Chintz thy name is …

Posted on August 22, 2009 by David McKee

… Harrah's Entertainment. We've just returned from the formal opening of Matsuri. The 8 p.m. show started at 8:16, due in no small part to the fact that the Imperial Palace had one usher working the entire showroom. One showroom. One usher. By the time a reinforcement showed up, the damage had been done. (Oh, and the cocktails there are awful. It's enough to give temperance a good name.)

The new Imperial Palace bartender.

Matsuri itself is very good, that rare show which gives real meaning to the baneful phrase, "high energy." It's like all the fun, acrobatic parts of a Cirque du Soleil spectacle minus the fey pretentiousness. Or, as the saying goes, "All killer! No filler!" (Really.) The only regrettable element is Matsuri's playing in a venue that's badly understaffed.

Harrah's Entertainment: Where the customer almost matters.

Posted in Cirque du Soleil, Current, Entertainment, Harrah's, The Strip | Comments Off on Chintz thy name is …

Colony Capital comedy

Posted on August 21, 2009 by David McKee

Having borrowed money to buy the Las Vegas Hilton five years ago at a dirt-cheap $200 million, Colony Capital — those financial wizards — borrowed $250 million more to retire the first loan. (Does Colony intend to pay off the second loan by taking out a third?)

At some point, Colony may have to start like, you know, paying down these loans … but not yet. It's extended the maturity on Loan #2 into 2011. The story (second item) is somewhat confusingly worded, but it sounds like Colony is down to its last extension. And the LVH is now losing money. Perhaps Colony should ring up Penn National Gaming and see if CEO Peter Carlino wants to talk "flip." It's still a classy property with a wealth of history and unbeatable proximity to the Las Vegas Convention Center. There are much worse deals to be had out there (*cough* Fontainebleau *cough*).

Also: LVH headliner Barry Manilow is reportedly mulling a leap over to Paris-Las Vegas, another augury of trouble for Colony. Manilow's departure would leave the LVH with some tight trousers to fill.

Another setback for Ed Ad. Its attempt to lease the southeast portion of its ex-New Frontier acreage to a "Dinner in the Sky" outfit (complete with a 160-foot crane) got the back of the hand from the Clark County Commission. Both Boyd Gaming and Wynn Resorts balked at the prospect of diners dangling high above Echelon and Wynn Las Vegas. However, there's some pretty freaky shit on the Strip already and this seems tame by comparison. God knows, it couldn't be worse than the lametastic "Sirens of T&A" or whatever Phil Ruffin's nautical titty show is called.

Posted in Boyd Gaming, Colony Capital, Fontainebleau, Harrah's, LVCVA, Penn National, Phil Ruffin, Plaza, Regulation, Steve Wynn | Comments Off on Colony Capital comedy

Abraca – OMFG!

Posted on August 21, 2009 by David McKee

Scarlett, Princess of Magic has settled into her new revue, Scarlett and her Seductive Ladies of Magic, which finally gives me a reason to encourage people to visit the Riviera. The video below is taken from Scartlett’s family-friendly V Theater show (long since closed) but many of the same tricks are reprised, on a bigger scale — and with far less clothing. Her instance, the one-piece has devolved into a ‘barely there’ red bikini. Make sure your pacemaker is in working order.

There’s some incredibly perfunctory toplessness from two assistants/dancers but it’s Scarlett who brings the sexy — and how! If this doesn’t work out, she’d make a formidable contestant on Dancing with the Stars, too. I’m no great judge of magic but Scarlett is definitely the most hot-cha Strip headliner not named Marie Osmond. In a classy gesture, Scarlett’s former presenter, David Saxe, was at the Riv last night amidst the well-wishers.

As for the Riv itself, corner-cutting is omnipresent, sometimes amusingly so. The post-Scarlett cocktail party featured but a lone plate of bruschetta and some cheese cubes. When they were (quickly) gone, they were gone. The Riv is just hanging on by its fingernails, even if it’s not fallen off the cliff yet.

Amazed. It looks like an open-ended run is assured for this afternoon comedy show, highlighted by guitar-playing impressionist Mark Rayburn. (After you’ve seen him, you’ll never take Gordie Brown seriously again.) Tickets are just a wee bit steep for a 2:30 p.m. show, but this is a winner, much better than certain comedy shows which I’ve seen and/or reviewed recently. I can’t recommend it too highly. My more extended impressions of Amazed and Scartlett are due for publication in the near future.

