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Question of the Day - 12 February 2021

Q:

Every single local I’ve spoken with has not only nothing good to say about their experiences at Circa, but their experiences were SO bad that they’ve vowed never to return. (Like charging $10 just to take a picture of the stadium pool, charging $4/hr for self park, but only $15 for valet ... or enforcing a ridiculous dress code at the new Legacy Club.) Has Derek Stevens purposely decided to create an unwelcome property for locals or is he even aware of the backlash from locals? This is such a let-down.

A:

We answered a similar question in early September; it was about Circa's announced Strip-like room rates when the reservations system went into effect.

In that QoD, we wrote about owner Derek Stevens building the Circa foundation on the demand for high-end product at his two other downtown properties (The D and Golden Gate); Sin City's long tradition of setting unnaturally high prices when opening new properties; that Stevens has tried to create some must-see cachet and to subliminally convey the message that Circa is as good as anything on the Strip; and that the $850 million price tag has compelled him to generate as much cash flow as possible as quickly as he can, especially in the face of the current situation.

We continue to stand by these causes for the high-priced effect.

And if, in the process, Circa has become an "unwelcome property for locals," so be it. How many Las Vegans completely stopped going to the Strip between the time that the parking fees were instituted, then dropped due to the pandemic? Plenty, if not most, but we never heard that Caesars Entertainment or MGM Resorts regretted the move. Yes, the Wynn did, but that was under the highly extenuating circumstances at the time. Otherwise, the casinos that continued to charge for parking just kept padding their bottom lines with money collected from non-locals, who still flocked there in record-setting numbers. Out of towners who want a high-class experience -- on the Strip and at Circa -- will pay the price, while bargain hunters and locals won't. 

The question in our minds is, is Circa good enough? George Maloof made the same play with the Palms, calculating that a super-high-class off-Strip hotel-casino would siphon off enough of the Strip crowd to do well and at its peak, the Palms was making George a fortune ($50 million a year).

By contrast, as you state in your question, many locals, including one or two right here in our office, believe that Circa is a let-down, though it's undeniable that Stadium Swim is a valuable asset. On the other hand, when the post-pandemic crowds return to town, and they will, Circa could still be new enough, at least at first, or good enough in the long run, to command a premium.

Time will tell.

 

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Comments

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  • Bobby White Feb-12-2021
    Circa
    We are Vegas Vets, starting in 1997, over 50 trips, married there in 2001,stayed at Fitzgerals thru 2004, liked it but went to strip to improve comps, stayed mostly at Flamingo thru 2014 back downtown 2015 because of poor video poker.We have stayed at The D since 2015 & Mr Stevens has been generous giving wife & I 6 comped nights, but effective 2021 we only get 2, still get same food & gambling comps. Yes in the past comp nights were generous, but from 6 to 2 ?? His $$ he may do as he wishes, will stay at The D Feb 28-March 5, but will be playing & looking at other casinos.No hard feelings Derek we enjoyed & Thanks but as they say"it is not personal but it is business." Viva Las Vegas

  • Kevin Lewis Feb-12-2021
    It's a logical extension
    The casinos (who, though they have different corporate labels, act as one) found out some time ago that the gouge, gouge, gouge business model is actually a successful one. When they brought in 6:5 blackjack, paid parking, resort fees, and all the other bullshit, it was at first slow and tentative. Most casinos held their breath, waiting to see if the "pioneer" properties would do well. Then, when all the ripoffs didn't affect visitation and greatly inflated the bottom line, everyone else went along.
    
    Derek Stevens knows full well that Vegas tourists will open their wallets, bend over, and ask for more. Locals are a bit more reluctant to be had.

