Leisure/Hotels

Disney business risks getting frozen

16 Mar 2020

More than half the $171 bln entertainment giant's sales come from divisions encompassing theme parks and movie theaters, both empty thanks to the coronavirus. Canceled sporting events are also trouble for ESPN. Former CEO Bob Iger has left his successor with serious headaches.

Virus storm will challenge cruise liners’ buoyancy

10 Mar 2020

Shares in $15 bln Carnival have halved since Covid-19 broke out on two of its ships. Demand has recovered quickly after past disasters, including illnesses and the fatal sinking of the Costa Concordia. Persuading core older clients to reboard may be tougher this time.

Oyo is not wasting the WeWork crisis

5 Mar 2020

The Indian hotel room provider is cutting 5,000 jobs, including half its China staff, and focusing on profitability and governance. Slower growth might deflate a $10 bln valuation. But it highlights the more grounded new look of Masayoshi Son’s SoftBank empire.

To set Macau’s virus odds, consider 2015 over 2003

5 Mar 2020

A recovery may take as long as six months, warns resort operator Melco. The slump looks more serious than during SARS and is better compared to a corruption crackdown that lopped a third off gaming revenue. This time, though, casinos are losing tourists as well as high rollers.

Unizo check-in borders on being inhospitable

25 Feb 2020

Bids for the Japanese hotelier have reached $1.9 bln, and could go even higher. The company is already loaded with debt, meaning that any buyout will require some serious housekeeping to generate a solid return. Blackstone, Lone Star or Fortress may be sweating their equity.

Macau’s makeover comes at a cost for casinos

20 Jan 2020

Authorities are desperate to diversify the $55 bln economy beyond betting and will use their clout in 2020 to force Sands and Wynn to invest more in theatres and malls, away from betting tables. Odds on it will sink profit margins: the new breed of visitors won’t be big spenders.

Cineworld Canada deal has makings of a good sequel

16 Dec 2019

The UK cinema chain is buying Toronto-based Cineplex for $2.1 bln, its second deal in as many years. More debt-driven M&A looks scary after a dreary year at the box office. But the returns are reasonable, and the target’s high market share should limit the financial chills.

American Dream aims to bypass U.S. mall nightmare

2 Dec 2019

A new mega-shopping complex in New Jersey offers SpongeBob roller coasters and a ski slope. The mall is devoting more than half its space to experiences in the hope visitors will keep pushing through the doors. With retail sales fast moving online, that may not be enough.

Chess “hybrid IPO” is less absurd than it sounds

22 Nov 2019

Ilya Merenzon, CEO of one of the game’s big broadcasters, may sell digital tokens that eventually convert to listed shares. Investors would get a discount but be stuck with a worthless asset if the planned IPO flops. Either way, World Chess’s profile gets a much-needed boost.

French lottery IPO may be as good as Macron gets

21 Nov 2019

Shares in La Française des Jeux popped 18% as the state-controlled group started trading. Winnings of $2 bln endorse President Emmanuel Macron’s privatisation push. But continuing protests and a national strike will hamper plans to sell more of the $20 bln Paris airport operator.

Soho House crashes WeWork club for rosy valuations

15 Nov 2019

The trendy members’ club has raised capital valuing it at $2 bln. Unlike the stricken office lessor, it can flaunt 25 years of history and rising profitability. Yet the heady price tag will only make sense if Soho House can keep expanding without sacrificing its exclusive appeal.

Airbnb makes a virtue of basic housekeeping

7 Nov 2019

Boss Brian Chesky is putting in checks and balances to root out bad users before the home-sharing service potentially lists next year. Better controls equal more trust, albeit with higher costs. It sounds like common sense. Among tech’s ivory towers Chesky is an outlier.

Brexit takes froth off Whitbread’s coffee reward

22 Oct 2019

The 3.9 bln pound sale of Costa pleased activist investors eager for a breakup. But the remaining hotel and restaurant business is worth little more than before the deal, after including cash paid to shareholders. Fears of a messy EU exit are denying CEO Alison Brittain credit.

India Insight: Oyo gives off a WeWorky vibe

14 Oct 2019

Ritesh Agarwal’s $10 bln upstart is pushing into co-working, cloud kitchens, weddings and more, frantically expanding beyond its base as the world’s No. 2 hotel rooms provider. Oyo’s dizzying rise and dealings with SoftBank echo the hype before the fall of Adam Neumann’s empire.

Irish bookie’s $6 bln deal is worth a flutter

2 Oct 2019

Paying a 38% premium usually raises eyebrows. Not so with Paddy Power parent Flutter Entertainment’s all-share acquisition of Toronto-based Stars Group. Cost savings alone almost justify the price. Meanwhile a revenue boost looks credible as legal U.S. sports betting opens up.

Airbnb may be everything WeWork isn’t

19 Sep 2019

Both space-sharing pioneers have been valued at more than $30 bln. Yet Airbnb’s asset-light business needs little capital while reaping obvious economies of scale and network benefits. That should help its public listing, planned for 2020, succeed where WeWork’s is failing.

Crown’s China troubles upset Melco’s grand gamble

6 Aug 2019

Fresh allegations around the Aussie casino giant's dealings with Chinese high-rollers have drawn scrutiny Down Under. That leaves new shareholder Melco in an uncomfortable spot. It hoped to use its Crown stake to push overseas; instead, the bet is adding to investor worries.

Macau’s medium-big spenders are spoilt for choice

29 Jul 2019

Las Vegas Sands says revenue from wealthy middle-class punters in the Chinese gambling enclave is falling – the first slump since 2016. Local rivals like Melco and MGM, as well as other Asian competitors, invested heavily in serving them. They may have over-built.

Asia’s online gambling jackpot proves hard to win

12 Jul 2019

Web-based betting shops have been booming in the Philippines since local rules were reworked. Despite a glut of punters in the broader region, a market estimated at some $11 bln, seasoned operators have been hesitant to place wagers. For now, the regulatory odds remain too long.

Odds are on for Macau mogul’s gutsy global play

10 Jul 2019

Lawrence Ho has built Melco Resorts and Entertainment into a $12 bln casino empire stretching from Manila to Melbourne. Next, he’ll chase a licence in Osaka. Even if he doesn’t hit the Japanese jackpot, diversifying into a true global operator looks like a good bet.