Buffet bulletin. No word yet on whether MGM Grand, Luxor, Excalibur or Stratosphere are reining in their all-day buffet specials. Ben Bernanke‘s confidence notwithstanding, optimism in Vegas should be tempered with caution … and price increases probably should not even be contemplated until those downward-trending visitation numbers start heading up for a change. One needn’t be an economist to see that Nevada’s recovery, when it happens, will be slow in coming.

The juice behind the juice. Could the speedy restoration of Privé‘s liquor license, following some cosmetic changes in management, have had another motive? Like maybe a precipitate dropoff in Planet Hollywood foot traffic? Xania Woodman reports, you decide.

Goliath gets a clean bill of health.

Goliath adopted? There’s a glimmer of hope that little Goliath may soon find a new home. Why then am I so melancholy?

Posted in Animals, Dining, Economy, Entertainment, Goldman Sachs, MGM Mirage, Pets, Planet Hollywood, Regulation, Riviera | Comments Off on Abraca – OMFG!

Illinois does it again; Storm over CityCenter

Posted on August 20, 2009 by David McKee

A new law in Illinois that legalizes video poker statewide may have some unforeseen consequences. Namely, video gambling at truck stops throughout the Land of Lincoln. This represents a much bigger expansion than was originally sold to the public. Whenever you think Illinois’ casino industry has finally hit bottom and might begin to recover from previous legislative sabotage, it gets pushed off yet another cliff. New casinos licenses may soon be available in Missouri (1) and Iowa (4-5). Riverboat operators in Illinois should seriously consider hoisting anchor and moving across the river.

CityCenter suit. This one alleges basically that MGM Mirage pumped and dumped its stock, and misrepresented its chances of funding CityCenter. The allegations may prove more entertaining than true but they will certainly make lively reading.

Wait Until Dark. If you prefer an evening at the theater to curling up with a lawsuit, you can’t go wrong with CSN‘s presentation of Frederick Knott‘s 1966 thriller.

Posted in CityCenter, Current, Economy, Entertainment, Illinois, Iowa, MGM Mirage, Missouri, Wall Street | Comments Off on Illinois does it again; Storm over CityCenter

Economic recovery in sight?

Posted on August 19, 2009 by David McKee

Vegas casino F&B directors seem to think so. From our trusty LVA research department comes word that The Orleans and Mandalay Bay are ending their one-price-all-day buffet specials. Better/worse still, Palace Station is hiking the price of its buffet — by four bucks. One doesn't know whether to applaud this apparent harbinger of better times ahead or deplore the swift yanking of the "Welcome" mat out from under customers' feet.

Contract talks with magician Lance Burton, you'll recall, went right down to the wire. One possible sticking point? Burton has lost his 10 p.m. slot, which as of today belongs to Frank Caliendo, who'll be doing a 9:30 p.m. show four nights a week.

Good move. Burton's family-friendly act seems an odd fit with the late-show crowd. Besides, Caliendo is on network TV regularly, which Burton isn't. Between this, recruiting musical act Zowie Bowie and rolling out Hotel32, Monte Carlo is making a spirited attempt to stay in the limelight, even as CityCenter looms larger and larger next door.

Study Hall. Just what Nevada needs, another "study" of the tax structure. What's to study? At least 27% of the tax base comes from gaming revenues, which have been in decline for 18 months. A comparable portion comes from retail sales, which have been down two entire years and counting. The problem is obvious but the will to rethink it is rather less in evidence. Here's a hint: We need a plan which is not simply another variant of "Soak the tourists."

Posted in Boyd Gaming, CityCenter, Dining, Economy, Entertainment, MGM Mirage, Monte Carlo fire, Station Casinos, Taxes | Comments Off on Economic recovery in sight?

Just what the doctor ordered

Posted on August 19, 2009 by David McKee

With Eastern Division President Carlos Tolosa calling it a day, Harrah's Entertainment is dispatching Atlantic City native Don Marrandino to try and turn things around out there. (No word on whether the Alizma triplets will accompany him eastward.)

Marrandino's portfolio will encompass far more than Harrah's quartet of A.C. properties but his entrepreneurial flair is something that the Boardwalk and Marina districts could sorely use. Gross profits were down 20% in 2Q09, with only Boyd Gaming's Borgata (+8%) bucking the trend.