  • Luis Feb-12-2021
    Greed
    Te name of the game is Greed, I realy thought that Down Town property owners could and would understand that they have a great oportunity to win customers from the strip, ofering great entertainment, great rooms, great food, great gambling at their downtown joints, and som have done a fair job at it like the Golden Nugget, and some other places, parking is getting there, but, Circa?, wow, they are not getting it, they just want the big money upfront and they are willing to sacrifice their earnings future, locals, and many out of town visitors are willing to put up with ridiculous pricing for one stay, for the curiosity most of all, but after that, what happens?, I think the down town "prime" pricing and ridiculous charges are going to be the fall of Circa and the rest that try to follow their footsteps, even at strip places, they are seeing that for them to win back their customers they have to make an effort at making them more affordable

  • Teresa Harrison Feb-12-2021
    I'm Still Waiting for A Comp Room
    I spend enough money at the D and Golden Gate and as a result I receive pretty good comps for rooms, food and slot play.  I have spent some time at Circa and I haven't received a room comp yet.  The only offer I can get at Circa is a member's rate which is only $5-10 less than the published rates.  For instance, yesterday I quoted for one night on Feb. 28th $125/ for a king standard room. After taxes and resort fees I will end up paying $175/night.  Umm, I don't think so. I know the hotel is a new product but i'll just wait until I'm offered a decent room rate or room comp.  I vote with my wallet.  I'm certainly not going to pay $10 to gain entry to Stadium Swim to look around and take pics.  In my opinion, why not let folks go in and look around for free and have a limited area where they can view Stadium. Vegas tourism is down so why would Circa nickel and dime their patrons during these difficult times.

  • Hoppy Feb-12-2021
    Circa's Opening Day 
    Flew to Vegas for Circa's Opening Day and liked that all of my favorite slots were there. Have they stopped playing with the sound system? 

  • O2bnVegas Feb-12-2021
    Who is greedy?
    Devil's advocate here, chuckling at all the expressed angst about "greedy" casinos.  Aren't we all greedy?  We want a lot of something for very little.  Who thought Circa would be a bargain place?  I don't plan to visit Circa any time soon, but I wish them well, whomever they appeal to.  A rising tide floats all boats.
    
    Candy

  • Larry Stone Feb-12-2021
    Loud Louder Loudest
    I visited Circa the morning after the grand opening.  The loud thumping music plays over huge speakers in the ceiling.  I couldn't stay in the place more than 10 minutes because my eardrums started to hurt.  Did anyone else have this experience?

  • Dave Feb-12-2021
    WHY COMPLAIN
    I am not sure what the problem is. Downtown offers a ton of casinos within walking distance. The only people Circa are gouging are the ones driving in and paying exhorbitant fees to stay there. We are going late April, comped at the Plaza. We will go over and check Circa out, but I wont pay $12 for a beer if that is what they are charging. Other than that, we will leave and enjoy all else Downtown has to offer. 

  • Texas Transplant Feb-12-2021
    Want to see Circa, but...
    When I come out in the Spring, I am staying downtown an will visit Circa, just to see it.  I'll be walking so won't get dinged with parking fees.  99% sure i won't gamble or eat there.
    
    Jury is out on if it can keep up the high prices in the long term given the low priced, very friendly immediate competition. My guess, he will be able to keep it up for the next year or so.  There is a lot of pent up demand from people with cabin fever, once the vaccine is widely distributed I think that the flood gates will open and ALL of Vegas will be mobbed...for a while.
    
    Give it a year or so after that and we'll see how Circa is doing.  I can't blame them for trying.  When Starbucks first opened, and started selling $5 coffee, they successfully broke almost every existing business model.  
    
    The next 12-18 months will be interesting.

  • Jerry Patey Feb-12-2021
    Curca
    Regulars downtown sray there because of cheaper t
    Ratesvand better payback on machines   My guess is free 3`4 free night vouchers will pour out. I see nothing as to playable video poker. How much time do you spend in that 175 room. Stay at 4Queens and have extra 100 per day to run thru machines. If he does not join the crowd downtown the good look to him 

  • Adam Cohen Feb-12-2021
    Maybe I am looking at this wrong
    I think the question of Circa is location.  If it were a strip property little would be said. I am sure they did a lot of market research but to me the question again is location. I use to stay on the strip I stay downtown now more than the strip. I like the cheaper rooms the cheaper drinks and food and the better and cheaper gambling.  So now the question is will people looking for the strip experience be willing to go to a new location.  Staying on the strip is about the strip experience of walking in and out of amazing hotels and casinos. Amazing food and stuff to do all the time. Downtown is not that. it has Freemont street but during the day well it is not the strip.  I think it will be a hard sell for strip folks to move downtown but I did not do the research

  • Roy Furukawa Feb-12-2021
    Stevens will find a market
    I think there is a lot of out-of-towners that will frequent Circa. It's a cut below the Strip, but also less expensive. Strip hotels scoff at $25 bettors where that average bet would make you king downtown. Circa will find an audience because he's filling a demand in between the Strip and downtown.

