Hail Hagupit

09/23/08 12:06PM EDT
Typhoon Hagupit is causing significant disruption in South East Asia, resulting in flight cancellations and ferry service suspensions. Hagupit is currently classified as a Gale Signal 8 (out of 10) which is the equivalent of a category three hurricane. The worst effects of the typhoon may be felt in Macau late afternoon today, Eastern Standard Time (early tomorrow morning Macau time), according to our source in Macau.

While we expect the existing casinos to withstand Hagupit with only limited damages, there is risk to the gaming projects currently under development. LVS has some major projects under construction on lots 5 and 6. Parcel 5 will include three hotels (two Shangri-La Hotels and Traders and one St. Regis), a casino, a retail shopping mall and approximately 320 serviced luxury apartment hotel units. Parcel 6 will be comprised of two hotels (Starwood’s Sheraton brand), a casino and a retail shopping mall. City of Dreams, a project being undertaken by Melco PBL Entertainment, could also see construction disruption. Damages and opening delays are likely.

We will have an update on any damages later today or tomorrow.

© 2020 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.