Inside Asian Gaming

JUNE 2015 inside asian gaming 9 increased traffic in Cotai resorts’ retail areas and hearing of people waiting at border crossings up to five hours on holidays for a chance to visit. “Mass is definitely coming. Give them a place to stay and they’ll stay.” Mr Maher, also a Brean managing director, isn’t troubled by new supply despite recent declines in hotel occupancy. “Buildings are all full Thursday to Sunday. Now many people do go home Thursday to Sunday,” he says. Room prices shouldn’t be an issue. “When I see minimum bets of HK$300 (US$39), HK$500, HK$800, are they really not going to pay $150 for a room?” Mr Maher contends. “Everyone comes to Venetian because it’s new, unique, sticky,” he says. But they also visit the Sands China flagship resort because of its location. “When I pick stocks, I look at who has what where.” Referring to Sands China Chairman and CEO Sheldon Adelson, whose company owns Venetian Macao, Sands Cotai Central, Four Seasons and is developing Parisian and St Regis adjacent to them, Mr Maher says, “Sheldon is dead center on the Cotai Strip. He gets an A. Melco Crown [with City of Dreams and Studio City due to open later this year] gets A-minus. Other properties maybe a B. “No matter who opens what, visitors are all going to walk through Sheldon’s properties. They’ll benefit the most.” “I’m quite optimistic about Macau,” CLSA Regional Head of Consumer Research Aaron Fischer says. “There’s huge investment, $40 billion cap ex [capital expenditures], $20 billion in a short time. The Philippines is becoming more credible but has maybe $8 billion cap ex.”