LEISURE LETTER (09/05/2014)

Tickers: LVS, PENN, GLPI

EVENTS

  • Sept 6-8: China/Macau - Mid-Autumn Festival
  • Sept 8:  MAR Analyst Meeting
  • Sept 9: 
    • BofAML Gaming & Lodging Conference
    • GLPI & HPT at Wells Fargo Net Lease REIT Forum
    • EXPE & OWW at DB Technology Conference

COMPANY NEWS

BEL:PM (GGRAsia) Philippine casino investor Belle Corp informed the Philippine Stock Exchange it has not decided on the “timing or size of any potential secondary offering” for its shares in Sinophil Corp.

Takeaway: Interesting commentary since CSLA was allegedly pre-marketing the offering earlier this week? Could investor demand for this placement be tepid?

 

LVS & 1928:HK (GGRAsia) the Macau Land, Public Works and Transport Bureau confirmed Sands China has only received the permits for foundation works and construction of the podium area of the Parisian Macao casino resort.  As a result, the construction of the US$2.7 billion Parisian Macao casino resort is still partially suspended

Takeaway:  We could still see a delay in the opening date - early 2016 is our guess.

 

PENN & GLPI – A federal judge in Pennsylvania on Thursday dismissed a bankruptcy case involving the former Argosy Sioux City. Argosy said it is in the final stages of negotiating a contract with an unidentified third party to purchase the boat and two barges on the Missouri River and demolish the dockside facilities. Argosy is required to remove structures from the city-owned riverfront by the end of September.

Takeaway: Potentially a small residual value for GLPI.

 

 

MSC – (Travel Weekly) MSC Cruises unveiled a new pricing structure that bundles cabin categories, dining choices and onboard amenities in four commissionable packages.  Ken Muskat, executive vice president of sales, outlined the four packages that range from a la carte to all-inclusive. The packages will be available for sale starting Sept. 23, for cruises departing on or after Oct. 18.

Takeaway:  Cruisers have been promoting more bundled and all-inclusive deals this year.

INDUSTRY NEWS

Singapore Highest monthly visitor arrivals to Singapore this year in July Channel News Asia

The number of international visitors to Singapore saw a 19.2% spike in July relative to June, representing the highest monthly arrival figure for the year. July visitor arrivals was 1,407,078, up from June's 1,180,533 - which was the lowest for the year.  This was aided by a rebound in visitors from mainland China, with July's 180,487 visitors almost double that of June's 91,422.  Hong Kong visitor numbers, too, were strong at 80,715, 71.2% higher than June's. 

Takeaway:  Positive surprise out of Singapore. 

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.



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