Leisure/Hotels

Virgin Active gives landlords a post-virus sweat

14 Apr 2021

The pandemic-hit gym group founded by Richard Branson wants lower rents. It’s using a new restructuring tool to force the issue with support from other creditors. Faced with a wave of copycats, bruised property owners’ only option is to be more selective about future tenants.

Capital Calls: Netflix, GameStop

9 Apr 2021

Concise views on global finance in the Covid-19 era: The video-streaming service sprays webs of money to secure movies; GameStop’s “Chewy of Gaming” strategy.

Blackstone’s Aussie gamble may tempt more players

22 Mar 2021

The buyout shop’s $6.2 bln offer for Crown is highly conditional, sensibly so given the casino operator’s regulatory nightmare. But the low-ball bid could encourage others like Sands to try their luck. A knockout price would give Blackstone a good exit on its existing 10% stake.

Blackstone checks in for another short hotel stay

15 Mar 2021

The buyout shop is going halves with Starwood Capital to buy mid-price operator Extended Stay in a deal worth $6 bln. Steve Schwarzman’s group has taken and then sold stakes in the company before. This time it could offload the business to another hotel chain after the pandemic.

Sands’ Sin City sale might fund pivot to Australia

4 Mar 2021

The $50 bln casino company has filled its war chest after negotiating a rich price for Las Vegas assets. Crown Resorts would be an affordable addition to their Asia-Pacific empire, and the group founded by the late Sheldon Adelson would be welcomed by watchdogs Down Under.

Unizo mess could make Japan M&A less hospitable

1 Mar 2021

Less than a year since the hotelier’s $2 bln takeover battle, it is under pressure from the massive debt used to repay buyout backer Lone Star. An aggressive deal structure exacerbated pandemic risks. The danger is that Japan Inc’s more open-minded approach to deals closes again.

Capital Calls: Pharma, Volvo delay, Hotels

24 Feb 2021

Concise views on global finance in the Covid-19 era: Big Pharma’s new popularity could give it leverage in Congress; China’s Geely can profit from Volvo IPO delay; and boutique hotels feel the heat.

Crown Resorts raises Aussie governance stakes

19 Feb 2021

The $5 bln casino operator just lost one gaming licence and another is now threatened by a new regulatory probe. A board shakeup should help its case, but director candidates are in short supply. The usual suspects fill too many seats: Crown Chair Helen Coonan is a prime example.

Capital Calls: Bubble alert

16 Feb 2021

Concise views on global finance in the Covid-19 era: Bitcoin burst through $50,000, and global fund managers are maximum bullish on the pace of the recovery from the pandemic.

Humbled Crown Resorts faces rough reinvention

9 Feb 2021

The company is not fit to operate its $1.7 bln casino in Sydney, according to a report prepared for regulators. An ownership change could solve some, but not all, of the issues. China’s row with Canberra, plus a crackdown on overseas gaming, renders the business model obsolete.

Corona Capital: GDP, Corruption, Norway

28 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: U.S. output growth slows from a surge to a gentle trot; Transparency International flags that corruption and pandemic-fighting don’t mix; and Norway’s sovereign wealth fund sees its tech bets pay off.

Corona Capital: Intel, Run on guns

21 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: Intel’s new boss gets closer to his big debut. Meanwhile, gunmakers are riding high on social tensions and pandemic angst, but could soon find they have fewer friends in high places.

Hong Kong stays on dangerous roller coaster ride

19 Jan 2021

Troubled Ocean Park is receiving another government lifeline, growing its rescue cost to over $1 bln. That's more than the latest stimulus package, in a further sign of the city’s skewed priorities. Even with a new business model, the park is destined for more downs than ups.

Corona Capital: Bond bonanza, Albertsons

12 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: U.S. companies' bond issuance in 2020 hits records across the board; and America’s No. 3 grocer continues to take advantage of the shopping habits created by Covid-19 lockdowns.

Corona Capital: Commercial real estate, IBM

5 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: Commercial office real estate is Zoom’s mirror image; IBM taps former Goldman-exec Gary Cohn.

Corona Capital: Poverty, Beer cans, Budget hotels

24 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Hong Kong’s poverty problem was getting worse even before the virus struck; AB InBev sells the family aluminium to cut debt; Whitbread, owner of hotel chain Premier Inn, tries to get its landlords to share the pain.

Corona Capital: New York City, Fed/climate change

15 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: New York City’s exodus puts local government in a tight spot; the Fed’s belated move shows a change in Washington.

Corona Capital: Gaming M&A, Beauty’s bold face

9 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Consolidation in video games reaches the next level as Sweden’s MTG buys Hutch Games for $375 million; and Spanish cosmetics, fashion and perfume group Puig predicts revenue will double by 2023.

Airbnb IPO price deserves more stars than DoorDash

1 Dec 2020

The two are seeking similar IPO valuations: up to $30 bln for the home-sharing app and $27 bln for the delivery firm. That doesn't compute. Airbnb’s scale and proven cash-generating ability are more appealing. Moreover, the pandemic’s end will boost Airbnb and hurt DoorDash.

Corona Capital: Skis, Italian banks, Dividends

26 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Europe’s hopes for a common ski policy hit a mogul; Italian lender Credito Valtellinese faces a lonely bidding war; Aviva’s payout cut is less stingy than it looks.