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The toughest hotels to finance and why

Show them the money: Financing hotels is a tricky game. Independent properties may have their on-trend experiential focus and unique anti-brand offerings, but for many hotel financiers, boutique and independent hotels in the US$30 million and under range are firmly on the “too small” side and are viewed as riskier investments. But for others, this creates a unique lending niche where the risk-return reward is an opportunity. With the market slowing and hotel room supply outpacing demand in some of the country’s major markets, it’s costlier to be a boutique borrower today, writes the Commercial Observer.

(Getty Images)
(Getty Images)

30 lux tech trends: CB Insights has released a thoughtful report that covers 30 trends in luxury tech to watch in 2019, ranging from how the luxury retail and hospitality industry will be impacted by a new crop of luxury shoppers, to better understanding technologies like new online channels, subscription models and personalization. Learn about trends that are already seeing wide adoption (Chinese e-commerce giants are launching dedicated luxury shopping platforms to court brands) to those that will become necessary tomorrow (Instagram doubling-down on its in-app shopping capabilities). The bottom line here is experiences are trumping products and desire for connectivity is outweighing privacy concerns. —Jeff Weinstein

Why buy when you can rent? Financial Advisor reports on what they say is a growing trend: Older folks ditching the owned vacation homes in favor of luxury residences that they can rent instead. And they’re doing it to the tune of five-figure stays at warmer places. “Owning a house is a responsibility … you’re a slave to it,” says a former homeowner. At a resort, “I can get anything I want in five minutes.” Luxury residences are an increasingly important part of Four Seasons Hotels & Resorts’ strategy, with the company starting to add standalone residences in a few cities around the world. —Barbara Bohn  

Crown takes a hit: Australia’s biggest casino company Crown Resorts this week reported a sharp decline in spending by wealthy Chinese tourists at its properties, pushing its shares down in their biggest one-day fall in more than two years, reports Reuters. Crown, which is owned 47% by billionaire James Packer, also posted a weaker than expected profit for the six months to December. Turnover from “VIPs” – largely Chinese tourists on package holidays – fell 12% compared to a 16% rise in the year-ago period. And why is this happening? “People at the premium end have been coming to the property in the same numbers but spending less,” said Chief Financial Officer Ken Barton on an earnings call.

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