Leisure/Hotels

HNA’s haphazard selloff keeps getting trickier

9 January 2019

The Chinese conglomerate is flogging stakes in an online lender, life insurer and brokerage. A lack of clear strategy and market perceptions of creditor clout will make it harder to profitably unwind HNA’s $50 bln buying spree. Falling asset prices aren’t helping, either.

A plucky local upstart will take on Macau’s moguls

31 December 2018

Regulators in the world’s largest gambling hub could allow new players onto the casino floor when licenses expire in 2020. With frayed U.S.-China relations dealing American giants Sands and Wynn a weak hand, homegrown names like Suncity and Golden Dragon will try their luck.

LVMH pays luxury price to check into Belmond

14 December 2018

Bernard Arnault’s champagne-to-handbags group is spending $3.2 bln including debt on the owner of Venice’s Cipriani. The multiple of 19 times expected EBITDA is as punchy as a Belmond suite. The French group will need all its limited hotel experience to make the deal work.

Marriott breach invites data cops to check in

30 November 2018

Another 500 mln people now have to worry about identity theft. Hanging onto personal data, protecting it ineffectively and disclosing breaches only slowly are habits in corporate America. It’s not only Google, Facebook and their ilk that merit privacy rules more like Europe’s.

Global hotel chains get Kentucky fried in China

19 November 2018

A video showing staff at Marriott, Hilton and other chains cleaning cups with dirty towels has gone viral, forcing local managers to apologise. As Yum Brands found, Chinese smear campaigns can become big business headaches. An escalating trade war only increases the stakes.

Chinese tourists leave investors holding the bag

14 November 2018

Luggage giant Samsonite said mainland sales fell 5 pct last quarter, blaming trade tension and consumer anxiety. Travel website Ctrip is now more cautious, while peer Tongcheng-Elong shrank its IPO. The gloom will globe-trot, including to the planned market debut for Club Med.

Qatar’s flashy London deal hints at new direction

7 November 2018

The Gulf state’s wealth fund is buying posh London hotel Grosvenor House. Despite its neighbours’ blockade, Qatar has surplus cash to invest in trophy assets that offer good returns. Acquiring glitzy baubles suggests Qatar’s new fund managers will prioritise the former.

Movie-themed casino IPO sticks to messy script

19 October 2018

Macau-based Studio City, part of Lawrence Ho’s $9 bln gambling empire, made a stellar New York debut with a 24 pct pop. The listing provides some needed capital and could help existing minority investors eventually stage an exit. It also features Melco’s costly complex structure.

Macau is handy chip in China’s standoff with Trump

15 October 2018

The gambling hub’s 20 year licenses for Sands China, Wynn Macau and others are nearing their expiry. It gives Beijing leverage over founders Sheldon Adelson and Steve Wynn, both friends of the U.S. president. Squeezing them could be one way to get Trump’s attention over trade.

Casino owner stacks deck in Philippines deal

5 October 2018

Lawrence Ho’s $11 bln gambling empire has offered to buy the rest of its Manila resort operator. The valuation methods are creative and Melco is trying to bully minority holders. Prospective investors in a planned New York IPO should take note of this treatment, however distant.

Unicorns spawn new fantastical tech beasts

27 September 2018

Just a few years ago, a mythology sprang up around startups with a $1 bln paper valuation. India’s Oyo Hotels just became the latest to raise at least that much cash in one go. For the unbridled chaos these investment creatures represent, they might best be labelled centaurs.

Macau casinos seek help from the common man

26 September 2018

Investors see rough times ahead for China’s gambling enclave. VIP spending has slowed, which heralded a slump in 2011. Shares in operators like Galaxy and SJM fell as much as 20 pct in September. But Macau is less reliant on high rollers today; the mass market could save it yet.

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.