Leisure/Hotels

Review: Fear and loathing in the Philippines

10 August 2018

Rodrigo Duterte's two years as president have been dominated by a vicious war on drugs. A biography of the mercurial man-of-the-people known as "Duterte Harry", after the fictional cop, is blistering. It doesn't do enough, though, to address the economic cost of wanton brutality.

Macau moguls’ rivalry threatens cost discipline

10 August 2018

High rollers pumped up revenue at Galaxy and Sands last quarter, while Wynn Macau fell behind. As casinos fight for their share of China’s $38 bln gambling hub, earnings are becoming more volatile. Investors will suffer if aggressive marketing and new attractions squeeze margins.

Elaine Wynn’s deft hand puts house in order

6 August 2018

By arranging to install an industry veteran as independent chairman, the Wynn Resorts co-founder has played her cards wisely. The deal protects her stake in the $16 bln casino empire and ends months of management turmoil. Now the company can focus on real challenges, like Macau.

Hot streak at Macau’s SJM may be short-lived

1 August 2018

The $7 bln gambling group’s shares have soared since announcing its founder’s retirement. Yet the launch of a new casino on the Cotai Strip faces delays and the company now has a “hydra-like” leadership structure. New boss Daisy Ho needs a better hand to justify a rich valuation.

Macau casinos could lose VIPs to junket upstart

25 July 2018

Suncity boss Alvin Chau helps bankroll half of the gaming hub’s big-spenders. He also aspires to running his own casinos and could coax clients to try new markets like Vietnam. That may mean fewer high rollers at Wynn Macau, Galaxy and others when China’s slowdown bites.

Air France check-in lacks logic for AccorHotels

4 June 2018

Buying the French government’s 450 mln euro stake in the ailing airline might help it get tough with unions. But the hotel group would not enjoy any strategic benefits. That AccorHotels is even considering the purchase shows the state’s continuing sway over the private sector.

Macau will struggle to kick its gambling addiction

28 May 2018

The Chinese region wants to be more like Las Vegas, and focus on varied nightlife and family fare. One official says resorts could generate 40 pct of revenue beyond the casinos. It's a worthwhile target for Galaxy and peers, but Macau's infrastructure is one of many hurdles.

UK’s costly royal wedding is worth every penny

18 May 2018

The marriage of Prince Harry to Meghan Markle may cost taxpayers as much as 30 mln pounds. If the transatlantic union prompts a small increase in American tourism, the expense can be recouped. In an era of isolationism and political volatility, it’s an efficient soft power boost.

Time for Elaine Wynn to take break from the table

15 May 2018

The director targeted by the casino’s co-founder is leaving, as is another. With a refreshed board and new CEO, Wynn Resorts is well placed to move on from recent scandals. Unless she has suddenly hit on a new grand plan, Elaine Wynn would do well to leave them to it.

Elaine Wynn needs to turn up the heat

2 May 2018

The casino company’s co-founder wants to replace a director, but not with herself or an associate. The soft approach was rebuffed by the company, which claims it’s changed since her ex-husband quit. Elaine needs a sharper approach – or activist help – if she wants to be heard.

Marriott Vacations makes pricey time-share buy

30 April 2018

The operator of fractional vacation homes is paying $4.7 bln for rival ILG. It helps close the gap with market leader Wyndham. But cost savings cover barely half the premium and debt may exceed four times EBITDA. It underscores the high cost of time-share ownership.

Wynn tosses female directors into boardroom brawl

18 April 2018

The $21 bln casino giant has added three women to an expanded group. This marks a serious attempt to move on from a sexual harassment scandal, but co-founder Elaine Wynn wants a full overhaul. With a battle brewing, these women had best come ready to rumble.

Icahn will need to work to extend winning streak

16 April 2018

The investor is selling Tropicana, the casino he plucked out of bankruptcy, for $1.85 bln. It follows last week’s sale of Federal-Mogul to Tenneco, and Volkswagen is knocking on Navistar’s door. A bull market has given Icahn a hot hand, but it makes deploying the cash a challenge.

Coffee to go offers quick fix for Whitbread

16 April 2018

Activist Elliott controls 6 pct of the UK hotel and coffee chain and reckons a listing of its Costa brand would add 3 bln pounds of value. It’s a simple-seeming solution to Whitbread’s discount rating. Separating investor worries about the two parts of the business has merit.

Retiring Macau mogul had first-mover disadvantage

13 April 2018

Stanley Ho is stepping down at 96. The casino boss enjoyed a decades-long head start in what is now the world’s top gambling hub. But his $5 bln SJM quickly lost ground to Wynn, Galaxy and others. When competition arrives, former monopolists can struggle to master a new game.

Wynn presents MGM with Vegas-like temptations

11 April 2018

The Bellagio owner has a rare chance to bid for its $20 bln casino rival as scandal-struck Wynn grapples with its future. The numbers are a stretch, and the vagaries of Macau make it difficult for MGM to justify a premium. Nonetheless, chances like this don’t arise often.

HNA takes circuitous route to streamlining

6 April 2018

The Chinese conglomerate's $6.4 bln stake in U.S. hotelier Hilton is now up for sale. It's a curious choice for a company built around travel and logistics. Financial services make less sense inside HNA. The restructuring choices suggest strategy may be a secondary consideration.

Steve Wynn’s casinos make best of bad hand

23 March 2018

After resigning as CEO of Wynn Resorts amid scandal, he has found buyers for his entire stake. New boss Matthew Maddox is playing terrible cards fast and well. He settled a big lawsuit and just brought in Macau rival Galaxy as a backer, which could lead to fresh opportunities.

James Packer’s exit deals Crown a better hand

21 March 2018

The Australian billionaire has resigned from the board of his casino empire again, this time for health reasons. He leaves a group still reeling from a Chinese crackdown that left staff in prison and prompted a costly global retreat. The path to recovery is clearer without him.

Legal truce a Wynn-Wynn solution for casino empire

16 March 2018

Steve Wynn may sell his stake in the casino operator after settling a lawsuit with his ex-wife. It makes sense now that he’s been turfed out as CEO, but regulatory, legal and valuation issues could deter many buyers. That leaves the deck stacked in favor of Elaine Wynn.