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twitterM Resort chief: Vegas gaming industry in ‘survival mode’
Friday, May 1, 2009 | 1:55 a.m.
Sun Archives
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Beyond the Sun
Map of M Resort
M Resort
12300 S. Las Vegas Blvd., Henderson
M Resort founder Anthony Marnell III offered a sobering economic outlook for Las Vegas on Thursday -- and harshly criticized banks that received government bailout money and then turned against struggling borrowers.
Marnell spoke during a luncheon of the National Association of Minority Contractors Nevada Chapter at his resort in Henderson.
"Las Vegas is facing some unbelievably challenging times," he said. "The availability of credit and capital is going to continue to contract."
"The hope for mega projects is gone for quite awhile," he said. "The banks have all they can take of Las Vegas."
He said consumer spending drives the Las Vegas economy and until consumers have the money and want to spend it, economic conditions here will remain difficult.
"The stark cold reality we are in, is we are in survival mode," said Marnell, whose resort opened in March.
In his industry, hotel room rates are at levels last seen in 1999 and 2000 -- levels too low to support the industry's capital investment, he said.
In this environment, everyone will have to make do with less, he said.
"Everyone's going to have to chip in. From my position all the way down to the laborer on the job. It means a reduction in wages for guys like me and a reduction for guys in the union hall," he said.
And having sustained huge losses, banks are going to exert greater control over projects they lend to and may dictate key decisions about capital expenditures.
"There are going to be a lot of new partners at the table who will put handcuffs on the operators," he said.
He urged business people to focus on their core product, and keeping their core people employed; and that in planning they should not anticipate an economic turnaround anytime soon.
"The key to success is to survive. It takes a view of realism," he said.
Asked whether companies should engage in new green building initiatives, Marnell said that for him, that's not a core product.
"I believe in the green movement," he said. But in the case of the M Resort, it didn't make economic sense to have it built to LEED green building energy-efficiency standards, he said.
"I can't afford it even though I know it's the right thing to do," he said. "How can you drive a business on that when I can't afford to pay for it?"
Marnell also said he was happy that the CityCenter project obtained its construction financing and is hopeful the Fontainebleau will obtain the final funding it needs.
Marnell said he's outraged that banks accept government bailout money, "and then turn around and foreclose on our properties."
He said he had called the governor and Nevada's senators to express concern over this and urged other business people to do the same.
Marnell said he's a capitalist, but felt compelled to speak out because the nation crossed a line when it bailed out the banks and now the banks need to respond in kind.
"They're taking our dollars and putting their fingers in our chests," he said.
Discussion: 12 comments so far…
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The Sun
Locally owned and independent for more than 50 years.
Federal bailout money should have been given directly to individual taxpayers but that would have made too much sense, and in Washington common sense is nowhere to be found!
Very impressed with the M. The Marnells sure know how to do it right. Loose slots right now, too. Now if the state or city or whoever can speed up the work on St. Rose Pkwy, I will go to the M more often. The drive from Black Mountain to M is a royal PITA, and I'm sure M is losing money because of the work. And you sure don't want to drive to M late at night to avoid traffic, since the overpaid Henderson Gestapo is waiting for you....
nednougat: Is that all you have to complain about - how difficult it is for you to get to a casino to gamble? If so, lucky you.
Yes, Ruby777, that IS all I have to complain about. Worked and saved my whole life, now I don't have to work. So why don't you do something about St. Rose Parkway? It's not easy driving the convertible on a congested under- construction road. Life is good otherwise....
I lived in Vegas from 1999 to 2003.I have to say I loved the whole experience. Something has changed. I can't put my finger on it because I am back in New Jersey looking from a far.
I don't know where to start.1st of all, I loved those themed park hotels. Now every thing is glass with little or no style. The service except for a few has fallin off the map, u know what I'm trying to say it's just different. I want my old 1990's Las Vegas back. I mean just take a look at what they did to the Hard Rock Hotel. I thought it was so Miami the 1st time I went their and now they managed to turn it into a glass office building. Enough said, catch my drift? For those of u who stil live there just hold on for a miracle.
OK...NOW TELL US SOMETHING THAT THE WHOLE WORLD DOES NOT KNOW! WHAT A WASTE OF INK!
I am sure that the Marnell family knows that retirees are just one group of their clients. These people have put their hands in their pockets and don't plan on pulling them out until they believe that the value of thier homes go back up.
To bad Marnell couldn't convince his political friends that until equity goes back up on retirees homes .. people won't be spending a lot of money...
Gaming in this town has bought into the home builders illusion that more is better.
They should have known that workers in the home building industry never made enough money to support 'local casinos', they could barely support the girls at PT's.
I would rather have a community with 500 workers with disposable income ... rather than a community with a 1,000 workers with no money to spend
Hey wannabe1indc,
What gives you the right to tell people what to write about? I don't think the whole world knows about all the problems in Las Vegas.I happen to know because I get my info on line. The last time I checked this was a free country and I'll write or say what ever I want!
Biggaryy77 is right, all the best properties have abandoned their themes and are cookie cutter copies of one another, if they're all pretty much the same who (what tourist) needs more than one?
I remember hearing about a decade ago how this trend was to make Vegas tourism less family oriented and more adult oriented to better draw gamblers. Bad focus group results, we adults who drop our savings in Vegas by the billions ARE children and visit for that them-park-for-grown-ups experience.
Good service is still there, the little things, that's what keeps me coming back over and over, the waitress that gets my tea re-filled before it gets empty, the spa worker that brings me a juice while I'm in the hot-tub, the bartender that helps me get a cab, the maid that notices how I like the bed made.
PLEASE do not let the titans of this industry loose sight of the quality workers that keep the wheels on despite their never ending miss-steps.
Fed bail-out dollars sent to big wealthy banks? Poorly advised, if it keeps happening and they hoard it and bonus-line their pockets long enough I'll meet you down there, you bring the torches & I'll bring a couple pitchforks. But that's another news item.
I'm sorry things are getting tough there...
Vegas, you'll make it!
I'm countin' on it!
See you on my next visit, there'll be a little extra money in the tip.
Certainly tough economic times in Las Vegas. Houses are cheaper than ever, but people are not coming because there are no jobs.
The M is beautiful, and I have been there several times. I watched (and wagered) the NCAA tourney there, and at the time if you were betting in the sports book you could get drinks.
I went back last week, and they now give 1 drink ticket per $50 dollar wager. Wow, what a change, and certainly has changed my choice of venue.
I enjoyed going there watching a few games, then moving to the casino floor.
My wife and I lived in Las Vegas from October 1st 2005 until April 25th of 2008. We were fortunate in that we both had good jobs from the time we got there until we left. We saw the good & bad in Vegas but we had a blast and would not change a thing if we had to do it over again. I remember the Stardust closing, The Westward Ho closing, and The New Frontier closing. Good memories especially of the Stardust and New Frontier plus you could actually win there once in a while. The Wynn casino is great and the service is top notch. Good Luck Las Vegas we are pulling for you and also our condolences for the Loss of Danny Gans, A true entertainer.
Getting good reports from those experiencing the M Resort with regard to very friendly, helpful and professional restaurant/bar service personnel while pricing is considered very reasonable relative to competitors.