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twitterMGM Mirage loses $750M as CityCenter’s value drops
Company maintained room occupancy levels, but with lower rates
Ulf Buchholz
A view of MGM Mirage’s CityCenter along the Las Vegas Strip.
Published Thursday, Nov. 5, 2009 | 6:17 a.m.
Updated Thursday, Nov. 5, 2009 | 9:53 a.m.
MGM Mirage Financial Information
| 3Q 2009 | 3Q 2008 | % Change | 2Q 2009 | |
|---|---|---|---|---|
| Revenue | $1.533 billion | $1.785 billion | -14% | $1.5 billion |
| Net income | ($750.4 million) | $61.3 million | N/A | ($212.6 million) |
| Net income per share | ($1.70) | 22 cents | N/A | (60 cents) |
Beyond the Sun
With its CityCenter resort set to open, MGM Mirage today reported a loss for the third quarter as revenue fell on the Las Vegas Strip -- but also said its results are improving in the fourth quarter.
"We continue to show sequential improvement in our operating results over the course of 2009,'' Chairman and Chief Executive Jim Murren said in a statement.
MGM Mirage lost $750.4 million, or $1.70 per share in the third quarter vs. a profit in the year-ago quarter of $61.3 million or 22 cents per share. Net revenue of $1.533 billion was down from $1.785 billion.
The results include previously announced noncash accounting charges against earnings of $1.17 billion. These include a $956 impairment charge for the company's investment in CityCenter and $203 million to write down the value of condominiums under development there.
With the recession reducing visitation to the U.S. gambling capital, MGM Mirage reported a 95 percent occupancy rate on the Las Vegas Strip, equal to last year. But it lowered rates to do so.
Daily revenue per available room on the Strip fell from $129 in the 2008 quarter to $100 in the 2009 quarter.
Third quarter Las Vegas Strip revenue per available room decreased 23 percent compared to the prior-year quarter -- an improvement from the 31 percent year-over-year decrease in the second quarter of 2009.
Overall revenue on the Strip fell from $1.45 billion to $1.22 billion. The company's resorts on the Strip include Mandalay Bay, Luxor, Excalibur, New York-New York, Monte Carlo, Bellagio, Mirage, Circus Circus and MGM Grand.
Some analysts fear CityCenter will steal business from other MGM Mirage properties, but Murren in today's report focused on the overall picture on the Strip.
"We continue to earn occupancy through our superior assets and focus on the customer, resulting in increased market share. We expect CityCenter to grow our business significantly and we are extremely excited to open this tremendous asset, with Vdara opening in less than a month on Dec. 1, followed by Crystals on Dec. 3, Mandarin Oriental on Dec. 4, and Aria Resort and Casino on Dec. 16."
Murren said MGM Mirage is seeing stronger convention bookings as U.S. corporations appear more willing to send employees to meetings and events. Las Vegas Sands Corp. earlier reported similar results in its convention-booking efforts. The MGM Mirage conventions mainly involve the company's big convention center at Mandalay Bay.
As convention and business travel improves, the company hopes for room rate recovery and feels that's achievable in the second half of 2010 and in 2011, Murren said.
"The corporations are starting to move out of their retrenchment mode and getting out in front of their customers," he said, adding MGM Mirage confirmed 550,000 such room nights in the third quarter -- a number approaching the pre-recession level.
In an apparent reference to Harrah's Entertainment Inc., Las Vegas Sands Corp. and Wynn Resorts Ltd., Murren said MGM Mirage remains focused on its core Las Vegas market while competitors seem preoccupied with financial deals and overseas expansion.
"We think our market share will increase next year, it is increasing right now," Murren said during a conference call with analysts.
He said MGM Mirage projects the $8.5 billion CityCenter will help drive an increase in citywide visitation to Las Vegas of 7 percent to 38.1 million people in 2010 -- while the city's room inventory will increase 5 percent.
With citywide occupancy projected at 80 percent, "We'll be north of 90 percent for 2010," he said.
Citywide table game and slot machine win should grow by double digits, he said.
"We believe MGM Mirage will get more than its share," Murren said, adding CityCenter will be used to cross-market the company's other products at low to high price points.
