Las Vegas Sands reported fourth quarter and full year 2015 earnings results earlier today. The weak Asia market continued to weigh on results, with full year consolidated casino revenue down 25%.
In Las Vegas at the company's Venetian and Palazzo properties gaming revenue was flat in the fourth quarter. Non-gaming on the other hand was very strong again with rooms up 25% and food and beverage up 20%.
Sands reiterated the decision to raise the quarterly dividend by 10.8% from 65 to 72 cents per share starting in 2016. I said it before, but it's impressive the company is able to raise the dividend in the face of weaker Macau gaming revenue.
On the earnings conference call CEO Sheldon Adelson talked about the prospects of expanding to other markets, mentioning Northern New Jersey, Atlanta, Texas, Brazil, Japan, Vietnam, and Thailand among others as possibilities.
There was also some interesting chatter on the conference call that Wynn Palace might get delayed again, although this is obviously speculation. We'll have to keep an eye on the upcoming Wynn Resorts earnings results for more detail about that.
Wednesday, January 27, 2016
Thursday, January 21, 2016
Self check-in Kiosks at Caesars Properties
A recent LA Times article pointed out that several Caesars Entertainment properties have introduced self-check-in kiosks at their Las Vegas hotels.
The article praises the kiosks as a fast way to get into your room after a long day of traveling.
While this is a good point, and I generally enjoy using self-service kiosks (Alamo is my car rental agency of choice partially because they have kiosks) I'm a little wary of kiosks at hotels.
When you're in Las Vegas there are so many different room type options to choose from. Being able to schmooze the front desk agent (often with a $20 bill) can be your key to getting a better room.
With a kiosk I'm guessing your options will be limited. The kiosk will probably offer you an upgrade, but it will likely cost you much more than a single $20 bill. Also if you have a specific request or area of the hotel that you prefer - a kiosk might be less accommodating than an actual person.
We'll have to see if these kiosks catch on to the point of replacing front desk clerks entirely. That seems like a possible scenario, but I think the person-to-person interaction of a live desk clerk will still be an available option for the foreseeable future.
The article praises the kiosks as a fast way to get into your room after a long day of traveling.
While this is a good point, and I generally enjoy using self-service kiosks (Alamo is my car rental agency of choice partially because they have kiosks) I'm a little wary of kiosks at hotels.
When you're in Las Vegas there are so many different room type options to choose from. Being able to schmooze the front desk agent (often with a $20 bill) can be your key to getting a better room.
With a kiosk I'm guessing your options will be limited. The kiosk will probably offer you an upgrade, but it will likely cost you much more than a single $20 bill. Also if you have a specific request or area of the hotel that you prefer - a kiosk might be less accommodating than an actual person.
We'll have to see if these kiosks catch on to the point of replacing front desk clerks entirely. That seems like a possible scenario, but I think the person-to-person interaction of a live desk clerk will still be an available option for the foreseeable future.
Monday, January 18, 2016
Giada at The Cromwell Review
It was New Year's Eve and my wife and I were looking for a quick bite to eat for lunch. We were around center Strip and things were starting to get crowded. We decided to see if we could get a table at Giada.
Somewhat surprisingly the restaurant was fairly empty, and we were seated immediately by one of the attractive hostesses. As an aside, every staff member at the restaurant was good looking.
My wife had the Lemon Pesto Grilled Cheese with heirloom tomatoes, which she enjoyed greatly.
I had the Lobster Hash with marble potatoes, Nueske’s bacon, lobster meat, peppers, tomato, onion confit with sunny side up eggs and toast. It was good, but I would have liked more lobster for the $34 price tag.
The service was great and the view of the Strip was nice even from our table, which was not that close to the window. Located on the second floor, I found Giada to be a good place to take in a meal away from the hustle and bustle of the Strip.
Somewhat surprisingly the restaurant was fairly empty, and we were seated immediately by one of the attractive hostesses. As an aside, every staff member at the restaurant was good looking.
My wife had the Lemon Pesto Grilled Cheese with heirloom tomatoes, which she enjoyed greatly.
I had the Lobster Hash with marble potatoes, Nueske’s bacon, lobster meat, peppers, tomato, onion confit with sunny side up eggs and toast. It was good, but I would have liked more lobster for the $34 price tag.
The service was great and the view of the Strip was nice even from our table, which was not that close to the window. Located on the second floor, I found Giada to be a good place to take in a meal away from the hustle and bustle of the Strip.