S&G wishes Marrandino luck in his new assignment. He'll certainly be missed back here. One doesn't know what to expect from successor Rick Mazer, currently Harrah's top man in Indiana. Following an exponential expansion of Horseshoe Hammond, it's become The Casino That Ate Everybody's Lunch. However, the re-branded Horseshoe Indiana, at the southern end of the state, has been losing market share. Maybe taking the Caesars name off the place wasn't such a good idea, after all? Harrah's bought a brand (Horseshoe) with great equity but has mostly bumbled thereafter.

Did you know that the Greek Isles is a gold mine just waiting to tapped? So says a flack for the new owners, who enthuses, "Although the current environment in Las Vegas is challenging, the property’s exceptional location, as evidenced by its proximity to the proposed Convention Center expansion and recent hotel/casino developments on the north end of the Strip, should provide the new owners with significant upside potential through a redevelopment or repositioning of the hotel as the market recovers."

Yup, between stalled, bankrupt Fontainebleau and a proposed Convention Center addition (unlikely under current austerity budgets), the Greek Isles is a can't-miss investment. Where else can you see so many parking lots and garages from the comfort of your hotel room?

But seriously, folks … how did anyone ever get a $120 million appraisal (or an $83 million purchase price) on a hotel-cum-slot route that's losing over $1 million a year? If the Greek Isles were a dog, somebody would have put it down by now.

That half-assed wrap on the would-be-classy Mandarin Oriental has also drawn the attention of Steve Friess. And it turns out that The Rio isn't the only Harrah's property in Vegas badly needing a paint job, either. The Paris-Las Vegas balloon has seen better days, too. This sort of chintziness was only to be expected once Texas Pacific Group and Apollo Management got their claws into Harrah's, but nobody wanted to hear about it back in the day when the words "private equity" sent analysts and regulators into a delirious swoon.

Posted in Atlantic City, Boyd Gaming, CityCenter, Current, Economy, Fontainebleau, Harrah's, MGM Mirage, The Strip | Comments Off on Just what the doctor ordered

Privé: behind the juice; Chucky vs. Jaws; Wynn pages Scalia

Posted on August 19, 2009 by David McKee

Had the Nevada Gaming Control Board not come down upon Planet Hollywood like a hod of bricks, it's entirely probable that Privé would still be up to its scofflaw antics. That's because Clark County has a long history of looking the other way or, at most, administering the occasional love-tap on the wrist. But when Gaming Control lays down a half-million-buck fine, it's kind of hard for Clark County Manager Virginia Valentine's crew to keep their heads in the sand, pretending to be invisible.

Hence the revocation of Privé's license, quickly restored once the Titanic deck chairs were rearranged and the vessel rechristened the Lusitania. I feel much better now, don't you? (It should be noted that there's a sizeable constituency in Las Vegas that thinks the county and NGCB should turn a blind eye and laissesz les bon temps roulez. Hey, why don't we bring back bribery, too? If those officials are going to be ignoring the laws they're charged with enforcing, shouldn't they be compensated for it?)

Kudos to the ever-clever management of Cannery Casino Resorts. They've struck a deal with ESPN to allow simulcast of Monday Night Football on Galaxy Theaters' giant DMAX screen at the original Cannery. The festivities begin on Sept. 14 with a Bills/Patriots and Chargers/Raiders doubleheader. (OK, the nightcap sounds like a real dog, but MNF doesn't get the pick of the litter since moving to cable.)

A 60-foot-tall Terrell Owens? Scary! More worrisome still: Will egomaniac Jon Gruden hog the mike this season, elbowing aside co-analyst Ron Jaworski? Nobody breaks down a play like "Jaws" but will "Chucky" let him get a word in edgewise?

Steve Wynn must be getting a little apprehensive about how Labor Commissioner Michael Tanchek's long-running hearings on tip confiscation will play out. Wynn's benched the able Gregory Kamer, as well as Wynn Resorts' in-house counsel, in favor of Beltway attorney Eugene Scalia. And, yes, his dad is that Scalia. (Does anybody else think the Bush administration passed over Scalia Sr. for Chief Justice in favor of John Roberts because he — unlike Roberts — was too contentious to forge majority rulings? Just me? OK.)

