Casinos on Macau’s Cotai Strip rebound quickly from typhoon

Updated August 24, 2017 - 5:19 pm

The more modern buildings of Macau’s Cotai Strip weathered the high winds of Typhoon Hato better than older structures on Macau’s peninsula and casinos there were operating close to normal Thursday.

Grant Govertsen, a gaming industry analyst with Las Vegas-based Union Gaming, did a walk-through tour of casinos on the peninsula and on Cotai Thursday and in a report to investors said many full shuttle buses were arriving at casinos operated by Las Vegas Sands Corp. and Wynn Resorts Ltd.

“Many of the flagship casinos on the peninsula were either closed or barely operating, while it was more or less business as usual on Cotai, with mass foot traffic broadly inline with a normal midweek afternoon, although some were without air conditioning, which didn’t seem to faze guests,” Govertsen said.

“With this in mind, we would expect a temporary dramatic share shift toward Cotai as it could take a few days for the Macau peninsula to get back on its feet,” he said.

Typhoon Hato made landfall at around noon Wednesday with 100 mph winds and driving rain that damaged both of Macau’s ferry ports and flooded streets.

Searching for trapped people

Rescuers on Thursday searched submerged cars for trapped people in the former Portuguese territory, while overwhelmed emergency services scrambled to respond to crisis calls.

Many residents and tourists complained that the government was woefully unprepared for Typhoon Hato.

Macau’s government broadcaster TDM said Typhoon Hato, a maximum signal 10 storm, was the strongest since 1968 to hit the world’s biggest gambling center, home to around 600,000 people.

“The city looks like it was just in a war,” said one civil servant, who declined to be named as they were not authorized to speak to the media.

At one stage, as Hato intensified, Hong Kong posted a signal 8 storm warning, saying it was likely to go higher, yet Macau’s government rated Hato only a signal 3 typhoon.

Chief executive Fernando Chui, at a news conference on Thursday evening, announced the resignation of Fong Soi-kun, director of the Meteorological and Geophysical Bureau.

New buildings benefited

Buildings on the Cotai Strip, dominated by properties operated by Las Vegas Sands, have been built in the last 10 years on streets much wider than those on the peninsula.

The Venetian Macao, Sands Cotai Central and the Parisian, all operated by Sands, and Wynn Palace are located along the Cotai Strip.

Govertsen said there is some concern that MGM Cotai, a $3.1 billion resort under construction by MGM Resorts International and due to open later this year, could be slightly delayed.

“While we don’t believe MGM Cotai experienced any worse damage than any other property in the market, the sudden surge in demand for construction labor could result in a slight delay for this project,” he said.

With worse damage on the peninsula, the companies most affected by the storm are MGM China, whose MGM Macau property was partially operational on Thursday, and SJM Holdings, controlled by longtime Macau casino owner Stanley Ho, whose Lisboa and Grand Lisboa properties have been closed.

Govertsen said Wynn Macau, located near the Lisboa, appeared to have more gaming space operating than other peninsula operators.

Results in Macau are important to the three local companies because a high percentage of revenue is generated by Chinese gamblers and tourists. Company stocks had mixed results Thursday.

Las Vegas Sands closed up 35 cents, 0.6 percent, to $60.24, then dipped 14 cents, 0.2 percent, to $60.10 in after-hours trading. MGM was up 23 cents, 0.7 percent, to $31.55. Wynn stock was down 65 cents, 0.5 percent, to $134.10, then gained 33 cents, 0.2 percent, to $134.43 after hours. Volume was light for all three companies.

The Review-Journal is owned by the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson.

Reuters contributed to this report. Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.

ad-high_impact_4
Business
Las Vegas, airlines prepare for CES
CES in January is expected to attract more than 180,000 attendees. (Las Vegas Review-Journal)
AGS partners with Vegas Golden Knights
AGS is the nation’s second-largest manufacturer of Class II slot machines used primarily in tribal jurisdictions. It announced a marketing partnership with the Vegas Golden Knights NHL team. (Las Vegas Review-Journal)
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like