The third-quarter results -- break-even excluding the charges -- beat analysts’ estimates. Casino revenue declined just 1 percent based on strong results at high-end baccarat tables.
Twenty analysts surveyed by Bloomberg had projected an average 8-cent loss.
MGM Mirage stock advanced 4 percent to $9.69 on the news.
Today's results for MGM Mirage's Las Vegas Strip properties are in line with third-quarter trends reported earlier by competitors Harrah's, Las Vegas Sands and Wynn Resorts. They all reported weakness in the third quarter vs. last year's third quarter.
---
MGM Mirage will manage the operations of its 50-percent owned CityCenter for a fee. Aria is a 4,000-room casino resort; and CityCenter has two 400-room non-gaming boutique hotels, the Mandarin Oriental and the Harmon Hotel & Spa. Completion of the Harmon has been delayed.
CityCenter including its Crystals center will have about 425,000 square feet of retail shops, dining and entertainment venues; and about 2.1 million square feet of residential space in some 2,400 luxury condominium and condominium-hotel units in multiple towers including Vdara.
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Why doesn't the company use some of those "EXPERTS" that are always saying the "Recession is Over"?
CityCenter will be ready for the recovery. Even if it loses revenue for a year and a half.
CityCemetary will not be ready to lead any such "recovery." This place does not look welcoming to the every-day gambler in any way, shape or form. It just seems like a hodgepodge of hard-to-identify buildings set too far off the road. Mark my words, not the happy-talk nonsense of Jim Murren: this place is a white elephant.
Actually, a blue elephant! It will cannibalize from other MGMM properties and may push a couple of marginal strip operators out of business altogether.
I'll be happy to walk through CityCenter once to check it out. May be even eat at their restraunt a few times. That would be about it.
These people do not live in the same reality as you and I. When times are good you might be able to absorb such a "mistake", but in this current environment...bad news! I have absolutley NO DESIRE to walk inside any of the city center buildings. A few years from now, when they impload this disaster...the headline should read, "Just because you can, doesn't mean you should".
As a person that has been a regular visitor to Las Vegas since 1966, I feel the casino's have lost their way. People come to Vegas to gamble! Those that come for the food and private clubs don't gamble as much as the old regulars like me. Thousands of people between the ages of 21-29 that come for the night life do not gamble that much.
This Jim Murren is a con artist. He is nothing more than these guys playing 3 card monte! Would he and other executives like to bet their jobs and salaries and comps on the on coming improvement? We need to reward execs on PERFORMANCE not BS! He can go in to government if he wants it both ways. The recession/depression is not ending till at least 2o12 which happens to be a Presidential election.
The economy will bounce back. Government spending created many jobs in the Great Depression, Hoover Dam for example. Some paint that as socialism, others as a wise public investment -- saw a cool site; Balkingpoints ; incredible satellite view of earth
See it any way you like, I'll be visiting the place and spending money there too.
The recession is just a blip, no one ever expects life not to have it's ups and downs.
Were about due for things to go up.
Folks, City center is a bunch of buildings! There is nothing there except vast arrays of concrete and glass! So, what is there to attract people? Shopping? Come on, there is more interesting shopping in the Forum Shoppes or the Grand Canal shops! Why in the hell would you venture into that concrete jungle especially in the summer?!!! When you can go in A/C comfort to any number of malls and venues right on the strip!??? This project is doomed and the finance projections indicating falling valuations merely portend its failure! It will open with a bang, but die a cut of a thousand deaths as the reality of a poor designed executed venue hits home hard!
I would see the Elvis show.
Won't visitors be scared away from the City Center Complex; it does look like all the buildings are READY TO COLLAPSE too!
hellsaz : I'm of the same demographic as yourself, shame isn't it?
Jeez, people! Sure, the economy has been rough on all of us. It especially looks like MGM Mirage is taking it on the chin right now.
But come on, this is NOT the end of the world! Rather, City Center has already provided us with some badly needed jobs and it will ultimately give tourists good reason to discover the new Las Vegas.
