Today's podcast discusses Wyndham's Choice rejection, Royal Caribbean's earnings, and a billionaire's thoughts about millionaires.
Skift Daily Briefing Podcast
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Good morning from Skift. It’s Friday, October 27. Here’s what you need to know about the business of travel today.
Wyndham Hotels & Resorts executives used strong language Thursday to explain to investors why they were rejecting the $9.8 billion hostile bid from Choice Hotels, reports Senior Hospitality Editor Sean O’Neill.
O’Neill writes Wyndham executives highlighted a lack of cash up-front and Choice’s alleged weaker performance as major concerns about a deal. In addition, Wyndham said any deal between the two companies would take more than 12 months to clear regulatory review.
The prospects for a deal aren’t completely dead, but it faces long odds. “It’s hard for us to say no more than we’ve already said no,” said Stephen Holmes, chairman of Wyndham’s board.
Next, Royal Caribbean executives are optimistic they’ll see strong demand for cruises in China when they return there next April, writes Global Tourism Reporter Dawit Habtemariam.
Royal Caribbean International CEO Michael Bayley said during the third-quarter earnings call that the company has seen strong bookings for China sailings next year. Bayley added that bookings are already ahead of 2019 levels, a record year for Royal Caribbean. Habtemariam reports the company doesn’t expect a slowdown in consumer spending, with Royal Caribbean customers having a median household income of above six figures.
Finally, a Dubai billionaire believes the city is home to too many millionaires and it doesn’t have enough resources to cater to its increasingly wealthy population, writes Middle East Reporter Josh Corder.
Real estate magnate Mohamed Alabbar, one of Dubai’s wealthiest men, said the city’s growth isn’t sustainable. Corder reports Dubai’s population is expected to increase from the current 3.5 million to 5.5 million by 2030. A recent report stated the United Arab Emirates is expected to attract a large number of millionaires from India.
Alabbar added one of Dubai’s problems is that the city is trying to build too much, too quickly.
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Photo credit: A guestroom at one of Wyndham's newest brands, Tryp by Wyndham. Wyndham Hotels and Resorts