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Tickers: 0027:HK, MGM, RCL, WYN

EVENTS

  • Thurs June 12: Bally Systems User Conference Mohegan Sun
  • Thurs June 12: Blackstone Investor Day 
  • Thurs June 12: AC May revs released 2pm
  • Wed-Thurs June 18-19:  Hedgeye Cruise survey (pre-CCL F2Q)
  • Thurs June 19: LA May revs released

COMPANY NEWS

Galaxy Entertainment Group 0027:HK – on April 8th of this year, the Company applied for trademark registration for ‘Broadway Hotel and Casino,’ ‘Broadway Casino,’ ‘Broadway Hotel,’ ‘Broadway,’ ‘Broadway Resort’ and ‘Broadway Cotai.’ That application was only published in the Official Gazette on June 4. It is widely believed, if granted, Galaxy will use the "Broadway" name for Phase 2 of Galaxy in Cotai that is scheduled to open in 2015.

Takeaway: Seems like an interesting marketing spin, especially since SCL markets the foreign locations via Venetian and Parisian, why not Broadway? 

 

MGM (McClatchy Tribune) the Massachusetts Gaming Commission voted unanimously to allow MGM Resorts build casino in Springfield.  The Commission will meet for a final vote and award tomorrow, Friday June 13th.  MGM Springfield is planning 3,000 slot machines, 100 table games, 250 hotel rooms and eight restaurants.  The gaming commission indicated that it was willing to be flexible on the actual date it awards the casino to prevent triggering an estimated $200 million in fees and construction obligations that could be undermined by a petition drive to scuttle casinos in Massachusetts.

Takeaway:  This case is going MGM's way as we wait for the final wording on the fee payment conditions.

RCL – announced new entertainment offerings for Quantum of the Seas with a focus on music and executed through a "futuristic, technology-driven approach" which will include a unique Drum wall of 136 drums, a vocal percussion jacket, a violin dress as well as the world's largest harp plus the Broadway show, Mamma Mia!

Takeaway: A unique way to appeal to and increase the younger demographic

 

WYN – CEO Geoffrey A. Ballotti sold 3,899 shares of stock on Monday, June 9th at an average price of $75.00 and now directly owns 107,771 shares.

Takeaway: Still more insider selling in the hospitality industry.

INDUSTRY NEWS

Japan Gaming Expansion (Reuters) earlier today, a Japanese opposition politician on Thursday submitted a set of demands to ruling party lawmakers who are proposing a bill to legalize casino gambling, pushing back much-awaited parliamentary debate to next Wednesday at the earliest. Pro-casino lawmakers had aimed to begin debate in the lower house this week - before the end of the regular parliament session on June 22 - and carry the bill over into an expected session in the autumn when they would aim for its passage.

Takeaway: More political talk to reduce hype over passage of casino bill this year.

 

Macau Airport – the airport operator, Macau International Airport Co Ltd, posted results for 2013, which included a 12% increase in total passengers to 5,027,170 and 48,950 aircraft movements.

Takeaway: A long term positive mostly driven on incremental low-cost carrier route additions.

Singapore May negative REVPAR (STR) - preliminary numbers show Singapore May REVPAR declined 1.3% YoY in May.

Takeaway: Singapore continues to operate in a tough demand environment

MACRO

China May New Loans - May new Yuan loans were CNY870.8 billion versus consensus expectations of CNY750 billion and CNY774.4 billion in April.

Takeaway: On the margin, a positive.

Hedgeye remains negative on consumer spending and believes in more inflation.  Following  a great call on rising housing prices, the Hedgeye

Macro/Financials team is turning decidedly less positive. 

Takeaway:  We’ve found housing prices to be the single most significant factor in driving gaming revenues over the past 20 years in virtually all gaming markets across the US.