Leisure/Hotels

Goldman uses virus to become a preferred tenant

19 Jun 2020

The Wall Street giant and hedge fund backers of hotel chain Travelodge are trying to slash their rent bill by over a third. Normally, landlords would only play ball if the tenant was at death’s door. Covid-19 is inverting that pecking order – to real estate owners’ detriment.

Caesars makes best of weakening hand

17 Jun 2020

The casino company agreed to be bought by Eldorado last year. Now its acquirer is issuing stock, which means Caesars will own less of the company than it otherwise would. That makes the deal a little less appealing. With some other deals crumbling, it’s a small price to pay.

Corona Capital: Frequent fliers, Folies Bergeres

15 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: United Airlines hocks its MileagePlus loyalty program for $5 bln from Goldman; Lagardere tries selling Parisian nightlife venues, including Les Folies Bergeres and Bataclan theatre at perhaps the worst time ever.

Stanley Ho made sure his house kept winning

26 May 2020

The Macau gambling doyen, who has died aged 98, once provided half the former colony’s tax revenue. His SJM empire weathered the handover of the territory to China, its emergence as a competitive Las Vegas-beating hub, and family feuds. Punters have proved resiliently profitable.

Corona Capital: Tech laggards, MAC fight

22 May 2020

Concise views on the pandemic’s corporate and financial fallout: Troubled firms HPE, Dell and IBM are facing even more challenges while chipmaker Nvidia gathers strength. Plus: A judge denied to fast-track payment firm Wex’s MAC fight.

Viewsroom: Reopening after the pandemic

21 May 2020

Major economies like Italy and Switzerland are attempting to return to normal, but with notable differences, as columnists in both countries discuss. And Sharon Lam in Hong Kong talks about the future of leisure and business travel with Global Editor Rob Cox.

Corona Capital: Perpetual WFH, Macy’s

21 May 2020

Concise views on the pandemic’s corporate and financial fallout: Facebook and its peers consider making working from home the new normal, while Macy’s gives an insight into a corner of the retail market that was struggling even before the pandemic.

Hotels can ride out a cleaner, more vacant future

12 May 2020

The U.S. lodging industry is bleeding $1.4 bln a week in sales. The lockdown wind-down will offer some respite, but new hygiene measures like deep cleans and 24-hour delays between guests will slash occupancy. Big brands like Hilton and Accor have a leg-up in the post-Covid era.

Corona Capital: Tequila sales, U.S. healthcare

11 May 2020

Concise views on the pandemic’s corporate and financial fallout. Sales of Mexico’s famous liquor soared in April – though not enough to take more than an edge off as the country’s economy falters. And the Amazon-Berkshire Hathaway-JPMorgan healthcare venture may need a new boss.

Corona Capital: Extended Stay, Victoria’s Secret

22 Apr 2020

Concise views on the pandemic’s corporate and financial fallout: Blackstone checks back into one of its favorite old haunts, hotel chain Extended Stay; while another private-equity shop, Sycamore, tries to dump its proposed investment in lingerie seller Victoria’s Secret.

Japanese hospitality has a long way to go in M&A

20 Apr 2020

Lone Star is buying Unizo, ending a process marred by murky disclosures, a lack of engagement with bidders and conflict of interest allegations. Lawmakers last year introduced guidelines to make takeovers fairer, but the tussle suggests boards may need a bigger kick.

Corona Capital: LVMH, L’Oréal, Pandemic bonds

16 Apr 2020

Concise views on the pandemic’s corporate and financial fallout. LVMH holds onto the luxury of cash, cutting its dividend; L’Oréal makes the best of lockdowns with more than 50% growth in e-commerce sales in the first quarter; and even Covid-19 fails to trigger pandemic bonds.

Amadeus ups the bar for travel-sector crisis prep

3 Apr 2020

The $20 bln Spanish IT group is raising $1.6 bln in debt and equity to bolster its balance sheet. The financial terms are fairly beneficial for Amadeus, implying that it’s not exactly desperate for cash. Still, with steep declines in air traffic it’s wise to plan for the worst.

Bond market throws Carnival a costly lifeline

1 Apr 2020

The virus-stricken cruise operator is finalising a $4 bln bond issue, secured against its ships, at an eye-watering 12% yield. That reflects fears the industry may be permanently submerged. Still, it shows that even the most troubled companies still have access to emergency cash.

Ritz sale suggests some assets are virus-proof

30 Mar 2020

The high-end London hotel has been sold to an undisclosed Qatari investor for 800 million pounds. While that may not be enough for some members of the feuding family of sellers, it’s what it might have fetched pre-coronavirus. London property remains a safe haven of sorts.

Virus will clear out overcrowded events industry

25 Mar 2020

Even in its early stages, Covid-19 closed gatherings from Coachella to conflabs on the virus itself. Stopgap online substitutes only underscore the value of face-to-face contact. That means the $30 bln industry should eventually recover, but with a slimmed-down list of operators.

Coming U.S. jobless spike is unusual and dangerous

20 Mar 2020

It’s not hard to see how the 20% unemployment estimated by Treasury Secretary Steven Mnuchin could come to pass. An early hit to hospitality and retail will swiftly spread, and the hit will almost certainly be faster than prior crises. This time there’s no flattening the curve.

Tortuous Japanese hotel deal takes viral twist

20 Mar 2020

Unizo is backing a sweetened $1.9 bln bid from Lone Star that matches Blackstone’s price. Top owner Elliott is ready to accept, eight months into the bidding war. Fresh Covid-19 volatility may accelerate an endgame, but also calls into question the frontrunner’s takeover plan.

Trump Org bailout would be ultimate self-deal

19 Mar 2020

The U.S. hotel industry is seeking $150 bln in government aid as it reels from virus fallout. Where does that leave the president’s hotels and golf resorts? Ideally, Trump would set an example by using his own wealth to preserve jobs. To let taxpayers do so would set a new low.

Chinese travel site charts course out of virus fog

19 Mar 2020

As most of the world hunkers down in place, $12 bln Trip reckons it may be through the worst of it. First-quarter sales are expected to halve, but boss Jane Sun also sees a rebound at home where the epidemic may be ebbing. It offers a glimmer of hope in a sea of economic gloom.