Your Daily Asia Gaming eBrief: Luxury hotels weighing down the IR?

Thursday 9th of June 2022

Good Morning. Many of Asia’s integrated resorts also boast a stable of luxury hotel brands. It helps the IRs cater to a wider variety of budgets and tastes and gives the hotels almost guaranteed access to high-end clientele. But are they really a necessary part of the IR make up and who gets the most benefit? Ben Lee, managing partner of IGamiX Management & Consulting, argues the scales are marginally tipped in the hotel groups’ favor.

What you need to know

26 Capital Acquisition Corp appears to be pushing on with its planned merger with Okada Manila despite the recent boardroom takeover by Japanese pachinko billionaire, Kazuo Okada.
Japan’s government has denied reports that it is studying a draft law to expand legal sports betting.

On the radar

Macau government curbs gaming revenue expectations.
APE announces Konami installations at COD Macau, Mocha Clubs.
Oaktree Capital buys Interblock, says will help fuel growth.
More than 90% of Wynn Macau management opted to accept stock for pay.

AGB Intelligence

DEEP DIVE

Brand-name hotel portfolio not always in casino IR’s favor

Many of Asia’s integrated resorts boast a wide range of hotel options, but does having the big name global brands bring an operator an advantage? Not necessarily so, argues Ben Lee, managing partner of IGamiX Management & Consulting.The relationship between the name recognition that luxury hotels confer and the downside of high internal transfer costs is a delicate one and it’s a business model that some are now eschewing.