Travel & Tourism

Fallen casino kings have lessons for Blackstone

25 Apr 2022

If the buyout shop’s $6.5 bln bid for Crown Resorts succeeds, its executives will study founder James Packer and his former Macau partner. Lawrence Ho’s Melco group is struggling while Packer is exiting Crown after bad China bets. Even so, their examples point the way to success.

Italian motorway menu serves the Benettons well

21 Apr 2022

The dynasty may merge its Autogrill chain with $4 bln Swiss duty-free specialist Dufry. Though slightly bigger, the latter is suffering the worse Covid-19 hangover. Even though they’re surrendering control, the Benettons would still have a strong hand to get a good deal.

Capital Calls: U.S. truck drivers go missing

4 Apr 2022

Concise views on global finance: Bonuses and concessions from Washington aren't enough to fill the industry's empty cabs.

Capital Calls: Continental split

17 Feb 2022

Concise views on global finance: The $20 bln German auto supplier is eyeing a four-way separation, according to a report.

Rich stocks have yet to feel cost-of-living crisis

16 Feb 2022

Rising inflation and higher energy bills are hitting consumers. UK punters in particular look vulnerable, given uneven savings and tax hikes. Mass belt-tightening could mean fewer holidays and less spending on luxuries like streaming, hurting companies from Ryanair to BT.

Marriott and Airbnb aren’t a tale of two cities

15 Feb 2022

The $56 bln hotel chain’s revenue hasn’t fully recovered to its pre-pandemic level but is expected to grow quickly to get there by next year. Meantime Airbnb’s best growth days may be behind it. Yet the $108 bln home-sharing app’s valuation is far higher. The two need to converge.

Wynn rolls the dice in search of a new prize

15 Feb 2022

Craig Billings, the $11 bln casino group’s third boss in four years, could use a growth engine. A long slog awaits in Macau even as the mature Las Vegas market rebounds. Rival Sands found success in Singapore. The odds are longer for Wynn’s push into online betting and the UAE.

Capital Calls: Continental, Harley-Davidson

8 Feb 2022

Concise views on global finance: German car-parts maker Continental may spin off its self-driving unit, while the iconic maker of motorbikes has turned supply shortages to its own advantage.

Capital Calls: Wizz investor sides with workers

7 Feb 2022

Concise views on global finance: Denmark’s AkademikerPension picks an odd moment to offload its stake in the $6 bln budget airline over a lack of union representation among its staff.

Ferretti float may be back in same boat

24 Jan 2022

After a bold $1.2 bln valuation target sank its Milan IPO effort in 2019, the Italian yacht maker owned by China’s Weichai is now sailing for Hong Kong. Growth is buoyant, but luxury goods have charted a patchy course on Asian bourses. It’ll be hard, again, to make a splash.

Incompetence and greed fuel U.S. airline 5G battle

20 Jan 2022

Major airlines said a rollout of 5G could make flights dangerous. Airlines, wireless firms, and government agencies had over a year to solve the problem. The weakened air industry may not want extra costs. But other countries figured it out while U.S. taxpayers are left hanging.

Peninsula Hotel owner checks in for expensive stay

19 Jan 2022

Hong Kong’s Kadoorie family paid almost twice market rate to add 12% to its controlling stake in the 156 year-old chain with luxury hotels from Paris to Tokyo. With shares trading at a third of net asset value, it suggests some post-pandemic tourism plays have yet to be booked.

Capital Calls: UK bid gets hedge funds off hook

17 Jan 2022

Concise views on global finance: Private equity group Triton sweetens its offer for pharma group Clinigen to 1.3 bln pounds, raising the chances of hedge funds accepting the deal.

Crown plays its cards well with Blackstone

13 Jan 2022

The embattled Aussie casino empire is ready to drop its poker face and back the buyout firm’s fourth bid, sweetened to $6.4 bln. Blackstone’s impressive turnaround track record in hospitality deals leaves it well-placed to maximise returns, even after the multiple price hikes.

Macau watchdogs will double down on digital yuan

3 Jan 2022

As casino operators prepare bids for new licenses in the $37 bln gambling hub, investors fear regulators will tighten their grip on Sands, Wynn and MGM. One clever way to start would be by forcing them to adopt China’s new virtual currency.

China travel boom is stuck in the departure lounge

10 Dec 2021

Domestic tourism was already struggling of late. Now a surge in pandemic curbs like testing and quarantine is making regional travel difficult. Duty-free giant China Tourism’s decision to shelve its $6 bln Hong Kong listing shows the industry hunkering down for staycation pain.

Capital Calls: Zoom, U.S. jobs

3 Dec 2021

Concise views on global finance: The video-conferencing service is investing in Amex Global Business Travel as part of a $5.3 bln SPAC deal; in the United States, only 210,000 positions were added in November, but the unemployment rate fell.

Capital Calls: Dan Loeb, Daily Mail

2 Dec 2021

Concise views on global finance: The billionaire activist swats away his own gadfly investor; the UK tabloid’s controlling Rothermere family sweetens its take-private offer, to the presumable delight of the campaigners on its news desk.

Macau mogul’s downfall is good news for casinos

1 Dec 2021

China’s investigation into an illegal gambling group casts a shadow over Alvin Chau’s Suncity, which once helped high rollers fund as much as $8 bln in wagers each year in the betting hub. But the VIP market is a drag on earnings. Ending it can help strengthen recovering casinos.

China’s bet on Covid-zero worsens odds for Macau

29 Nov 2021

Beijing’s draconian restrictions are a growing problem for Wynn, Sands, and other casino operators in the gambling hub. Resorts sit half-empty with gaming at 30% of pre-pandemic highs. They can live without foreign tourists, but local visitors are their lifeblood.