{"id":25115,"date":"2019-10-16T06:45:11","date_gmt":"2019-10-16T14:45:11","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=25115"},"modified":"2019-10-16T06:53:14","modified_gmt":"2019-10-16T14:53:14","slug":"bellagio-circus-circus-sold","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/bellagio-circus-circus-sold\/","title":{"rendered":"Bellagio, Circus Circus sold"},"content":{"rendered":"

Back on Sept. 17 we reported that MGM Resorts International<\/strong>\u00a0was dickering with Blackstone Group<\/strong> to sell the latter Bellagio<\/strong> \"\"and MGM Grand<\/strong>. Well, the Green Monster got left out of the transaction but MGM’s most iconic property will change hands, for a king’s ransom. They say everything is for sale for the right price and, in Bellagio’s case, that price was $4.2 billion plus 5% equity<\/a> in the house of dancing water. Blackstone, which had been peddling The Cosmopolitan of Las Vegas<\/strong>, now finds itself a buyer rather than a seller (although unloading the Cosmo would free Blackstone from the cost of operating it). Under the terms of the deal, MGM will continue to run Bellagio (Why not?) for $245 million a year.<\/p>\n

As for the motivation, maybe this is CEO Jim Murren<\/strong>‘s revenge on the\u00a0venerable<\/p>\n

Steve Wynn<\/strong> megaresort that continued to outshine Aria<\/strong>, Murren’s $4 billion pride and joy. Alluding to his $10 billion Osaka<\/strong> pipe dream, Murren sounded decidedly snooty about \"\"mere casinos, saying,\u00a0\u201cThat [Osaka] is a better use of our capital resources than the traditional gaming model.\u201d Added<\/a> the Wall Street Journal<\/em>, “Among the potential new business areas Mr. Murren cited were sports, sports betting, entertainment and a presence in Japan<\/strong>, which recently legalized casino gambling in a handful of locations.” Real estate committee Chairman Paul Salem<\/strong> put a much different spin on the deal, telling CNBC<\/strong>,\u00a0\u201cWe want to make sure\u2014if and when the next recession comes\u2014we have a fortress balance sheet … This transaction will certainly make people realize what the value of Las Vegas<\/strong> assets is.\u201d He downplayed the role of REITmaniac and board member\u00a0Kevin Meister<\/strong> in the spate of deals, saying “we were on this path anyway.”<\/p>\n

In a busy day, MGM also offloaded Circus Circus<\/strong> to “an associate of Phil Ruffin<\/strong>” (Donald Trump<\/strong>?) for $825 million. \"\"That implies an annual cash flow of $117 million, given that Ruffin drives a hard bargain, although his friend may have paid an upcharge for all the underdeveloped real estate that comes with the clown casino, which teeters between icon and eyesore. MGM did not rule out still further asset sales, which ought to put underperforming MGM Springfield<\/strong> in the hot seat. Still, Murren’s self-described “Osaka first” strategy risks stripping the cupboard bare in return for a very chancy Japanese presence. But that’s why they pay him the big bucks.<\/p>\n

*\u00a0Macao<\/strong> has reported 3Q19 numbers and first the good news: Mass market revenue was up 18%. The bad news? All-important VIP winnings were in a 22.5% tailspin. Mass-market play continues to grow (40% over the past two years) while VIP action languishes (-19.5%). Growth-restricted table games were 2.5% greater in number while slot floors grew 1%.<\/p>\n

* Caesars Entertainment<\/strong> is rolling out a Golden Knights<\/strong> reward card. Win 20 tier credits any Sunday in November and you too can whip out your Caesars Rewards<\/strong> card with the NHL<\/strong> team’s logo.<\/p>\n","protected":false},"excerpt":{"rendered":"

Back on Sept. 17 we reported that MGM Resorts International\u00a0was dickering with Blackstone Group to sell the latter Bellagio and MGM Grand. Well, the Green Monster got left out of the transaction but MGM’s most iconic property will change hands, … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[244,66,171,62,53,112,245,119,74,32,9],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/25115"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=25115"}],"version-history":[{"count":2,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/25115\/revisions"}],"predecessor-version":[{"id":25118,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/25115\/revisions\/25118"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=25115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=25115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=25115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}