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Originally posted by: VegasWatcher
Sheldon Adelson really seems to be putting his eggs in the convention basket, and the overseas market. Bloomberg has a report that he's asking Singapore for more land (to expand his Sands Macau, not for gambling but convention space!), AND he's in serious discussions with Spain to open a mini-Vegas strip there, presumably with a casino but also with plenty of convention space. Sheldon made his money in conventions--he was the founder of Comdex.
Here is the link: https://www.bloomberg.com/news/2011-02-17/adelson-asks-singapore-for-more-land-as-6-billion-resort-runs-out-of-room.html
That strategy might work well for LVS foreign properties, but a shift to a primary focus on conventions in Las Vegas in a way that alienates a rather large segment of prior customers who stayed at the properties and were loyal as to dedicating their gaming dollars to those properties is a gamble in itself. As has already been expressed, it is as if the casinos at V/P are being treated like they are an inconvenient but necessary amenity.
Having been involved in convention organization for a rather small collector's annual meeting in Las Vegas, I know how lucrative conventions are to host casino/hotels. A group wanting guaranteed space for however many days must include expected/guaranteed blocks of paid for rooms at a rate that is higher than what can be found elsewhere for the same rooms at the same property. My own experience involves a need for about 25,000 feet of meeting space for 3 days, + a bit of extra time for setup and tear down. Tell the host casino your group will book 700 room nights at a rate twenty or thirty percent above the rates available to anyone on the hotel's website for the same nights, and the host hotel will rent you the space you need, and require minimum catering expenses that will total $25,000-$30,000 or more. This is contractual money guaranteed by the convention organizers. The room nights reserved at the inflated convention rates cannot be comped back to you at the end of the stay. They are treated like third-party bookings. For conventions that require less space, some organizations will agree to guaranteed room blocks at double the standard rates to keep the costs of upfront space and catering cost requirements lower. It is a lucrative business for casino/hotels in a strong economy. In a weak or depressed economy, there will be fewer conventions. That's when the casinos need customers with a verifiable gaming history occupying their rooms. Not reaching out to them at every level during these difficult economic times is a mistake IMO.