Face the facts, Old Las Vegas is pretty much just confined to Fremont Street and maybe a couple North Strip survivors. The rest of The Strip is a different place that serves different kinds of tourists. As long as City Center provides good value for its accomodations and dining, people will keep coming... And gambling. :-)
adlefty; good value in this economy is no longer an issue; its the fact no one can afford it anymore. the market in vegas is oversaturated with too much product. i can buy the same product in chicago w/o wasting thousands.
dipstick-
Not exactly. Aria's now offering rooms as cheap as $129 per night! In LA or New York or even Chicago, you'd be lucky to find a 5-star hotel going for twice that rate. We're really in a unique place where we can offer "affordable luxury". Even the Southern California Indian tribal casinos are charging the same rates for less luxurious rooms, and other hot spots like Santa Barbara's Chumash Casino usually charges even more!
If anything, Las Vegas has a great advantage of marketing such low rates for so much value compared to other destinations, including other gaming attractions.
atdleft : There is a reason Chumash charges so much for their rooms. Solvang is a tourist destination with numerous wineries, the German Village, and all levels of dining etc. People go up there for other things than just gambling, although their new casino is a thousand miles better than that old dump they had.
"With its CityCenter resort set to open..."
Really? All of the "CityCenter resort" is "set to open?" Is this a joke? Are they handing out kool-aid to Sun reporters?
It still looks more like CityCrater to me.
Many great comments on this article. I do not see City Center making a huge economic impact in Las Vegas. I see it suppling jobs to abourt a third of what has been projected.
If the condos were ready to be moved into and the economy was on the upswing on a national level.I cannot see it making a difference in the Cities overall economy.What I see is that it will be a Big Bang at first an when the dust clears the true impact will show.A year or two from now will tell the tale of City center.The condominium units that have not been sold will still take a tremendous amount of time to sell and the prices will drop again which will cause a panic to those who have already purchased.
Now if they would have Timeshared the condos it might have made a difference but still a huge gamble.
The marketing on City Center Condos is an investment concept by getting people to invest in to the units and then City Center renting them out for weekends and or a week or so at a time.Remember one thing that City center will own several units and those will be filled first then the privately owned units next.In the meantime they have huge mortagages and will be screaming for help and then lawsuits filed and just a big mess.This is happening all over the country The Gulf Coast especially then Las vegas has already encountered this type of marketing already involving several properties around the Strip and the LV Valley.
What will help the Strip and the MGM/Mirage properties is offering value on food and entertainment.For example I would love to go see Garth Brooks at the Wynn but at 125.00 a ticket and having to buy at least 2 tickets 250.00 is a little over my budget at this time.The you add in dinner at atleast another 100.00 and now it is a pretty heafty price for one evening out in this economy.Normally I would spend that ammount but not knowing what is going to happpen next with the economy no way.These Big Casino opperaters need to realize that they must adjust with the times and do what it takes to bring people here to Vegas.They inflated the prices several years ago,when the economy was better and now they want to hang on to those profits that they used to make.What they dont realize is in these times people just dont have the extra money and if their was a better vulue they might give in and spend the extra money just not nearly as much.This would generate more volumn and consumers and spending but Margin,Margin,Margin is their concern.Well their desire for margin has cost their bottomline profits.So they build a Resort over seas and say we have a better deal their Instead of inticing the foriegn travler to come to Vegas and get a great deal here.Wynn,Adelson,Kerkorian are killng Vegas slowly but surely while they smoke screen the consumer and this town into believing that they are here to stay and Love Vegas.
environ-
I know that. And guess what? So is Las Vegas! We don't have a wine country, but we do have some of the best natural scenery around, one of the nation's hottest dining scenes (that will heat up even MORE when luminaries like Pierre Gagnaire arrive at City Center!), amazing shopping, and great proximity to Hoover Dam and The Grand Canyon!
What more can we ask for? We just need to let go of the past. It's not 1959 any more, the mob won't be coming back, and the $4.99 buffets are thankfully in the dustbin of history. Just because there was a downturn doesn't mean Vegas is dead or that New Vegas failed. This town constantly reinvents itself, and we're just in the process of another transition.
I don't understand all the negativety towards City Center. I bet most of you naysayers were oohing and awing this project when they first announced the development plans. Why don't you embrace this project and wish it well for the 12,000 people that will be feeding their families and getting off of unemployment to support themselves. The days of cheap buffets and $1 blackjack are long gone and gambling alone does not keep these places in business. The majority of the money made at these Resorts is from leasing space to these elegant restaurants and clubs and shopping stores. $20 and $40 dollar buy-ins at a $3 table ain't going to cut it anymore.
