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Customers have always known what to expect when choosing branded hotels. With more information and reviews online, brand-name hotels are beginning to lose revenue. Reviews are leveling sales between independently owned properties and chains that generally rely on loyalty programs for return customers. Read more.

La Quinta Holdings may soon explore a sale that would keep franchise and management operations in place, according to Reuters. The company may spin off real estate assets and could file with the U.S. Securities and Exchange Commission as soon as the second quarter of 2017, after which potential acquirers could be involved. Sources say that the company expects profits from the sale to mitigate the cost of a spin-off. If the sale proceeds, La Quinta plans to place its real estate business in a publicly listed investment trust. Read more.

According to STR’s April 2017 Pipeline Report, there are 4,843 hotel projects—encompassing 580,427 rooms—under contract in the U.S. This is a 14.7 percent increase in the number of rooms under contract from April 2016. The report also noted that there are 189,806 rooms in 1,456 projects under construction. Read more.

In their attempts to avoid comissions paid to online travel agencies, hotels are rolling out more initiatives that encourage guests to book rooms directly. One of these strategies involves offering guests loyalty member rates for booking direct on a brand’s website or app. However, these special rates may, in some cases, be too low for hoteliers to turn a profit. Even with short-term jumps in customer acquisition, it remains unclear whether loyalty member rates will be cost effective in the long-term. To read more about how these programs are impacting hotel companies and owners, click here.

Just last week after Queensgate Investments closed a $480 million acquisition of Generator Hostels, Generator CEO Fredrik Korallus resigned. Queensgate announced today that Alastair Thomann will serve as the new CEO and Andre Guettouche will serve as COO. Korallus said he remains “a huge fan of Generator.” Read more.

Recent data from the producer price index (PPI) indicates that inflation may have returned. An April PPI jump of 0.5 percent (up 2.5 percent year-over-year) means that consumers may continue to pay more for goods and services—from food to hotels. Service costs overall reportedly rose 0.8 percent in March, and April could see an unusually large increase in hotel prices (PPI showed a 7.5 increase). However, it’s not yet evident how these trends will translate to consumer price index, which is expected to show a 0.2 percent gain in April. Read more.

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