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Monaco Casino Owner Reveals 5% Boost From Grand Prix
发布时间:2019-08-06 13:05:38来源:安博电竞下载-手机app客户端软件点击:23

  Monte-Carlo Société des Bains de Mer (SBM), the leisure operator which owns Monaco’s flagship casino, has revealed that it makes 5% of its annual revenue from the Formula One race which snakes through the streets of the tiny principality.

  This year’s Monaco Grand Prix will take place at the end of next month and will bring with it a crowd of around 100,000 for race day. It is more than three times Monaco’s population of 31,109 so it has a huge impact on the state. The total economic impact for Monaco is understood to be around $105 million (100 million) and as SBM is the state’s largest company it is one of the biggest beneficiaries.

  “Approximately 5% of our total annual revenue stems from the four days of the Grand Prix,” says Axel Hoppenot, SBM’s executive vice president of sales and marketing. According to SBM’s latest results, in the year to 31 March 2014 its revenue rose 11.4% to a five-year high of $649.7 million (472.5 million). Although 5% of this is $32.5 million, the F1 contribution refers to rooms and food and beverage revenues only as income from gaming is harder to predict. Revenue from rooms and food and beverage comes to approximately $275 million annually putting the 5% at around $13.8 million.

  In 2010 alone the H?tel de Paris took $2.8 million in revenue over the Grand Prix period with a total of 3,400 room nights sold at SBM’s four hotels and 20,000 covers sold in its 32 restaurants. This may sound like a lot but it takes far more than that to keep SBM ticking over every year.

  One of the biggest tricks up the company’s sleeve is exclusivity as it has a monopoly concession to run Monaco’s casinos until 2027. SBM was founded in 1863 with the opening of the casino which was the first in Europe. Its profits grew so great that Prince Charles III, the great-great-great-grandfather of Monaco’s ruling monarch Prince Albert, was able to abolish all taxation on Monaco’s citizens. They now stretch from celebrities, such as Sir Roger Moore and Shirley Bassey, to business luminaries like Easyjet founder Sir Stelios Haji-Ioannou.

  SBM is the biggest employer in Monaco and last year had 4,137 staff. They help to maintain some of the state’s most historic assets. It owns an 18-hole golf course, opera house, tennis club and three other casinos in addition to its flagship. Last year SBM had capital expenditure of $109.5 million and it is a challenge to keep its wheels turning and generate this kind of cash.

  Mr Hoppenot says that SBM used three strategies to boost its revenue to the record it achieved in 2014. The first is to “innovate in the offering, distribution, communication channels, digital marketing, training.” The second is to “open new markets. Europe still accounts for the majority of the turnover. UK and France especially have remained strong providers this year in this area. Russia and its republics, the US, the Middle East, Turkey, Brazil are the most active markets outside of Europe.”

  Finally he says that SBM decided to “invest constantly in the product.” It is no exaggeration.

  The H?tel de Paris is currently being given one of the most extensive refurbishments in its 152 year history and it will take another three years to complete. There will be no changes to the famous fa?ade of the hotel, which sits on Casino Square and resembles a cream-coloured wedding cake. However, behind the scenes it will be a different story.

  “The number of suites will increase at the H?tel de Paris (representing 40% of the inventory instead of 32%), including a rooftop villa with its own swimming pool,” says Mr Hoppenot. “Another pool will be created on the roof, offering an exclusive service to the hotel guests. The rooms will all be larger than 42 square meters, a courtyard will be created, new boutiques will be added and the latest technologies will be implemented.”

  A new courtyard lined with palm trees will be created in the center of the hotel giving an oasis of calm in a city which is crammed with condominiums, casinos and banks. It will complement the hotel’s most famous features including Alain Ducasse’s three-Michelin starred Louis XV restaurant and the vaulted lobby with its centerpiece statue of Louis XIV’s horse which is rubbed on the knee by gamblers hoping for good luck.