What you're missing:
Kerkorian, Adelson AND Wynn are all sleeping with the
COMMUNISTS in MACAU, CHINA.
They all got PROTECTED DEALS to build out their gamblin' joints THERE.
As soon as the red ink gets deep and thick for ALL of them HERE, they'll drop Las Vegas like a Hot Potato quicker than you can say "Fried Rice" over THERE.
Kiss 'Vegas "Prime Rib" goodbye an' pucker up for Red Chinese "Chopsticks".
(I bet they had lots 'a Politico help, too...)
atdleft,
Sorry to tell you but you are nto looking at what is going on with in the new foriegn market.
These Big casino opperators are moving into several other markets around the world.Which is drawing the travel away from Vegas.Look at yesterday's article about the Sands Corp.and their profits and where they are comming from and how they plan to continue to grow in Macau China.Look at how Steve Wynn has praised China and its government over the past few months.
These articles and comments are telling us the underlying obvious signs of where their focus and intrest is.They are hurting the international travel to Las Vegas which in return hurts you and I and does Wynn,Adelson,Kerkorian care obviosly not.
In yesterdays article I also read a comment that had a link which their was an article written about Macau surpassing Vegas in the gambling and entertainment market and that was in 2006.
Yes Vegas has alot to offer around the Valley but these Casino monguls are not interested in that.Margin,Margin,Margin.If these guys cared they would market Vegas and keep the dollars here and bring the dollars here instead of venturin into foreign markets.China has made it very lucrative for these guys to venture into their market.Now remember they are still developing in the Chinese market so in the meantime they are trying to keep their Vegas investments afloat until they are complete in China then when they are where they want to be overseas they will put Vegas completely on the back burner.I just hope these guys encounter the real Communism philosophy and end up getting pushed out of China.
The Chinese are closenit people and will eventually get rid of Wynn,Adelson,Kerkorian but in the meantime they are learning from them and will devise a plan to do it better keeping their money for themselves.
During all of this Vegas suffers and withers away as the top travel destination in the world.Vegas does not need to completly revert back to the days of the mob but they need to study how they built it into what had become and how it became what it was and for the most part still is.Guys if we do not change and revert back to customr service this town will never see the glory days of a few years ago.
The only good thing about City Center is that it may force MGM/Mirage to sell some of its properties and the New owners devise a plan to reinvent Vegas as the Place of Desire to come to and have fun.
CityCenter will be awesome! best mega-resort on the strip. within two years MGM will be taking gains on the investment that will more then off-set the current write downs. Now is probably a great time to buy MGM stock.
In addition to all the casinos being built in Asia, people still forget about the internet, and all the states in the USA that have gambling.
The one market edge Vegas use to have over every casino in the USA was the sports betting. The internet has ruined that, and if you're in Michigan, Ohio, Western New York, or really ambitious in Illinois, Indiana, or Pennsylvania you can drive up to Windsor and hit the sports books in Canada.
To beat a dead horse: Vegas has LOTS of competition all across the USA, across the world, AND online when it comes to it's bread & butter which is gaming.
Do I think MGM is hurting right now? Yes.
Do I think MGM will admit it? Never. They can't. If they did, then Wall Street would dump them like they were General Motors. GM & MGM in the toilet? Who would have thought this would happen four years ago?
What to do about it? The argument that MGM should sell some of their properties to the Ruffins of the world sounds okay. It doesn't help MGM stockholders, that's for sure. It helps Las Vegas if the owners only have to focus on one property and run it more efficiently.
City Center is very high end. We all know it. MGM knows it. Short term? It's going to be painful, maybe even Chapter 11 territory for MGM. Long term? Who knows? The recession isn't over. Option Arms & Alt-A's are still resetting through 2012. Unemployment will take 4-years to get back down to 5%. That's 2016 to me.
Can MGM - and Vegas - survive until 2016 when people don't have discretionary income? I don't know. I guess we'll all find out.
