The desperate search for superstar talent
The desperate search for superstar talent
Too much potential goes to waste
https://www.economist.com/leaders/2025/09/25/the-desperate-search-for-superstar-talent
Illustration: Simon Bailly / Sepia
THIS IS A tale of squandered wealth and the vast, needless waste of human potential. The secret of economic success is innovation and the secret of innovation is the brilliance, creativity and drive of the most talented few. But even as governments throw money at schemes to boost their economies, including chipmaking factories and rare-earth mines, brainpower is going unloved. And the waste is getting worse.
You need only look at the red-hot market for grey cells to understand how commercial and economic success is increasingly being powered by the individual rather than the firm. In the race to dominate artificial intelligence (AI), America’s tech giants are assembling small teams of crack data scientists. On Wall Street a race for top talent is under way, with hedge funds nabbing hotshot traders for vast sums. Scientific breakthroughs tend to be the work of a small elite: the leading 1% of researchers generate over a fifth of citations. In China scientists returning from spells in the West are being feted as national heroes.
The rewards for superstars are growing. The best surgeons and concert pianists have long commanded the highest fees and the patronage of the wealthy. Today, however, the superstar effect is on steroids. Some programmers in their 20s command seven-, eight- or even nine-figure salaries. The number of artists on Spotify taking home more than $10m a year has grown three times as much since 2017 as the number earning above $100,000. Lawyers’ fees used to be shared out; increasingly the big money is going to the top earners at the best law firms, who massively outperform partners at their second-tier rivals.
Some of this reflects the exuberance of America’s financial markets: flush with capital, firms are able to spend even more on talent. But something deeper is afoot. Vast computing resources turbocharge the capacity of the wonkiest hedge-fund brains to devise and carry out trades, helping them turn their talents into even greater profits. Ultra-cheap digital distribution creates bigger markets for individual creators. And the size of the potential rewards for winning the race in AI turns even the most extravagant individual salary into a rounding error.
As AI spreads from discovery to exploitation, a similar effect could ripple through the rest of the economy. Studies of investors and entrepreneurs suggest that the technology will extend the dominance of the best performers, who can use it to do better still. AI agents could strip out layers of the business-process workers needed to run today’s firms, making it easier still for bright sparks to set up companies with ever-smaller collections of clever people.
The rewards for superstars are growing. The best surgeons and concert pianists have long commanded the highest fees and the patronage of the wealthy. Today, however, the superstar effect is on steroids. Some programmers in their 20s command seven-, eight- or even nine-figure salaries. The number of artists on Spotify taking home more than $10m a year has grown three times as much since 2017 as the number earning above $100,000.
Lawyers’ fees used to be shared out; increasingly the big money is going to the top earners at the best law firms, who Some of this reflects the exuberance of America’s financial markets: flush with capital, firms are able to spend even more on talent. But something deeper is afoot.
Vast computing resources turbocharge the capacity of the wonkiest hedge-fund brains to devise and carry out trades, helping them turn their talents into even greater profits. Ultra-cheap digital distribution creates bigger markets for individual creators. And the size of the potential rewards for winning the race in AI turns even the most extravagant individual salary into a rounding error.
As AI spreads from discovery to exploitation, a similar effect could ripple through the rest of the economy. Studies of investors and entrepreneurs suggest that the technology will extend the dominance of the best performers, who can use it to do better still. AI agents could strip out layers of the business-process workers needed to run today’s firms, making it easier still for bright sparks to set up companies with ever-smaller collections of clever people.
This is a boon to superstars born with talent and blessed with good fortune. But it is also a vital source of wealth for everyone else. The world is ageing rapidly. If the economy is to keep growing meaningfully as the number of workers stops rising, the pace of innovation will need to stay high. Talent will become even more vital as the engine of progress. If superintelligent AI is to come to the rescue, it will require ingenious people, not merely chips and electricity.
The trouble is that, although the world’s reservoir of talent is vast, too few people are achieving their potential. Today scientific innovation is concentrated among Westerners, many of them from well-off backgrounds. Talent often goes unidentified; even when it is found, early promise is not always realised, because of the financial and logistical hurdles of going to university or moving to another country.
The result is a tragic waste of human gifts in both rich countries and poor. By one estimate, students in poorer countries who fare as well in maths contests as their richer peers go on to publish less research, and are half as likely to earn a doctorate from a leading university. Another study suggests that if America’s class, gender and race gaps in invention were closed, the number of innovators in the country would quadruple.
Far from eliminating this waste, politicians are neglecting it. One failure is immigration. Firms and universities should be able to fish in the global pool of talent. Without such a chance for themselves and their families, the superstar bosses of four of America’s “Magnificent Seven” tech firms would not be in their jobs today. One estimate reckons that easing immigration by removing financial barriers for especially bright students would raise the scientific output of future cohorts by as much as 50%. But special immigration programmes are often half-hearted and bureaucratic—because immigration is unpopular.
What of the search for genius at home? Contests and scouting programmes are surprisingly good at spotting early promise. Gold-medal winners at international maths Olympiads are 50 times more likely to go on to win a big science prize than undergraduates at MIT; half the founders of OpenAI cut their teeth in the contest. But most countries are not systematic about talent. The rich have all the advantages; everyone else relies on individual drive and a dose of luck.
America is an example of what to avoid. Built on immigration, with a culture of meritocracy and top-ranking universities, it should win the tussle for talent. An obsession with diversity, equity and inclusion in the early 2020s stalled programmes for gifted students. Donald Trump is adding to the missteps. His administration has just announced drastically higher fees for the H-1B visa programme, through which many researchers and techies enter America. And a vindictive crackdown on Harvard and other elite universities has jeopardised funding for research and the scope to take foreign students.
