WeWork, saddled with expensive long-term leases and more than $3 billion of debt, recorded a negative cash flow of around $4.3 billion between July 2020 and September of this year.
Shares of ARK Innovation exchange-traded funds, a pandemic-era favorite largely made up of unprofitable, growth-oriented technology companies, are down 63% this year. The flagship fund is hovering near a five-year low.
In theory, savers could have earned $42 billion more in interest in the third quarter if they moved their money out of the five largest U.S. banks by deposits to the five highest-yield savings accounts—none of which are offered by the big banks.
Federal Reserve officials have raised rates this year at the fastest pace since the early 1980s.
Nontraded REITs paid out $3.7 billion in redemptions in the third quarter. While they were still raising more new funds from investors than they were losing to withdrawals, that marked the highest withdrawal figure in years and a 12-fold increase from the third quarter of 2021.
Wynn Resorts announced the completion of a planned sale of land and other real estate assets at its Encore Boston Harbor resort casino for $1.7 billion in cash to Realty Income Corp. Wynn will continue to operate the Encore Boston Harbor five-star resort via a sale-leaseback arrangement with Realty Income, the San Diego real estate investment trust. The lease is valued at $100 million annually for a 30-year term. Rent at the property will escalate at a 1.75% annual rate for the first 10 years of the lease.
Blackstone Inc. has agreed to sell its 49.9% stake in two Las Vegas hotels in a deal that values the properties at $5.5 billion. The New York investment firm is selling its stake in the MGM Grand Las Vegas and the Mandalay Bay to Vici Properties Inc., which owns the other 50.1% stake in the properties. Blackstone would receive $1.27 billion in cash, and Vici would assume Blackstone’s share of some $3 billion in debt. The sale would bring a profit of more than $700 million for Blackstone in less than three years.
Airbnb Inc. is launching a listing service for rental apartments with some of the biggest landlords and property managers in the country. The new service will feature more than 175 buildings where short-term sublets are allowed. Landlords who partner with the new listing service will get a share of the total booking revenue from Airbnb sublets—20% in most cases.
Hyatt Hotel Corp. said it would acquire Dream Hotel Group’s lifestyle hotel brands, including Dream Hotels, The Chatwal Hotels, and Unscripted Hotels. Hyatt would spend $125 million for the Dream Hotel Group’s dozen open hotels, with more than 1,700 guest rooms worldwide.
