• It's Coming...

    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

City of Dreams has only been opened for two weeks but we thought we'd give you some initial impressions from our guys on the ground.  Warning:  these insights are early and anecdotal in nature.  We are actively attempting to corroborate all of the following.

  • Weak Rolling Chip (RC) turnover at City of Dreams - MPEL acknowledges it will take a while to ramp up the RC segment. We are hearing CoD only did HK$4BN in Rolling Chip turnover over first 10 days, or HK$400MM per day. By contrast, Venetian and Wynn Macau average approximately HK$700MM and HK$900MM per day, respectively, during the summer months. All three properties maintain approximately 140 RC tables.
  • Traffic strong at CoD- indicative of the mass market focus. Uncertain of the turnover per customer but hearing it is somewhat low.
  • CoD may be experiencing low hold
  • Venetian Rolling Chip business holding up - the junkets are reporting that RC turnover at Venetian hasn't been impacted much.
  • Venetian traffic down - see chart below
  • Wynn losing MM and RC customers to MGM? - Something is going on here. We've heard it from multiple industry sources.

We'll have more to report this week and next.  I will be in Macau on 6/22-26 visiting the operators, suppliers, junkets, developers, etc.  Stay tuned.

CoD AND MACAU:  THE ANECDOTAL - CoD on Venetian