The brainy train
America’s errors are a chance for other countries to catch up. China is introducing a visa scheme for young foreign scientists and technologists. Britain may ditch visa fees for skilled arrivals altogether. France hopes to attract foreign researchers who move. That is fine so far as it goes, but it is half-hearted. Talent is waiting to be tapped. The gains would be immense. When will the world wake up? ■
Despite global economic shocks, UK hotels look for ways to add value
How financial experts, hoteliers based in the UK plan to weather the cycle ahead
https://www.costar.com/article/975597742/despite-global-economic-shocks-uk-hotels-look-for-ways-to-add-value
Radisson Hotel Group's Elie Younes (center) speaks during the Annual Hospitality Conference in Manchester, England. Also pictured are Danny Wilson (left), of Manchester City Football Club, and Horwath HTL's James Chappell. (Simon Callaghan/Questex)
Chris Hare, senior European economist at HSBC, said the U.K. was the fastest-growing economy in the Group of Seven countries in terms of gross domestic product in the first half of 2025, but GDP still only increased 0.9% year over year.
That GDP growth might be considered good compared to competing nations, but Hare said the U.K. had frontloaded much trade before U.S. tariffs took effect, and there also was a “flurry of housing activity before the rise in Stamp Duty Land Tax” — a property tax — on April 1.
“But there is some strength and resilience behind that, and the service sector has withstood economic uncertainty,” Hare added.
Hoteliers in the U.K. are negotiating these headwinds while also scrambling to understand how artificial intelligence is required to help their businesses, paying out more in National Insurance contributions and employing commonsense budgetary and cost-savings initiatives amid wage and inflation pressures.
The silver lining is that guests, tourists and travelers continue to knock on the door, and corporate and group demand are on the rise.
“I look in terror at the rising price of bonds in the U.S.,” said Anand Menon, professor of European politics and foreign affairs at King's College London and director of U.K. in a Changing Europe, hinting at the escalation of borrowing costs in the U.S.
Quotes of the day
“We see revenue per available room sluggish across nearly every U.K. market … The hotel industry continually reinvents itself and finds a way of adding value. Yes, finding RevPAR growth in such a market is tough, but by taking risks on who to reach out to and fill your hotels, we gained 13% RevPAR.” — Hussein Sunderji, managing director, EQ Group.
“Ryanair posted a 9% rise in passenger numbers in the first half of this year but also a 10% decline in average fare. Those numbers do not reflect the hotel industry but do reflect an idea of the macroeconomic trends.” — Aoife Roche, vice president of sales, Europe, Middle East and Africa, STR.
“The [U.K.] government does not give enough credence to service industries, except for financial ones. We have a weird obsession with industries that make things.” — Menon, speaking on the current U.K. economy and politicians’ pandering to industries that might be beyond their sell-by dates but employ large amounts of people, often in regional cities and towns.
“To stay competitive on the [soccer] pitch, you must be successful off the pitch. Hotels cannot be a distraction from our core purpose. They must be complimentary.” —Danny Wilson, managing director of operations at Manchester City Football Club, speaking of its relationship with Radisson Hotel Group and, perhaps, other hotel partners at its Manchester stadium and entertainment offerings.
Leeny Oberg, Marriott International’s chief financial officer and executive vice president of development, speaks at the Annual Hospitality Conference and hints at how she might spend her upcoming retirement. (Simon Callaghan/Questex)
Close to her retirement early next year, Marriott International’s chief financial officer and executive vice president of development Leeny Oberg reflected on a time when it was verboten for Marriott employees to enjoy the benefits of their own loyalty program.
“For the first decade and a half, we could not earn Bonvoy points, and then it dawned on us that we would be among the very best ambassadors,” she said.
When Oberg ends her final day at Marriott, she said she plans on using her accumulated Marriott Bonvoy points in Asia.
New inventory slows extended-stay momentum
Despite steady demand, August’s U.S. extended-stay performance slips
https://www.costar.com/article/1594617107/new-inventory-slows-extended-stay-momentum
August 2025 marked another month of supply growth for the U.S. extended-stay hotel sector, with developers continuing to add rooms at a strong clip.
Room supply rose to 19.4 million, a 5.2% increase over the previous August, signaling ongoing confidence in the segment’s ability to attract leisure and business travelers. Demand was robust, with 14.8 million rooms sold, up 4.3% year over year. However, the rate of new rooms slightly outpaced demand growth, a trend becoming more pronounced as the sector matures.
Occupancy settled at 76% for the month, down from June’s 78% peak but solid, given the influx of new supply. Extended-stay properties remain attractive to guests seeking longer-term accommodations, particularly those in industries like healthcare and manufacturing, which continue to drive much of the recent demand.
Although demand has remained strong, the rise in supply has led to rate softness in the niche. Average daily rate, or ADR, dipped to $124, a 1.2% decline from last August. Extended-stay hotels have generally outperformed the broader hotel market in revenue per available room, but RevPAR fell 2% in August, marking the fifth consecutive month of decline. In comparison, traditional hotels saw a more modest 0.8% decrease in August, only their third straight month of moderate decline since May.
Segment-level extended-stay performance followed a similar pattern. Upper-tier extended-stay properties posted a 2% RevPAR dip, with mid-tier extended-stay properties lowering 2.1%, similarly marking five consecutive months of slow performance.
While the extended-stay segment continues to expand and attract demand, the pace of new supply is putting pressure on occupancy and rate structure in a more competitive landscape.
Global Economics Intelligence executive summary, August 2025
Uncertainty moderated in August, with several tariff actions finalized. However, persistent economic strains heighten concerns in Europe, and revised US data signals a softer labor market.
