Leisure/Hotels

Financial vacancy at new Marriott-Starwood inn

16 Nov 2015

The $12 bln merger would create the world’s biggest hotelier. Marriott boss Arne Sorenson touts value creation, but the stated $200 mln in cost savings won’t cover the premium his company is paying. Starwood owners also initially reacted unhappily. The deal is looking defensive.

Expedia finds back door to Airbnb’s market

4 Nov 2015

The travel site is paying $3.9 bln for HomeAway. Though the vacation-rental firm lacks the urban clout of its better-known rival, moving in with its new parent will help. Cost cuts are low, but HomeAway’s cash pile will ease the blow to Expedia of shelling out a 28 pct premium.

TripAdvisor’s Priceline deal leaves rivals in dust

14 Oct 2015

The travel review site had plenty of users but its dependence on advertising made it an internet laggard. Sharing business with the hotel-booking powerhouse gives it fee revenue and a shot to become a one-stop tourist site. Peers are quickly receding in the rearview mirror.

Ironman and SoulCycle may set CrossFit’s course

25 Sep 2015

Buyout shop Providence Equity quadrupled its investment in the three-part, 140-mile races popular with the hedge fund set. The fashionable and fast-growing indoor cycling chain is pursuing an IPO. CrossFit’s exercise cult should attract investors pumped up on fitness crazes.

Airbnb may force innkeepers into M&A pillow talk

30 Jul 2015

Sheraton owner Starwood is looking for partners. A deal with IHG might help it boost prices and lower costs, but even with synergies, the merged firms would barely match Airbnb’s $25 bln valuation. As the home rental service’s clout grows, hotels will face some sleepless nights.

Travel deal treads new path for shell companies

16 Jul 2015

Blank-check vehicles have often brought financial misadventure. The latest quest for success is the acquisition of Lindblad, a National Geographic-linked operator of cruises to the Galapagos and Antarctica. New terms and investors suggest so-called SPACs are worth revisiting.

Kirk Kerkorian: the carmaking king who wasn’t

16 Jun 2015

The billionaire, who has died at age 98, helped shape Las Vegas. He was less successful, though, at trying to inject a unique brand of fuel into Detroit’s engine. Kerkorian’s career is a sobering lesson for Fiat boss Sergio Marchionne, who drives his own brand of auto activism.

Circus deal risks becoming lunge at falling knife

21 Apr 2015

TPG and others are buying Montreal-based Cirque du Soleil at a $1.5 bln valuation. That’s over $1 bln less than the price secured by founder Guy Laliberté in an ill-fated 2008 sale to Dubai. Recent shows have struggled, though, and hoped-for Chinese growth could easily stumble.

Sharing benefits may be lost on real economy

27 Mar 2015

The likes of Uber and Airbnb are rising fast. A new report projects, for example, the new breed of lodging services alone will grow nearly 20-fold over the next decade, to over $100 bln of bookings. Sharing is also cutting prices. The effects could elude official GDP figures.

Accor CEO wins elbow room with investor selldown

25 Mar 2015

Backers Colony Capital and Eurazeo have sold 1.1 bln euros of shares in the French hotel group, halving their combined stake to 11.2 pct. That helps boss Sebastien Bazin, a former Colony employee, prove he is his own man – and makes Accor an easier sell to outside investors.

Activism an ace in hole for Steve Wynn’s ex-wife

6 Mar 2015

Elaine Wynn launched a proxy fight to save her board seat at the casino she and the gambling mogul started. Insiders rarely win such battles, as a Hewlett-Packard heir can attest. Yet a 10 pct stake and knowledge of the company make her a better bet than just any pushy investor.

Expedia indicates first-class M&A tickets remain

12 Feb 2015

The online travel company’s shares jumped after it agreed to buy smaller rival Orbitz for $1.6 bln. Advertised synergies worth $525 mln today amount to twice the premium being paid. Despite evidence of fewer easy pickings, Expedia shows why the deal boom still has some runway.

Uncle Sam stoked to hash out marijuana in 2015

24 Dec 2014

Now that four U.S. states and D.C. have legalized recreational cannabis, commerce and safety warrant better regulation. But federal rules prohibiting the drug create obstacles. For the fledgling industry to mellow, Washington needs to tweak laws to consent to states’ will.

Apollo, TPG dabble in Caesars sleight-of-hand

20 Nov 2014

The casino’s private equity owners are haggling with creditors. One idea is to split a key unit into operating and property arms, as rivals have. Such financial engineering would fit well with Apollo and TPG’s earlier moves to turn this top-of-the-market LBO into a decent bet.

Club Med organisers can welcome latest arrival

22 Jul 2014

Andrea Bonomi’s Investindustrial is offering 790 mln euros for the all-inclusive holiday group. This may not be a five-star price but it blows a rival Franco-Chinese bid out of the water. And investors have spent years in the wilderness. This is an offer the board can recommend.

Priceline’s OpenTable buy is costly appetizer

13 Jun 2014

The $64 bln online travel outfit is paying a 46 pct premium – $2.6 bln in cash – to snag the restaurant reservation site. Each helps small businesses and customers find each other. But the tariff only makes sense if Priceline can plug many more of both into OpenTable worldwide.

PokerStars goes all-in with $4.9 bln U.S. gamble

13 Jun 2014

The leading poker site is being staked by Canada’s Amaya and Blackstone in an aggressive deal that lifts debt to 6.6 times EBITDA. Cashing out the backers of PokerStars should increase the odds of cracking the United States. If Amaya plays its cards right, the bet could pay off.

IHG is a one-star candidate for M&A activism

3 Jun 2014

Bill Ackman protégé Mick McGuire is targeting the $10 bln hotels group. He wants IHG to sell to a bigger rival. Consolidation makes sense. But IHG is expensive, suitors like Starwood aren’t keen, and the group has fewer weaknesses than the typical activist target.

Saga flotation has a few wrinkles

21 May 2014

A retail-heavy flotation targets a market cap of at least 2 bln stg. That looks pricey for what, despite sidelines in cruises and healthcare, is still basically an insurance broker. The risk is a soggy share price - and a backlash among Saga’s loyal base of older Britons.

Silicon Valley exceptionalism only travels so far

28 Apr 2014

Airbnb has been sassing its way around New York, whose attorney general suspects the residence-sharing site’s users are breaking the law. A better lodging mousetrap and $10 bln valuation may resonate in the Valley, but it doesn’t mean nearly as much beyond the tech echo chamber.