Melco Crown Entertainment Ltd (ADR) (MPEL): Don’t Expect This Company to Slow Down

On the other hand, MGM Resorts International (NYSE:MGM), with its $2.6 billion investment into the Cotai Strip, is expected to open its second casino resort in Macau in mid-2016. The new resort will include 1,600 hotel rooms, 500 gaming tables, and 2,500 slot machines, where about 85% of the gross floor area would be reserved for non-gaming activities. With its smaller land area in the Cotai Strip, MGM is aiming for quality and for entertainment and shows to boost traffic.

While both Wynn and MGM Resorts International (NYSE:MGM) are joining the party late in the Cotai Strip, their development focus collude with the Macau government’s goal to diversify the region away from gaming. On the down side, as the growing trend continues to shift away to mass market, investors may want to put Wynn and MGM on their watch list to see if both can compete with other mass market focused competitors.

Bottom line

For investors, Melco is a solid bet to benefit from its strong Cotai Strip presence with continuous development of City of Dreams and upcoming Studio City. With a growing mass market and recovering VIP revenue, as well as improving transportation, Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) is on the way to continuous revenue growth despite increasing competition.

The article Don’t Expect This Company to Slow Down originally appeared on Fool.com and is written by Nick Chiu.

Nick Chiu has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Nick is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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