  • James Mason Feb-12-2021
    vegas values
    stations has blown off locals for fpvp. AZ charlies has jumped on  it offering fp vp at both locations and just sent me free room offers for minimal play last dec as an out of towner. Sticking it to stations I think

  • Feb-12-2021
    Circa: What to expect
    About the comment by Teresa that she hasn't yet gotten a room offer from Circa: The general rule is that it takes 3 months before free-room offers occur, but it might take even longer with a hotel/casino that is larger or newer or spiffier. And I doubt that Circa will extend free-room offers to middle or low rollers, but only offer them to high rollers. So I don't think you should hold your breath. Circa will be patronized by people (maybe mostly from Southern California) who have "money to burn" and deem spending a lot of money on something to be a demonstration and reinforcement of the fact that they have a ton of money. They thus don't grimace when they pay too much, but smile. Some of them are guys who like sports, and so the supersize sports-book could lure them away from the Strip. Still others may have always been a bit desirous of staying downtown so that they could experience what downtown has to offer, but there never was a hotel as spiffy as Strip hotels. Now there is.

  • Teeye Feb-12-2021
    I Don't Get It
    Aside from being overpriced, Circa is,well, pretty boring. It's really got nothing to set it apart from any other casino. The entrance is supposed to evoke an exclusive club with the bouncers and ropes? The entire layout is weird. The annoying loud music,dancing dealers,dress codes? If they're trying to be the Playboy Club, they missed by a mile.

  • Vegas Insight Feb-12-2021
    No surprise
    I have yet to see Circa, and I will take a look whenever I am downtown next, but I don't expect to stay there. I'm a low roller. You don't buy tons of property, tear down the old, build brand new with tons of amenities and then cater to low rollers. So the strip-like prices for access and amenities is no surprise. 
    
    I stay at the Orleans quite often. I like having a pool area during warm fall months without the gimmicks and gouging. Circa has a strip-like pool. I don't want that. Therefore I have no need for Circa, or its higher prices. I like a clean, nice room, just like everyone else, but I don't need fancy rooms while on vacation. Owner downtown properties will fill that need when I stay downtown on future trips. 
    
    Will enough big spenders move over from the Nugget, or trade the strip for Circa? Maybe. It's amazing how much young people with cash, or older people with more cash, will pay for the greatest afternoon of their life at a urine-filled pool. We'll all find out. 

  • Thomas Chapman Feb-13-2021
    Nothing wrong with having a high-end property downtown
    I personally don't plan to spend that kind of money to stay at Circa, but it makes sense to have a premium property downtown for those who want it. The other options are still there.

  • Boomer 55 Feb-13-2021
    Thank you, Sir, may I have another?
    KL's imagery reminds of Animal House pledge abuse scene -- not unlike strip visitors/casinos relationships.  And Circa's the same for now. Charge what the market will bear.  We visited Circa the day they opened -- had our pics taken before the big screen ticker with date n Grand Opening announcement. Scanned vp schedules (Yuck!!), admired game viewing potential, priced a few drinks with confused waitstaff (bit too proud of your brews there, Senor Stevens), gladly provided ID at entry (loved this security n covid measure provided at all downtown casinos but sadly not on strip), speculated where VSIN setups would be located, and planned to return to Mr Palm's venue for a game or three.  Although, I expect a low roller will be treated better at the D's book or The Vue or any of a dozen different places downtown. Yes, time will tell.
    And yes, Candy, I must confess to the 2nd deadly sin on every trip to this valley since '86.