Wait Until Dark (@ CSN) obtains tepid praise from the R-J. I saw it last Friday. What's my verdict? Tune in tomorrow!

There's only one Native American currently serving on the federal bench. Might Nevada make it two? Vito de la Cruz, S&G hopes you receive due consideration.

Economic parable: Once upon a time there were two thrift stores in my neighborhood. One, run by Catholic Charities, sold good merchandise. The other, Goodwill, peddled garbage. Guess which one went out of business? It's like the nonprofit version of the Walmart saga.

Posted in Cannery Casino Resorts, Economy, Entertainment, Planet Hollywood, Regulation, Sports, Steve Wynn, The Strip, Tribal, TV | Comments Off on Privé: behind the juice; Chucky vs. Jaws; Wynn pages Scalia

Goliath, by request

Posted on August 19, 2009 by David McKee

For those of you have been asking about Goliath, here he is during last Friday's visit to Mountain Vista Animal Hospital:

At the time, he was understandably shy and a little bit frightened …

… but on Monday he abruptly emerged from his shell and became quite gregarious. He's settling into foster-home life. Rascal, the resident male, has taken a paternal interest in Goliath and they've playing Hide & Seek, as well as curling up together. I do miss having Goliath around the office, though.

Posted in Animals, Current, Pets | Comments Off on Goliath, by request

Economic recovery in sight?

Posted on August 19, 2009 by David McKee

Vegas casino F&B directors seem to think so. From our trusty LVA research department comes word that The Orleans and Mandalay Bay are ending their one-price-all-day buffet specials. Better/worse still, Palace Station is hiking the price of its buffet — by four bucks. One doesn't know whether to applaud this apparent harbinger of better times ahead or deplore the swift yanking of the "Welcome" mat out from under customers' feet.

Contract talks with magician Lance Burton, you'll recall, went right down to the wire. One possible sticking point? Burton has lost his 10 p.m. slot, which as of today belongs to Frank Caliendo, who'll be doing a 9:30 p.m. show four nights a week.

Good move. Burton's family-friendly act seems an odd fit with the late-show crowd. Besides, Caliendo is on network TV regularly, which Burton isn't. Between this, recruiting musical act Zowie Bowie and rolling out Hotel32, Monte Carlo is making a spirited attempt to stay in the limelight, even as CityCenter looms larger and larger next door.

Study Hall. Just what Nevada needs, another "study" of the tax structure. What's to study? At least 27% of the tax base comes from gaming revenues, which have been in decline for 18 months. A comparable portion comes from retail sales, which have been down two entire years and counting. The problem is obvious but the will to rethink it is rather less in evidence. Here's a hint: We need a plan which is not simply another variant of "Soak the tourists."

Posted in Boyd Gaming, CityCenter, Dining, Economy, Entertainment, MGM Mirage, Monte Carlo fire, Station Casinos, Taxes | Comments Off on Economic recovery in sight?

Privé: behind the juice; Chucky vs. Jaws; Wynn pages Scalia

Posted on August 19, 2009 by David McKee

Had the Nevada Gaming Control Board not come down upon Planet Hollywood like a hod of bricks, it's entirely probable that Privé would still be up to its scofflaw antics. That's because Clark County has a long history of looking the other way or, at most, administering the occasional love-tap on the wrist. But when Gaming Control lays down a half-million-buck fine, it's kind of hard for Clark County Manager Virginia Valentine's crew to keep their heads in the sand, pretending to be invisible.

Hence the revocation of Privé's license, quickly restored once the Titanic deck chairs were rearranged and the vessel rechristened the Lusitania. I feel much better now, don't you? (It should be noted that there's a sizeable constituency in Las Vegas that thinks the county and NGCB should turn a blind eye and laissesz les bon temps roulez. Hey, why don't we bring back bribery, too? If those officials are going to be ignoring the laws they're charged with enforcing, shouldn't they be compensated for it?)

Kudos to the ever-clever management of Cannery Casino Resorts. They've struck a deal with ESPN to allow simulcast of Monday Night Football on Galaxy Theaters' giant DMAX screen at the original Cannery. The festivities begin on Sept. 14 with a Bills/Patriots and Chargers/Raiders doubleheader. (OK, the nightcap sounds like a real dog, but MNF doesn't get the pick of the litter since moving to cable.)

