Here's an excerpt from an article by Liz Benston (Casino Times, Dec. 2004). As you can see, some high-end casinos (Bellagio and Venetian flatter each other with continuous reciprocal imitations) are increasing profits in Vegas by getting beacoup bucks for rooms. Both Wynn and Adelson are entrepreneurs and Adelson has demonstrated that posh spots in Vegas can make lots off the rooms. In Macau you see a different focus from Adelson (mega profits from gambling with an approximate cash flow of $1 million per day), so it's not personal. BTW when Wynn opens in Macau I expect to see a similar philosophy; Wynn, Adelson and Ho have the Macau licenses. Harrah's has a Singapore license, but that's a different story.
From Benston's article:
Some of the industry's skepticism centered on the fact that Adelson, who founded the Comdex computer trade show in the 1980s, wasn't a casino operator. Adelson sold Comdex to a Japanese company for $800 million in 1995.
"We recognized that he'd make money selling rooms to convention customers mid-week," said Duane Krohn, chief financial officer of the Riviera hotel and casino. "What we didn't know is whether he'd be able to make it on the casino end."
The Riviera, located near the Las Vegas Convention Center, has operated a convention center for 20 years and built its newest convention area about five years ago, Krohn said. The property sells up to 35 percent of its rooms to convention customers.
The Venetian was a different animal from anything that came before, however, he said.
"It was a matter of whether he could build that large of a facility and get a premium (room) rate," Krohn said. "And when you hook it into a casino, you have high paying convention guests who normally don't gamble as much. You have to be able to juggle that mix between the gambling people and the convention people. He's just a lot better at it than we were. And if you can charge enough (for rooms), it doesn't matter."
Convention and other large groups accounted for 39 percent of rooms sold at the Venetian in 2003, with 116 show days and 894,000 visitors at the adjacent Sands Expo Center, according to the company's annual report. Average room rates were $204 per night and midweek occupancy -- driven by convention-goers -- was 94.2 percent compared with 81.6 percent for the Strip as a whole.
Adelson never shied from controversy. He criticized competitors and took on the Las Vegas Convention and Visitors Authority and the powerful Culinary Union -- two groups that had enjoyed long-term support from casinos up and down the Strip.
In a long-running public debate, Adelson accused the LVCVA of having an unfair competitive advantage over privately run convention centers because its Las Vegas Convention Center was financed with public funds.
The Venetian filed suit against the Las Vegas Convention and Visitors Authority in 1999 and twice more in 2000, alleging that the board violated state law when it financed an expansion of its Las Vegas Convention Center with $150 million in revenue bonds. The LVCVA considered filing suit against the Venetian, blaming the company for delays in building the Convention Center's 1.3 million-square-foot South Hall expansion. But the agency later backed off.
Adelson has also criticized the LVCVA for being slow to promote a town that was rapidly shifting from a gambling haven to a resort destination known for entertainment, shopping and dining. Adelson said the LVCVA's ads at the time focused on attracting low-budget customers but should have appealed more to high-end visitors.
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