{"id":7308,"date":"2011-08-12T08:50:14","date_gmt":"2011-08-12T16:50:14","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=7308"},"modified":"2011-08-12T08:50:14","modified_gmt":"2011-08-12T16:50:14","slug":"hilton-worse-than-it-looks","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/hilton-worse-than-it-looks\/","title":{"rendered":"Hilton: worse than it looks"},"content":{"rendered":"

\"\"In the cold light of day (i.e., Chris Sieroty<\/strong>‘s Review-Journal<\/em> coverage), the situation at the Las Vegas Hilton<\/strong> appears still more dire … if such a thing is possible. Remember that roughly a third of the LVH is owned by a Goldman Sachs<\/strong> subsidiary? And guess who’s holding the note that Colony Capital<\/strong> restructured once and may do so again? Goldman Sachs Commercial Mortgage Capital<\/strong>, that’s who. No wonder that lender Goldman has shown such patience with owner Goldman’s lack of solvency. At least Colony’s Tom Barrack<\/strong> has managed to grab one major creditor by the short hairs. It’s quite a day when the thing keeping you out of Chapter 11 is your co-owner’s conflict of interest.<\/p>\n

To belabor the obvious, what’s keeping the LVH’s lights on is the hotel’s convenience as a “dormitory” for conventioneers. Room nights accounted for 40% of net 2Q11 revenue, While F&B comprised another 30%. What’s missing from that picture? Casino dollars, that’s what. It was the casino’s third-place revenue generator, down $2 million and coming in just behind F&B. When the casino is bringing up the rear, especially at a property of that size, it doesn’t augur well for long-term viability.<\/p>\n

\"\"Singlehandedly, the LVH lost<\/strong> over three times as much last quarter ($8.9 million vs. $2.7 million) as did all of Tropicana Entertainment<\/strong>. That’s pretty impressive, whichever way you slice it, considering that owner Carl Icahn<\/strong>‘s sizable casino portfolio consists of mostly second- and third-tier houses, some of them in pretty hard-hit markets. Icahn’s Lake Tahoe<\/strong> and Laughlin<\/strong> casinos got roughed up sufficiently to account for two-thirds of the loss — and that’s before taking Atlantic City<\/strong> in account! Bottom line<\/em>: Icahn knows who to run casinos and Colony doesn’t.<\/p>\n","protected":false},"excerpt":{"rendered":"

In the cold light of day (i.e., Chris Sieroty‘s Review-Journal coverage), the situation at the Las Vegas Hilton appears still more dire … if such a thing is possible. Remember that roughly a third of the LVH is owned by … 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":[23,82,3,14,81,76,49,9,21,38],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/7308"}],"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=7308"}],"version-history":[{"count":1,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/7308\/revisions"}],"predecessor-version":[{"id":7309,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/7308\/revisions\/7309"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=7308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=7308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=7308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}