—— Hilton Acquires Manhattan Hotel Tower; Lyft Shares Plunge 32%; World Bank Donates $780M to Turkey; Apple Avoids Mass Layoffs Through Cautious Management; Adidas Issues Warning, Stock Falls 10%; Ray Dalio’s Mansion Listed for $150M; U.S. College Graduate Salaries Drop 7.4%
1. Hilton Acquires Manhattan Hotel Tower
According to property transaction records released this Wednesday, on January 31 this year, private equity firm 54 Madison Partners sold a newly opened hotel building in Midtown Manhattan to hotel operator Hilton Grand Vacations for $136 million.
In 2020, the hotel at 12 East 48th Street was taken over by 54 Madison Partners after the original developer, Hidrock Realty, failed to repay its loans on time.
Midland National Life Insurance and 54 Madison Partners had previously provided the developer with $100 million and $23 million in construction and mezzanine loans, respectively.
In October 2022, the hotel officially opened under the Hilton Club brand, featuring 161 residential-style units with nightly rates starting at $350.
Hidrock failed to complete sufficient construction work by the end of 2019 and lost the property to 54 Madison.
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2. Lyft Shares Plunge 32%
Today, ride-hailing company Lyft Inc. announced that it expects EBITDA of $5 million to $15 million this quarter, far below analysts’ average estimate of $83.6 million.
As a result, Lyft’s stock plunged 32% at the market open, potentially marking its largest single-day drop since its IPO four years ago.
In recent years, Lyft has struggled to retain customers, with rider numbers still below pre-pandemic levels. Meanwhile, competitor Uber Technologies reported a 31% surge in fourth-quarter revenue, surpassing pre-pandemic levels for the first time.
Lyft co-founder and CEO Logan Green said during Thursday’s meeting that the company is working to adjust its business strategy, including cutting costs.
Lyft’s profit outlook disappointed investors, and as users increasingly migrate to Uber, the company’s stock has taken a steep dive.
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3. World Bank Donates $780M to Turkey
This week, a massive earthquake in Turkey and Syria has claimed over 22,000 lives and left millions homeless. Governments and UN agencies around the world are sending supplies and financial aid to both countries.
Today, rescue teams continued to search through the rubble for trapped victims. In freezing temperatures, the chances of survival decrease sharply with each passing day.
The World Bank announced it would donate $780 million to Turkey to help rebuild infrastructure and may contribute an additional $1 billion in the future.
The U.S. stated it would provide $85 million in humanitarian aid. The EU, UK, China, Australia, and other countries have pledged millions more.
Humberto Lopez, World Bank Country Director for Turkey, said the country faces enormous rescue and reconstruction needs both now and in the future.
To better support Syria, the U.S. announced it will suspend all sanctions for six months.
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4. Apple Avoids Mass Layoffs Through Cautious Management
During the pandemic, the tech sector experienced explosive growth, prompting many giants to rapidly expand their workforce to meet surging demand. However, Apple Inc. took a more cautious approach to hiring, which helped it weather the economic turbulence of the past year more smoothly.
According to Bloomberg, Apple’s workforce grew by only 19.7% over the past three years—well below Microsoft’s 53.5% and Amazon’s 93.1%.
Moreover, during the pandemic, each new Apple employee generated more profit on average than before the pandemic, outperforming peers across the industry.
Now, Apple’s strategy is paying off—it has avoided the massive layoffs and costly severance packages implemented by Meta, Google, and Amazon.
Peter Garnry, an analyst at Saxo Bank, said Apple’s management appears to outperform its tech industry peers.
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5. Adidas Issues Warning, Stock Falls 10%
On Thursday, German sportswear giant Adidas warned that it could face an operating loss of €700 million this year, mainly due to its termination of its partnership with rapper Kanye West and the resulting inability to sell any co-branded products. The company must also write off all remaining inventory.
In October of last year, Adidas severed ties with West over antisemitic remarks. However, their Yeezy line had been one of Adidas’s best-selling products.
CEO Bjørn Gulden said last month that the company would need time to “reset” after the fallout.
Adidas shares fell by as much as 10% today.
Yeezy was once Adidas’s top-selling product line, accounting for over half of revenue. Now, the company is forced into a hard reboot.
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6. Ray Dalio’s Mansion Listed for $150M
A 50-acre estate in Greenwich, Connecticut has recently been listed for $150 million. The property appears to be connected to Ray Dalio, founder of Bridgewater Associates.
In 2014, it was speculated that Dalio had purchased the home for $120 million. The connection stems from the fact that the owning company, Conservation Institute LLC, listed a Bridgewater email address.
The property, known as Copper Beech Farm, includes eight bedrooms. If sold, it could set the record for the most expensive residential sale in the U.S.
According to Bloomberg, Dalio currently has a net worth of $16.2 billion. He founded Bridgewater in 1975 and built it into a hedge fund empire.
The Greenwich estate includes eight bedrooms, a private island, and landscaped gardens.
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7. U.S. College Graduate Salaries Drop 7.4%
According to new data released today by the Federal Reserve Bank of New York, the median annual salary for U.S. college graduates in 2022 was $52,000. After adjusting for inflation, that represents a 7.4% year-over-year decline—the steepest drop since 2004—and wipes out all gains made during the pandemic.
Meanwhile, the median salary for Americans with only a high school diploma rose 6% to $34,320, the largest increase in over two decades.
Although college-educated workers still earn more, high school graduates are beginning to close the gap.
These trends partially reflect rising demand for service-sector workers and a growing preference for skilled trades like plumbing and electrical work.
Rising demand for technical labor is helping boost the wages of workers without college degrees.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.