Inside Asian Gaming

October 2016 inside asian gaming 13 As for Sands China, receiving 100 tables had “no fundamental impact,” according to JP Morgan. Sands has a total of more than 1,500 tables and moved 310 of them to Parisian, giving the resort 410 tables at its opening. In the third floor Paiza area, overflowing on opening night, VIP promoters Suncity, Guangdong/Neptune and Tak Chun have a combined 30 tables, all with betting minimums from HK$10,000 (US$1,285). At least one junket grades its Parisian room superior to its Wynn Palace digs. Sands has about 20 direct VIP tables in Paiza plus 20 premium mass tables. Sanford Bernstein analysts Vitaly Umansky and Yang Xie observe that Sands China “continues to reduce its reliance on junket VIP,” estimating that half of Sands’ VIP business is now direct, delivering EBITDA margins around 12% compared to mid to high single digits with junkets – albeit with greater credit risk. Parisian’s main level has 30 premium mass tables in the high limit area and adjacent Ruby Room, where croupiers claim a Macau exclusive on baccarat variant Punto Banco, featuring cards delivered by paddle and bets by special plaques starting at HK$3,000. To accommodate high rollers, Parisian has 500 suites, measuring 72 square meters (770 square feet) with premium bedding. MASS PASSION However, the real story of Parisian is mass market. “We’ve always built for the mass. We didn’t start in the VIP market,” Mr Adelson says. Citing growing competition for high rollers from destinations from Manila to Saipan, he adds, “The mass market will always be there.” The Parisian’s main casino floor has 310 tables plus well over 1,000 electronic gaming machine positions, more than 350 in a stadium area with six live tables. Baccarat squeeze games – where players handle the cards – start from HK$200. The casino floor is meant to evoke Versailles Palace, though its dominant gold tones may bring to mind Marina Bay Sands. Mr Wong says The Parisian represents “affordable luxury” for China’s evolving middle class, a mantra that echoes throughout the property. “Travelers’ patterns have changed in China, from package tour to more leisure seeking. The middle class wants luxury that’s affordable,” he says. “We have products for the middle market, for MICE, for families. There’s no point in looking at the number of stars.” Buckingham Group Director of Equity Research Christopher Jones writes, “While officially rated a three-star property, there is little that is three stars about The Parisian, rivaling many four and five-star properties in its overall presentation.” Rates start from HK$1,298 for a comfortable 33 square meter room with Paris street map wallpaper. The selection includes 47 square meter Famille rooms with bunk beds for the kids and a toy box (bring your own toys). The casino floor Chinese restaurants have just two dishes priced above MOP$100. Signature restaurant La Chine, located on the sixth level of the Eiffel Tower base with girders and windows designed to remind of the original, is reasonably priced for its positioning. Other F&B options include brasserie, buffet, Chinese and Japanese. Further eating and shopping choices will become more easily accessible when a bridge to Four Seasons opens by year’s end, linking Parisian to the rest of Sands’ Cotai properties. Sands management tells Bernstein that Shoppes at Parisian, with Cover Story