Global Hotel Dealmaking Is Expected to Boom
Skift Take
Key Points
- Global hotel deals are expected to reach at least $58 billion in 2024, a 15% increase from 2023.
- Google plans to change flight search displays in the EU, but eDreams Odigeo criticizes the changes as insufficient.
- The FAA has asked airlines to inspect door plugs on Boeing 737-900ER jets, affecting multiple airlines but not expected to disrupt operations.
Summary
Global hotel dealmaking is anticipated to boom in 2024, with transactions expected to reach at least $58 billion, driven by a more favorable financing environment and hotel owners seeking buyers for problematic properties. Major cities like London, Paris, and New York are predicted to attract significant investor interest. Meanwhile, Google plans to modify how it displays flight search results in the EU, a move criticized by eDreams Odigeo for not sufficiently enhancing competition. Additionally, the FAA has requested inspections of Boeing 737-900ER jets, although airlines do not foresee this impacting their operations.
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Episode Notes
Global hotel dealmaking is expected to make a major rebound in 2024 thanks to a more positive financing environment, reports Senior Hospitality Editor Sean O’Neill.
At least $58 billion in hotel deals are set to take place this year, according to investment advisory firm JLL Hotels & Hospitality. That would surpass 2023’s total by at least 15%. JLL believes one reason for the increased dealmaking is that struggling hotel owners are looking for buyers to take problem properties off their hands.
The company expects hotels in major cities like London, Paris, and New York to see the most investor interest.
Next, Google is planning to change how it displays flight search results in European Union countries. But eDreams Odigeo, a major flights seller, argues Google’s plan isn’t going far enough to let rivals compete, reports Executive Editor Dennis Schaal.
Spain-based eDreams Odigeo said Google’s plan will allow it to favor Google Flights over competing flight-selling services. Google is under orders from the European Union to increase competition in the travel retail sector.
The tech giant said it plans to add new dedicated units that contain links from competitors, among other changes.
Finally, the Federal Aviation Administration is asking airlines to inspect the door plugs on more Boeing jets, another blow for the beleaguered planemaker, writes Airlines Reporter Meghna Maharishi.
The agency said in a safety alert the Boeing 737-900ER has an identical door plug design to one on the Boeing 737 Max 9. The 737 Max 9 has been grounded since a blowout aboard an Alaska Airlines flight earlier this month. Alaska, Delta Air Lines and United Airlines all operate the 737-900ER.
However, the three airlines have said they don’t expect the inspections to impact their operations.
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