Finding Room at the Inn
I've long been wondering how well the large casino resorts are doing at convincing people to stay the night? A recent Macau Business news story provided some statistics that - when re-crunched - might help us find out. The numbers are a bit rough, but reveal some interesting factoids. Grab your pencils!
The number of people who stayed overnight in Macau in July was 654,999. They stayed on average 1.5 nights, or, multiplied, stayed 982,498 room nights. Now if you calculate the number of room nights available in July by each property, and divided the 982,498 demand by their gaming share (as a proxy for room share) you get the following:
|Total Rooms||July Inventory||Gaming Share||Share of Demand||Demand per Supply|
What sticks out most is that 1.6 ratio for the Sands. Mostly this is due to their massive 3000 room Venetian Macau. The figures show they may be having trouble filling it in a growing market, and maybe below the 82.2% capacity average for hotels of that type in Macau. More troubling is what happens if you factor in the soup-to-nuts of hotels and guesthouses throughout the SAR that are not included in this study. This is demand for all hotels in Macau.
Finally, "Visitors" in the statistic are counted as individual room reservations. If the Venetian is using a true head count as their metric - averaging double occupancy - Venetian's numbers look even more worrisome.