LV STRIP: BACC NOT PICKING UP MACAU’S SLACK
04/01/15 08:29AM EDT
- Slight growth in Baccarat was prevalent until last summer but growth has slowed to a crawl – the trend is now lower
- Some analysts had expected a surge in Strip baccarat as Chinese VIPs looked outside of Macau for gambling destinations
- With Baccarat no longer the growth driver, Strip gaming revenues could be under pressure. Indeed, February GGR fell 4% YoY on the Strip and down 8% on a hold adjusted basis.
- We remain skeptical of Street expectation of a V-shaped or U-shaped recovery in Las Vegas. RevPAR remains a bright spot but YoY growth in the Las Vegas hotel segment continues to underperform the national average.
© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.