A 60-foot-tall Terrell Owens? Scary! More worrisome still: Will egomaniac Jon Gruden hog the mike this season, elbowing aside co-analyst Ron Jaworski? Nobody breaks down a play like "Jaws" but will "Chucky" let him get a word in edgewise?

Steve Wynn must be getting a little apprehensive about how Labor Commissioner Michael Tanchek's long-running hearings on tip confiscation will play out. Wynn's benched the able Gregory Kamer, as well as Wynn Resorts' in-house counsel, in favor of Beltway attorney Eugene Scalia. And, yes, his dad is that Scalia. (Does anybody else think the Bush administration passed over Scalia Sr. for Chief Justice in favor of John Roberts because he — unlike Roberts — was too contentious to forge majority rulings? Just me? OK.)

Wait Until Dark (@ CSN) obtains tepid praise from the R-J. I saw it last Friday. What's my verdict? Tune in tomorrow!

There's only one Native American currently serving on the federal bench. Might Nevada make it two? Vito de la Cruz, S&G hopes you receive due consideration.

Economic parable: Once upon a time there were two thrift stores in my neighborhood. One, run by Catholic Charities, sold good merchandise. The other, Goodwill, peddled garbage. Guess which one went out of business? It's like the nonprofit version of the Walmart saga.

Posted in Cannery Casino Resorts, Economy, Entertainment, Planet Hollywood, Regulation, Sports, Steve Wynn, The Strip, Tribal, TV | Comments Off on Privé: behind the juice; Chucky vs. Jaws; Wynn pages Scalia

Goliath, by request

Posted on August 19, 2009 by David McKee

For those of you have been asking about Goliath, here he is during last Friday's visit to Mountain Vista Animal Hospital:

At the time, he was understandably shy and a little bit frightened …

… but on Monday he abruptly emerged from his shell and became quite gregarious. He's settling into foster-home life. Rascal, the resident male, has taken a paternal interest in Goliath and they've playing Hide & Seek, as well as curling up together. I do miss having Goliath around the office, though.

Posted in Animals, Current, Pets | Comments Off on Goliath, by request

Reality check

Posted on August 18, 2009 by David McKee

It's sackcloth-and-ashes time at the Las Vegas Review-Journal, which ran another "The end is nigh" story about falling gambling revenues. (The Aliante Station Effect appears to have petered out in North Las Vegas.)

Yes, we're all the way down, down, down … to 2004 levels. If we take the Wayback Machine five years into the past, we find the Nevada Gaming Control Board reporting a 6% increase in revenue from June 2003. And June '04 was an "off" month for a year that was distinguished by double-digit growth in casino revenue.

Aliante Station: played out?

That same August, the cost of the MGM Mirage takeover of Mandalay Resort Group inched past the $8 billion mark. "[B]ut Wall Street analysts … said the merger still makes sense for investors and the combined company," wrote the R-J's Rod Smith. Weeks earlier, regulators signed off on the $1.3 billion Boyd Gaming/Coast Casinos merger; Station Casinos, Las Vegas Sands and MGM were all recording record-setting financial performances, and Harrah's Entertainment was girding itself for the conquest of Caesars Entertainment. Heck, the industry was feeling sufficiently bullish to absorb a 0.5% hike in the privilege tax. Read one headline, "State gaming revenue on a roll."

Had the industry lived within its means, today's narrative would be quite different. The Las Vegas Sun helpfully charts the inflation and collapse of the casino bubble, which lasted a good three years, peaking in October '07.

Unfortunately, when what went up eventually had to come down, some companies discovered themselves overexposed and with no margin for error. The likeliest victims, though, are the marginal, standalone properties which might find themselves squeezed out of existence as aggressive discounting by MGM and Harrah's brings quality Strip hotel rooms into the "affordable" realm (Or, as Phil Satre puts it, when the A-level product is priced below the B-level product.)

Valuable perspective is to be had by reading (or watching) this roundtable discussion with three men who dominated much of the gaming industry in the Nineties and early into the new century. Ex-Harrah's CEO Satre has earned the right to be a Monday morning QB. After all, he never did anything so stupid as strapping $30 billion in debt onto his company's back.

