Leisure/Hotels

HNA takes circuitous route to streamlining

6 Apr 2018

The Chinese conglomerate's $6.4 bln stake in U.S. hotelier Hilton is now up for sale. It's a curious choice for a company built around travel and logistics. Financial services make less sense inside HNA. The restructuring choices suggest strategy may be a secondary consideration.

Steve Wynn’s casinos make best of bad hand

23 Mar 2018

After resigning as CEO of Wynn Resorts amid scandal, he has found buyers for his entire stake. New boss Matthew Maddox is playing terrible cards fast and well. He settled a big lawsuit and just brought in Macau rival Galaxy as a backer, which could lead to fresh opportunities.

James Packer’s exit deals Crown a better hand

21 Mar 2018

The Australian billionaire has resigned from the board of his casino empire again, this time for health reasons. He leaves a group still reeling from a Chinese crackdown that left staff in prison and prompted a costly global retreat. The path to recovery is clearer without him.

Legal truce a Wynn-Wynn solution for casino empire

16 Mar 2018

Steve Wynn may sell his stake in the casino operator after settling a lawsuit with his ex-wife. It makes sense now that he’s been turfed out as CEO, but regulatory, legal and valuation issues could deter many buyers. That leaves the deck stacked in favor of Elaine Wynn.

Jardines can benefit from a spot of retail therapy

9 Mar 2018

Underlying earnings at the Anglo-Asian conglomerate soared to $1.6 bln in 2017. But Jardine Matheson’s food-retail arm is lagging, hampered by Southeast Asia. Exiting hypermarkets, while investing more in e-commerce and convenience stores, would be a good way forward.

HNA is enjoying a pleasant stay at Hilton

7 Mar 2018

The cash-strapped Chinese group bet $6.5 bln on the U.S. hotelier, using lots of borrowed money. It has now sold stock in the spun-off Park Hotels for $1.4 bln, while retaining another $7.6 bln stake. HNA has been a crazily prolific investor, but this trip was worth it.

Accor’s hotel sale has unwelcome discount

28 Feb 2018

The leisure group sold half its property empire for 4.4 bln euros. The low price and a cut on the fees it earns to manage the hotels suggests its partners got the better deal. A buyback will keep investors sweet, but leave less firepower to fend off competitors like Airbnb.

Trump Jr. corrodes India’s anti-corruption efforts

23 Feb 2018

The U.S. president's son is promoting his family real-estate brand and was due to speak in New Delhi on Indo-Pacific ties. A backlash saw that revised to a fireside chat. Still, the mix of business and politics undercuts Premier Modi's own efforts to end crony capitalism.

Elaine Wynn could be $17 bln casino white knight

15 Feb 2018

With Steve Wynn no longer running the eponymous empire, his ex-wife and co-founder Elaine is finally free to sell shares. While that puts Wynn Resorts in play, a takeover would be tricky to execute. A better idea might be to keep Elaine in the game – and put her in charge.

Equity #MeToo risk is more than a crapshoot

6 Feb 2018

Allegations like those made against founders of Guess jeans and Wynn Resorts are impossible to predict. But some industries may be more at risk of sharp, reactive share declines when claims surface. A filter might show gambling and fashion as vulnerable - but finance, too.

Steve Wynn’s exit rolls dice on his casino empire

7 Feb 2018

A tone-deaf board "reluctantly" accepted its founder and CEO's resignation following sexual misconduct allegations against him. That could placate gaming authorities from Nevada to Macau. At the same time, it makes Wynn Resorts more vulnerable to a takeover.

Asia’s #MeToo moment is exception that proves rule

1 Feb 2018

Sexual misconduct allegations against U.S. mogul Steve Wynn led to a selloff of shares in his Macau casino unit. Boardroom gender inequality suggest Asia is ripe for its own scandals. But cultural norms and lack of basic freedoms make that a more distant risk for investors.

Chinese hotelier delivers unexpected wakeup call

31 Jan 2018

Using a JV with TPG, China Lodging is buying two Beijing properties. It's a departure from the scary-sounding and lucrative "manachised" model. Managing and franchising – but not owning – hotels has generated big returns. The $200 mln deal led to $500 mln of lost market value.

Wynn Resorts slide shows house can lose in new era

26 Jan 2018

Boss Steve Wynn says sexual-misconduct accusations leveled at him are “preposterous”. The $2 bln wiped off the company's shares suggests investors nonetheless fear boardroom disruption. It’s a warning to all firms that even alleged misbehavior has become a financial risk.

Small-town gamblers lend Macau casinos time

25 Jan 2018

Rising wealth in the Chinese hinterlands is driving a new cohort of players to the world’s largest gambling hub. They’ve helped boost revenues at casino operators like Wynn and Sands. This new mass market will help Macau’s gaming-centric economic model stay at the table longer.

Informa $5.3 bln events bid may be returns no-show

17 Jan 2018

The UK business-information group is buying rival UBM. It makes sense to bulk up in the increasingly competitive and global business of organising conferences. But Informa will struggle to make the deal work unless it can wring out huge cost savings.

Tech salad will come with a side of SLAW in 2018

3 Jan 2018

Spotify, Lyft, Airbnb and WeWork are all potentially going public in the coming year. None of them may ever match the scale of a FAANG or BAT. But each is disruptive in its own way, and offers investors a unique play on the future of cities, mobility, work and play. Bon appetit!

As Macau welcomes the humble gambler, bet on MGM

29 Dec 2017

In 2018, poorer customers will outshine high-rollers, who have had an impressive run for the world's largest wagering hub. That would signal a reversal of fortunes for some Macau operators. As it opens a new casino targeting the masses, laggard MGM is poised to hit the jackpot.

Penn National places a decent bet on Pinnacle

18 Dec 2017

The regional casino operator is buying rival Pinnacle in a deal valued at $2.8 bln. The acquisition won’t provide the thrills of high-stakes table, but cost savings should cover the hefty premium and Penn National gains a more diversified footprint as the industry consolidates.

GVC plays regulatory roulette with Ladbrokes bid

7 Dec 2017

The Foxy Bingo owner is offering up to 3.9 bln pounds for the UK bookie. That’s despite a government review that may hurt Ladbrokes’ gaming-machine business. Moving quickly makes sense for GVC, and natty financial structuring will improve its odds. The bet could still backfire.