Will the Virgin Airlines Bankruptcy Affect the Vegas Casino?

Will the Virgin Airlines bankruptcy affect the future casino in Las Vegas?

And you link to the new poll on timeshares is at the bottom of the answer.

“Zero-percent impact,” says Scott Roeben of Vital Vegas, who has followed the story closely. “This is more of a name-licensing deal than anything. Virgin has very little financial interest in this project, so there's zero chance of the bankruptcy affecting the new endeavor.”

He adds, “Circumstances may affect the opening timeline, but that’s not related to Virgin’s situation at all.” Recently, the new operators of Virgin Las Vegas cast a little doubt on sticking to the announced reopening in November.

Worst-case scenario, co-owners Bosworth Hospitality Partners, Juniper Capital Partners, and Fengate Asset Management can presumably cover Sir Richard Branson’s tab.

As for the delayed opening, chalk that up to Hilton Hotels. Virgin Hotel Las Vegas will be part of Hilton’s Curio Collection, which is announcing it for a January 2021 opening, several months past Virgin’s deadline. Although construction continued throughout the Coronavirus pandemic, delays go hand in glove with Vegas resorts. Besides, with Las Vegas business ramping up rather limply, it may be better economics to open later rather than sooner. There’s no point in rushing to market now.

The airline bankruptcy may have been overplayed. Delta owns 49 percent of Virgin Atlantic and is taking a deferment on Virgin’s capital obligations, so it doesn’t appear too worried. Also, hedge fund Davidson Kempner has advanced a $250 million loan to Branson. Everyone is hoping for a “recapitalization” next month.

In some bad PR for Virgin, railroad developer Brightline has dropped it as partner on a proposed route from Sin City to Apple Valley, 90 miles from Los Angeles. The project, which was supposed to be finished by 2023, had California state Treasurer Fiona Ma all gaga: “If they can get from Los Angeles to Vegas [by rail], no one is going to be driving or flying anymore.” The project has been seeking $200 million in Nevada state bonds, with another $600 million from the Golden State, the premise being to leverage $3.6 billion in construction funds. The cost of the entire project was pegged at $8.4 billion, so with or without Virgin, Brightline faces a heavy lift.

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Comments

Kevin Lewis Sep-02-2020

Marketing strategy

When the casino is built, they should advertise it as the ideal place in which to lose your Virginity.

rokgpsman Sep-02-2020

typo in last paragraph

"The project has been seeking $200 in Nevada state bonds, with another $600 million from the Golden State....."
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that should probably be written as "$200 million".

Deke Castleman Sep-02-2020

rok GP

Yes. $200 million is somewhat more than $200. Thanks for the eagle eye (and all your incisive comments). All corrected and much appreciated.

Jackie Sep-02-2020

Dang

and here I had just got together $200 in State Bonds.
Oops, my bad, they weren't Virgin bonds.

Question of the Day - 02 September 2020

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