  “What makes the legend will remain: the lobby, the American Bar, the Louis XV and the Empire Room,” says Mr Hoppenot. There is a lot at stake.

  SBM is investing more than $650 million in the renovation of the H?tel de Paris and a neighbouring shopping complex known as the ‘Sporting d’Hiver’. Earlier this year the company raised $240.7 million of this by selling more than 6.3 million of its shares which are traded on Paris’ Euronext exchange at a market capitalisation of $673 million.

  The Monegasque State holds 69.5% of SBM’s share capital making it as close as you can get to investing in royalty. It is jealously guarded.

  In 2008 the Qatari Diar real estate investment company, a unit of one of the most aggressive sovereign wealth funds, launched a bid for 30.4% of SBM’s stock. The offer represented a 31% premium on the share price before it was announced and valued the business at $1.4 billion.

  However, SBM issued a press release saying that the price offered was “insufficient” and didn’t reflect “in any way the company’s real value.” It added that it would only support Qatari Diar’s offer if it was limited to 10% of SBM’s capital. Qatari Diar walked away from the deal and now holds just over 6% of the stock. It evokes the end of a similar battle in the 1960s which saw Greek shipping magnate Aristotle Onassis securing a majority stake in SBM only to be forced into minority ownership by Prince Albert’s late father Prince Rainier who issued 600,000 new shares and passed a law to make them non-transferable.

  Monaco is so steeped in this kind of history that around a decade ago it had begun to symbolise a bygone era of Bond and baccarat. SBM took drastic action to shake off this greying image and it had to literally think outside the box to do it.

  At under two square kilometres the state is small enough to fit into London’s Hyde Park and it only takes a few moments there to see that it has a space problem. Indeed, lack of space is so acute that in 1999 Monaco’s railway station was relocated underground to permit the construction of 150,000 square metres of buildings above.

  With no construction space left in the state, SBM was unable to open a new hotel for 75 years but this changed in 2005 when the giant glass revolving doors at the entrance to the $218.5 million Monte Carlo Bay hotel began to turn. The 334-room resort was built on 10-acres of land reclaimed from the azure waters of the Mediterranean and it is unlike any other hotel in the area.

  The soaring structure looks like it would be more at home in Las Vegas than on the Riviera. Belle époque balustrades have been replaced by a more minimalist Art Deco style dripping with glitzy touches. It has Europe’s first sand-bottomed swimming lagoon and a fountain choreographed to classical music. Crucially, its casino has no table games.

  With an average rate of just over half the $546 charged by the H?tel de Paris, the Bay has helped to drive down the average age of SBM’s guests. Mr Hoppenot says that “the 35 to 45 segment is picking up, mainly driven by the younger generation that makes more money earlier in life in fast growing markets.”

  He adds that “if you consider the room revenue, individuals represent 75% and groups 25%. Individuals are mainly leisure. Groups are mainly business.”

  SBM’s revenue is roughly split evenly between gaming and hospitality. Last year its hotels generated 49% of the revenue rising by 6.8% to a five-year high of $259.3 million. Gaming rose 18.1% to $285.9 million and both are to track to repeat the trick this year as SBM’s results for the three quarters to 31 December 2014 showed $178.9 million coming from gaming with hotels contributing $217.8 million.

  The bottom line is not so rosy as SBM hasn’t made an operating profit since 2010 when it came to $12.7 million. The cost of running and maintaining historic assets is a hurdle to profitability and the investment in the H?tel de Paris will raise this bar even higher before it pays off. However, Mr Hoppenot says that the biggest challenge for SBM is even more home-grown.

  “It is ourselves. The market is huge. It’s up to us to stretch ourselves, create, innovate, provide an even better service to a demanding clientèle that have seen everything and still need to be surprised. The new projects on Casino Square and a new shopping experience are going to be the next big opportunities to differentiate and add to the Monaco offering, thus contributing to the attractiveness of the principality.”