Tariffs and trade remain the focus of much economic commentary and speculation. Updated US tariff rates for over 90 economies around the world, including deals with the European Union and Japan, came into effect on August 7, helping moderate uncertainty.
The data indicates that global container trade volumes steadied in July, gradually receding from April’s year-to-date high. At the same time, supply chain stress eased in July as June port volumes stabilized from earlier peaks. Export growth diverged in June, led by a strong rebound in the US, China, and emerging markets, while import demand shifted unevenly, with the eurozone, Brazil, and Mexico up and India seeing a contraction. Inbound spot freight rates fell in August, cooling from 2025 highs, while outbound freight rates to Shanghai eased in July after June’s sharp spike.
At a country level, the US monthly deficit fell by 16.0%, to $60.2 billion, in June. Exports reached $277.3 billion, $1.3 billion less than in May; imports were also down from the previous month, at $337.5 billion, $12.8 billion less than in May. At the same time, the eurozone’s trade surplus narrowed sharply in June, dropping from May’s €16.5 billion to €7.0 billion. Compared with a year earlier, the trade balance was down by €13.7 billion. This weaker trade performance points to challenges for the region’s competitiveness and adds pressure on overall growth.
China’s cross-border trade recorded a year-on-year growth rate of 5.9% in July, up from the 3.9% increase seen the previous month. Export growth rose to 7.2%, up from the 5.8% seen in June. Meanwhile, import growth saw an acceleration of 4.1% from June’s 1.1%. India’s merchandise trade deficit widened to an eight-month high of $27.35 billion in July, compared with $20.7 billion in June. Imports surged on strong demand for petroleum and crude products, electronic goods, and machinery. Exports held up, in part due to front-loading ahead of new US tariffs scheduled for late August. Mexico recorded a marginal trade deficit of $17 million in July as exports increased to $56.71 billion (up from $54.00 billion in June) while imports also rose to $56.72 billion (up from $53.49 billion).
An August update to the McKinsey Global Institute’s June 25 article “The great trade rearrangement” takes account of recent tariff updates and confirms that the original conclusions still hold. Notably, the economies most “geopolitically distant” from the US, particularly China, continue to face higher tariffs. Moreover, the trade rearrangement is creating an impetus for US firms to consider shifting sourcing away from higher-tariff economies and also for higher-tariff exporters to find new markets.
Exploring how trading flows could alter if US importers seek to minimize tariffs as implemented on August 7, a new simulation finds that June’s conclusions remain valid, with Europe potentially emerging at the center of trade rearrangement, both as an exporter to the US and importer from China. In all simulations, European imports from China and exports to the US both increase by about $150 billion to $200 billion.
Meanwhile, growth remains anemic in some economies. In the eurozone, GDP grew in the second quarter of 2025, but at a slower pace than in the first, recording 0.1% versus 0.6%. In the same quarter in 2024, GDP was up 1.4%. In the UK, GDP is estimated to have risen by 0.3% in the second quarter (April through June), following an increase of 0.7% in the first quarter, according to estimates released by the Office for National Statistics on August 14. GDP is estimated to have risen by 1.2% in the second quarter of 2025 versus the year-ago quarter. Concerns over the economy were likely responsible for the Bank of England’s decision to cut rates by 25 basis points in August, despite rising headline inflation. Likewise, the Fed, as many hoped, approved a quarter-point interest rate cut on September 17.
Consumer sentiment continues to be subdued though some signs of improvement are visible. In the US, the Conference Board Consumer Confidence Index rose by 2.0 points in July to 97.2, from a revised 95.2 in June. However, in the eurozone, data highlights that, while manufacturing is beginning to recover, swaths of the broader economy continue to face headwinds, particularly in consumer-driven and interest-sensitive sectors.
Nevertheless, consumption (measured by retail sales growth) remains stable. In the US, retail and food services sales for July (adjusted for seasonal variation and holiday and trading-day differences) were $726.3 billion, up 0.5% from June’s revised $722.6 billion. In Russia, too, households remained resilient, with retail sales growing by 2% year on year in the first half of the year, supported by a tight labor market.
Inflation expectations have been broadly unchanged since July. In the US, median inflation expectations increased to 3.1% (from 3.0%) at the one-year-ahead horizon in July and to 2.9% (from 2.6%) at the five-year-ahead horizon. Expectations remained steady at 3.0% for the three-year-ahead horizon.
On the commodities markets, the gold price was stable amid optimism for a Fed rate cut. Prices for precious metals have trended up, in contrast with the price of copper, which has declined by around 15% since the end of July, driven by stockpiled inventories. Energy prices continued to be stable in August, with oil oscillating in the $65–70 range. Dairy and vegetable oil prices were the biggest drivers of July’s food price increases; however, livestock prices have also trended up.
Consumer inflation accelerated in the UK, while producer prices in the US reached the highest level seen this year. In contrast, emerging economies experienced a deceleration in both consumer and producer prices. In the US, the Consumer Price Index climbed 2.7% for the 12 months ending July, after rising 2.7% over the 12 months ending June. Core inflation rose slightly (to 3.1%, annualized). By contrast, inflation held steady at 2% in the eurozone, with core inflation unchanged and services inflation easing to 3.1%.
In India, headline consumer price inflation eased to 1.55% in July, down 55 basis points from June 2025, marking the lowest rate since June 2017. Inflation was slightly down in Brazil, touching 5.32% in July (compared with 5.35% in June), but still above the central bank’s upper target limit of 4.50%. Annual inflation in Mexico also declined in July, to 3.5%, down from 4.3% in June.