Friday, January 15, 2016
MGM Parking Garage and Valet Fees Introduced
In a story first reported by Vegas Tripping back in October, MGM Resorts International today officially announced they will be charging "modest" parking fees at most of their Las Vegas properties.
The MGM Resorts press release announcing the fee is pretty vague, largely because the plans probably aren't finalized yet. It states "An overnight guest utilizing a self-park facility will pay $10 or less."
If I stay 5 nights does that mean I pay $10 or $50?
Free valet service will be going away as well, a move that pretty much had to happen to avoid abuse now that self parking isn't going to be free.
From what I can gather hotel guests will not be exempt from the parking fees, which is absolutely ludicrous considering they are already paying a resort fee that can top $35 a night.
As part of the new parking initiatives MGM will also be building an additional garage on the Excalibur property which will serve the new T-Mobile Arena. An arena parking garage has been called for by locals since day one, but I'm guessing they didn't know it would come with extra parking fees.
Las Vegas locals might actually be the biggest loser in all of this. According to the press release, "Las Vegas locals will be given a grace period for free parking after the program starts and can maintain their free-parking status by enrolling and earning privileges through M life."
Yep, pretty much a slap in the face to locals. Come sign up for our loyalty program and gamble and we might throw you a bone with free parking. Yuck.
The question now - will other hotels copy MGM's lead and start charging for parking, or will they see it as an opportunity to steal some of MGM's customer base by keeping parking free forever? I think it will be the latter.
The MGM Resorts press release announcing the fee is pretty vague, largely because the plans probably aren't finalized yet. It states "An overnight guest utilizing a self-park facility will pay $10 or less."
If I stay 5 nights does that mean I pay $10 or $50?
Free valet service will be going away as well, a move that pretty much had to happen to avoid abuse now that self parking isn't going to be free.
From what I can gather hotel guests will not be exempt from the parking fees, which is absolutely ludicrous considering they are already paying a resort fee that can top $35 a night.
As part of the new parking initiatives MGM will also be building an additional garage on the Excalibur property which will serve the new T-Mobile Arena. An arena parking garage has been called for by locals since day one, but I'm guessing they didn't know it would come with extra parking fees.
Las Vegas locals might actually be the biggest loser in all of this. According to the press release, "Las Vegas locals will be given a grace period for free parking after the program starts and can maintain their free-parking status by enrolling and earning privileges through M life."
Yep, pretty much a slap in the face to locals. Come sign up for our loyalty program and gamble and we might throw you a bone with free parking. Yuck.
The question now - will other hotels copy MGM's lead and start charging for parking, or will they see it as an opportunity to steal some of MGM's customer base by keeping parking free forever? I think it will be the latter.
Monday, January 11, 2016
Encore Player's Club
One of the narratives in Las Vegas news lately has been the premise that young people don't gamble. This has led to casinos trying different things to try to get young people interested in gambling.
Skill based slot machines are going to be hitting the floor in 2016. I think skill based machines are exciting and have lots of potential, but only time will tell if they actually catch on.
Another thing casinos are doing is to combine the casino with the nightclub. Last year The Palazzo introduced the Lavo Casino Club which essentially added a few table games to the restaurant and nightclub.
More recently Encore has introduced the Player's Club. This area off the casino floor is essentially a lounge with casino games alongside non-casino games such as pool and bar shuffleboard. Vital Vegas has posted a few photos of the Player's Club.
I think it's a good idea. If young people won't go to the casino, why not bring the casino to them. Someone might not want to seek out a casino gaming experience, but might play if a game is presented to them in a more relaxed environment.
Skill based slot machines are going to be hitting the floor in 2016. I think skill based machines are exciting and have lots of potential, but only time will tell if they actually catch on.
Another thing casinos are doing is to combine the casino with the nightclub. Last year The Palazzo introduced the Lavo Casino Club which essentially added a few table games to the restaurant and nightclub.
More recently Encore has introduced the Player's Club. This area off the casino floor is essentially a lounge with casino games alongside non-casino games such as pool and bar shuffleboard. Vital Vegas has posted a few photos of the Player's Club.
I think it's a good idea. If young people won't go to the casino, why not bring the casino to them. Someone might not want to seek out a casino gaming experience, but might play if a game is presented to them in a more relaxed environment.
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