Trump Org bailout would be ultimate self-deal 19 Mar 2020 The U.S. hotel industry is seeking $150 bln in government aid as it reels from virus fallout. Where does that leave the president’s hotels and golf resorts? Ideally, Trump would set an example by using his own wealth to preserve jobs. To let taxpayers do so would set a new low.
Chinese travel site charts course out of virus fog 19 Mar 2020 As most of the world hunkers down in place, $12 bln Trip reckons it may be through the worst of it. First-quarter sales are expected to halve, but boss Jane Sun also sees a rebound at home where the epidemic may be ebbing. It offers a glimmer of hope in a sea of economic gloom.
Disney business risks getting frozen 16 Mar 2020 More than half the $171 bln entertainment giant's sales come from divisions encompassing theme parks and movie theaters, both empty thanks to the coronavirus. Canceled sporting events are also trouble for ESPN. Former CEO Bob Iger has left his successor with serious headaches.
Trump bumps smart infrastructure punters to coach 12 Mar 2020 The U.S. president’s Europe travel curbs crushed securities in the region’s top airports. Robust revenues attracted sharp, long-term investors to hubs like Paris-de Gaulle and London Heathrow. Plummeting footfall and high debt levels will challenge their status as safe havens.
Virus-hit airlines can fly without state thrust 12 Mar 2020 A U.S. ban on European travellers hammered airline stocks on both sides of the Atlantic. Washington doled out $15 bln of aid after the post-9/11 shutdown. But airlines are bigger now and fitter, letting them ride out turbulence. Regulatory leeway may suffice.
Donald Trump is rising risk factor in virus battle 11 Mar 2020 The U.S. president’s address to the nation sparked more market panic. A $50 bln pledge for small businesses hit by Covid-19 is good, but his speech lacked public-health remedies, was full of mixed messages and focused on a Europe travel ban. He’s missing both diagnosis and cure.
U.S. virus bailouts require good instructions 11 Mar 2020 Donald Trump wants to help airlines weather the hit from Covid-19. Unlike cruise lines, also on his list, that makes sense. Some carriers, like Delta and United, may not need aid. But taxpayer rescues can work with the right structures. Breakingviews offers a bluffer’s guide.
Oyo is not wasting the WeWork crisis 5 Mar 2020 The Indian hotel room provider is cutting 5,000 jobs, including half its China staff, and focusing on profitability and governance. Slower growth might deflate a $10 bln valuation. But it highlights the more grounded new look of Masayoshi Son’s SoftBank empire.
Virgin’s galactic valuation 26 Feb 2020 Richard Branson’s space-tourism enterprise is worth nearly $7 billion. That’s high even based on the company’s rosy projections, and it’s stratospheric on more realistic assumptions.
Virgin Galactic’s valuation looks stratospheric 26 Feb 2020 The space-tourism outfit is up eightfold in enterprise value in three months to $7 bln. That’s some 25 times the company’s forecast EBITDA in 2023. A more realistic outlook makes that multiple, and the valuation, look hyperstretched, as a new Breakingviews calculator shows.
Unizo check-in borders on being inhospitable 25 Feb 2020 Bids for the Japanese hotelier have reached $1.9 bln, and could go even higher. The company is already loaded with debt, meaning that any buyout will require some serious housekeeping to generate a solid return. Blackstone, Lone Star or Fortress may be sweating their equity.
China shocks to global tourism have room to grow 5 Feb 2020 Travel curbs on the virus-hit country have shaken airlines and hotels. Even with a fast recovery as with the SARS epidemic, it’s a reminder of China’s vital role in the $1.7 trln tourism market. With millions more set to travel, any future jolts will only be more brutal.
Wuhan virus will shape China’s smart city vision 24 Jan 2020 The metropolis of 11 mln is under quarantine. Big investments in healthcare, AI and even surveillance led by the $50 bln Hikvision and other giants could help curb future contagion risk. That might compensate for less tractable problems: human error and institutional weakness.
Viewsroom: China’s latest viral threat 23 Jan 2020 The outbreak of a contagious disease before the Lunar New Year holiday evokes memories of SARS’ human and economic toll in 2003. Beijing’s swift reaction this time, imposing travel bans on five cities as 18 died, is encouraging. Plus: the cost of the UK royal family’s new schism.
Macau’s makeover comes at a cost for casinos 20 Jan 2020 Authorities are desperate to diversify the $55 bln economy beyond betting and will use their clout in 2020 to force Sands and Wynn to invest more in theatres and malls, away from betting tables. Odds on it will sink profit margins: the new breed of visitors won’t be big spenders.
Hong Kong’s luxury icon sells new retail model 15 Jan 2020 Chow Tai Fook plans to close up to 15 of its local stores. The $11 bln jeweller’s decision comes at a moment of calm after months of protests and before a key shopping holiday. That suggests a recovery is distant. Tapping mainland shoppers elsewhere is the new way forward.
Hong Kong’s stores could use some Chinese medicine 11 Dec 2019 Cosmetics chain Sa Sa has lost some 40% of its value this year. Months of protests have exposed existing ills, not least a reliance on Chinese visitors. With the economy ailing and tourists staying away, high-street retailers will have to find shoppers in the mainland and beyond.
Expedia’s double boot is swift, harsh and helpful 4 Dec 2019 The travel site’s CEO and CFO are both out after a disagreement with the board over strategy and a brutal profit warning last month. The tumult is bad but the message is good: Chairman Barry Diller thinks the company can do better. His track record elsewhere bolsters his case.
Airbnb makes a virtue of basic housekeeping 7 Nov 2019 Boss Brian Chesky is putting in checks and balances to root out bad users before the home-sharing service potentially lists next year. Better controls equal more trust, albeit with higher costs. It sounds like common sense. Among tech’s ivory towers Chesky is an outlier.
Chinese consumers are on a worrying staycation 10 Oct 2019 Revenue from domestic tourism during the Golden Week break rose 8.5% year-on-year, the slowest pace in nearly two decades. Fewer ventured abroad. The flagging economy needs shoppers, but a weak currency, tariffs and the fading impact of tax cuts will keep purse strings tight.