted him had they known the specifics…”

    The assault happened after Weinstein allegedly showed up at the hotel and asked a front desk staffer to connect him with the victim, the lawsuit said. After the front desk called Jane Doe, Weinstein ended up talking on the phone with the victim and asked her for her room number. She declined to offer her room number and hung up.

    Minutes later, Weinstein showed up outside her room, and when the woman refused to let him inside, he “bullied his way into her room,” the lawsuit says.

    “Once in the room, he engaged in small talk with Plaintiff but in an arrogant and intimidating manner. He quickly made his real intentions clear. He wanted to have sex with her,” the lawsuit says. “He sat on her bed and then forcibly grabbed Plaintiff and made her sit down next to him.”

    After telling her that she was “pretty,” he commented on her breasts and “grabbed” at them, the lawsuit says.

    Jane Doe repeatedly asked Weinstein to leave her hotel room, but he ignored her and became aggressive verbally and physically, according to the lawsuit.

    “He then forced Plaintiff to orally copulate him and then he forcibly moved her into the bathroom, where he blocked her from leaving and then raped her,” the lawsuit says. “After he was done raping her, he acted as if nothing out of the ordinary happened, and left.”

    California law allows adult victims of sexual assault to file a civil action within ten years of the alleged assault and within one year of the defendant being convicted of a felony, according to the lawsuit.

    The victim’s attorney, Dave Ring, said in a statement to CNN that they “look forward to have Weinstein finally testify under oath in this case.”

    “Harvey Weinstein has been convicted of raping Jane Doe 1,” Ring said. “Her lawsuit seeks to recover compensation from him for the horrific rape she endured and all of the issues she has suffered through for the past ten years because of that rape.”

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    February 11, 2023
  • IRS delays rule change for people who get paid on Venmo, Etsy, Airbnb and other apps | CNN Business

    IRS delays rule change for people who get paid on Venmo, Etsy, Airbnb and other apps | CNN Business

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    CNN
     — 

    Anyone getting paid for their goods and services through apps like Venmo, PayPal or CashApp, or platforms like Etsy and Airbnb, just got a reprieve from the IRS.

    Following concerns expressed by the tax community, the electronic transactions industry and some lawmakers, the IRS said Friday it would delay by one year the implementation of a rule change that would have resulted in a virtual paper chase of tax forms going out by January 31, 2023, to anyone using such apps for their business transactions.

    The rule change requires third-party payment platforms to issue a 1099-K to the IRS and the app user for business transaction payments if they add up to more than $600 over the course of the year. A business transaction that is taxable is defined as a payment for a good or service, including tips.

    It used to be those platforms only had to issue you a 1099-K if you engaged in more than 200 business transactions for which you received total payments of more than $20,000 in a year.

    “The IRS and Treasury heard a number of concerns regarding the timeline of implementation of these changes under the American Rescue Plan,” said Acting IRS Commissioner Doug O’Donnell. “To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes. The additional time will help reduce confusion during the upcoming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements.”

    Indeed, the increase in 1099-Ks issued early next year for people’s 2022 tax returns was expected to be, in a word, “ginormous,” according to Wendy Walker, who chairs the information reporting subgroup on the Internal Revenue Service Advisory Council.

    Walker works as a solution principal for Sovos, which helps more than 30,000 business clients with tax compliance, including the issuance of all types of 1099s, of which there are at least 16 different varieties.

    Some businesses that only had to issue a couple thousand 1099-Ks under the prior rules were looking at a couple hundred thousand, she noted. “Our clients … have reported enormous increases in their potential filing obligations as result of the threshold change,” Walker said.

    Meanwhile, those receiving 1099-Ks for the first time will have to figure out what portion of the amount reported on the form is actually taxable versus what portion represents payments that may be deductible business expenses, such as a fee paid to the payment platform or a credit issued to the business, Walker said.

    “People are just not going to understand how to take that gross amount and then work off the deductions to get to their taxable amount.”

    The move was welcomed by those representing third-party payment platforms.

    “Given the potential confusion the reporting requirement would cause, we applaud the delay, ” said Scott Talbott, spokesman for the Electronic Transactions Association. “The $600 reporting requirement is not worth the problems it would cause. ETA will keep working to increase the threshold to a realistic amount.”

    How does ETA define realistic? A threshold that falls between $10,000 and $20,000, Talbott said. “ETA supports a reporting threshold that ties into regular businesses and not consumers occasionally selling a handbag or a bike online.”

    The new rule doesn’t impose any additional taxes on anyone. Nor does it change your obligation as a taxpayer to always report to the IRS all of your taxable income from your business activities.

    But the 1099-K reporting will make it harder for someone to evade the taxes they owe by underreporting their business income.

    The rule also does not apply to personal transactions you conduct on an electronic payment platform. For example, if a friend sends you money through Venmo to help pay for a dinner out or your mother sends you some spending money.

    Lastly, the 1099-K reporting rule does not apply to any transactions made through Zelle. That’s because Zelle is a payments clearinghouse that connects the payer’s bank account directly to the receiver’s bank account. “Zelle facilitates messaging between financial institutions, but does not hold accounts or handle settlement of funds,” the company said in a statement earlier this year.

    But the IRS may still get reporting on at least some of your business transactions on Zelle, Walker said.

    If there is a business-to-business payment over the Zelle network, the business that makes the payment must provide the receiving business and the IRS with either a 1099-NEC for non-employee compensation or a 1099-MISC for other expenses, she explained.

    Like the 1099-K, those other forms also provide information to the IRS that will make it harder for businesses to understate their income in a tax year.

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    December 28, 2022
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