Billionaire Bucks Recession, Makes Three Major Investments
The rich are going to get richer during the current (and, to many, “coming”) recession.
How?
When companies have to refinance at high interest rates, they’re going to be paying for years.
Many will survive. Many will crumble.
And there are going to be big investors buying these businesses and assets up along the way.
One prominent billionaire has already started.
Where he’s buying might be surprising with a recession dead ahead.
Surprise Buys From Serially Successful Investor
Tilman Fertitta is making some big acquisitions.
Fertitta is the owner of Fertitta Entertainment Inc.
This is a holding company that owns a vast array of businesses that has probably counted nearly every American as a customer at some point.
Landry’s Inc., a giant consumer-focused company that owns
Landry’s restaurants include Morton’s The Steakhouse, The Palm, Mastro’s Steakhouse, The Rainforest Cafe, Bubba Gump Shrimp Co., Claim Jumper, Joe’s Crab Shack, and dozens of other small chains and individual restaurants.
Fertitta’s company also bought the Golden Nugget chain of casinos including the legendary Las Vegas hotel and casino.
He also acquired the Houston Rockets NBA franchise in 2017 for a reported $2.2 billion. Forbes recently put the value of it at $3.2 billion. Not bad for five years.
Fertitta is part of the Fertitta family that has huge investments in Las Vegas including the Red Rock Rock Resorts (RRR) group.
They famously invested $2 million in the Ultimate Fighting Championship (UFC). It was sold for $4 billion in 2016.
They’ve made some big bets but they’ve paid off big too.
Now Fertitta is making even more sizable bets.
Three New Tilman Fertitta Investments
Investment #1:
It was announced in October that Fertitta had taken a 6.1% stake in Wynn Resorts (WYNN).
The stake – worth about $550 million today – makes him the second largest shareholder in the high-end resort and gambling company.
Bloomberg reports, “Fertitta has a deep understanding of the gambling and hospitality industries -- and now a toehold in one of the industry’s marquee names.”
Investment #2:
In between the iconic resorts on the Vegas strip you’ll find an oddly out of place Travelodge.
It rests right on Las Vegas Boulevard between the Bellagio and MGM Grand.
That was, you would find it until now.
The property is owned by Fertitta and the demolition has begun.
The plans to replace it include a 43-story, 2,420-room hotel-casino.
Investment #3:
In November it was reported that Fertitta had acquired the Montage Laguna Beach Resort Hotel for $650 million.
The seaside resort has 260 rooms and the lowest-priced rooms often fetch more than $1,000 per night.
The resort covers 20 acres of prime real estate in southern California.
Conclusion
These are all big moves from someone who not only has a successful track record of making big investments.
But from someone who sees consumer data directly, in real time from his restaurant empire.
He’s got the info and the money and we’ll be delving into the likely driving force behind these investments in the future.
