Gaming revenue in Macau rose 26% in the first four months of the 2012, according to Macau's Gaming Inspection and Coordination Bureau. So it's not a surprise that the largest gaming and hospitality companies around the world are rushing to get a piece of the action. Las Vegas Sands
Waiting for your number to be called
Wynn Resorts
Fellow competitor Melco Crown Entertainment
Time to partner up
Marriott International
The hotelier needed this partnership even more than Galaxy; Marriott has found itself as the last man standing outside the most lucrative vacation destination in the world. Hilton, The Four Seasons, Starwood, and InterContinental Hotel Group's Holiday Inn are all on the Cotai strip after partnering with Las Vegas Sands. Marriott deciding to build the all-suite Ritz and largest JW isn't a surprise, either, considering Starwood's Sheraton Macau is not only the largest hotel in the city, but the company's largest hotel in the world. Marriott is arriving at the party late and needs to make a lasting impression when it arrives. This will put more pressure on not only the other hotel operators but also Las Vegas Sands.
Foolish take
Las Vegas Sands has a solid head start, but its frothy multiples may give investors reason for pause. Even after another great quarterly report recently announced by the company, because of the competition really heating up in Macau, I have to put Las Vegas Sands on hold until further notice. As a shareholder, I am fine with Sands holding steady for a while since the company now pays a dividend. If you're interesting in a few other companies worth holding onto with a solid dividend, check out this free report.