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Baltimore-owned hotel near Camden Yards reportedly losing millions
Fox 45 News, March 3, 2022
The pandemic has taken its toll on many businesses across the country, and the city-owned Hilton Hotel in downtown Baltimore is no exception. According to a recent report, the hotel sent a notice out to their bondholders stating that the business plans to dip into $3.7 million in reserve funds to make interest payments on its estimated $260 million in debt. RESI Chief Economist Daraius Irani says that since the hotel is owned by the city, if it defaults on its bond payments, the city and maybe taxpayers would be liable for it. Irani notes that the pandemic has been rough on businesses in downtown Baltimore and the increasing crime rates won’t help the hotel recover. Irani concluded, “The city has to look seriously at this and decide whether the cost of keeping it going is worth the benefits of having it in their portfolio.”
Maryland breaks all-time record high for gas prices
ABC 7 News, March, 7, 2022
With gas prices already on the rise, supply issues tied to the Russia-Ukraine conflict worked to push them to record highs. At the time of this article, gas had reached $4.09 per gallon, up from an average of $2.77 per gallon only a year previously. RESI Chief Economist Daraius Irani explained that Russia produces about 10 percent of the world’s oil supply and any disruption to that supply would cause prices to rise globally. The tight oil supply, combined with increased demand as individuals return to the office post-pandemic, continue to impact the rise of gas prices. Additionally, gas prices are expected to keep increasing during the summer months as gas producers tend to switch to summer blends.
Economist: Expect to pay more for products as Russia-Ukraine conflict continues
WBAL NewsRadio, March 8, 2022
While gas prices are the most immediate economic effect of the ongoing war in Ukraine, it’s likely that prices will be going up for other goods as well. RESI Chief Economist Daraius Irani commented that the increase in gas prices, “impacts everything from transportation, so now it's going to cost more to ship goods from point A to point B. Airline travel is going to be more costly, any petroleum-based products are going to be most costly, so fertilizers.” Besides fuel prices being impacted, prices in grocery stores will also visibly increase in the future. Irani stated, “you're going to see prices go up. When you think about feed corn could be impacted, which could then impact beef prices, chicken feed -- so really everything could be impacted.” The prices in the short-term will continue to rise, and it is uncertain what the long-term consequences will be. It all depends on the conflict, Irani commented, “the longer the conflict takes, the more uncertainty there is in the global market.”
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