  Another boost may be on the horizon for SBM as the state is currently selecting tenders to reclaim a six hectare stretch of coast which will cost $1.1 billion and will be packed with apartment blocks, banks and a port with between 30 and 40 berths. It is a helping hand which could give SBM more space for expansion. Times may change in Monaco but the state’s support of SBM does not.

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  This year’s Monaco Grand Prix will take place at the end of next month and will bring with it a crowd of around 100,000 for race day. It is more than three times Monaco’s population of 31,109 so it has a huge impact on the state. The total economic impact for Monaco is understood to be around $105 million (100 million) and as SBM is the state’s largest company it is one of the biggest beneficiaries.

  “Approximately 5% of our total annual revenue stems from the four days of the Grand Prix,” says Axel Hoppenot, SBM’s executive vice president of sales and marketing. According to SBM’s latest results, in the year to 31 March 2014 its revenue rose 11.4% to a five-year high of $649.7 million (472.5 million). Although 5% of this is $32.5 million, the F1 contribution refers to rooms and food and beverage revenues only as income from gaming is harder to predict. Revenue from rooms and food and beverage comes to approximately $275 million annually putting the 5% at around $13.8 million.

  In 2010 alone the H?tel de Paris took $2.8 million in revenue over the Grand Prix period with a total of 3,400 room nights sold at SBM’s four hotels and 20,000 covers sold in its 32 restaurants. This may sound like a lot but it takes far more than that to keep SBM ticking over every year.

  One of the biggest tricks up the company’s sleeve is exclusivity as it has a monopoly concession to run Monaco’s casinos until 2027. SBM was founded in 1863 with the opening of the casino which was the first in Europe. Its profits grew so great that Prince Charles III, the great-great-great-grandfather of Monaco’s ruling monarch Prince Albert, was able to abolish all taxation on Monaco’s citizens. They now stretch from celebrities, such as Sir Roger Moore and Shirley Bassey, to business luminaries like Easyjet founder Sir Stelios Haji-Ioannou.

  SBM is the biggest employer in Monaco and last year had 4,137 staff. They help to maintain some of the state’s most historic assets. It owns an 18-hole golf course, opera house, tennis club and three other casinos in addition to its flagship. Last year SBM had capital expenditure of $109.5 million and it is a challenge to keep its wheels turning and generate this kind of cash.

  Mr Hoppenot says that SBM used three strategies to boost its revenue to the record it achieved in 2014. The first is to “innovate in the offering, distribution, communication channels, digital marketing, training.” The second is to “open new markets. Europe still accounts for the majority of the turnover. UK and France especially have remained strong providers this year in this area. Russia and its republics, the US, the Middle East, Turkey, Brazil are the most active markets outside of Europe.”

  Finally he says that SBM decided to “invest constantly in the product.” It is no exaggeration.

  The H?tel de Paris is currently being given one of the most extensive refurbishments in its 152 year history and it will take another three years to complete. There will be no changes to the famous fa?ade of the hotel, which sits on Casino Square and resembles a cream-coloured wedding cake. However, behind the scenes it will be a different story.

  “The number of suites will increase at the H?tel de Paris (representing 40% of the inventory instead of 32%), including a rooftop villa with its own swimming pool,” says Mr Hoppenot. “Another pool will be created on the roof, offering an exclusive service to the hotel guests. The rooms will all be larger than 42 square meters, a courtyard will be created, new boutiques will be added and the latest technologies will be implemented.”

  A new courtyard lined with palm trees will be created in the center of the hotel giving an oasis of calm in a city which is crammed with condominiums, casinos and banks. It will complement the hotel’s most famous features including Alain Ducasse’s three-Michelin starred Louis XV restaurant and the vaulted lobby with its centerpiece statue of Louis XIV’s horse which is rubbed on the knee by gamblers hoping for good luck.

  “What makes the legend will remain: the lobby, the American Bar, the Louis XV and the Empire Room,” says Mr Hoppenot. There is a lot at stake.