Former Station CFO Glenn Christenson seems deeply in denial at many points, though even he concedes, "It wasn’t so long ago that we hated conventions as an industry and now it’s critical to our operations. We’re severely damaged by that loss." But ex-Boyd prexy Don Snyder nails it when he describes "a false sense of security" pervading the industry, adding "I think we all got caught up in that."

2004, meet 2009, where "up" is the new "down."

Posted in Boulder Strip, Boyd Gaming, Current, Downtown, Economy, Harrah's, Marketing, MGM Mirage, Michael Gaughan, North Las Vegas, Station Casinos, Taxes, The Strip, Tourism, Wall Street | Comments Off on Reality check

Greek Isles sold, few care

Posted on August 18, 2009 by David McKee

Vegas' hardest-luck casino changed hands … again. Short of another irrational spike in off-Strip land valuations, Canpartners Realty Holding Co. IV LLC is never going to see its $67 million again. The Greek Isles is in a dead zone, a block too far north (being a block away from Encore doesn't do you any good if you're on the wrong side of the block) and two blocks too far east.

Ah well, kinda serves Canpartners right for lending $56 million against a property that was never worth but a fraction of that amount. And until Canpartners gets a gaming license and captures the casino revenue, instead of leasing out the space as a big-ass slot route, it might as well buy a Motel 6 instead.

Had enough? You'd think that after spending six of the last eight years being used as a doormat by the opposition, congressional Democrats would be saying, "It's payback time." Not yet. If anything finally gets their back up, it may (ironically) be a President whose desire for comity too often translates into giving the store away.

There are still a few crumbs left upon the table for those of us who are uninsured, afflicted with pre-existing conditions or laboring under onerous co-pays. But that'll probably be bartered away, too, and we'll be left at the mercy of people like this s,o.b. M.D. who says it's a "privilege" to be healthy. So I'm guessing he's not down with that Hippocratic Oath stuff, either, huh?

Hard Rock overextended. Having doubled down on its costly purchase of the Hard Rock Hotel & Casino, manager/minority owner Morgans Hotel Group finds itself playing for time with its lenders. Reinventing The Joint proves to have been a good idea; ditto the new convention space — both are helping to stave off catastrophe.

But it was sheer pigheadedness of Morgans to push ahead with not one but two new hotel towers amid declining ADRs and slippage in occupancy. When Boyd Gaming called a timeout on Echelon (partly due to partner Morgans' fecklessness), it should been a cue to "wrap" the megaresort-sized expansion of the Hard Rock, at least for the time being.

Posted in Boyd Gaming, Economy, Encore, Entertainment, Morgans Hotel Group, Politics | Comments Off on Greek Isles sold, few care

Goliath awaits

Posted on August 18, 2009 by David McKee

A reader asks: "Doth thou humble Fasolt not feel intruded upon? Or does he reside at home whilst you work?"

The latter. Fasolt's sheer preponderance, not to mention his total aversion to the litter box, militate against taking him anywhere. However, he loves people and used to "assist" me at Casino Executive Magazine on select occasions. He's also got the good people at Mountain Vista Animal Hospital (one of Vegas' greatest treasures) eating out of his paw. He gets a hero's welcome every time he boards there.

Goliath, meanwhile, has found a foster home, which means he will not be a pleasant distraction at work. The "Colony Capital strikes (out) again" post was written with tiny Goliath asleep on my right knee. In two weeks, he should be ready for adoption, although we'd like to make sure he's going to a good home. At a mere 7-8 weeks, he's far better disciplined than some of my adult cats.

Posted in Animals, Current, Pets | Comments Off on Goliath awaits

Colony Capital strikes (out) again; Big Bleauh

Posted on August 17, 2009 by David McKee

Despite taking a 22% gouge out of expenses, Colony Capital and its Goldman Sachs sidekicks managed to convert a 2Q08 profit to a $10.5 million 2Q09 loss. Revenues were down $30 million (or 40%), half of that from diminished room bookings. Could the service cuts be driving the revenue plunge? It wouldn't be the first time we've seen "death spiral" management be a company's undoing.

It's certainly interesting to see the bracing effect the recession has had on Vegas casino execs. They, who once took convention business for granted and looked upon conventioneers as less desirable than gamblers, have had a salutary wake-up call … hopefully not too late.

