Golden Spoon Investment Portfolio - Chapter 222

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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222. Ah. No! That’s just what I feel.

Saturday, with only one day remaining before 1996 arrived.
Seok-won sat on the spacious sofa in the Penthouse living room alongside Landon Shore, conversing while gazing out through the expansive floor-to-ceiling windows at the snow-blanketed Central Park below.

“So the amount that the British hotel chain negotiating with Dantic and the Saudi Arabian prince have offered as the acquisition price for the Plaza Hotel is not 400 million dollars, but 325 million dollars.”

At my incredulous question, Landon Shore nodded slightly and replied.

“That’s correct. That figure is the highest amount offered so far, and our investigation confirms that the industry values the Plaza Hotel at around 300 million dollars.”

I clicked my tongue and shook my head in disapproval.

“I anticipated that Dantic would bluff without disclosing the actual price, but attempting to overcharge us by 75 million dollars is absolutely absurd.”
“Indeed. It’s remarkable how quickly such an obvious lie unravels—they must consider us quite easy to deceive.”

Landon Shore’s expression darkened with displeasure as well.
Though equally displeased, I restrained my emotions and inquired further.

“But I recall that Dantic purchased the hotel seven years ago for 400 million dollars. Why has its value plummeted by tens of millions instead of appreciating during that time?”
“It’s because of the Plaza Hotel’s reputation as a New York landmark.”

I tilted my head slightly, puzzled.

“Shouldn’t a higher reputation command a premium instead?”
“Ordinarily, yes. But ironically, the Plaza Hotel’s historical significance and prestige have become a constraint.”

Landon Shore shrugged, and noticing my furrowed brow, he elaborated further.

“You’re aware that the Plaza Hotel, along with the Waldorf Astoria, has been designated as a National Historic Landmark by the Federal Government due to its long history and preservation value.”

The Waldorf Astoria, situated between Park Avenue and Lexington Avenue, was the finest hotel in the city, earning the nickname “the royal palace of New York.”
Having opened its doors in October 1931, it rivaled the Plaza Hotel in history and prestige, standing as New York’s premier luxury hotel and landmark.

‘Considering that American presidents have consistently stayed in the 35th-floor Presidential Suite at the Waldorf Astoria whenever visiting New York since Hoover’s era, earning it the title of New York’s royal palace, the Plaza Hotel does fall slightly behind in terms of renown.’

Yet as Seok-won listened, he recalled how this hotel—beloved by successive American presidents and a landmark of New York—would eventually fall into the hands of rapidly expanding Chinese capital a decade hence.

“Being designated a National Historic Landmark means, conversely, that strict restrictions will be imposed not only on demolition but also on renovations and interior redesigns going forward.”

Seok-won, grasping the implication immediately, furrowed his brow slightly and let out a low hum.

“I see. No matter how much the land value rises, because it’s classified as a National Historic Landmark equivalent to a cultural property, large-scale real estate development involving the demolition of the entire structure becomes impossible.”
“Precisely. Since the building must be maintained in its current architectural form, profitability inevitably suffers.”
“….”
“Furthermore, considering that it’s such an old building, the maintenance costs are proportionally far greater, which would make investors even more hesitant.”

This was an aspect Seok-won hadn’t fully considered, and only now did he understand why other investors undervalued the Plaza Hotel.
Landon Shore glanced cautiously before speaking with measured care.

“Given these factors, the returns on invested capital from acquiring the Plaza Hotel wouldn’t be particularly high.”

Unlike Landon Shore, who harbored doubts about the acquisition, my thoughts diverged.
I picked up the teacup before me, took a sip of coffee, set it down, and spoke with composure.

“While it’s unfortunate that large-scale real estate development is essentially impossible, it conversely means that the Plaza Hotel is considered important and valuable as a New York landmark precisely because such restrictions are imposed on it. I believe the hotel’s prestigious reputation will serve as a premium that more than compensates for any losses incurred.”
“….”
“Like all luxury goods, scarcity is essential to value. A hotel with long history and tradition standing in the heart of Manhattan, surrounded by modern buildings, would only see its scarcity increase over time, wouldn’t it?”

Despite my reasoning, Landon Shore’s expression remained unconvinced.

“It seems you’ve made up your mind to acquire the Plaza Hotel?”

Leaning back against the plush sofa, I nodded.

“At that price point, it’s hardly an unreasonable stretch, and I need a place to stay when I’m in New York. I’m already accustomed to using the Penthouse here frequently, it’s close to Wall Street, and since it’s come on the market, acquiring it seems like a sound decision.”

To think of purchasing an entire hotel exceeding three hundred million dollars simply because one needed a place to stay.
But this was the kind of thinking only Seok-won could entertain.

“You mentioned the profits from the yen short-betting came to approximately 5.3 billion dollars?”
“Yes. After deducting principal and expenses, we earned 3.36 billion 200 million dollars. Combined with the 3.16 billion dollars we secured through currency hedge options in Japan, we have sufficient capital.”
“Then there’s no problem.”

Though profitability was lower, acquiring the Plaza Hotel—a New York landmark—posed no disadvantage, so Landon Shore raised no further objections.

“I understand. However, I don’t believe you’re considering accepting their proposed amount as is.”
“Of course not. I’m no fool, and I can clearly see they’re trying to overcharge me. I can’t just accept that. Especially when the expected returns on this asset are already modest. Wouldn’t you agree?”
“You’re absolutely right.”

