China’s HNA battles "bad guest" rating in Spain 9 May 2016 Minority investors in Spain’s NH Hotels are worried about a conflict of interest after its largest shareholder, China’s HNA, bid for competitor Carlson. They have a point. But the best minorities might be able to hope for is that HNA offers them a takeout at a decent premium.
Priceline embarrassment goes beyond CEO dalliance 28 Apr 2016 The $68 bln travel website parted ways with Darren Huston citing “activities inconsistent with the board’s expectations for executive conduct.” Resorting to a former boss as a stopgap isn’t disastrous, but it suggests the board missed a trick by not bedding down succession.
China’s next top corporate tourist is HNA 28 Apr 2016 The conglomerate has added Radisson owner Carlson Hotels to its portfolio of airlines, property and electronics. It has spent more than $15 bln outside the People’s Republic in a year. As with other Chinese buyers, outsiders can only guess at the logic of HNA’s grand tour.
Disney’s fairytale CEO plan gets twist in ending 5 Apr 2016 Bob Iger’s right-hand man Tom Staggs is stepping down, a year after he was anointed as heir apparent. That leaves no obvious succession plan at Disney after Iger twice extended his reign. An outsider would be surprising. At least the company has two years to find a replacement.
Anbang risks a Year of the Stalking Horse 1 Apr 2016 The Beijing insurer has inked smaller deals, but it just abandoned its $14 bln offer for Starwood, citing “market conditions.” Anbang’s emergence nevertheless helped the U.S. hotelier wrest sweeter terms from Marriott. It’s a modern hazard for buyers up against Chinese rivals.
Starwood can easily answer the $4.64 question 28 Mar 2016 That’s how much more per share a new cash bid from China’s Anbang is worth over an agreed deal with Marriott. The $14 bln offer is 6 pct sweeter but also comes with financing and regulatory uncertainties. Given the heavy interest from rival hoteliers, Starwood can afford the risk.
Marriott’s Starwood deal suffers China syndrome 21 Mar 2016 To trump an interloping bid from Beijing’s Anbang, Marriott raised its offer for its hotelier rival to $13.6 bln. Even with more cost cuts, the math suggests significant value destruction. Anbang may have reasons to pay up, but Western buyers can’t be so careless of shareholders.
It’s time for Marriott to check out of Starwood 18 Mar 2016 The U.S. hotelier has 10 days to sweeten its offer after China’s Anbang won over the Westin owner with a $13.2 bln cash deal. Marriott may struggle to top that without destroying value for its shareholders. Pocketing the break fee and moving on beats a bidding war.
Anbang’s U.S. hotel block bookings getting pricey 14 Mar 2016 The Chinese insurer is in a hurry, leading a $13 bln offer for Starwood on top of a $6.5 bln deal to buy Strategic Hotels from Blackstone and its $2 bln purchase of the Waldorf Astoria in 2014. It’s hard to see how they all meet Anbang Chairman Wu Xiaohui’s own financial targets.
Hotel spree sates China’s taste for overseas glitz 14 Mar 2016 Foreign hotels are becoming corporate China’s trophy assets of choice. Buyers want to reduce their exposure to a slowing domestic market and capture the growing flow of overseas tourist dollars. Anbang Insurance’s mooted $6.5 bln takeover of Strategic Hotels won’t be the last.
InterContinental’s slowdown could book in a merger 23 Feb 2016 The hotels group’s revenue per available room grew less quickly in the fourth quarter. The takeover of Starwood Hotels by Marriott International has raised expectations for more industry tie-ups. But InterContinental’s $1.5 bln special dividend implies it won’t be a predator.
Accor’s balance sheet looks more balanced 18 Feb 2016 The French hotels group had net cash at the end of December and covered its dividend out of free cashflow. Acquisition spending may reverse that progress in 2016. But AccorHotels’ strategy of both owning and managing sites is mitigating tougher times in France and Brazil.
Review: Making Big Data visible and tangible 31 Dec 2015 Projecting selfies onto a screen in real time shows both the value and vulnerability of today’s flood of ones and zeros. A London exhibition explores the good, the bad and the infrastructure of data from inventive angles. It makes a vital unseen world visible – and scary.
Savoy and Plaza sale means trophies for all 9 Dec 2015 Accor is buying the owner of the luxury London and New York hotels for $2.9 bln from its Saudi and Qatari investors. Adding higher-end lodging may help the French group make its online booking system more competitive. The price, however, looks too high to create much value.
The Uber or Airbnb of finance will prove elusive 8 Dec 2015 In 2015 more than $15 bln has poured into so-called fintech startups embracing blockchain, peer lending, payments and the like. While each can disrupt an element of the status quo, their scale will be hindered by the deep moat that protects the banking industry: regulation.
Hyatt’s M&A fail is small win for good governance 17 Nov 2015 The U.S. hotelier lost to Marriott in the $12 bln takeover of Starwood. One factor was the Pritzker family’s tight grip on Hyatt. It conceded the flaw by offering to alter its super-voting share scheme in the bid. The rejection provides a warning to other feudal companies.
Financial vacancy at new Marriott-Starwood inn 16 Nov 2015 The $12 bln merger would create the world’s biggest hotelier. Marriott boss Arne Sorenson touts value creation, but the stated $200 mln in cost savings won’t cover the premium his company is paying. Starwood owners also initially reacted unhappily. The deal is looking defensive.
Expedia finds back door to Airbnb’s market 4 Nov 2015 The travel site is paying $3.9 bln for HomeAway. Though the vacation-rental firm lacks the urban clout of its better-known rival, moving in with its new parent will help. Cost cuts are low, but HomeAway’s cash pile will ease the blow to Expedia of shelling out a 28 pct premium.
TripAdvisor’s Priceline deal leaves rivals in dust 14 Oct 2015 The travel review site had plenty of users but its dependence on advertising made it an internet laggard. Sharing business with the hotel-booking powerhouse gives it fee revenue and a shot to become a one-stop tourist site. Peers are quickly receding in the rearview mirror.
Ironman and SoulCycle may set CrossFit’s course 25 Sep 2015 Buyout shop Providence Equity quadrupled its investment in the three-part, 140-mile races popular with the hedge fund set. The fashionable and fast-growing indoor cycling chain is pursuing an IPO. CrossFit’s exercise cult should attract investors pumped up on fitness crazes.