Boston, MA 09/24/2014 (wallstreetpr) – MGM Resorts International (NYSE:MGM) managed to edge up above 1% on Tuesday even as analysts at Wells Fargo (WFC) eventually moved to downgrade Macau stocks. The firm downgraded Macau because of the almost ever-increasing negative news concerning casino business in the Chinese gambling capital. MGM Resorts and its peers in Macau have taken a dive this quarter as issues around smoking ban and crackdown on corruption hurt the gambling city. There are also upcoming negative media reports about Macau, and the same is expected to further put more pressure on casino stock there. MGM Resorts International (NYSE:MGM)’s shares are down almost 14% this quarter. The stock is currently rated a “hold” at Wells Fargo. MGM Resorts was also recently downgraded to a “hold” from a “buy” at Argus.
Northstar Realty Finance Corp (NYSE:NRF)’s growing appetite for hospitality investment has now pushed it into a deal with Inland American Real Estate Trust. The deal involves the acquisition of 52 upscale hotels with about 700 rooms. The deal is expected to cost Northstar (NRF) to the tune of $1.1 billion, but it is reportedly teaming up with Chatham Lodging Trust on the deal. As such, Northstar will own 90% of the assets acquired from Inland American while Chatham will pay $29 million to own 10% of the properties. The hospitality assets being acquired from Inland America are spread across 21 states in the U.S. and comprise of 63% Marriot branded hotels and 32% Hilton brands. Besides the $1.1 billion hotels deal with Chatham, Northstar Realty Finance Corp (NYSE:NRF) is also nearing another deal to add more hotel assets to its portfolio this month for $700 million.
Merck & Co., Inc. (NYSE:MRK) recently entered into a collaborative deal with Sun Pharmaceutical. The deal involves exclusive worldwide licensing of the tildrakizumab (MK-3222), which is a drug being developed by Merck and is currently under Phase 3 trial. Tildrakizumab is designed as a therapy for chronic plaque psoriasis, which is a skin ailment. Merck & Co., Inc. (NYSE:MRK) disclosed that it will receive upfront payments to the tune of $80 million from Sun Pharmaceutical under the agreement. It is also eligible to receive other payments that were not disclosed.