Starbucks has announced that they will be shutting down Teavana stores in malls. The plan is to close nearly 400 stores, and most will close by Spring 2018. According to Starbucks’ CEO Kevin R. Johnson, Teavana’s sales have sadly decreased. Thankfully, Starbucks is giving Teavana employees the opportunity to apply for roles in Starbucks stores. However, Starbucks will continue selling tea in stores.
West Elm Hotels has plans to launch another boutique hotel in the New England area. The 150-room hotel will be in Portland, is slated to open in 2020, and will sit on Portland’s waterfront. The area is a part of a recently developed neighborhood called Portland Foreside that includes many amenities and activities around the area, such as a lobby bar, outdoor pool, and retail. DDK, an operator of West Elm Hospitality, will manage the new hotel.
Lending standards on commercial real estate loans have already been pretty stringent, and it seems it will remain that way. According to the Federal Reserve, conditions for business loans won’t change, particularly for multi-family properties. In addition to this news, Fed policymakers believe that a hike in commercial real estate prices could lead to economic downfall.
Canadian shoe company Aldo is taking over Camuto Group, who deal with footwear and accessories. This acquisition is momentous as this is an opportunity for Aldo to grow bigger and companies within the fashion industry are making a similar move. The founder of the company, Aldo Bensadoun was, the “son of a shoe merchant, grandson of a cobbler”.
Increase in CMBS mortgages has prompted commercial real estate lending to rise, even though in June, there was an escalation in short term interest rates by the Federal Reserve. According to the CBRE Lending Momentum Index, loan closings were greater from March to June.
Wyndham Worldwide is now splitting into two spin offs, Wyndham Hotel Group and Wyndham Vacation Ownership. Parsippany, NJ will be the headquarters for Wyndham Hotel Group and is purely a hotel company. Orlando, FL will be the headquarters for Wyndham Vacation Ownership and they will be into publicly traded timeshare company.