HK dents IHG’s Q3: InterContinental Hotels Group reported on Friday that worldwide RevPAR fell by 0.8% in Q3, led by a 36% drop in Hong Kong. It said softness in China (-6.1% RevPAR) and a tougher trading environment in the U.S. were also among the reasons. However, results were better in Europe and the UK saw an increase.
Trump’s Doral hosting G7: U.S. President Donald Trump has decided to host the Group of 7 meeting next June at the Trump National Doral near Miami, prompting questions about whether it was a conflict of interest for him to choose one of his own properties for a diplomatic event. A spokesman for the president said the administration considered other hotel but decided the Trump National Doral was “by far and away, far and away, the best physical facility for this meeting.” The hotel will reportedly host the summit “at cost” and the administration said it will not profit from the event.
Airbnb expenses add up: Airbnb’s losses reportedly doubled year over year in the first quarter of 2019 to US$306 million, as the vacation rental start-up ramps up marketing spend ahead of a possible IPO in 2020, according to a report in The Information. The company’s sales and marketing investments rose 58% year over year to US$367 million in Q1 and marketing spend is expected to come in above the US$1.1 billion spent in 2018, The Information said, citing undisclosed financial data. Revenue reportedly grew 31% year over year to US$839 million, while expenses climbed 47%. Despite the losses, Airbnb has over US$3 billion in cash on its balance sheet as of Thursday, according to a source familiar with the company’s finances. Airbnb also has a US$1 billion line of credit that it hasn’t used, the source said.
Lawsuits start after NOLA hotel collapse: Multiple victims injured in the Hard Rock Hotel collapse in New Orleans have filed a lawsuit against five companies involved in the construction of the building. The lawsuit alleges that cost-cutting measures led to the use of inferior materials and that the companies were aware of concerns by workers that some of the materials used were too “thin.” “This major building collapse would not have occurred, but for the negligence and failure of the defendants,” the lawsuit said. The companies named in the suit are 1031 Canal Development, Kailas Companies, Harry Baker Smith Architects, Heaslip Engineering, and Citadel Builders.