Hornbuckle, Sternlicht send conflicting messages; Virgin is ailing

Add MGM Resorts International to the short list of Las Vegas hoteliers announcing reopening strategies. In a five-minute video presentation, CEO William Hornbuckle summarized many of the company’s charitable efforts during the crisis (bolstered by a $500,000 contribution from Dubai World). He promised changes to the look of the casino floors, the frequency of cleaning, the greeting of guests and to restaurants. Specifics were not to be had. “This is a completely uncharted path,” said Hornbuckle, who may be seeing how Wynn Resorts‘ extensive reopening strategy plays out (we find it reasonable but our readers respectfully dissent). He began and ended with advocacy of social distancing. How that will be enforced in a ‘reopened’ Las Vegas Strip remains to be seen but we’ll be following it with interest.

If it were up to Barry Sternlicht, late of the Riviera, we’d all be up to our own devices. The hotelier wants a future in which guests sign waivers (“like they would at any high-risk activity,” he laughed) to hold resorts harmless from, oh, let’s say contracting Covid-19. One of those dollars-over-people people, Sternlicht railed that “You have to look at the social cost against the human cost, which I know is awful … We have to get going. The cost is too great. The government can’t carry a $23 trillion economy.” While not as reckless as Georgia Gov. Brian Kemp‘s kamikaze reopening plan (starting with massage parlors), Sternlicht would see the economy brought back “zip code by zip code … There’s a financial suicide and a death of small businesses and restaurants and the economy and the global economy that has to be weighed.” His regimen for his Starwood properties would entail deep cleanings and guest-temperature checks, along with the aforementioned waivers, but mostly his message is: Reopen now!

A more helpful spirit was offered by Station Casinos and other operators who are keeping earned loyalty points on ice until such time (Dec. 31 in Station’s case) as they can be redeemed. Here’s a rundown of the each of the majors’ policies. The general sentiment might be summarized by Ocean Casino Resort, which stated, “Our guests will continue to be at the center of every decision we make.” Amen to that.

* More worrisome news for Virgin Hotel Las Vegas. Air-carrier affiliate Virgin Australia has entered bankruptcy, seeking new investors and—drum roll, please—owners. Unable to get a loan from Australia‘s government, the airline is staggering under $3.2 billion in debt. Meanwhile, Virgin Atlantic continues to pursue a government bailout in the United Kingdom. The dreaded private equity sector is said to be circling Virgin Australia like sharks drawn to chum. Despite having a 31% share of the Australian market, Virgin has turned only two profits in the last decade. Could Sir Richard Branson‘s empire be crumbling before our eyes?

* Though she may think otherwise, Las Vegas Mayor Carolyn Goodman can’t simply will Sin City’s economy back into vibrancy. The latest blow comes from the Life Is Beautiful festival, which has canceled its September convocation and will return in 2021.

* Congress has passed another $500 billion in economic relief, including replenishment of the depleted Paycheck Protection Program. Now let’s see how much gaming can get of the latter.