Las Vegas Sands just posted a Q2 miss on every major line item, then bought back $787 million in stock and declared the same quarterly dividend. If you're an investor reading the payout as a sign of strength, check the margin compression underneath it.
Wynn Resorts posted $1.86 billion in Q1 revenue, up nearly 10% year-over-year, and Wall Street responded by hammering the stock to a 52-week low. When your top line grows and your bottom line can't keep pace, the problem isn't the market... it's what you're spending to stay in it.
Barry Diller's $18 billion bid for MGM Resorts implies a cap rate and asset valuation that MGM's own board appears to reject. The real question is what a 26.1% blockholder can extract from a company he already controls in everything but name.
People Inc. already owns 26% of MGM and now wants the rest at a price that barely clears the pre-announcement stock. The gap between $48.30 and the $61 fair value estimate tells you exactly who this deal is designed to reward.
People Inc.'s $18 billion bid for MGM Resorts prices the company at a 24% premium to its 30-day average, but shares immediately traded above the offer, and now a wave of shareholder investigations is asking the question the board should have anticipated from day one.
Barry Diller's People Inc. wants to buy the rest of MGM Resorts at a $18.8 billion valuation, but the stock closed above the offer price on day one, which tells you everything about where this negotiation is actually headed.
Wynn's combined Macau EBITDAR grew 10.9% to $279.4 million, but that headline hides a 16.2% decline at the older property while Wynn Palace surged 25.9%. The divergence tells you everything about where luxury gaming margin actually lives now.
March CPI just printed at 3.3% and the Fed is now discussing hikes instead of cuts. If your hotel acquisition was underwritten assuming SOFR would be 150-200 basis points lower by now, the refinancing math isn't tight... it's broken.
Citigroup slashed its RLJ Lodging Trust position to $2.05 million... a rounding error for a bank that size. The interesting part isn't why Citi sold. It's what RLJ's full-year numbers say about who's actually making money in this portfolio.
Hyatt's CFO says wealthy travelers just reroute instead of canceling when the world gets scary. That's a great story... until you're the owner holding the bag on a luxury PIP when the music stops.
