Rising tourism lifts hotel occupancy for Sands and MGM

After several years of dismal growth during and after the Great Recession, tourism is on the rise, enabling casino resorts to raise room rates. The U.N.'s World Tourism Organization said in a recent report that global tourism rose 5% in 2013 to 1.09 billion visits, "well above expectations." WTO forecasts global tourism will rise another 4% to 4.5% this year.

Sands CEO Sheldon Adelson said at a press briefing in Singapore on Thursday the Marina Bay is running at 100% occupancy. On a bad day it's 98%, he said, adding "no other hotel in the world runs like this except some in Vegas." "We need more rooms."

Sands also operates casinos in Las Vegas, and competes with MGM and Wynn Resorts (WYNN) in Macau on China's southern coast, across the strait from Hong Kong. Total room revenue at Marina Bay Sands rose 11% to $360.3 million last year, Sands said in a recent earnings report.

Shares of Sands, which is on the IBD 50 list of top-rated stocks, edged up fractionally in afternoon trading in the stock market today.

Meanwhile, MGM's first-quarter hotel room rate is up 20.3%, to about us$ 140 per night, vs. the same quarter a year ago as more conventions on the Las Vegas Strip spur growth, Wells Fargo said. "Our proprietary Strip conference database suggests Q1 2014 (is) strong," Wells Fargo analyst Cameron McKnight said in the report, although he noted bookings show some weakening in the second quarter.

Las Vegas convention bureau figures show 70 new conventions will be hosted in the city this year. MGM was down 1% Thursday afternoon. Wynn rose.