Wizzadofoz
You hit the nail on the head about Macau China and what is going on.I am glad that there is someone else see's this shift to the Chinese market also.
I want City Center to suck MGM/Mirage dry so they are forced to sell their other properties here in Vegas and the New owners Reinvent Vegas.As I said in my last comment.Wynn,Adelson,Kerkorian have lost the original concept of Vegas and what made it what it is.
Build a hotel to get they people to stay at there casino at a fair value.Put resturants in at resonable prices and great quality,treat each guest as if they were their only guest and keep them gambling and losing their money while they feel like kings and queens.
Now the concept is charge them outrageous prices on their rooms.Serve them a sub-quality plate of food for a 5 star price.Act like they don't even exist and wonder why they even came to Vegas.
The travelers who do come probably spend 125.00 avg.a night, 100.00 a day or more on food At least 125.00 per person on shows if they only go to one.
So here it is on a 5 day stay for 2 people:
625.00 Hotel
500.00 Food
250.00 Show
=1375.00
That does not include travel or any extras like gifts gambling drinking cab fair traveling to Hoover Dam Red Rock Canyon and so forth.
That is the cheep route when you come to Vegas and only eating once a day.
Not alot of Money as it appears but that is the intitial cost after they step off the plane.
As it stands now to really enjoy the Vegas experince to the fullest with no Gambling you need to have at least 3000.00 of disposable svaings to come to Las Vegas.
I can go on a Cruise 2500.00 and be treated like royalty for that instead of like a smuck as they do in the Casinos in Vegas.
I agree with rodtig's post about casinos needing to treat people better and giving them more value.
People will find alternatives for what little discretionary income they have if they aren't getting value and are being treated poorly on top of that.
In fact, a cruise sounds good right now. Bring on the Somalian pirates and the Titanic! To quote Andy Samberg: I'm on a boat b***h!!
City Center looked like a crazy idea, to me, two years ago when I first inspected the model at the Bellagio sales office.
What seemed crazy was that they were doing it ALL-AT-ONCE and not in phases.
Now we get to witness how it all plays out, and during a recession to boot!
lvdjlv,
Yes there is competion all over this country but I will say one thing about the southern part of the country especially Tunica Ms and Boluxi Ms. they have been bought up by mostley Harahs and of course harahs did what it does best run it in the Ground.This is why Building city center was a mistake because MGM is not marketing as the premier Vegas destination and as far as the internet goes The feds are working on stopping all that here in the near future.Of course the corperate dummies here in Vegas will support online gamming and pad the pockets of Washington to keep it going.
I'll go to City Center, look and wander around, will never stay or eat there. When I come to town (3 times a year), I'll stick with the Flamingo for $40 a night, eat @ Gallagher's, see Cher, Carlos, Bette Midler or whomever and do a little playin'. I don't need super luxury or all the other BS.
Surely if they had known the train wreck of an economy that was coming no way they would have built this.
Thankfully they were able to lay off half and hedge their bet with the Dubai group.
It's all about survival until when and if things get better.
I personally don't see recovery for quite a few years, hard to say exactly.
I rather go gambling at Jerry's Nugget in North Las Vegas or at the red rock or South Point than losing to terrible odds-makers such as the MGM hustle. Sorry, but I like to lose at a slower pace and get more free drinks than I usually get when losing at MGM Grand and friends. These casinos give no chance to the winners, so why would CitiCemetary be any different?
The beat goes on until MGM Mirage is bankrupt.
I don't plan on setting foot in monstrosity! As a local I don't get a woody every time some new place opens up. Under it all they are all the same. Hell, the only time I am ever on the strip is when I am headed to California.
Mr. Murren makes a valid point about other companies investment abroad in Chinese territories at the expense of American jobs. However, two wrongs don't make one right.
City Center is awfully urban and dense for it's location, and utilization of 67 acres for the actual number of public gaming hotel rooms flies in the face of history.
One thing for sure, for the next 50-60 years every time someone thinks of City Center, they will think of Jim Murren. Whether that is good or bad remains to be seen. It's hard to imagine what part of this property will inevitably wind up in the neon boneyard in 50-60 years.
