In this article, we discuss the top 5 leisure companies in the world. If you want to see more stocks in this list, go directly to Top 10 Leisure Companies in the World.
5. Galaxy Entertainment Group Ltd (HKSE:0027)
Market Cap: $25.88 Billion
Making the list at number 5 is Hong Kong-based Galaxy Entertainment Group Limited (GEG), renowned for its management of casino games and provision of hospitality and related services in Macau.
Founded by Che Woo Lui in 1955, GEG’s exponential growth over the years came mainly on Macau and Beijing authorities’ resolve to diversify the former’s economy by encouraging casinos to supplement gambling with other attractions, such as shopping, restaurants, and entertainment.
The company’s market cap had peaked in 2020 but witnessed a 33pc plunge the following year amidst Covid outbreak. And not much has changed since, with Macau gaming industry still under the Covid cloud.
According to financials issued on May 12, 2022, the group posted a net revenue of $4.1 billion, down 20pc year-on-year and down 14pc quarter-on-quarter. Likewise, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) clocked in at $575 million, down 33pc YoY and down 45pc QoQ.
Going forward in the medium to long term, GEG said it remains confident in the future of Macau. However, the company acknowledges that further potential outbreaks of Covid-19 may impact its future financial performance.
Galaxy International, through its subsidiaries, is engaged in operation in casino games of chance or games of other forms, provision of hospitality and related services in Macau, and the manufacture, sale and distribution of construction materials.
The company’s Galaxy Macau includes approximately 3,600 rooms, suites and villas across five hotels, including The Ritz-Carlton, Macau; Banyan Tree Macau; JW Marriott Hotel Macau; Hotel Okura Macau, and Galaxy Hotel.
It also operates three City Club casinos: Waldo Casino, President Casino and Rio Casino.
4. Las Vegas Sands Corp. (NYSE:LVS)
Market Cap: $26.95 Billion
Founded by Sheldon G. Adelson in August 2004, Las Vegas Sands Corporation (NYSE: LVS) has quickly stamped its authority as a global leader in developing and operating international, world-class integrated resorts.
With properties featuring accommodations, gaming, entertainment & retail, convention & exhibition facilities, and celebrity chef restaurants, this Nevada-based industry leader currently stands as the largest casino company in the world.
Like Galaxy Entertainment, LVS has also been incurring losses on the back of reduced confidence in the recovery of Macau’s gaming industry due to strict governmental Covid-19 policies, continued weak visitation, and recently reduced economic forecast for China.
Citing reasons mentioned above, Fitch Ratings in its recent report downgraded the Issuer Default Ratings (IDRs) of Las Vegas Sands Corp., Sands China, Ltd, and Marina Bay Sands Pte. Ltd (collectively LVS) to ‘BB+’ from ‘BBB-‘.
As per its Q1 2022 financial results, the company reported a net revenue of $943 million, compared to $1.20 billion in the previous quarter. Operating loss was $302 million, compared to $96 million in the prior year quarter. Net loss from continuing operations was $478 million, compared to $280 million in the first quarter of 2021.
Moving forward, chairman and chief executive officer Robert G. Goldstein sees greater volumes of visitors eventually travelling to Macao and Singapore, and that they anticipate more guests back to LVS properties.
The principal operating and developmental activities of LVS occur in three geographic areas: Macao, Singapore, and the United States. In Macao, its segments include The Venetian Macao; The Parisian Macao; The Londoner Macao; The Plaza Macao and Four Seasons Macao; and Sands Macao. In Singapore, its segment is Marina Bay Sands. In the United States, its segment is the Las Vegas Operating Properties.
3. Hilton Worldwide Holdings Inc. (NYSE:HLT)
Market Cap: $31.44 Billion
Headquartered in Virginia, U.S., Hilton’s portfolio includes 6,215 properties across 118 countries and territories, including 690 that are managed and 5,405 that are franchised.
In line with other hospitality industry giants post-Covid, HWH continued with the growth momentum this year, as net income clocked in at $211 million for the first quarter of 2022, with a full-year projection of over $1 billion. Adjusted EBITDA for the first quarter of 2022 was recorded at $448 million.