Manufacturing and services are traveling in opposite directions: While manufacturing is returning to contraction, growth in the global services sector is accelerating. July saw manufacturing in most economies slip into contraction, but India stood out with accelerating growth. The services sector remained strong across countries except Brazil and Russia, where contraction deepened.
Looking more closely at individual economy indicators, the US industrial Production Index dropped slightly to 103.9 in July. August’s S&P Global US Manufacturing Purchasing Managers’ Index (PMI) rose to 53.3, from 49.8 in July—the highest reading since May 2022. Similarly, manufacturing in the eurozone emerged as a relatively bright spot, with activity expanding further and signaling renewed momentum after months of weakness. This was reflected in the HCOB Flash Eurozone Manufacturing PMI climbing into the expansion zone to reach 50.5, supported by improving demand and a gradual easing of supply pressures. The seasonally adjusted S&P Global UK Manufacturing PMI rose to a six-month high of 48.0 in July, up from 47.7 in June but below the earlier flash estimate of 48.2.
Among emerging economies, India is currently a standout. Buoyant domestic spending saw the HSBC India Manufacturing PMI climb to 59.8 in August to reach its strongest reading since January 2008. Brazil’s manufacturing industry is slowing: the country’s Monthly Industrial Physical Production Index dropped from 106.9 in May to 103.8 in June (versus the neutral 100 line taken from the 2022 average). The decline was driven by reduced factory production, which slid 3.2%.
The latest picture for services varies across countries, with growth expectations down across advanced economies. The US Services PMI declined slightly to 55.4 in August, from 55.7 in July. Similarly, services activity in the eurozone also lost some momentum, slipping closer to stagnation, with the PMI registering 50.7. The UK service sector slowed in July, but the PMI continued to signal modest growth, with a reading of 51.8.
India’s services sector surged in August, with the PMI climbing to a survey record of 65.6, up sharply from 60.5 in the prior month. In Brazil, the Monthly Services Survey Revenue Index climbed to 127.7 in June, from 120.8 in May (versus the neutral 100 line). This was mirrored in the country’s index for services volume index, which rose to 108.84, from 102.38.
Looking at labor market dynamics among developed economies, the US has seen little change since April. Its total nonfarm payroll employment was up by 73,000 in July, while the unemployment rate remained at 4.2%. The UK unemployment rate was slightly higher, estimated at 4.7%. The UK economic inactivity rate (for people aged 16 to 64 years) was estimated at 21.0% in April–June, below year-ago estimates and down in the latest quarter.
Among emerging economies, China’s overall surveyed urban unemployment rate edged up to 5.2% in July (from 5.0% in June). Its youth unemployment rate climbed to 17.8% (versus 14.5% in June) due to seasonal factors related to the graduation cycle. In Brazil, the three-month moving average unemployment rate fell to 5.8% in June (from 6.2% in May), down for a second consecutive month. In Mexico, the total unemployment rate declined slightly to 2.59% in July, its lowest this year, and formal employment saw a substantial increase of 1.3 million jobs.
On the US equity markets, the S&P 500 was up 2.2% in July, bringing the one-year return to 14.8%. The Dow Jones Industrial Average gained 0.08% over the month and was up 3.7% year to date. In July, the Cboe Volatility Index averaged 20.4 (versus 16.8 in June). There was no change in the cost of capital except in India, where it rose to its highest level since March 2025.
In advanced economies, the US government acquires Intel stake, eurozone trade surplus narrows, and Bank of England cuts rates by 25 basis points:
United States. The US government acquired a passive equity stake in Intel—worth approximately 9.9%—with the purchase of 433.3 million shares worth around $8.9 billion. The holding comes with no board or governance rights but positions the government as Intel’s largest shareholder and signals a notable shift toward state investment in tech.
Eurozone. In June 2025, the eurozone’s trade surplus narrowed sharply (dropping to €7.0 billion, from €16.5 billion in May. Compared with a year earlier, the trade balance was down by €13.7 billion, reflecting smaller surpluses in chemicals (to €15.1 billion, from €20.6 billion), machinery and vehicles (to €13.6 billion, from €17.4 billion), and a shift in other manufactured products from surplus to deficit (from a surplus of €2.4 billion to a deficit of €0.4 billion). This weaker trade performance points to challenges for the region’s competitiveness and adds pressure on overall growth.
49.8
Manufacturing PMI
Level / July
0.2%
Industrial production growth
y-o-y / June
2.0%
Consumer inflation
y-o-y / July
United Kingdom. On August 7, the Bank of England’s Monetary Policy Committee voted by a margin of five to four to reduce the bank rate by 25 basis points—the fifth cut since August 2024—to 4%, taking the rate to its lowest level in over two years.
In emerging economies, China’s economic activities experience a moderate slowdown; India’s economy shows strong domestic demand, cooling inflation, buoyant capital markets, and rising exports; and Mexico’s tariff discussions continue:
China. China’s industrial output growth softened to 5.7% year on year in July, compared with 6.8% in June. Looking at individual sectors, manufacturing’s output remained resilient, with 6.2% growth, despite dropping from June’s 7.4% expansion. The mining sector’s output growth also slowed (to 5.0%, 1.1% down from June). Meanwhile, the utility sector’s output growth rose (to 3.3%, compared with 1.8% in June).
India. The HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 59.8 in August 2025, from 59.1 in July, its strongest reading since January 2008, driven primarily by buoyant domestic spending. The country’s services sector expanded even more strongly, with the PMI climbing to a survey record 65.6 in August, up sharply from 60.5 the prior month.