  SBM is investing more than $650 million in the renovation of the H?tel de Paris and a neighbouring shopping complex known as the ‘Sporting d’Hiver’. Earlier this year the company raised $240.7 million of this by selling more than 6.3 million of its shares which are traded on Paris’ Euronext exchange at a market capitalisation of $673 million.

  The Monegasque State holds 69.5% of SBM’s share capital making it as close as you can get to investing in royalty. It is jealously guarded.

  In 2008 the Qatari Diar real estate investment company, a unit of one of the most aggressive sovereign wealth funds, launched a bid for 30.4% of SBM’s stock. The offer represented a 31% premium on the share price before it was announced and valued the business at $1.4 billion.

  However, SBM issued a press release saying that the price offered was “insufficient” and didn’t reflect “in any way the company’s real value.” It added that it would only support Qatari Diar’s offer if it was limited to 10% of SBM’s capital. Qatari Diar walked away from the deal and now holds just over 6% of the stock. It evokes the end of a similar battle in the 1960s which saw Greek shipping magnate Aristotle Onassis securing a majority stake in SBM only to be forced into minority ownership by Prince Albert’s late father Prince Rainier who issued 600,000 new shares and passed a law to make them non-transferable.

  Monaco is so steeped in this kind of history that around a decade ago it had begun to symbolise a bygone era of Bond and baccarat. SBM took drastic action to shake off this greying image and it had to literally think outside the box to do it.

  At under two square kilometres the state is small enough to fit into London’s Hyde Park and it only takes a few moments there to see that it has a space problem. Indeed, lack of space is so acute that in 1999 Monaco’s railway station was relocated underground to permit the construction of 150,000 square metres of buildings above.

  With no construction space left in the state, SBM was unable to open a new hotel for 75 years but this changed in 2005 when the giant glass revolving doors at the entrance to the $218.5 million Monte Carlo Bay hotel began to turn. The 334-room resort was built on 10-acres of land reclaimed from the azure waters of the Mediterranean and it is unlike any other hotel in the area.

  The soaring structure looks like it would be more at home in Las Vegas than on the Riviera. Belle époque balustrades have been replaced by a more minimalist Art Deco style dripping with glitzy touches. It has Europe’s first sand-bottomed swimming lagoon and a fountain choreographed to classical music. Crucially, its casino has no table games.

  With an average rate of just over half the $546 charged by the H?tel de Paris, the Bay has helped to drive down the average age of SBM’s guests. Mr Hoppenot says that “the 35 to 45 segment is picking up, mainly driven by the younger generation that makes more money earlier in life in fast growing markets.”

  He adds that “if you consider the room revenue, individuals represent 75% and groups 25%. Individuals are mainly leisure. Groups are mainly business.”

  SBM’s revenue is roughly split evenly between gaming and hospitality. Last year its hotels generated 49% of the revenue rising by 6.8% to a five-year high of $259.3 million. Gaming rose 18.1% to $285.9 million and both are to track to repeat the trick this year as SBM’s results for the three quarters to 31 December 2014 showed $178.9 million coming from gaming with hotels contributing $217.8 million.

  The bottom line is not so rosy as SBM hasn’t made an operating profit since 2010 when it came to $12.7 million. The cost of running and maintaining historic assets is a hurdle to profitability and the investment in the H?tel de Paris will raise this bar even higher before it pays off. However, Mr Hoppenot says that the biggest challenge for SBM is even more home-grown.

  “It is ourselves. The market is huge. It’s up to us to stretch ourselves, create, innovate, provide an even better service to a demanding clientèle that have seen everything and still need to be surprised. The new projects on Casino Square and a new shopping experience are going to be the next big opportunities to differentiate and add to the Monaco offering, thus contributing to the attractiveness of the principality.”

  Another boost may be on the horizon for SBM as the state is currently selecting tenders to reclaim a six hectare stretch of coast which will cost $1.1 billion and will be packed with apartment blocks, banks and a port with between 30 and 40 berths. It is a helping hand which could give SBM more space for expansion. Times may change in Monaco but the state’s support of SBM does not.