Seok-won, sitting with his legs crossed, smoothly shifted the conversation to a new topic.

“I’ll handle the Plaza Hotel matter directly myself, so keep that in mind. Aside from that, how is the shutdown situation developing?”

Landon Shore straightened his posture and replied with a notably serious expression.

“The moderates from both parties are making behind-the-scenes contact and attempting to craft a compromise, but with Speaker Sabitz and President Davidson taking such hardline stances, there’s been little progress.”
“Having come this far, if neither side walks away with something, they’ll face severe backlash. It’ll be difficult for them to back down now.”

Seok-won spoke as if he’d expected as much, and Landon Shore nodded, clearly sharing the same thought.

“Exactly. They’ve gone too far to simply reach a modest compromise and call it a day.”
“Speaker Sabitz is still staying in Atlanta?”
“Yes. It appears he plans to remain in his district until the House’s first full session next year.”
“So he’s essentially telling the White House: if you want to end the Federal Government shutdown, come to Atlanta with a white flag.”

It was a decidedly provocative move, befitting a hardliner.

“Because of that, the White House seems to be contacting other senior Republican members rather than attempting to persuade Speaker Sabitz directly.”
“If White House officials go to Atlanta, it would look like they’re bowing and pleading, so that’s why they’re doing it this way.”

They needed to preserve the other side’s dignity somewhat to make negotiations smoother, but if this continued, even sitting at the same table seemed unlikely.

“What’s the mood within the Republican Party?”
“While there’s some discontent with Speaker Sabitz’s uncompromising stance, with the presidential election coming next year, they’re holding their tongues and falling in line.”

Seok-won then folded his arms and murmured thoughtfully.

“If the Republican Party remains unified without fracturing, untangling this knot will be even more difficult.”

Landon Shore leaned forward and continued the conversation.

“That’s why anxiety is growing on Wall Street that the shutdown could drag on indefinitely.”
“With Washington in that state, it’s impossible to be optimistic no matter how hard you try.”
“That’s the truth.”

Seok-won spoke with an air of composure, his tone decisive.

“If the new year arrives and the first session convenes next week without significant progress on the budget bill, Wall Street will run out of patience, and the market will collapse.”

Even Landon Shore could see that anxiety permeated the market as if a time bomb had little time remaining, and he believed Seok-won’s prediction was likely to come true.

“Even if a crash occurs and the market plummets, the fundamental energy gathered in the market is strong, so it will quickly rebound and rise. So when it falls all the way down, we need to prepare thoroughly to liquidate our positions swiftly and exit.”
“Understood.”

Landon Shore continued discussing necessary matters with Seok-won for some time before leaving the Penthouse.

“Hmm….”

Seok-won tapped his fingers rhythmically against the armrest of the sofa where he sat, organizing his thoughts for a moment, then retrieved his phone from his pocket.
He found a saved number and pressed the call button, and the other party answered shortly after.

[Hello?]

Hearing Dantic’s slightly subdued voice, Seok-won spoke.

“This is Park Seok-won. Do you have time to talk right now?”
[Ah. Mr. Park! I was actually waiting for your call.]

Dantic responded brightly, then asked.

[Have you given my proposal careful thought?]
“As you mentioned, the opportunity to acquire a New York landmark is rare. If the price is right, I’m willing to acquire the Plaza Hotel.”
[Hahaha! You’ve made an excellent decision.]

Dantic burst into hearty laughter, apparently relieved that a path to resolve his financial difficulties had emerged.

“However, it seems there may have been some confusion on your end.”

Seok-won spoke calmly, phone pressed to his ear.

[What do you mean?]
“The figure you’re discussing with other prospective buyers is 320 million dollars, yet you mistakenly quoted me 400 million dollars.”
“….”

For a moment, Dantic remained silent like a child caught red-handed doing something wrong, then let out an awkward laugh.

[Ah… Did I say that? Haha. Seems like my words came out wrong. My apologies.]

Seok-won, holding his phone, silently chuckled at the transparent lie.
However, there was no need to harbor ill feelings toward Dantic—the future President of the United States—over a mere sum of money, so he chose to overlook it and let the matter pass.

“To be precise, I’m willing to acquire the Plaza Hotel for exactly three hundred fifty million dollars. What do you think?”

It was twenty-five million dollars more than what the British hotel chain and the Saudi Arabian prince’s side had offered.
Yet the moment Seok-won expressed his intention to acquire it, Dantic’s greed stirred, and he let slip a note of regret.

[Seven years ago, I acquired the hotel for four hundred million dollars. Selling it at a lower price than that seems like quite a loss, doesn’t it?]
“If that’s the case, then unfortunately there’s nothing to be done. Let’s consider this conversation never happened.”

Seok-won answered without the slightest hesitation, seeing through the obvious ploy.
Dantic, who had been attempting to push and pull in negotiations to extract a higher price than his initial offer, was startled when his counterpart cleanly withdrew without giving him any room to maneuver.

[Ah. No! That’s just how I feel. It’s fine. It’s a losing deal, but given the circumstances, let’s proceed that way.]

Dantic hastily accepted the proposal, fearing Seok-won might back out of the transaction.
Having anticipated this, Seok-won smiled faintly and spoke at a leisurely pace.

“Then let’s discuss the specifics when we meet again.”
[Yes… Let’s do that.]

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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