59.1
Manufacturing PMI
Level / July
2.0%
Infrastructure output growth
y-o-y / July
1.6%
Consumer inflation
y-o-y / July
Brazil. Brazil’s manufacturing industry is slowing: the Monthly Industrial Physical Production Index dropped from 106.9 in May to 103.8 in June (versus the neutral 100 line taken from the 2022 average). The decline was driven by reduced factory production, which slid 3.2%; meanwhile, the extractive industry was down 1.1%.
Russia. Preliminary GDP growth estimates for the second quarter of 2025 reached 1.1% year on year, slowing from 1.4% in the first quarter. Preliminary data also confirms that sequential output returned to modest growth (0.3%, after a 0.6% contraction in the first quarter), avoiding technical recession. Households remained resilient, with retail sales growing by 2% year on year in the first half of 2025, supported by a tight labor market.
Mexico. In July 2025, US President Donald Trump announced plans to impose 30% tariffs on all Mexican imports starting August 1. At the end of July, the US granted Mexico a 90-day extension to allow time for further discussions. In return, Mexico pledged to immediately eliminate nontariff barriers and enter negotiations with the US within that period. The US Secretary of the Treasury stated that the goal is to conclude trade negotiations with Mexico no later than October 2025.
McKinsey’s Global Economics Intelligence (GEI) provides macroeconomic data and analysis of the world economy. Each monthly release includes an executive summary on global critical trends and risks, as well as focused insights on the latest national and regional developments. View the full report for August 2025 here. Detailed visualized data for the global economy, with focused reports on selected individual economies, are also provided as PDF downloads on McKinsey.com. The reports are available free to email subscribers and through the McKinsey Insights app. To add a name to our subscriber list, click here. GEI is a joint project of McKinsey’s Strategy & Corporate Finance Practice and the McKinsey Global Institute.
ABOUT THE AUTHOR(S)
The data and analysis in McKinsey’s Global Economics Intelligence are developed by Sven Smit, a senior partner in McKinsey’s Amsterdam office; Jeffrey Condon, a senior knowledge expert in the Atlanta office; and Krzysztof Kwiatkowski, a capabilities and insights expert in the Boston office.
The authors wish to thank Nick de Cent, as well as Alejandro Morales, Beatriz Oliveira, Darien Ghersinich, Erik Rong, Frances Matamoros, Gabriel Marini, José Álvares, Marianthi Marouli, Roman Büschgens, Sebastian Vargas, Tomasz Mataczynski, Valeria Valverde, and Vanshika Tandon for their contributions to this article.
Bally’s unveils new Vegas Plan
https://www.hotelinvestmenttoday.com/Development/Owners/Bally-unveils-new-Vegas-plans
The project will include 3,000 hotel rooms with the Las Vegas Athletics’ baseball stadium as part of the 35-acre complex.
LAS VEGAS — Providence, Rhode Island-based Bally’s Corp. has unveiled plans for Bally’s Las Vegas, a new entertainment resort destination on the Las Vegas Strip, at the former site of Tropicana Las Vegas.
The project will share a 35-acre campus with the new Las Vegas Athletics Major League Baseball ballpark and include two hotel towers totaling 3,000 rooms. The project is being submitted for entitlements to Clark County and is expected to commence development in the first half of 2026. The integrated resort and stadium complex is expected to cost $1.5 billion.
Working in collaboration with JLL, Bally’s Las Vegas will also feature an entertainment venue with a seating capacity of 2,500 and over 500,000 sq. ft. of retail, dining, and entertainment offerings. The resort will also include a casino and a VIP experience with direct access to the ballpark.
“Bally’s Las Vegas represents a once-in-a-generation opportunity to redefine the heart of the Strip,” Soo Kim, chairman of the board of directors, Bally’s, said in a news release. “With world-class partners like JLL and Marnell, and with the arrival of Major League Baseball, we are not just building an integrated resort. We are creating a landmark destination that unites sports, entertainment, dining and hospitality on a scale only Las Vegas can deliver.”
Envisioned as a hub for international travelers and regional baseball fans, Bally’s Las Vegas will showcase a curated mix of dining concepts, flagship retail and immersive experiences. The project aims to meet the growing demand for integrated entertainment while positioning Las Vegas as the ultimate stage for professional baseball and large-scale global tourism.
“Las Vegas is one of the most important markets for food and beverage, entertainment and retail in the US,” Michael Hirschfeld, vice chairman of JLL, said in the release. “The extended hours of operation in the market yield some of the highest sales per unit in the country.”
The Tropicana Las Vegas was the third-oldest on the strip and closed on April 2, 2024. It was demolished in October 2024 to make way for a 30,000-seat baseball stadium where the former Oakland Athletics will play. Bally’s Corp. acquired the Tropicana for $308 million in 2021.
The case for hotel investment
https://www.hotelinvestmenttoday.com/From-Our-Partners/The-Case-for-Hotel-Investment
By Steven Moore
Hotels are one of the most compelling – and misunderstood – asset classes in commercial real estate.
ATLANTA — When I walk into a hotel lobby, I see two things at once. To the guest, it’s a place of welcome. To investors, it’s something more: an operating business wrapped inside a hard real estate asset. That is what makes hotels one of the most compelling – and misunderstood – asset classes in commercial real estate.
There’s a perception by some that investing in hotels is volatile and risky. But time and again through economic cycles, savvy owners and operators have demonstrated resilience and created opportunities to outperform.
Hotels reset pricing daily, capture upside as demand shifts, and offer more levers to drive returns than any other asset type. Add to that secular demand for travel, plus underbuilding in many markets, and the allocator’s case is clear: hotels deserve a closer look.
Driving alpha in hotel investing happens in three key areas: improving operational efficiency, growing the topline, and building predictable performance through culture.
Returns Driver #1: Operational Efficiency
Labor is the largest controllable operating expense in hotels, and right-sizing staffing each day to match demand is the most immediate lever for performance. It’s also the area where discipline, or the lack of it, shows up quickly.
