Harrah’s CEO seeks to bring Caesars Palace to Macau

27.12.2009, Macau.- Harrah’s Entertainment Chairman and CEO, Gary Loveman, wants to bring the Caesars Palace brand to Macau, China, as the world’s biggest casino company seeks new markets for growth. Harrah’s has held exploratory talks there and will likely hold more in the future, Loveman said in an interview.

Entering the market would require working with an existing operator because the government limits the number of licenses to six. “There’s nothing immediately active that could lead us there,” Loveman said. “We’ve made it very clear we would like to see the Caesars Palace brand in Macau. We certainly recognize there are six licensees, and somehow or other it has to fit through that lens.”

Harrah’s is also looking to expand in other parts of Asia, and in Massachusetts and Ohio, Loveman said. Macau, the only part of China where casinos are legal, is the world’s largest gambling hub, and Las Vegas Sands Corp., Wynn Resorts Ltd. and MGM Mirage already have a presence. The territory, once ruled by Portugal, overtook the Las Vegas Strip in 2006, after China ended a 40-year monopoly held by billionaire Stanley Ho.

“We need to try to bring our footprint into markets that are appealing to us,” Loveman said. “We are not a one- or two- city company, we are a system of brands distributed to as many people as possible, so we need to continue to expand.”

Harrah’s, owner of four properties in Atlantic City, New Jersey, and seven on the Las Vegas Strip, including Caesars Palace, will seek to open a casino near Boston if Massachusetts allows gambling, Loveman said. Harrah’s bid successfully in September for a racetrack near Cleveland, where slot machine- style gambling is set to become legal. “I am unaware of any contact with Harrah’s about Macau,” said Alan Feldman, a Las Vegas- based spokesman with MGM Mirage, joint owner of the MGM Grand Macau with Pansy Ho, daughter of casino billionaire Stanley Ho.

Spokespeople at other Macau casino operators, including Galaxy Entertainment Group Ltd., SJM Holdings Ltd.,Sands China Ltd. and Wynn Macau Ltd. weren’t immediately available for comment. Maggie Ma, spokeswoman for Melco International Development Ltd., owner of a stake in operator Melco Crown Entertainment Ltd., was also unavailable.

Gambling revenue in Macau rose more than 6 % in the first 11 months of this year, Portuguese news agency Lusa reported December 1, citing casino operator data. Las Vegas is battling a two-year slump, its worst on record.

MGM Mirage operates in Macau through a venture with Pansy Ho. In addition to Wynn and Las Vegas Sands, the others include Melco Crown Entertainment Ltd., Galaxy Entertainment Group Ltd., and Stanley Ho’s SJM Holdings Ltd., all based in Hong Kong.

Leon Black’sApollo Management LP and TPG Inc. took Harrah’s private for us$ 30.7 billion including debt in January 2008. Amid the credit crunch, the casino company exchanged existing bonds for smaller amounts of new securities, lowering long-term debt to us$ 19.3 billion at June 30 from us$ 23.1 billion at the end of 2008.

Now Loveman is buying Planet Hollywood Resort & Casino, having purchased some of the property’s debt at a discount. “If you were to start building it today it would cost an awful lot of money,” Loveman said. “We can do much, much better with it than a standalone operator could do.”

The Planet Hollywood brand will be kept to appeal to younger visitors in the company’s 40 million-customer database. A public offering of Harrah’s is likely in the future, though isn’t being discussed now, Loveman said.

Yogonet.com / Bloomberg

Über Caesars Palace:

Das Caesars Palace ist ein Hotel und Casino in Las Vegas USA. Es ist im Stil eines antiken römischen Palastes errichtet.

Das luxuriöse Hotel am Las Vegas Boulevard besitzt 3'348 Gästezimmer und Suiten. Säulen, Statuen und Wasser-Fontänen prägen das Erscheinungsbild. Das im Hotel integrierte Spielcasino belegt eine Fläche von etwa 12'000 Quadratmeter. Die Forum Shops, ein grosses Einkaufszentrum mit exklusiven Geschäften, und ein Schwimmbad-Bereich mit vielen Säulen und Marmor gehören zu dem Komplex.

Caesars Palace is a modern wonderland of luxury and excitement and is widely recognized among the world's greatest hotels. Located at the heart of the world famous Las Vegas Strip.In addition, Caesars Palace is home to the Garden of the Gods, a 4.5-acre pool complex and a world-class 22,000 sq. foot fitness center and spa.

The Forum Shops at Caesars and The Appian Way are two extraordinary collections of exquisite stores, restaurants and family entertainment set in an ancient Roman marketplace. While the hotel itself features 8 restaurants onsite, The Forum Shops offer another 14 restaurants, as well.

Das Casino gehört zu Caesars Entertainment. Caesars Entertainment Inc. wurde 1937 als Harrah's gegründet und wurde 2010 in Caesars Entertainment umbenannt. Besitzer sind die Investment-Firmen Apollo Global Management, TPG Capital und The Blackstone Group.

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