Table of Contents
Introduction
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- Key findings
Data Sources
Overview
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- Growth outlook
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- Figure 1: Forecasted GDP growth rate by region and major country, 28 January 2009
- Outlook for growth in spending on travel and tourism
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- Figure 2: Travel and tourism expenditure worldwide, 2008-18
- Trends in wealth accumulation
Major Gaming Destinations
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- Atlantic City
- Casino hotel performance
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- Figure 3: Performance of Atlantic City casino hotels, 2006-08
- Las Vegas
- Stagnating visitation
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- Figure 4: Trend in visitor frequentation and hotel performance in Las Vegas, 2000-08
- Macao
- Mainland Chinese the dominant source market
- Market liberalised in 2002
- Sociedade de Jogos de Macao
- Joint venture with MGM
- Recent casino developments
- Hotel capacity and performance
- The Macao gaming market
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- Figure 5: Net gaming revenue market share in Macao, first half of 2008
- Outlook dims for Macao
- Speculation surrounding the restrictions
Specific Characteristics of Casino Hotels
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- Revenue management
- Comparison with conventional hotels
- Casino hotel guest segmentation
- Room rates are treated as a residual
- Optimising profits – not only maximising revenues
- Rainmaker
Profiles of the Major Casino Hotel Operators
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- Boyd Gaming Corporation
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- Figure 6: Boyd Gaming’s property details, 31 December 2007
- Boyd may acquire Station assets
- Station plans to file for Chapter 11
- A bondholder is suing
- Three possible outcomes
- Station targets the ‘locals’ market
- Valuation and financing
- Harrah’s Entertainment
- Bought out by private equity
- Harrah’s properties
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- Figure 7: Harrah’s property details, 31 December 2007
- Harrah’s Indian casinos
- Harrah’s warns of debt squeeze
- Financial pressures could impact customer experience
- Weak capital structure due to a highly leveraged buyout
- Las Vegas Sands Corp
- The Venetian Resort-Hotel-Casino
- Recent hotel performance
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- Figure 8: Las Vegas Venetian Q4 hotel performance data, 2008 versus 2007
- The Palazzo Resort-Hotel-Casino
- Recent hotel performance
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- Figure 9: Las Vegas Palazzo hotel performance, Q4/2008
- Sands Macao
- Recent hotel performance
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- Figure 10: Sands Macao Q4 hotel performance data, 2008 versus 2007
- The Venetian Macao-Resort-Hotel
- Recent hotel performance
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- Figure 11: Venetian Macao Q4 hotel performance data, 2008 versus 2007
- Four Seasons Macao
- Fourth-quarter operating results
- Development projects
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- Figure 12: Sands’ revised development plan, January 2009
- Lucien Barrière
- A one-third market share in gaming
- 15 hotels
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- Figure 13: Lucien Barrière’s hotels, 2008
- Figure 14: Revenue breakdown*, 2008
- Infiniment Barrière
- MGM Mirage
- Nevada properties outside Vegas impacted by Indian reservation casinos
- Casino properties outside Vegas draw on regional markets
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- Figure 15: MGM’s casino hotel portfolio at end 2007
- MGM looking to sell more assets to relieve debt load
- Treasure Island sold
- Morgan Stanley has been hired
- Société des Bains de Mer
- Soaring profits through early 2008
- Trump Entertainment
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- Figure 16: Trump’s casino properties at 31 December 2007
- Heading back into bankruptcy
- Missed payments
- Wynn Resorts
- What can Wynn do for an Encore?
- Leisure facilities
- A more intimate gaming atmosphere
- Upmarket retailing and meeting space
- Badly timed market entry
- Wynn Macau
- Wynn implements efficiency initiatives in Las Vegas
- A sharp drop in fourth-quarter results
- Weakness in Vegas
- Fourth-quarter EBITDA down by two thirds
- Casino revenue down sharply
- Food and beverage revenues down
- Wynn Macau 2008 operating results
- ADR and RevPAR up for the year 2008
- Wynn Macau fourth-quarter results
- ADR up, but RevPAR flat in Q4/2008
- Equity raised
What Next?
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- A sharp drop-off in the US in Q4/2008
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- Figure 17: US monthly casino hotel performance, year on year, September-December 2008
- The US consumer is strapped
- Cutbacks on MICE expenditure
- Europe faring far better so far
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- Figure 18: European monthly casino hotel performance, year on year, September-December 2008
- Casino hotels – a more broad-based clientele
- Singapore to compete with Macao?
- Marina Bay Sands
- Doubts about the project’s financing
- Tiger Airways link
- Less capacity in Vegas – the silver lining?
- Near-term pipeline cut by 10,000 rooms
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