At Actabl, more than 150,000 hoteliers use our technology each day, and we see this play out again and again. One operator unplugged labor management software in an effort to cut costs and ended up seeing labor costs spike fivefold above what they paid to run the program. On the flip side, another hotel operator targeted a 1% overtime reduction across their portfolio of dozens of hotels, and the impact on the bottom line was material.
Operational efficiency doesn’t stop with scheduling. Things such as housekeeping productivity and engineering response times all impact the P&L. Incremental improvements in each category add up, and the compounding is powerful when executed across a portfolio.
Equally important is stewarding the physical building. A hotel is really a portfolio of assets: HVAC, elevators, roofs, plumbing, kitchens, and IT systems. Deferred maintenance is the silent killer of returns. Proactive stewardship reduces CapEx shocks, extends the useful life of assets, and preserves profits.
Operational efficiency often doesn’t make headlines. But it compounds into durable profitability, the kind investors can bank on, whether they intend to hold and cash flow or sell with a story that can be supported.
Returns Driver #2: Topline Growth
Efficiency matters, but you can’t just cut your way to the best returns. Hotels also offer a unique opportunity to grow the top line through smart strategy and execution. While some segments of commercial real estate rely entirely on tenant leases that renew infrequently, hotels reprice their rooms many times each day. It’s an unmatched opportunity.
Guest Experience Driving Pricing Power
Guest experience is the first topline lever. Thoughtful investments into the property, combined with better service, translate into repeat guests, word of mouth, lower customer acquisition costs, and more pricing power.
Commercial Strategy With Demand Diversification
Commercial strategy is the second topline lever. Hotels can diversify demand in ways most other asset classes cannot. Leisure, group, corporate, government, and extended-stay business can all flow into the same property. Managing mix and channels dynamically enables hotel owners and operators to capitalize on whichever segment is strongest at any given point in the cycle.
For example, when corporate travel is soft, a well-run sales team can pivot toward small group events, such as sports tournaments. When inbound international lags, drive-to leisure demand can fill the gap.
Renovation and Repositioning as Revenue Catalysts
Finally, strategic renovation or repositioning can unlock new topline growth. Reflagging to a stronger brand, reconfiguring room mix, or upgrading amenities all expand profit potential. Investors who time CapEx well, providing a refreshed product as demand recovers, capture greater market share.
Together, guest experience, commercial strategy, and smart capital deployment show why hotels are capable of delivering returns even when the macro picture is weak.
Returns Driver #3: Performance Through Culture
Finally, the most overlooked lever: culture. In the beginning, I mentioned the perspective among some investors that hotel investing is risky, but culture, along with technology to support it, mitigates this risk.
Performance happens on property, from housekeeping productivity to upselling at the front desk, and that depends on how people are led and equipped. From the housekeeper to the GM to the above-property team supporting them, every role has the potential to make a difference.
The best-performing operators create cultures of performance.
• Transparency: real-time visibility into goals and results at every level.
• Accountability: clear ownership of outcomes, with role-level metrics each team uses daily.
• Recognition: simple ways to reward consistency and reinforce the right behaviors.
Technology amplifies performance. People don’t usually join the hotel industry to stare at screens; they join to serve. When technology takes the administrative burden off their plate and delivers actionable insights, two things happen.
1. Guest-facing time increases, improving service and satisfaction.
2. Variability decreases, creating more consistent results and returns.
For investors, this combination of culture supported by technology delivers predictable execution at scale. And predictable execution helps turn hotels from “volatile assets” into reliable, cash-flowing businesses.
Hotels Can Provide a Path to Durable Profitability
So how do you achieve above-average returns with hotels? You do the small things well. You create an environment where an engineer catches a $500 fix before it becomes a $50,000 failure. The associate upsells a guest to a better room, driving more profits, at check-in. The general manager who cuts overtime spending because they have the tools to do so. Each action may be small, but together they compound into higher and more durable profits.
And that creates options for capital allocators. Hotels cash flow in a way that lets you hold and harvest profits year after year. Or, you can sell with a strong story backed by performance, not just an arbitrage flip. Either way, the hotel investor wins.
Hotels remain one of the most compelling investments in commercial real estate. They are both hard assets and operating businesses. They carry volatility, but that volatility can be the source of flexibility, adaptability, and opportunity. For capital allocators willing to engage, the returns can be worth the work.
Steven Moore is CEO, Actabl.
The views and opinions expressed in this content do not necessarily reflect the opinions of Hotel Investment Today by Northstar or Northstar Travel Group and its affiliated companies.
Tourist Spends a Month in Prison Over Mistaken Identity
https://www.fodors.com/news/news/tourist-spends-a-month-in-prison-over-mistaken-identity
Pxhidalgo | Dreamstime.com
And other travel news you may have missed.
This week in travel, we’ve uncovered several stories that might have flown under your radar. Among them: American Airlines has been ordered to pay $9 million to a passenger who suffered strokes on board; an Italian city plans to tax dogs; and a tourist has been released from jail after a case of mistaken identity.
Dive into these and more as we examine the latest in travel news.
NO.1 DENMARK AIRPORTS CLOSE DUE TO DRONE SIGHTINGS
Multiple airports in Denmark, including those with military bases, were closed last week after drone sightings. Last Monday, Copenhagen Airport shut down for a couple of hours because of two or three unauthorized drones in the area; all takeoffs and landings were canceled. Later in the week, drones were also observed near Aalborg Airport, Skrydstrup Air Base, and Karup Air Base.
In Oslo, the airport was also closed for hours due to another drone incident.
