Las Vegas Sands To Build Paris-Themed Resort In MacauLas Vegas Company Planning $2.7 Billion Property |
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Asia Sands China Ltd., a subsidiary of Las Vegas Sands, has received approval from the Macau government to build a $2.7 billion Paris-themed resort in the Portuguese colony.
The Parisian Macao will have more than 3,000 rooms, 490,000 square feet of retail space and a 50 percent scale model replica of the Eiffel Tower. This will be the fourth casino resort in Macau for Las Vegas Sands and eighth overall. The company also operates the Sands Macao, and the Sands Cotai Central and Venetian Macao Resort on the Cotai Strip.
The news comes at an uneasy time for the world’s largest gambling market, which closed out 2014 with seven straight months of year-over-year gaming revenue decline. In total, Macau still brought in $44.1 billion in casino win, about four times that of Las Vegas.
As a result of the recent downturn, casino operators there have seen $75 billion in their market value wiped out, according to Bloomberg.
There were 35 casino properties in Macau in 2014, but that number is rising with the addition of Studio City, and the second phase of Galaxy Macau opening in late 2015, as well as Wynn Palace, which will join the Parisian Macao in early 2016.
The addition of nearly 13,000 hotel rooms creates a supply that might only be filled by reducing room rates and minimum bet sizes. That move might be in the best interest for the market, which in the past has been heavily reliant on junket operators to bring in VIP big-bet gamblers. There are nearly 220 junkets licensed in Macau.
The big six casino operators in Macau, which are SJM Holdings, Galaxy Entertainment, Las Vegas Sands, MGM Resorts, Wynn Resorts and Melco Crown, saw their shares fall by an average of 40 percent in 2014, according to the Wall Street Journal.
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