Leisure/Hotels

Whitbread can give activist a hospitable welcome

7 Dec 2017

Jitters about UK consumer spending have pushed the Costa Coffee and Premier Inn owner’s valuation to a 10-year low. U.S. fund Sachem Head, which has taken a 3.4 pct stake, sees upside. Selling property or spinning off the coffee unit are among a menu of value-creating options.

Australia’s Aristocrat makes reckless mobile bet

30 Nov 2017

The $11 bln group's shares slumped on plans to buy online games firm Big Fish for $1 bln. A wobble in tech stocks probably doesn’t help. But the deal looks pricey, Big Fish’s recent performance is weak, and the rationale for uniting slot machines and mobile games is thin.

UK gambling crackdown boosts M&A odds

7 Nov 2017

A government squeeze on betting machines known as the “crack cocaine of gambling” could knock 20 pct off bookies’ operating profit. Extra regulation makes scale more important. Once the rules are clear, targets like Ladbrokes will be easier to value. Expect a flurry of deals.

Placing new wagers may sustain Macau’s hot streak

1 Nov 2017

High-rollers flocking to the tables helped gaming revenue jump 22 pct last quarter to $8.3 bln. Everyday punters are a smarter bet, though, for Sands, Wynn and other casinos. Despite stiffer competition for such customers, their larger numbers and fatter margins improve the odds.

Sea IPO lures investors angling for next big thing

20 Oct 2017

The Singaporean startup raised nearly $900 mln in a pricier-than-expected U.S. listing. That suggests investors looked past growing losses for fear of missing out on what could become Southeast Asia’s answer to Tencent or Alibaba. Those comparisons are a stretch.

Meituan orders up help to be China’s next web star

20 Oct 2017

The food-delivery to hotel-bookings startup raised $4 bln at a $30 bln valuation. Investors reckon Meituan-Dianping could be China’s next huge online platform. With scale benefits from offering many different services, and this warchest to fight off rivals, they could be right.

Taj Mahal spat is a towering political folly

19 Oct 2017

A ruling party lawmaker says "traitors" built the landmark. An official sightseeing booklet omitted it. Yet tourism is one of the best ways to create jobs in India. Playing religious politics with a top visitor attraction is a disservice to Premier Modi's development mantra.

Mantra should have reservations over Accor bid

9 Oct 2017

Accor has offered $917 mln for the Australian hotel group. The French suitor’s bid looks cheap set against previous deals in the sector, and given the financial benefits Accor could reap. Mantra’s board could afford to ask for a bit more before handing over the keys.

Wanderlust, not shopping, drives China tourism 2.0

9 Oct 2017

More people spent China's "Golden Week" holiday on Thai beaches than in Hong Kong malls. As Chinese tourists eschew shopping for sight-seeing, offshore luxury retailers could lose custom. But as the travelling middle class spreads out, there are bound to be more winners.

SeaWorld a slimy meal for ex-Blackstone predator

5 Oct 2017

Merlin Entertainments is mulling a bid to buy the theme parks of the operator famous for its killer whales. Both were once owned by the buyout group. A $1.6 bln sale could create value, but SeaWorld’s complex ownership and the tough business outlook make a breakup tricky.

Wanda’s new overhaul is a prelude to relisting

10 Aug 2017

Chinese tycoon Wang Jianlin, under pressure to delever, just sold $9 bln of hotels and theme parks. Now he’s taking full control of some property projects and selling some businesses to a Hong Kong unit. That would make a delayed mainland listing more appealing to investors.

Skiing business goes tri-polar with Intrawest deal

10 Apr 2017

The $1.5 bln takeover of the operator of Stratton and Steamboat Springs resorts by Aspen Skiing creates a potential rival to primo consolidator Vail. With skier ranks mostly flat, these two will battle it out with independent resorts that will either huddle together or sell.

Disney gives Paris investors a Scrooge McDuck exit

27 Mar 2017

The maker of "Mickey's Christmas Carol" wants to buy out shareholders in its Paris theme park at a premium. Yet the price downplays Euro Disney’s profitability and real estate. This is poor compensation for a rollercoaster investment with more down than up.

Scuba instructors teach a private-equity lesson

22 Mar 2017

With their $2.5 trln of assets, buyout shops have been struggling to find promising new targets. Instead, they increasingly pass companies among themselves. A deal for scuba service PADI by families and endowments shows how some investors are cutting out the middlemen.

Chess: a 1,500-year-old startup that doesn’t scale

2 Dec 2016

A fresh push to popularize the game at this year's championship between Magnus Carlsen and Sergey Karjakin faltered. Pay-TV won't woo fans who can watch board movements for free and broadcasts are too technical for novices. Poor governance and few sponsors are hindrances, too.

Och-Ziff turns paper-shuffling into winter sport

4 Nov 2016

The hedge fund's property arm and EPR are paying a Florida REIT $830 mln for 15 ski resorts. The deal has plenty of twists and turns, like EPR giving Och-Ziff a mortgage to fund part of the transaction. Long-term leases, though, mean the new owners can do little but groom the slopes.

Fitbit tracks fast path to value destruction

2 Nov 2016

The wearable-device maker is proving just how hard hardware can be. Turning a fad into a lasting business is even tougher. A weak holiday sales outlook sent investors running. Fitbit is a worthwhile case study to keep nearby the next time a hot gadget IPO comes to market.

HNA checks in to Hilton at a high-season premium

24 Oct 2016

China's free-spending hospitality giant is plunking down $6.5 bln for 25 pct of the hotelier from Blackstone. It's paying 15 pct more than market for the honor. The LBO firm triples its money in the deal. HNA at least gains a valuable, if pricey, seat at an important table.

Borrowers reign despite Caesars defeat

27 Sep 2016

Efforts by Apollo and TPG to salvage something from their $30 bln casino buyout largely failed after creditors fought back. Under a new deal, junior lenders will recover 66 cents on the dollar. Most debt investors bow to lame terms, however, meaning Caesars will be an exception.

Qunar’s cut-price buyout might just fly

24 Jun 2016

The travel agent is the latest U.S.-listed Chinese group to get a buyout proposal from back home. A 15 pct premium to a depressed stock price is hardly generous. But if major shareholder Ctrip can be persuaded to hop aboard, this deal could work.