Colony also threw in the towel on Resorts Atlantic City, although it left CEO Nicholas Ribis behind to run the place. That means he will serve two Boardwalk masters: The Resorts mortgage holders and Colony, with whom he co-owns the Atlantic City Hilton and which Ribis has also been running (into the ground, some charge). What happens if it's in Resorts' best interest to steal business from the A.C. Hilton?

It's difficult to decide who was more foolish here: Colony, for borrowing 2.5X the value of a casino whose best days were behind it, or the bankers who secured $360 million in loans with a $140 million casino. Let the floggings commence!

Speaking of death spirals, when you can get an Imperial Palace room for $18 (as an acquaintance recently did), who'd stay in Mesquite? That exurb's travails continue drag Randy Black's oligopoly down with them. Scant competition appears to have bred slackness and complacency in the Mesquite and Primm markets. It may be mere coincidence that the competition-rich Laughlin market has suffered to a much lesser degree … but I don't think so.

Defaulted interest payments, renegotiated loan covenants, drawn-out cash reserves … these are some of the unappealing alternatives facing Planet Hollywood. No property's struggle is fun to watch but this one is sadder than most because there's been considerable reinvestment (and some stunning redesign) made to turn the ex-Aladdin into something viable. However, all Robert Earl's horses and all Robert Earl's men have come up a bit short.

Plummeting ADRs have precipitated this crisis and, although losses at Planet Ho have consistently narrowed (and continue to do so), this isn't the first time we've heard that Earl's place was really struggling. And, no matter what Earl does, his casino-hotel has intractable, customer-hostile design flaws that cannot be solved by any means short of implosion.

I've been given reason to believe that whoever ends up owning the physically and fiscally bloated ($4.4 billion, at latest count) Fontainebleau, it won't be Penn National Gaming (at least not unless it's free and clear, and presumably cheap — a tall order). If Steve Wynn has indeed already spurned F'bleau that'd leave Apollo Management, which never saw a bad casino investment it didn't like, and this one's nearly $1.8 billion underwater.

F'bleau would also give Master of the Universe Leon Black a de facto Harrah's Entertainment property on the north Strip, although Harrah's needs to fill thousands more hotel rooms like it needs a gaping hole in the noggin. Considering that it costs Boyd Gaming $3 million a month to keep Echelon on ice, preserving the F'bleau monstrosity until such time as new rooms can be absorbed seems a better use of capital than trying to finish the accursed thing.

Shakeup at Sands. Geez, you don't think executives on the chopping block could have anything to do with Genting Bhd's rival project getting ahead of slow-moving Marina Bay Sands, do you? Naaaaah! After all, the executive situation at Las Vegas Sands has been so very tranquil this past year. Just ask William Weidner … or Bradley Stone or …

Posted in Atlantic City, Boyd Gaming, Colony Capital, Current, Economy, Fontainebleau, Genting, Harrah's, Laughlin, Mesquite, Penn National, Planet Hollywood, Sheldon Adelson, Singapore, Steve Wynn, The Strip | Comments Off on Colony Capital strikes (out) again; Big Bleauh

Blogging and cats …

Posted on August 17, 2009 by David McKee

… do not mix well, as you can see:

Goliath, the one-pound, two-ounce kitten we rescued from the I-15 “on” ramp by Caesars Palace, is climbing all over Yr. Humble Blogger — as shown — and, more to the point, all over my computer keyboard.

Goliath has not, however, so much as paused on Joel Stein‘s controversial Time cover story (“Welcome to Fabulous Less Vegas”), thereby proving Rita Mae Brown‘s adage that a page upon which a cat will not deign to sit is probably not worth reading anyway. Goliath’s reign as LVA kitten-is-residence will be brief; a foster home has been arranged, pending his eventual adoption.

Posted in Animals, Current, Pets | Comments Off on Blogging and cats …

A reader responds

Posted on August 15, 2009 by David McKee

 "I'm conflicted: The Vegas Club casino is at least trying different stuff to drive business: Mechanical bull; 'Fetish pit;' Video blackjack; Internet access; Upgraded dining areas; Lobster catch machine, etc. …

"But: I wasn't interested in the fetish pit — I can't trust my back & heart to the bull — the Internet access costs too much for what you get — I want the snack bar &/or the coffee shop back, since I'm NOT a gourmand — I don't play blackjack anymore since I discovered video poker — and the lobster machine has no place in a casino + it's cruel.

