Tickers: PENN, NCLH
EVENTS
- Aug 7:
- Revel Auction Proceedings (POSTPONED)
- Aug 8:
- CHH 2Q 10am: , pw: 30848466
- DRH 2Q 10am: , pw: 153358818
- AHT 2Q 11am:
- SHO 2Q 12n:
- Aug 11:
- HPT 2Q 1pm:
- CZR 2Q 4:30pm: 844.231-441, pw: 55917191
- STN 2Q 430pm
- HTHT 2Q 9pm: , pw 7103 4558
- Aug 12:
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HMIN 2Q 9pm: , pw HOME INNS
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Aug 14:
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Revel Auction Proceedings
COMPANY NEWS
PENN – Hollywood Gaming at Mahoning Valley Race Course to open Sept 17
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The $250 million development
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850 VLTs
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Will celebrate a second grand opening on Monday, Nov. 24, when thoroughbred racing begins on the new one-mile all-weather racetrack.
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Will be open 24/7
Takeaway: Opening on schedule. Should open much stronger than PNK's Belterra Park. PENN's new racinos are located in much less competitive areas than BP. CEO buying stock this week a good sign of management's faith in new properties.
CWN:AU – (Bloomberg) Crown's new Las Vegas Strip development with Andrew Pascal will potentially cost as much as $4 billion. Beyond the Las Vegas development, Crown is currently pursuing a AUD1.3 billion casino hotel in Sydney scheduled to open in 2019 while also working on projects in Brisbane and Sri Lanka.
Takeaway: Costly development. New supply as a positive is being rolled out again as an investment positive by MGM management.
GENT:MK – Despite the unsuccessful attempts by Resorts World Miami to secure a gaming license (whether a transferred slots license or a newly issued license), redevelopment of the Miami Herald site continues. Malaysia-based Genting Group purchased the 14-acre newspaper site in 2011 for $236 million. Genting also purchased surrounding properties, including the Omni Mall, and announced plans for a sweeping $3 billion Resorts World Miami luxury casino with multiple towers, stores and an elevated beach and lagoon.
Takeaway: Until gaming is approved, Genting will use its Miami foothold as a stepping point for its growing Resorts World Bimini casino operation.
NCLH (Seatrade Insider) – No Pride of America change so far as Hawaii readies for 2 hurricanes
INDUSTRY NEWS
Revel Atlantic City – (Bloomberg) The auction proceeding for Revel AC Inc was postponed one week - from today until August 14. The delay is to allow time to analyze the "multiple purchase offers". As a result, Revel will also likely postpone the August 8 hearing for sale approval until August 18.
SLS Las Vegas – the operators of the north Strip hotel-casino were recommended for licensing approval by the Gaming Control Board. The 1,600-room resort, a redevelopment of the Rat Pack-era Sahara, is scheduled to open Aug. 23. Gaming regulators approved the license application for Stockbridge Real Estate of San Francisco and SB Gaming, a subsidiary that will manage the SLS Las Vegas. The Nevada Gaming Commission will make a final ruling on the application on Aug. 21.
Takeaway: Another private equity firm recommended for a Nevada gaming license. The list of licensed private equity firms is growing.
MACRO
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.
