Using Wallets to Fight Terrorism; Marriott Hotels Gains More Hospitality; Urban Outfitters Now Satisfies Pizza Cravings

Insult to injury…

Image courtesy of basketman/FreeDigitalPhotos.net

Image courtesy of basketman/FreeDigitalPhotos.net

Because terrorists are pure evil on so many levels, they’ve likely calculated that besides causing devastating loss of life, they can also harm an economy as well. And thus, as the holiday season is upon us, while the French are still in the midst of mourning the tragedy that befell its people just days ago, they are likely to endure yet more damage and fallout as businesses, both big and small, see less traffic and sales in the days ahead. In fact, hospitality chains and airlines have been seeing little activity in major markets and indexes, and several shops, cafes and markets remain closed. American performers Papa Roach and Marilyn Manson had to cancel shows this week and artist Prince canceled performances scheduled for December. As the sixth largest economy in the world, and the second in the eurozone, these losses could have a ripple effect on several other economies as well. However, economists and investors all tend to agree that the economic fallout will be minor and brief. Already today, European indexes either remained flat or rebounded from the dips they took before the markets opened. Unfortunately, tourism might not be as fortunate. Back in 2013, France saw almost 85 million tourists who brought in 42 billion euros in revenue with them. With almost 8% of France’s gross domestic product coming from the tourism industry, it might be the one area to suffer most, as major tourist destinations like the Eiffel Tower and Louvre lost two days of business and other places, like EuroDisney, still have their doors closed.  But as President George W. Bush urged American following the September 11, 2001 attacks “go out shopping more.” And if that’s one way to defeat those terrorist, then I’m happy to travel to Paris to do so.

Do not disturb…

Image courtesy of Salvatore Vuono/FreeDigitalPhotos.net

Image courtesy of Salvatore Vuono/FreeDigitalPhotos.net

The “Deal of the Day” award goes to Marriott International, as in the hotel chain that has over 5,500 properties and 1.1.million rooms, which just scooped up its rival, Starwood, to the handsome sum of $12.2 billion. The deal, in which Marriott will pay approximately $72.08 per share, means it becomes the world’s biggest hotel chain, leaving the second largest chain, Hilton Worldwide and its 4,500 properties, in the dust. This deal also gives Marriott some nice new brands, including the push-posh St. Regis. And who doesn’t like a little pish-posh? According to research firm STR, 67% of available hotel rooms were filled in the first nine months of the year by occupants who shelled out an average of $120.35 a night. However, there are many watching, from investors to travelers alike, to see how this merger is going to affect the various partnerships on both sides. Marriott has partnerships with Chase and United Airlines, while Starwood has deals with American Express, Delta and Über. Wall Street seems to think this is the start of a new trend of hotel chain mergers, as companies like Airbnb, have been eating up a chunk of the industry. Sit tight and you might just see another deal coming ’round the Wall Street bend.

Cheesy…

Image courtesy of David Castillo Dominici/FreeDigitalPhotos.net

Image courtesy of David Castillo Dominici/FreeDigitalPhotos.net

Because nothing says trendy like tomatoes and cheese, Urban Outfitters is getting into the pizza business. I’m serious. The company, whose apparel tends to attract millennials, is plunking down an undisclosed sum to buy the Vetri Family Group of restaurants, which includes the Pizzeria Vetri chain. You’re not the only one who finds this acquisition…strange. Investors think so too and sent the stock down 10%. But it’s not like Urban Outfitters has anything to lose. The retail sector has been hitting the fiscal skids with companies like Nordstrom and Macy’s reporting sales that are nothing short of disappointing. It’s also got many wondering if the brick and mortar model is passé. Urban Outfitters has 240 locations, in addition to the Anthropologie and Free People brands (and more than a couple of them already have food establishments in them). And while other retail companies are looking to amp up their e-commerce and tweak their brands in an attempt to improve those sales, Urban Outfitters is taking an entirely different approach by acquiring a business in an industry that is making tons of money at the moment. Marc Vetri of the Vetri Family Group likes the deal and calls it “a perfect match.” It means his company gets to focus more on the food it serves, while Urban Outfitters has to figure out how to help those restaurants expand. Now if only Urban Outfitters can figure out how to grow and expand its own business instead of losing money…

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Turn the Street Around…; Best Buy’s Best Quarter?; Oui Oui Le Tax Pour Airbnb

Recovery?

Image courtesy of rattigon/FreeDigitalPhotos.net

Image courtesy of rattigon/FreeDigitalPhotos.net

It’s only right to call today “turnaround Tuesday” since the stock market seems to be sort of recovering from the fiscal slaughter of the last few days, including all those sell-offs and Monday’s 588 point Dow drop. Part of the turnaround is because of China’s decision to cut interest rates. For the fifth time. Since November.  And then there are all those juicy stock bargains. Traders up for a good bargain are on the prowl and take bargain shopping to a whole new level. You might think you know how to spot a great discount but you’ve got nothing on these traders. These deals have nothing on post-Christmas sales. But at least the Dow soared today, with tech stocks leading the charge. Except that the day ended down by 200 points.

Rolex who?

Image courtesy of Pixomar/FreeDigitalPhotos.net

Image courtesy of Pixomar/FreeDigitalPhotos.net

Best Buy had a particularly impressive quarter but is it really all because of Apple and it’s highly coveted watch? Hmmm. Apparently, the Apple Watch has been quite a hit with the retailer and by the end of September you can stop into any one of Best Buy’s 1,000 plus locations and pick up the gadget. That much coveted watch also helped propel Best Buy’s online sales to a 17% increase, giving Amazon and Walmart a cyber run for their money. Of course, not all those sales were from Apple products, but still.  Apple doesn’t get all the credit since Best Buy also scored some impressive appliance sales.  And I’m pretty sure Apple doesn’t make refrigerators and dishwashers. Yet. The Apple thing really seems to be paying off for Best Buy so it seems logical that it will be increasing Apple’s presence in its stores and start to offer AppleCare and service in some extremely lucky locations. Best Buy earned a $164 million profit adding 46 cents per share. Analysts only expected 34 cents. Apparently those analysts don’t own an Apple Watch (nor do I, for that matter). A year earlier Best Buy raked in $146 million and 42 cents per share.

Let them eat cake…

Image courtesy of pixtawan/FreeDigitalPhotos.net
Image courtesy of pixtawan/FreeDigitalPhotos.net

If you’re traveling to Paris after October 1 (lucky you) and your accommodations come courtesy of Airbnb, be prepared to say au revoir to even more money than you might have planned. Your Parisian host will now be collecting a tourism tax from you in the amount of 83 euros per day, per person. In case you were wondering, because I know you were, 83 euros is equal to about 95 cents. Paris authorities made the request to Airbnb in an effort to encourage the home-sharing site to behave more like a hotel would. And, well, considering that Paris is the most visited city in the world, and Airbnb has over 50,000 listings there, it seems like the smart thing to do to comply with this request. Besides, that tourism tax helps generate local tax revenue and pays for all the extra infrastructure that results from tourism. Also, it gives Parisian hotels one less thing to complain about when it comes to the advantages of Airbnb and helps the site make nice with French authorities. Incidentally, New York attorney general Eric Schneiderman has taken issue with the $25 billion company. Schneiderman said that 75% of New York City listings are, in fact, illegal, since the hosts are/were not present and the rental periods were for less than 30 days. According to New York State Law, these tenants owe Uncle Sam some $30 million.