"Far as I'm concerned, they should take care of the hotel. I've stayed there a number of times over the years, and the facility & service have continued to decline, year by year, under Tamares. (I come back sometimes because they comp me free hotel stays and $ cash payments @ check-in.)

"Overall, I think they'd do better to invest their money in routine maintenance + upgrades as needed to the LV Club & Plaza … and start paying attention to the low morale of their employees."

[Bobby Ray Harris, are you listening?]

Posted in Downtown, Tamares Group | Comments Off on A reader responds

Saving money? Buy the Trop!

Posted on August 14, 2009 by David McKee

If you're looking for a bargain on the Strip, what about buying the Tropicana Las Vegas? The Las Vegas Review-Journal found that Onex Corp. got $440 million worth of equity (or a 61% share) for a Filene's Basement price of $137 million. That would make the "street value" of the whole Trop $228 million, or $6.7 million an acre — a fifth of what Wall Street valued it at the peak of the Aztar Corp. feeding frenzy. Columbia Sussex won, Pinnacle Entertainment lost … and Pinnacle wound up being the lucky one, as ColSux toppled under insupportable debt.

The Trop's "paper" value would put it in the Treasure Island class, at $733 million. But you'd need an electron microscope to find the Trop's recent EBITDA, so nobody's going to pay Phil Ruffin-sized dollars for the place now. New owner Onex is a private equity firm that dabbles in real estate and sundry other industries. However, unlike some recent bunglers in the casino industry, Onex had the smarts to hire Alex Yemenidjian to head up its casino efforts, first in Illinois and now on the Strip. Compared to those private equity confreres who bought into the industry at its apogee, Onex's Trop move looks downright brilliant.

Posted in Alex Yemenidjian, Columbia Sussex, Current, Economy, Illinois, MGM Mirage, Phil Ruffin, Pinnacle Entertainment, The Strip | Comments Off on Saving money? Buy the Trop!

Tamares' animal cruelty

Posted on August 14, 2009 by David McKee

Man about town Steve Friess has all the gory details, plus video:

Now that new owners have actually made the ex-Tamares Group dump the Gold Spike actually rather spiffy and friendly, the Vegas Club now takes the wilted palm of being Downtown's most depressing casino. It's a no-frills, charmless grind joint, utterly devoid of atmosphere. Casino play, even on a Friday night, was desultory, as though the customers were so despairing they didn't care where they played.

The much-hyped "fetish" pit is a joke. It's tamer than any Britney Spears video and the costumes look like they were bought at a Halloween store. It's cheap — and not in a good way. The wife-beater-wearing female dealers at the Gold Spike are much, much sexier … some of the hottest in Vegas, if that's your thing.

The sports book, once the pride of the Vegas Club, has been turned into a pretty spacious showroom, but that's about the nicest thing you can say for the place. Downtown needs entrepreneurs but Tamares is content to be a slumlord.

Posted in Animals, Downtown, Marketing, Tamares Group | Comments Off on Tamares' animal cruelty

Saving money? Buy the Trop!

Posted on August 14, 2009 by David McKee

If you're looking for a bargain on the Strip, what about buying the Tropicana Las Vegas? The Las Vegas Review-Journal found that Onex Corp. got $440 million worth of equity (or a 61% share) for a Filene's Basement price of $137 million. That would make the "street value" of the whole Trop $228 million, or $6.7 million an acre — a fifth of what Wall Street valued it at the peak of the Aztar Corp. feeding frenzy. Columbia Sussex won, Pinnacle Entertainment lost … and Pinnacle wound up being the lucky one, as ColSux toppled under insupportable debt.

The Trop's "paper" value would put it in the Treasure Island class, at $733 million. But you'd need an electron microscope to find the Trop's recent EBITDA, so nobody's going to pay Phil Ruffin-sized dollars for the place now. New owner Onex is a private equity firm that dabbles in real estate and sundry other industries. However, unlike some recent bunglers in the casino industry, Onex had the smarts to hire Alex Yemenidjian to head up its casino efforts, first in Illinois and now on the Strip. Compared to those private equity confreres who bought into the industry at its apogee, Onex's Trop move looks downright brilliant.

Posted in Alex Yemenidjian, Columbia Sussex, Current, Economy, Illinois, MGM Mirage, Phil Ruffin, Pinnacle Entertainment, The Strip | Comments Off on Saving money? Buy the Trop!