LVS INVESTOR DAY: PART 6

US comments

 

 

LAS VEGAS (JOHN CAPARELLA)

  • Market is recovering; FIT is stronger; group is stronger; ADR should be up in 2012 and they are reinvesting in their property to make sure things stay fresh
  • Expect some increase in visitation in 2012 and there will be some increase in airlift into the market
  • 7 months of positive occupancy trend data
  • Since 2007, there were 14,000 new high-end room openings; good news is that there are no new room developments for about 4 years
  • Focused on driving rate
  • This summer's ADR and occupancy trends are very encouraging
  • Group room nights are projected to be 800k compared to 700k in 2008.
  • In 2009, they had 31% comp rooms; 27% comped rooms in 2010 and 7% YTD through July.  Will increase to 9% in 2012 which should help slot play.
  • A $10 increase in ADR will increase hotel revenue by $23MM and EBITDA by $19MM
  • Venetian:  Remodeling sports book by Nov 11, Premuim Suites by 1Q12, clock tower entrance and retail space by 2Q12, casino renovation by 3Q12, and sands expo renovation by end of 2013

 

SANDS BETHLEHEM (BOB DESALVIO)

  • Opened 302 room hotel in May 2011
  • Only 80 miles from Midtown Manhattan
  • Future expansions include: 150k SF retail outlet mall and 50k SF event center
  • Opening 8 stores in Nov 11 and additional 16 stores at Feb 12 Grand Opening; next competing outlet center is 1 hour away
  • Event center opening in May 12 - Livenation will be promoting their facility
  • Leveraging their database to be selectively promotional with their new hotel capacity
  • Baccarat represents 45% of total drop in August
  • They were up 21% YoY in August Table win

 

Q&A

  • They are neutral on online gaming. They believe that i-gaming will negatively impact land based casinos and that it will encourage underage gambling.

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