Mr. Murren came to Vegas from Wall Street at the enticement of MGM Mirage as a pipeline to Wall Street borrowing, as Bush 43 was forecast to be open range in financial dealing. The thinking was if someone has to over-acquire or overspend, it might as well be MGM Mirage, as long as they can hold onto (or sell off) assets to retain the best core assets into the future. Somewhere in that pipeline a project which became City Center emerged, along with plans to develop the immense Circus Circus property and parcels to the north towards Sahara Avenue.
There was also the employee home building project in Primm, but that's another story, i.e CCISD school teachers will live-commute from remote areas outside Boulder City and MGM Mirage employees will live-commute from remote areas around Primm.
The problems with that strategy are not in corporate, where the getting is always good in Las Vegas, but are discovered in all the jobs, homes and lives that were lost-changed by such business approach and dealings.
I am not sure MGM Mirage has a better understanding of the broader customer than Harrahs Entertainment either, or a better understanding of customer experience than Wynn Resorts.
One can look at the financial information such as corporate compensation and revpar, for starters, and then move on to other financial buckets such as net revenue and savings in expenses, and clearly conclude that labor has bore the brunt of overbuilding and overspending, which has to also negatively impact company culture, turnover and customer experience and service.
Employees show up at each hospitality company to do good work. Their success is largely measured by the listening and support they receive from above in meeting ever-changing customer demands.
The gaming industry is creating jobs, but the business structure for creating careers from online applications, beyond just jobs, is slanted heavily towards the top end of the company job chart within the mega gaming companies. Kingship becomes reality, no matter the flaws from one company to the next.
Having said that, who in MGM Mirage corporate gets to leave when City Center is open for business and so many are no longer needed not only in the construction process, but in once again achieving "cost synergies" to maxmimize value for shareholders holding $10.00 common stock.
atdleft: I see your point and hope for the rebound as much as you, however I object to the middle market being shut out of the scene. Vegas can not survive on the upper crust tourists alone, you need that middle budgeted tourist dollars as well to drive the economy. I think even if there wasn't a recession we would still be seeing layoffs and such because of this high end only problem, I mean, lookit what happened to the new Aladdin, as well as it's take over company Planet Hollywood, they can barely keep their doors open because of the overhead, so it goes with MGM, Terribles, and even Boyd who blew it by tearing down the Stardust for that Echelon thing...
AND one more thing.
Don't even start to believe there was a huge NET increase of "permanent" jobs because of this project.
12,000 "claimed" by the paid MGM Execs, but,
4,000 or so were internal transfers, and let's say,
4,000 were "hired away" from the competition, and then let's say,
2,000 are "on call", so maybe that leaves approximately,
ONLY 2,000 PEOPLE HIRED RIGHT OFF THE STREET WITH NO GAMBLIN', HOTEL, RESTAURANT, COCKTAIL, OR VALET EXPERIENCE.
Adding it up would be MGM got paid a 6 to 1 bang for their PR hire buck by "claiming" 12,000 hires, but the only actual "PLUS" to the Las Vegas economy was 2,000 hires,
with the other 10,000 "claimed" hires really just LAYOFFS from every where else.
And they're hopin' we can't do this kind of math 'cuz we are the 2nd STUPIEST in the entire COUNTRY. (aka RUBES)
(Now you know why they think we don't need no stinkin' local education, and never will....)
Wizard
You forgot to mention the 7000 construction jobs that will be lost.
And also when it fizzils down,the 2500 people that will be laid off ,net gain 2000.
Vegas is so finished,here first,here the worst..Srew this place.Im getting ready to move after 22 years here,
"We continue to show sequential improvement in our operating results over the course of 2009,'' Chairman and Chief Executive Jim Murren said in a statement.
Has everyone in America taken a trip to the moon?? Now this corporation is in the middle of being sued by a number of its shareholders for making false and misleading statements and forecasts with regard to its financial outlook. MGM calls the suits "completely without merit" and then its CEO is quoted as saying this???? There's only two more months left in 2009 and losing a quarter of a billion dollars a month isn't exactly a sign of "sequential improvement"! Then Murren the Magician goes on to predict that occupancy rates for the entire city overall are going to increase next year by 10 percent!! Has the man lost his mind or does he just think that no one's paying attention? Not a single analyst would agree with that statement and Business week just reported last week that CityCenter is expected to be a drag on the market by putting more rooms in an already saturated market.