NO.2 TOURIST SPENDS A MONTH IN ITALIAN PRISON OVER MISTAKEN IDENTITY
“The nightmare is over,” said a tourist who spent a month in prison in northern Italy after his release. Ovidiu A. was arrested on the first day of his trip to Caorle, near Venice. The tourist is from Romania and shares his name with a wanted Romanian criminal. He checked into a hotel, which triggered authorities, and he was arrested at breakfast. His lawyer struggled to prove he wasn’t the wanted criminal because he had to gather documentation separately from the court, police, and prison.
Ovidiu and his family planned to spend a few days in Italy after his release to enjoy the beach.
How to Stand Out in a Room Full of Power Players
https://ivyexec.com/career-advice/2025/how-to-stand-out-in-a-room-full-of-power-players
Walking into a room full of leaders, decision-makers, and high-level executives can be overwhelming. Such professionals often have strong reputations, impressive achievements, and confidence from years of leadership.
While you may feel like the least important person in the room, your impact doesn’t depend on your title or status. Here is a guide on how to stand out when surrounded by power players.
✔️ Research the Room
If you’re going to be in a room full of power players, you need to know who they are and what matters to them. Researching will give you key information you can use to connect with them and boost your confidence.
Walking into a room full of leaders, decision-makers, and high-level executives can be overwhelming. Such professionals often have strong reputations, impressive achievements, and confidence from years of leadership.
While you may feel like the least important person in the room, your impact doesn’t depend on your title or status. Here is a guide on how to stand out when surrounded by power players.
✔️ Research the Room
If you’re going to be in a room full of power players, you need to know who they are and what matters to them. Researching will give you key information you can use to connect with them and boost your confidence.
Before going to an industry or networking event, for example, identify key attendees first. Search the event website for recent interviews or articles they’ve written. You should also learn about their career background on LinkedIn.
These measures will help you know about the professional’s most recent work and any big moves or decisions they’ve made. You can then use the information to ensure you have relevant and meaningful conversations later.
✔️ Command Respect
Power players will observe your posture, energy, and how comfortable you seem. So, your presence should highlight your confidence and leave a great first impression.
Command respect by standing tall when you walk into the room. Take a moment to scan the space before moving, and avoid looking down or staring at your phone. It’s also vital to smile when you approach others and make eye contact when speaking.
Using filler words like ‘um,’ ‘you know,’ or ‘like’ in a conversation can make you sound unsure, even when you’re not. Instead of using such words, speak clearly and take short pauses when making a point. Doing so will give your words weight and show you’re comfortable owning the moment.
Craft a Personal Pitch
Other professionals will likely ask what you do when they meet you. While it may be tempting to describe your current role, your answer shouldn’t sound like a job description. Instead, it should show the value you bring to prove to power players that you’re also a contributor.
Start with a one-line summary that explains the outcome of your work. Think about what you help people or companies achieve to make your answer more interesting and valuable.
For example, instead of saying you’re a data analyst, mention that you help companies save money by using data to fix problems in their supply chain. Such phrasing will give the power players a clear picture of what you do and why it matters.
Your personal pitch should naturally flow into a conversation. Keep it short and simple, and ensure it doesn’t sound rehearsed. Also, be ready to adjust it depending on who you’re talking to.
If you’re speaking to someone in marketing, talk about how your work improves customer insights or campaign results. However, explain how you increase profits, reduce risk, or solve real problems when interacting with a business founder.
Tailoring your pitch will ensure it resonates with the professionals you interact with. It also helps them see you as a thoughtful, skilled connection worth remembering.
✔️ Ask Thoughtful Questions
Asking thoughtful questions in a room full of power players will spark interest. It also encourages meaningful conversation and positions you as someone who thinks deeply. Instead of having surface-level small talk, show curiosity and openness. You can ask questions like:What’s one trend you’re watching closely in your space?
What do you think most people misunderstand about your industry?
If you could change one thing about your field today, what would it be?
What’s a recent win your team is proud of?
Such questions will allow others to share their expertise, current priorities, or points of view. Additionally, they can turn simple conversations into authentic exchanges.
✔️ Listen More Than You Speak
Most power players are always around people trying to impress them. They also often interact with other influential people who may try to show off or take over conversations. If you want to stand out, do the opposite.
Listen actively to show you’re paying attention and consider what they are saying important. Some techniques you can use include:Nod occasionally
Make eye contact
Avoid interrupting
Repeat a key idea in your own words
Ask follow-up questions
Watch your body language
When you listen actively, you can pick up on key details. For example, you may understand what matters most to the people in the room and the successes they value. The information will help you stay in sync with the group and ensure you make relevant comments when it’s your turn to speak.
✔️ Share a Unique Point of View
It might seem hard to say anything helpful in a room full of smart, experienced people. But remember, no one else has your exact background, skills, or point of view. If you work at a small company, for instance, you may get the unique chance to notice trends faster than leaders in big brands.
Besides, if you interact with customers daily, you most likely understand their needs better than those behind the scenes. You might also see problems that others in the industry don’t realize are happening.
Once you realize you have a unique point of view, ask yourself if it can help others understand a topic better. Then, figure out if you’re offering a respectful new idea or just disagreeing to stand out.
Always use your experience to add a new layer to the conversation. Share valuable information and educate other professionals without showing off. When you use such strategies, power players will consider you someone who brings smart, real-world thinking to the table.
Make Your Presence Count Amongst Power Players
You don’t need a big title or decades of experience to make a strong impression in a room full of leaders. The most important thing is how you show up and the impression you make.
Do your research before entering the room, and walk in with confidence. Speak clearly about your value and ask thoughtful questions to reflect your interest.
