Colony Capital CEO Tom Barrack is back in the news and, as usual, not in a good way. His REIT has defaulted on $3.2 billion in loans secured by 157 hotel and healthcare properties. That’s three-quarters of his holdings. Prior to Colony’s collapse, Barrack had demanded that taxpayers infuse 
the financial sector with $500 billion in bailouts. Too late. Now Colony will have to tap its $1 billion cash on hand and $600 million credit line. Why does Wall Street keep lending to this boob? Perhaps because he’s got privileged access to the White House. He’s also a sexist, a boor and an enabler of terrorist states like Qatar. In case you’re a latecomer to our program, Barrack was one of the prime actors in the Great Casino Crash of 2008. His mismanagement cost the Las Vegas Hilton and Atlantic City Hilton their flags, cratered several other casinos in Atlantic City and Mississippi with reckless leveraging, and took his shareholders to the cleaners with a 72% stake in the Station Casinos LBO, a position that was completely wiped out when Station went bankrupt (as even an idiot should have seen coming). If you’re Barrack, what goes around keeps coming around … and around …
* Could Caesars Entertainment have flirted with a BYOB (bring your own bedsheets) policy? Someone window-shopping for Las Vegas Strip 
hotel rates reported the following on the Internet: “For example, when you go to Expedia‘s page for [Paris-Las Vegas], click on a room’s ‘More details’ link. A window opens – scroll down to ‘Need to know’ and you’ll see it: “bed sheets not available.’ This was on several strip hotel pages.” We went to the page in question and did not find any such disclaimer. Perhaps it was a trial balloon that got scrubbed due to adverse customer reaction. Who knows? We could understand such a precautionary impulse, if such there was, but asking Las Vegas tourists to bring their own, custom-fitted sheets seems like it might be one disincentive too many.
* Following a 60-day closure, Harrah’s Cherokee and its satellite casino will reopen May 18 in phased fashion. According to Harrah’s, “Areas such as the gaming floor, hotel and some restaurants, where social distancing 
can be practiced will be the first to open, with significant limitations on occupancy.” Spas, poker rooms, buffets and event centers will remain closed for the time being. In a novel twist, the reopening will be by invitation only, with small groups of customers receiving e-mails on May 13. “The number of invitations may increase over time as it becomes appropriate to do so.” This does not apply to members of the Eastern Band of Cherokee Indians, who will have free rein. Employees will wear masks, after having to pass a questionnaire and temperature check. Sounds like they’ve thought this through pretty carefully.
* Guess the Hawaii market isn’t a sure thing. Boyd Gaming‘s reopening plan conspicuously omits Downtown (undoubtedly much to Mayor 
Carolyn Goodman‘s chagrin). No Fremont Hotel or California Hotel or Main Street Station (and the non-Boyd Fremont Street Experience will remain quiet). But it will be business as usual at The Orleans, Sam’s Town, Aliante Hotel, Gold Coast, Suncoast, Eastside Cannery and Cannery. Explained CEO Keith Smith, “Those retirees [that] didn’t have a job before this started, don’t have a job now. They still have their income.” He expects locals business to be much as it was pre-Coronavirus. We’re not sure about the rush to reopen Eastside Cannery, as it is largely redundant with next-door Sam’s Town. Why not phase it back in?
Jottings: To raise cash, Penn National Gaming is issuing notes and selling shares, all to the tune of $500 million. Wall Street reacted adversely to the news … If you’re an employee of Venelazzo, you’ll have to be tested for Covid-19 before you can return to work. The good news is that Las Vegas 
Sands is extending salaries until reopening “sometime in June.” “I know that you would all like to get back to work as soon as possible. Please continue to be patient. There is a light at the end of the tunnel,” wrote property President George M. Markantonis … VitalVegas author Scott Roeben snagged a Wynn Resorts internal memo that reads, “Not set in stone and certainly subject to change, but we are pushing for and prepping for a reopening date of 5/26. Full property including all restaurants.”
Tom Barrack was in charge of the Trump Inauguration, and they raised 107 million dollars yet only spent a small fraction of it on activities… I have zero confidence that the Justice Department under Bill Barr is interested in where all that surplus money went, although Barrack personally promised a “complete accounting”, of course he did not produce one… When someone acts untrustworthy with money, expecting that person to be trustworthy with money is dumb…
Colony Capital: Before the AC Hilton lost its Hilton license, I wondered why former President Clinton was a part of their “speaker series”, rather than one of AC’s much larger casinos. I didn’t go for the $100 per person to listen to Clinton.
Neither would we.
The LV and AC Hiltons were both reputable (well maintained and respected under former PPE ownership) hotels that fell pretty hard under his stewardship. Sad.