This is like watching a car accident happening in slow motion while a crowd of onlookers cheers and waves banners.
"This is like watching a car accident happening in slow motion while a crowd of onlookers cheers and waves banners."
LOL......thanks for the humor
had they started 2 years earlier...they would have been ok. it would have opened in 2007 before it got REALLY bad.
had they waited a year to START construction...they would have been ok. they would have pulled the plug on it like boyd did with echelon, but they got to the "it's cheaper to finish it" point and finished it.
it WILL be busy those first few weeks, maybe months, but there's not enough revenue coming into town to keep people employed at the CURRENT level of rooms and casinos, how is adding all these new rooms and restaurants and slots going to keep people at this place employed?
rodtig,
It is not necessary to spend the amounts you mention.
We just went for 3 nights.
170.00 Hotel - 3 nights (Luxor)
140.00 Dining - Luxor, Lindo Michgoan, Memphis BBQ, Siena Deli. (Luxor gave us a $25.00 dining credit).
80.00 gas
300.00 shopping, various stores in LV.
20.00 gambling (big spender!).
40.00 beverages
Add in visiting friends, going to clubs with no cover (Toby Keith's),Imperial Palace car museum, etc. and it's easy to see that LV can be done at a very minimal cost.
Next time we'll go back to Imperial Palace and cut 100 off the hotel cost and avoid "resort fee".
Probably Check out City Center, migh spend some $$ on a sports bet or shopping, but won't stay there. I do wish them well. When the recovery happens, MGM will be sitting pretty with COMPLETED projects. By the way, what is the name of that building with the logo that looks like an opened fan, or the NBC Peacock? Wouldn't a name on the building help?
Check out the 1978 TV show "Vegas" on DVD. Most of the casinos in the show no longer exist. There is nothing between the Frontier and Caesar's Palace, because the Fashion Square Mall hasn't been built yet. There are a few times when Dan Tanna passes by the Silver Slipper Casino. lol There is no Stratosphere, but there is the saucer shaped Landmark. Just 30 years later, the Strip is a mess and the City Center boondogle is about to open. Instead of the Stardust, there's a half-built Echelon. There's no way they could even film a TV series in LV.
I wonder if city center is haunted by the ghosts of all the people that died there?
I believe City Center has been Las Vegas' BIGGEST mistake ever. Having been beyond the 1/2 way mark with contruction and obligations there was no turning back when this economic bomb fell.If they can manage to keep their head above water for 2 more years, perhaps they'll see some $$ in the black again,perhaps.Boy I hope this town has learned an enormous lesson in all this.
Babyboomer : This town should have learned it's lesson when the Stratosphere, and new Aladdin fumbled, as well as the Venitian right out of the gate! I think development could have stopped with Mandalay Bay on the southern end of the strip. Greed has consequences, and the corporations who took over this once incredible place will opt to let it all go into bankruptcy before they try anything creative to rescue the situation.
environprotector: your key word there "should have".The 2nd wave is still to come.
vegas needs to do some kind of music festival like sxsw in austin.
we all these lounges and venues all within walking distance from one another.
oh, and this town has NOT learned its lesson.
oscar goodman is STILL like a child having a tantrum with his sports arena idea and they're giving one of the last larger parcels of land ( at st. rose and las vegas blvd. ) to a casino company to build yet another resort.
stupid, stupid, stupid.
stevem : Stupid is as stupid does...
CITY CENTER IS NOT FINANCIALLY SUSTAINABLE AT 8.5 TO 11 BILLION DOLLARS COMPLETED !
DUBAI WORLD TRIED TO DIVORCE THEMSELVES FROM THIS ILL PLANNED PROJECT - BUT CARL ICAHN SCARED DUBAI WORLD WITH SOME BANKRUPTCY OVER TURES -
& TWO DAYS LATER DUBAI WORLD CAVED IN & AGREED TO DROP THERE LAW SUIT AGAINST MGM/MIRAGE --
THAT SPEAKS VOLUMES - REGARDLESS OF WHAT BELAIR BELIEVES - ACTION ALWAYS SPEAKS LOUDER THEN WORDS !!!