It’s also vital to prepare your pitch and focus on connecting instead of trying to impress. When you make a solid contribution, you’ll leave a lasting impression and strengthen your reputation.
How Parc 55, Hilton Union Square became the hotels that define San Francisco
A timeline of the two foreclosed properties approved for sale by court
The Hilton San Francisco Union Square in San Francisco, California, is set to be bought by Newbond and Conversant after years in receivership. (Getty Images)
https://www.costar.com/article/1840472558/how-parc-55-hilton-union-square-became-the-hotels-that-define-san-francisco
For more than two years, the saga of two large hotels — Parc 55 San Francisco and Hilton San Francisco Union Square — have defined the broader outlook on San Francisco as an investment market.
Two of the largest hotels in the city have languished in limbo after hotel-focused real estate investment trust Park Hotels & Resorts decided it was more financially prudent to hand back the keys for the properties than it was to rework the massive $725 million debt on them.
Recently, the future for the two hotels have come into focus. Courts approved a plan on Sept. 25 for two New York-based groups — Newbond and Conversant — to take ownership.
"San Francisco is [a market] that many people are quite down on, but I'd say it's important to remove some of the emotional clutter and negative energy that's out there and just step back for a second to think about the city," Baltimore said. "It's one of the greatest cities of the world [with] innovation, creativity, the number of universities that are located there, the venture capital anchored there.
"So I think the demise of San Francisco is a bit premature. Obviously safety and security is an issue. I was personally out there in December with another REIT CEO meeting not only with the mayor but the chief of police, their chief of staff and really stressing the need for the safety and security issue."
August 2022 — Park announces plans to sell off as much as $400 million worth of hotels in order to lower its debt burden and reinvest in its existing portfolio or its own stock. They simultaneously announced the Parc 55 has officially reopened, although the reopening was delayed to the second quarter of 2022.
December 2022 — Park begins reworking its debt somewhat by amending and restating its revolving credit facility, increasing it to $950 million.
February 2023 — With $1.9 billion in liquidity in total for the company, Wall Street analysts question Park's long-term plans in light of the nearing maturity date on the $725 million in CMBS debt — especially in light of San Francisco's depressed hotel performance following the COVID-19 pandemic.
Baltimore urged observers and investors not to worry as the company had successfully managed its debt load in recent years.
"At the beginning of the pandemic when everything was closed and we had debt maturities and the world thought Park wasn't going to be around much longer, we didn't panic," he said. "We did three bond deals. We pushed out maturities. We paid off 98% of the bank debt. You'll note that when we went to recast our revolver, the banks welcomed us with open arms. It was done quickly and efficiently, and we were one of the few that were able to upsize in that environment. So we've got a very seasoned and experienced team here. We know how to handle the situation."
May 2023 — Baltimore now says "all options are being explored" on how to cope with the Hilton San Francisco Union Square and Parc 55's heavy debt load including possibly handing back the keys to the properties.
The comments mark a significant, long-term shift in the REIT's outlook on San Francisco.
"San Francisco historically has been a high beta market, so it goes through these periods of boom and bust," he said. "This is clearly a tougher period now, but we are seeing it certainly begin to recover. I think that recovery is going to be a little more elongated."
June 2023 — Park Hotels & Resorts officials say they're stopping payment on the $725 million debt on the two properties, noting the move will give the REIT better cash flow.
“After much thought and consideration, we believe it is in the best interest for Park’s stockholders to materially reduce our current exposure to the San Francisco market," Baltimore said.
August 2023 — Baltimore expresses a desire to spend less time talking about the fate of San Francisco as a travel market, noting walking away from their two largest properties there decreases their exposure significantly.
"It's not helpful to the overall narrative for Park that we continue to have to talk about San Francisco, but we realize until it's completely removed from the portfolio and is still in guidance, we still have to address it," he told analysts. "If you take that out, that was the lion's share of the reason we had a modest 2% reduction in guidance to the midpoint. It is San Francisco. We'd rather talk about Hawaii and the explosive growth we're seeing given the fact we still don't have the Japanese traveler."
November 2023 — The Parc 55 San Francisco and the Hilton San Francisco Union Square are officially placed in receivership, and Baltimore says walking away from the $725 million obligation significantly improves his company's financial outlook.
"We've eliminated the noise around San Francisco," he said. "We could not be prouder. ... We are glad to be moving forward. There is a clear path forward and really positive tailwinds for Park as we look forward."
Michelle Russo of HotelAVE is named receiver on behalf of Wilmington Trust
June 2024 — Continuing its broader scaling back in the Bay Area, Park announces plans to close the Hilton Oakland Airport.
March 2025 — CMBS bondholders Trimont Real Estate Advisors announce a buyer has been selected for the two properties, without further details.
July 2025 — The expected sale of the properties is viewed as a bellwether of San Francisco's future tourism rebound.
August 2025 — Court-set deadlines for a completed sale are repeatedly extended through the summer of 2025, with a final deadline set for October as the unnamed buyers, the receiver and Hilton work to amend existing management agreements. Existing agreements for the property extend to 2040.
September 2025 — New York-based investment groups Newbond and Conversant are named as buyers of the two properties. The purchase agreement gets court approval on Sept. 25.
DUHC&S | Strategic Hospitality Consulting & Advisory
We transform hospitality and tourism businesses through strategic solutions, operational efficiency, and comprehensive renovation . With over 40 years of experience working with brands like Hilton, Hyatt, Sheraton, and Sonesta , we enhance asset value and profitability through:
Business reengineering and renovation
Operational excellence and brand standards (GSI +90%)
Market penetration and commercial strategies
Key partnerships and disruptive innovation
Hotel openings and repositioning
Proven results :
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✅ +200% asset valuation growth
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