The company’s system-wide comparable RevPAR increased 80.5pc in Q1 2022 compared to the same period in 2021, while fee revenues increased 79pc compared to the same period in 2021. However, when compared with pre-pandemic results, system-wide comparable RevPAR for the three months ended March 31, 2022, was down 17pc compared to the three months ended March 31, 2019.
During the first quarter of 2022, Hilton opened 76 new hotels contributing to 13,200 additional rooms and achieved net unit growth of 7,800 rooms.
Dedicated to fulfilling its commitment to hospitality, Hilton has welcomed more than 3 billion guests in its more than 100-year history, earning a top spot on Fortune’s 100 Best Companies to Work For list. The company has also been recognized as a global leader on the Dow Jones Sustainability Indices for five consecutive years.
Hilton has 18 brands across different market segments, including Conrad Hotels & Resorts, Canopy by Hilton, Curio Collection by Hilton, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites Hotels, Hilton Garden Inn, Hampton by Hilton, LXR Hotels and Resorts by Hilton and Waldorf Astoria Hotels & Resorts.
2. Oriental Land Co. Ltd. (TYO:4661)
Market cap: $45.5 Billion
Another industry giant showing signs of recovery post Covid relaxations is the Japanese A-lister and one of the most valuable companies in the world, Oriental Land Company (TYO: 4661).
According to Oriental’s consolidated results for the fiscal year ending March 31, 2022, the company’s net sales rose 61pc year-on-year to ¥275.73 billion ($2.04 billion) as against ¥170.58 billion in April-March FY2021. It further reported a net income of ¥8.07 billion, a surge of 114.89pc over last year. This growth, although significant compared to FY21 (-$54 billion yen), was still far from the heights reached in FY19, when the same stood at ¥80.28 billion.
Oriental Land (OLCLY) foresees its net sales and profits to increase in the fiscal year ending March 31, 2023, owing primarily to an increase in theme park attendance on the back of improvements in the external environment. It also projects net sales, operating profit, ordinary profit, and profit attributable to owners of parent for FY23 to clock in at ¥407,922 million (up 47.9pc YoY), ¥50,251 million (up 549.8pc YoY), ¥50,601 million (up 348.7pc YoY), and ¥35,244 million (up 336.8pc YoY), respectively.
Founded by Chiharu Kawasaki and Hideo Edo in 1960, The Oriental Land Company engages in the operation and management of leisure facilities across three segments: Theme Parks, Hotels and Others. The Theme Parks segment operates Tokyo Disneyland and Tokyo DisneySea theme parks. The Hotels segment manages Tokyo Disneyland Hotel, Disney Ambassador Hotel, Tokyo DisneySea Hotel MiraCosta, and Palm & Fountain Terrace Hotel. The Others segment includes land development operations.
1. Marriott International Inc. (NYSE:MAR)
Market Cap: $45.55 billion
Marriott International operates a hospitality portfolio consisting of over 8,000 properties throughout its 30 industry-leading brands spanning across 139 countries and territories, making it the world’s 306th most valuable company by market cap as of June 2022.
Since the torrid 2020 when Covid had brought the hotel industry to a virtual halt, Marriott has witnessed a resurgence of sorts, and with air travel restrictions gradually fading away, the uptrend seems likely to persist for this global industry giant.
For the first fiscal quarter, Marriott saw its 2022 comparable systemwide RevPAR surge 96.5pc YoY worldwide. In the U.S. and Canada, this figure currently sits at 99.1pc.
Moreover, the company is also looking at earnings of $1.14 per share for the quarter, which is way above its loss of $0.03 in the same quarter last year.
On Marriott’s performance in the first quarter, CEO Anthony Capuano noted that the company saw “largest surge in global demand since the pandemic began”. Looking forward, Capuano expects robust demand trends to persist with cross-border travel gaining momentum.
Founded in 1993, Marriott International, Inc. operates in two business segments: United States and Canada (U.S. & Canada) and International. MI’s luxury hotel brands include JW Marriott, The Ritz-Carlton, and St. Regis, W Hotels, The Luxury Collection, EDITION, and Bulgari, while its Premium hotel brands include Marriott Hotels, Sheraton, Delta Hotels, Marriott Executive Apartments, Marriott Vacation Club, Westin, Renaissance, Le Meridien, Autograph Collection, Gaylord Hotels, Tribute Portfolio, and Design Hotels.
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