JIM MURREN MEANS WELL - BUT HE IS NOT EXPERIENCED - CREATIVELY - LIKE SHELDON ADELSON -
STEVE WYNN & THE MOST CREATIVE MARKETING VISIONARY OF - MEGA STRUCTURE HOTEL CASINO THEMES - JAY SARNO ! THE UPSCALE MARKET IS CRYING OUT FOR A HIGHER LAS VEGAS EXPERIENCE TO RIVAL CAESARS PALACE - VENETIAN - MGM & THE WYNN !!!
JIM MURREN & THE ENTIRE MGM/MIRAGE EXECUTIVES DO NOT HAVE A CLUE ABOUT HOW TO DEVELOP MEGA STRUCTURE HOTEL CASINO THEMES !!!
CREATIVE MARKETING VISIONARIES - LIKE - JAY SARNO - WHO DEVELOPED CAESARS PALACE IN 1966 - ARE RARE CREATIVE MARKETING TALENTS !!!
MGM/MIRAGE WAS ONLY ABLE TO GROW BY BUYING OTHER PEOPLES DREAMS - THEY CAN NOT CREATE THERE OWN SUCCESSFUL DREAMS - EXCEPT THERE FIRST MGM GRAND WHICH FRED BENNINGER HELPED KERKORIAN DEVELOP !!
JIM MURREN WAS WAY OUT OF HIS LEAUGE & RESPECTFULLY SOLD KIRK KERKORIAN A BILL OF GOODS WITH THE BEST INTENTIONS !!
JIM MURREN IS A FINANCIAL ANALYST & DOES NOT HAVE THE CREATIVE MARKETING EXPERIENCE TO UNDER STAND WHAT THE UP SCALE MARKET IS REALLY CRYING OUT FOR !!!
DID HE & TERRI LANNI CONSULT WITH SHELDON ADELSON OR STEVE WYNN -BEFORE PARTNERING WITH DUBAI WORLD - I DO NOT THINK SO !!!
HE CHOSE TO PLAY MONOPOLY WITH OTHER PEOPLES MONEY - WITH GOOD INTENT & NOW KERKORIAN WHO DID NOT UNDER STAND - THAT MURREN & LANNI WHO BOUGHT OTHER PEOPLES DREAMS WERE NOT EQUIPPED & CAPABLE OF COMMITING APPROXIMATELY 11 BILLION DOLLARS TO DEVELOP - FOUR BUILDINGS ON 67 ACRES OF PRIME LAS VEGAS STRIP PROPERTY TO LAUNCH CITY CENTER !!
THE 67 ACRES SHOULD HAVE BEEN DEVELOPED FOR THREE MEGA STRUCTURE HOTEL CASINO THEMES TO RIVAL - CAESARS - VENETIAN - PALAZZO - MGM GRAND - WYNN & ENCORE !!! YOU DO NOT USE PRIME 67 ACRES FOR A MIXED USE NON THEME PROJECT !!!
THEY ONLY HAVE ONE HOTEL CASINO CALLED THE ARIA - WHICH MEANS NOTHING TO THE UPSCALE CURIOUS PUBLIC & THEY EXPECT THAT ONE PROPERTY TO FINANCIALLY SUSTAIN 8.5 TO 11 BILLION DOLLARS !!! -- THE ORIGINAL PLANNING & FINANCIAL PROJECTIONS WERE FLAWED & UNREALISTIC !!!
KIRK KERKORIAN & THE SHARE HOLDERS WILL NOW FACE THE BIGGEST FINANCIAL CHALLENGES OF THERE LIVES - THE CORPORATE LESSON TO BE LEARNED FROM THIS CORPORATE TRAGEDY IS -- MURREN & LANNI SHOULD HAVE HAD ANOTHER CEO TO ANSWER TO WITH HUGE EXPERIENCE IN DEVELOPING MEGA STRUCTURE HOTEL CASINO THEMES !!!!
I HOPE KERKORIAN CAN NAVIGATE THRU THE FINANCIAL NIGHTMARE THEY - UNINTENTIONALLY LEFT HIM WITH !!! HE IS EVERY POOR BOYS ROLE MODEL !!!