Leisure/Hotels

Macau is handy chip in China’s standoff with Trump

15 Oct 2018

The gambling hub’s 20 year licenses for Sands China, Wynn Macau and others are nearing their expiry. It gives Beijing leverage over founders Sheldon Adelson and Steve Wynn, both friends of the U.S. president. Squeezing them could be one way to get Trump’s attention over trade.

Casino owner stacks deck in Philippines deal

5 Oct 2018

Lawrence Ho’s $11 bln gambling empire has offered to buy the rest of its Manila resort operator. The valuation methods are creative and Melco is trying to bully minority holders. Prospective investors in a planned New York IPO should take note of this treatment, however distant.

Unicorns spawn new fantastical tech beasts

27 Sep 2018

Just a few years ago, a mythology sprang up around startups with a $1 bln paper valuation. India’s Oyo Hotels just became the latest to raise at least that much cash in one go. For the unbridled chaos these investment creatures represent, they might best be labelled centaurs.

Macau casinos seek help from the common man

26 Sep 2018

Investors see rough times ahead for China’s gambling enclave. VIP spending has slowed, which heralded a slump in 2011. Shares in operators like Galaxy and SJM fell as much as 20 pct in September. But Macau is less reliant on high rollers today; the mass market could save it yet.

Review: Fear and loathing in the Philippines

10 Aug 2018

Rodrigo Duterte's two years as president have been dominated by a vicious war on drugs. A biography of the mercurial man-of-the-people known as "Duterte Harry", after the fictional cop, is blistering. It doesn't do enough, though, to address the economic cost of wanton brutality.

Macau moguls’ rivalry threatens cost discipline

10 Aug 2018

High rollers pumped up revenue at Galaxy and Sands last quarter, while Wynn Macau fell behind. As casinos fight for their share of China’s $38 bln gambling hub, earnings are becoming more volatile. Investors will suffer if aggressive marketing and new attractions squeeze margins.

Elaine Wynn’s deft hand puts house in order

6 Aug 2018

By arranging to install an industry veteran as independent chairman, the Wynn Resorts co-founder has played her cards wisely. The deal protects her stake in the $16 bln casino empire and ends months of management turmoil. Now the company can focus on real challenges, like Macau.

Hot streak at Macau’s SJM may be short-lived

1 Aug 2018

The $7 bln gambling group’s shares have soared since announcing its founder’s retirement. Yet the launch of a new casino on the Cotai Strip faces delays and the company now has a “hydra-like” leadership structure. New boss Daisy Ho needs a better hand to justify a rich valuation.

Macau casinos could lose VIPs to junket upstart

25 Jul 2018

Suncity boss Alvin Chau helps bankroll half of the gaming hub’s big-spenders. He also aspires to running his own casinos and could coax clients to try new markets like Vietnam. That may mean fewer high rollers at Wynn Macau, Galaxy and others when China’s slowdown bites.

Air France check-in lacks logic for AccorHotels

4 Jun 2018

Buying the French government’s 450 mln euro stake in the ailing airline might help it get tough with unions. But the hotel group would not enjoy any strategic benefits. That AccorHotels is even considering the purchase shows the state’s continuing sway over the private sector.

Macau will struggle to kick its gambling addiction

28 May 2018

The Chinese region wants to be more like Las Vegas, and focus on varied nightlife and family fare. One official says resorts could generate 40 pct of revenue beyond the casinos. It's a worthwhile target for Galaxy and peers, but Macau's infrastructure is one of many hurdles.

UK’s costly royal wedding is worth every penny

18 May 2018

The marriage of Prince Harry to Meghan Markle may cost taxpayers as much as 30 mln pounds. If the transatlantic union prompts a small increase in American tourism, the expense can be recouped. In an era of isolationism and political volatility, it’s an efficient soft power boost.

Time for Elaine Wynn to take break from the table

15 May 2018

The director targeted by the casino’s co-founder is leaving, as is another. With a refreshed board and new CEO, Wynn Resorts is well placed to move on from recent scandals. Unless she has suddenly hit on a new grand plan, Elaine Wynn would do well to leave them to it.

Elaine Wynn needs to turn up the heat

2 May 2018

The casino company’s co-founder wants to replace a director, but not with herself or an associate. The soft approach was rebuffed by the company, which claims it’s changed since her ex-husband quit. Elaine needs a sharper approach – or activist help – if she wants to be heard.

Marriott Vacations makes pricey time-share buy

30 Apr 2018

The operator of fractional vacation homes is paying $4.7 bln for rival ILG. It helps close the gap with market leader Wyndham. But cost savings cover barely half the premium and debt may exceed four times EBITDA. It underscores the high cost of time-share ownership.

Wynn tosses female directors into boardroom brawl

18 Apr 2018

The $21 bln casino giant has added three women to an expanded group. This marks a serious attempt to move on from a sexual harassment scandal, but co-founder Elaine Wynn wants a full overhaul. With a battle brewing, these women had best come ready to rumble.

Icahn will need to work to extend winning streak

16 Apr 2018

The investor is selling Tropicana, the casino he plucked out of bankruptcy, for $1.85 bln. It follows last week’s sale of Federal-Mogul to Tenneco, and Volkswagen is knocking on Navistar’s door. A bull market has given Icahn a hot hand, but it makes deploying the cash a challenge.

Coffee to go offers quick fix for Whitbread

16 Apr 2018

Activist Elliott controls 6 pct of the UK hotel and coffee chain and reckons a listing of its Costa brand would add 3 bln pounds of value. It’s a simple-seeming solution to Whitbread’s discount rating. Separating investor worries about the two parts of the business has merit.

Retiring Macau mogul had first-mover disadvantage

13 Apr 2018

Stanley Ho is stepping down at 96. The casino boss enjoyed a decades-long head start in what is now the world’s top gambling hub. But his $5 bln SJM quickly lost ground to Wynn, Galaxy and others. When competition arrives, former monopolists can struggle to master a new game.

Wynn presents MGM with Vegas-like temptations

11 Apr 2018

The Bellagio owner has a rare chance to bid for its $20 bln casino rival as scandal-struck Wynn grapples with its future. The numbers are a stretch, and the vagaries of Macau make it difficult for MGM to justify a premium. Nonetheless, chances like this don’t arise often.