REPORT FROM LAS VEGAS

Some tidbits we’ve picked up recently.  LVS good (hold), WYNN not so good, MGM bad.

General:

  • Business is slow aside from room bookings around events…won’t see a pick up until 2H2010
  • Problem is that the lower end properties are giving rooms away and dragging everything down
  • Weekends are good. Weeknights are filling with unemployed people
  • Feb should be up for the Strip – as we wrote about in our 3/23/10 post “FEB STRIP REVS COULD BE POSITIVE”
  • High end play continues to be the only gaming bright spot, driven by strong Baccarat play
  • Cosmo may bleed into next year opening wise, which shouldn't be a surprise as the opening has already been pushed back to "late 2010"

MGM

  • 1Q will be an ugly quarter, 2Q will probably be as well – we are expecting a miss and need to lower our numbers
  • Occupancy in the high 80’s/low 90’s
  • No longer saying that they can hold rate… but even discounted convention business or business travel is better than the unemployed visitors today – even at $50 per night
  • 20-25% of occupied room nights come from convention customers, however those customers generate 30-35% of their revenues
  • 60-70% occupancy mid week at CityCenter and they have zero convention business so far. Weekends are high 80’s low 90’s.
  • High end play is good – all on Baccarat (volume wise)

LVS

  • LVS could put up a $100MM EBITDA quarter in Las Vegas due to high hold percentage – we need to raise our $90 million estimate
  • Convention business is doing ok – better than last year but that is not saying much

WYNN

  • Wynn continues to struggle like everyone else
  • High end play is good but still very reliant on room rates.