CITYCENTER: THOUGHTS AND OBSERVATIONS

The Good, The Bad, and The Ugly

 

 

Last night at 11:50pm, CityCenter got its gaming license and opened its doors to the public.  We have mixed opinions on the property as shown below, but the major concern continues to be whether this property has enough of a differentiated appeal to drive visitation beyond the room/casino supply it is adding.  We remain skeptical.

 

 

The Good:

  • Different, modern feel for those who, well, like the new and modern feel
  • Lots of exciting new dining options
  • Several new clubs and bars
  • Great artwork and like Wynn/Encore there are lots of nuances to the property that will likely take many stays to discover
  • Central location on the Strip

 

The Bad:

  • The modern feel may not appeal to many gamblers 
  • Despite the “natural light”, on overcast days or in the mornings, the casino feels very dark with its “earthy” colors
  • There are already lots of overpriced dining options in Vegas, many of which are now offering discounted pre-fix that the budget-strapped consumer or the “trade-up” customer can afford
  • While the central location is nice, you still have to walk several blocks off Las Vegas Boulevard to get to Aria. So it may not get the same foot traffic as many center-strip properties get with easier egress

 

The Ugly

  • The rooms are very small... or as one person euphemistically put it “urban chic”.  Unfortunately, this isn’t New York and the finicky Vegas “higher end” guest that typically stays at Wynn/Encore, Venetian/Palazzo, or Bellagio is used to more space.  The tower suite was, at most, 300 square feet.  There’s only one chair next to the bed and, directly beside that, a desk with a flat screen mounted over it.  I think that this property will have a real challenge charging rates at a premium to Wynn and some of the other premium properties.
  • The Elvis show was a total flop.  Hopefully they can improve it over time, The experience felt like attending a bad Elvis musical.  Many people we spoke to felt the same.

 

 

 

 

 


Cartoon of the Day: Crash Test Bear

In the past six months, U.S. stock indices are up between +12% and +18%.

read more

GOLD: A Deep Dive on What’s Next with a Top Commodities Strategist

“If you saved in gold over the past 20 to 25 years rather than any currency anywhere in the world, gold has outperformed all these currencies,” says Stefan Wieler, Vice President of Goldmoney in this edition of Real Conversations.

read more

Exact Sciences Up +24% This Week... What's Next? | $EXAS

We remain long Exact Sciences in the Hedgeye Healthcare Position Monitor.

read more

Inside the Atlanta Fed's Flawed GDP Tracker

"The Atlanta Fed’s GDPNowcast model, while useful at amalgamating investor consensus on one singular GDP estimate for any given quarter, is certainly not the end-all-be-all of forecasting U.S. GDP," writes Hedgeye Senior Macro analyst Darius Dale.

read more

Cartoon of the Day: Acrophobia

"Most people who are making a ton of money right now are focused on growth companies seeing accelerations," Hedgeye CEO Keith McCullough wrote in today's Early Look. "That’s what happens in Quad 1."

read more

People's Bank of China Spins China’s Bad-Loan Data

PBoC Deputy Governor Yi says China's non-performing loan problem has “pretty much stabilized." "Yi is spinning. China’s bad-debt problem remains serious," write Benn Steil and Emma Smith, Council on Foreign Relations.

read more

UnderArmour: 'I Am Much More Bearish Than I Was 3 Hours Ago'

“The consumer has a short memory.” Yes, Plank actually said this," writes Hedgeye Retail analyst Brian McGough. "Last time I heard such arrogance was Ron Johnson."

read more

Buffalo Wild Wings: Complacency & Lack of Leadership (by Howard Penney)

"Buffalo Wild Wings has been plagued by complacency and a continued lack of adequate leadership," writes Hedgeye Restaurants analyst Howard Penney.

read more

Todd Jordan on Las Vegas Sands Earnings

"The quarter actually beat lowered expectations. Overall, the mass segment performed well although base mass lagging is a concern," writes Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan on Las Vegas Sands.

read more

An Update on Defense Spending by Lt. Gen Emo Gardner

"Congress' FY17 omnibus appropriation will fully fund the Pentagon's original budget request plus $15B of its $30B supplemental request," writes Hedgeye Potomac Defense Policy analyst Lt. Gen Emerson "Emo" Gardner USMC Ret.

read more

Got Process? Zero Hedge Sells Fear, Not Truth

Fear sells. Always has. Look no further than Zero Hedge.

read more

REPLAY: Review of $EXAS Earnings Call (A Hedgeye Best Idea Long)

Our Healthcare Team made a monster call to be long EXAS - hear their updated thoughts.

read more