Laurel-in-the-Pines
Strategic Concepts & Mechanics
Primary Evidence
"Another key to Kerkorian’s success in trading aircraft was a tech¬ nique he called “keeping the back door open.”11 If he could not resell a new plane at a profit, he might be able to use it in his charter fleet. Fail¬ ing that, he would sell it back to the manufacturer at a previously agreed-upon price. This strategy of maintaining several different op¬ tions was evident in Kerkorian’s later dealings such as the Chrysler affair. It was reminiscent, too, of Laurence Tisch’s hedged approach of leasing the Laurel-in-the-Pines hotel before committing himself to buying it."
"The Tiscbes believed a welbrun, renovated Laurel-in-the-Pines could easily generate $100,000 a year in profit. It was a strong, rep- utable business. At a purchase price of $375,000, the downside risk ap- peared minimal. Even if they had to settle for just $100,000 a year, the hotel would pay for itself quickly and remain the resort’s most salable property. With a little effort, the profit potential was even greater."