Leisure/Hotels

Star steeled for its own Crown duel with watchdogs

13 October 2021

The market knocked 25% off the Aussie casino operator’s market value after a media exposé suggested it may yet face a corporate governance crisis akin to James Packer’s. But Star is better prepared, and a pandemic proved it can weather a crisis. Investors could roll the dice.

Viewsroom: Basket-case Britain; Gambling in Macau

30 September 2021

Trucker shortages, partly thanks to Brexit, have been blamed for all manner of UK economic hardships, from toilet paper scarcities to long queues at petrol stations. Ed Cropley and Peter Thal Larsen explain. And our columnists in Hong Kong discuss casinos and investment banking.

Big Brother’s tighter grip exposes poor Macau bets

15 September 2021

Authorities want more influence over casinos and their dividends. That may reduce investor rewards but is hardly a surprise: Beijing tolerates betting because it can control the enclave. A 25% hit to Wynn Macau’s and Sands China’s value suggest shareholders miscalculate the odds.

Bill Gates bets luxury hotels are plague resistant

9 September 2021

The billionaire who predicted a pandemic snagged half of Saudi Prince Alwaleed’s stake in the Four Seasons chain, valuing it at $10 bln. That’s a big price since Gates helped take the group private in 2007 and a sign one of the richest guys thinks fancy suites offer protection.

Capital Calls: China, Disney, Banks, P&G, Fintech

30 July 2021

Concise views on global finance: The SEC wants more disclosures on IPO risks related to Beijing regulators; plus Scarlett Johansson’s lawsuit, EU stress tests, consumer prices, and Qatar’s investment in an African fintech.

Las Vegas Sands’ new boss lays down his cards

22 July 2021

The first set of quarterly results under Sheldon Adelson’s successor show Covid is sapping growth in Asia. But Robert Goldstein is touting bold plans to take the $38 bln casino empire online. The fresh strategy looks promising and might reward investors who play a long game.

SoftBank checks in early for post-Covid hotel boom

21 July 2021

The Japanese group’s Vision Fund 2 is investing $1.7 bln in South Korean unicorn Yanolja. As travel returns, it’s a bet on the upstart’s AI-powered software and contactless services for guests. Business is booming, suggesting the sector is eager to master new tech.

The Exchange: Travel disruption, SoftBank-style

20 July 2021

After a dizzying expansion from China to the United States, the pandemic forced a tough reset at Oyo Hotels and Homes. The plucky Indian startup’s 27-year-old founder and CEO Ritesh Agarwal tells Una Galani about the lessons learnt, rightsizing challenges, and of his IPO plans.

Capital Calls: Online fashion retail

15 July 2021

Concise views on global finance: The return of old customer habits and muted demand as the pandemic lingers could reverse the recent stellar run of the likes of ASOS.

Soho House IPO sets high price for entry

7 July 2021

The operator of private members’ clubs is listing at a $3 bln valuation. That depends on CEO Nick Jones pulling off a bold global expansion while reversing years of losses. Competition from hotels, doubts about its exclusive status and still-high debt are potential party poopers.

Viewsroom: Wall Street is open again and booming

24 June 2021

From Morgan Stanley to BlackRock, the world’s top investment banks and money managers are back in their offices and super busy with mergers, IPOs, LBOs and other activities thumping. Plus, Soho House and Wise go public and green hydrogen megalomania on the Congo river.

Soho House depends on IPO to keep the party going

23 June 2021

The private club founded in London in 1995 now has 28 outlets and 119,000 members. It’s also highly leveraged and loss-making. A $3 bln New York listing will fund post-virus expansion, but delay addressing the key issue of whether scale, profit and exclusivity are compatible.

Star’s stack looks too short to win Crown deal

31 May 2021

The Aussie casino operator’s $7 bln offer interested its larger rival, unlike the Blackstone bid that was dubiously spurned. Star’s proposal is less than it’s cracked up to be, however, and there’s little wiggle room to improve it. Only gaming regulators can help its cause.

India’s Oyo Hotels tidies for new overseas guests

27 May 2021

The SoftBank-backed budget-lodging aggregator wants to borrow $600 mln to refinance debt. Using an offshore syndicated loan suggests a restructuring is working and courts potential IPO investors. For now, Oyo also dodges the issue of how far its peak $10 bln valuation has fallen.

Capital Calls: JPMorgan, FirstGroup, Break fees

18 May 2021

Concise insights on global finance: Jamie Dimon is shuffling his deputies; the UK bus-to-rail group’s sale of its U.S. businesses to EQT has hit an investor revolt; deals involving AT&T and Canadian National Railway highlight the fees due for walking away.

The Exchange: Trip.com CEO Jane Sun

18 May 2021

Where are Chinese travellers headed these days? How is the pandemic changing outbound tourism and business travel? Will China’s recent anti-monopoly regulations affect Trip’s approach to partnerships and deals? Sun shares her views in an exclusive discussion with Breakingviews.

Star tempts Crown with riskier game of chance

10 May 2021

The Aussie casino operator is proposing an all-stock merger valuing its larger rival at $7.1 bln, including synergies. The deal is loaded with iffy assumptions about benefits that would take time to materialise. Even so, Blackstone will be pressured to sweeten its cash bid again.

Capital Calls: U.S. jobs miss, Elon Musk goes live

7 May 2021

Concise views on global finance: Fed boss Jay Powell has his work to do as America adds far fewer jobs than anticipated; drawing an audience of crypto-nerds, Tesla gearheads and regulators won’t be hard for the electric-car maker boss when he hosts SNL. Drawing laughs will be.

SJM is only edging out of Stanley Ho’s shadow

5 May 2021

A year after the death of its founder, the $7.2 bln Macau casino company has yet to open a new flagship resort, its market share is the lowest among peers and the board needs a shake-up. Daughter and Chair Daisy Ho has her work cut out to make sure the house wins again.

Blackstone fights time more than Oaktree for Crown

3 May 2021

It’s hard to see value in Oaktree’s plan to fund a buyback of founder James Packer’s 37% stake in the Aussie casino operator. And yet Blackstone is willing to absorb more regulatory risk. That suggests concern that as Crown’s crisis ebbs, the $6 bln bid’s appeal may too.