Hotel M&A Ripples Through Casino And Cruise Stocks
Big hotel M&A news seems to be having an impact on other gaming & leisure stocks. Starwood Hotels & Resorts Worldwide Inc (NYSE: HOT) is up 7.8 percent after an unsolicited bid to buy the company from a Chinese consortium led by Anabang Insurance. The buyout price of $76 per share tops the previous Starwood buyout bid of $72.08 by Marriott International Inc (NASDAQ: MAR).
Elsewhere, Anbang agreed to purchase Strategic Hotels & Resorts from Blackstone Group LP (NYSE: BX) for $6.5 billion. Blackstone turned a quick $500 million profit on the asset, which it had only acquired back in December for $6.0 billion, including debt.
The Bejing-based Anbang has been on a hotel buying spree in the past year or so. The company purchased the Waldorf Astoria in New York last year for $1.95 billion.
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The pair of M&A deals seems to have triggered some buying in other segments of gaming & leisure as well. Macau casino operators Melco Crown Entertainment Ltd (ADR) (NASDAQ: MPEL), Las Vegas Sands Corp (NYSE: LVS) and MGM Resorts International (NYSE: MGM) are all up more than 1.5 percent in Monday’s session.
Disclosure: The author is long Melco Crown Entertainment.
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