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StumbleToo many rooms to fill: CityCenter’s opening felt, even as visitor volume grows
Monday, Aug. 9, 2010 | 2 a.m.
steve marcus / las vegas sun file
Fireworks soar over Aria in December at CityCenter. Gamblers make up about 30 percent of hotel guests, which is a higher percentage than at other company properties, MGM Resorts CEO Jim Murren says.
CityCenter Construction Timelapse
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del.icio.usCityCenter first broke ground on April 3, 2006 on a 67-acre site between the Monte Carlo and Bellagio. The Boardwalk Casino was later imploded on May 9, 2006 to make room for the $8.5 million project. The first hotel opened on Dec. 1, 2009, marking the first phase of completion of nearly three and a half years of construction.
CityCenter's Aria Makes Debut
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CityCenter's Aria makes it long awaited debut to the public.
Aria opens its doors to the public
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CityCenter's Aria has opened its doors to the public. Fireworks exploded over the centerpiece of the $8.5 billion CityCenter project, and people eagerly awaited to be the first inside Aria, which is a partnership between MGM Mirage and Dubai World.
Sun Coverage
- MGM Resorts loses $883.5 million in second quarter (8-3-2010)
- Analysts: Weakness in gaming industry continues (7-28-2010)
- Strip casino winnings drop 6.3 percent in May (7-7-2010)
- Las Vegas sees 2 percent increase in May visitors (7-7-2010)
- Uptick in MGM Mirage bookings offers hope for Strip turnaround (6-7-2010)
- Will airlines’ summer travel surcharge hurt Vegas tourism? (6-5-10)
- CityCenter condo closings slow in down economy (5-28-2010)
- Will CityCenter change type of tourist in Vegas? (12-18-2009)
With more hotel rooms in Las Vegas than bodies to fill them, the evidence is growing that CityCenter is stealing more business from other resorts than it is creating.
The news might be worse for competitors than it is for MGM Resorts International, which owns the largest share of Strip resorts, including CityCenter, co-owned by Dubai World. Single-property resorts such as the Tropicana and Riviera have potentially more to lose because they are generating less cash to fall back on and lack a massive customer database to draw from.
Also, many customers are choosing to stay at fancier hotels that have lowered rates to maintain occupancy over budget properties that aren’t much cheaper.
Still, the $8.5 billion CityCenter is probably taking business from some of its less-opulent sister properties, CEO Jim Murren says.
“Would we be up more year over year if CityCenter wasn’t open? Probably yes,” Murren said, referring to the company’s market share. “But we are up nonetheless.”
Here are the basic numbers: Visitation to Las Vegas grew by 1.5 percent from January through May compared with a year earlier, but the number of rooms rose by 5.6 percent. And citywide room occupancy was 80 percent through May, down from 90 percent when Las Vegas tourism peaked in 2007.
Murren said his company’s share of the Las Vegas market, not including CityCenter, is slightly larger than it was a year ago, before CityCenter opened. However, CityCenter is still struggling to turn a profit after opening in December, and its operating loss of $128 million dragged down MGM’s earnings in the second quarter. Although the entire Strip is performing badly, MGM thinks competitors are losing further ground in such areas as gambling and room revenue.
Murren said MGM has tapped its customer database “extensively” to benefit Aria, which is why gamblers make up about 30 percent of the resort’s guests. This is higher than the typical 15 to 20 percent of MGM hotel guests who are gamblers, he said, and was intended to make up for a lack of convention business booked in time for the property’s debut.
These gamblers typically belong to MGM’s loyalty program and receive mailers with room discounts and other offers. Its overall casino revenue was down 6 percent in the second quarter from a year ago, although Aria is increasing its share of the Strip’s high rolling baccarat play.
At the Tropicana, which was acquired out of bankruptcy last year by debtholders Onex Corp. and is in the midst of a $165 million renovation, net revenue fell 44 percent in the first quarter versus a year ago. The property posted a net loss of $9.9 million versus a loss of $4.5 million a year earlier.
Management blamed lower room rates and occupancy on a “supply versus demand imbalance” triggered by CityCenter.
At the Riviera, net revenue fell 16 percent in the first quarter, and earnings before interest, taxes, depreciation and amortization — a key profit indicator — plummeted 57 percent, contributing to its parent company’s overall net loss of $4.5 million. Average daily hotel rates fell 20 percent to $55.69 although occupancy rose 5 percentage points to 82 percent, which is well below occupancy rates in the mid- to high-90s Las Vegas hotels enjoyed for many years before the recession.
“Leisure and convention segment demand continues to soften primarily due to increased competition as a result of additional hotel room and convention space supply and the weak economy,” Riviera Holdings noted in its first-quarter earnings report, before it filed for Chapter 11 bankruptcy protection in July.
MGM touts Bellagio as the best example of a resort that is doing better than most despite the opening of CityCenter next door. Bellagio was one of only two MGM resorts that reported an increase in room rates in the second quarter versus a year ago, although earnings fell 25 percent in that period.
But MGM has plenty of challenges in the coming years, beginning with $13 billion in debt. It has just enough cash to fund its obligations through the end of next year, although a planned initial public offering of its Macau assets and the required sale of its stake in the Borgata in Atlantic City will “supplement that liquidity and get the company more easily through until 2012,” Credit Sights bond analyst Chris Snow said in a research note last week.
The company expects to receive $73 million for the land under the Borgata and anticipates raising money to build a second resort in Macau, where its MGM Grand generated relatively small, though growing, earnings of $18.7 million in the second quarter.
MGM has chipped away small chunks of debt in recent months while raising money to fund operations. It has bought back debt on the open market, refinanced some of its debt and has issued bonds at reasonable rates.
MGM’s $2 billion in liquid cash is “more than adequate” to satisfy financial obligations over the next two years, Murren said. “I don’t think that’s a front of mind issue for investors as it was two years ago” when the company nearly filed for bankruptcy, he said.
“We expect the company to be in a vastly better position two years from now,” he said. “There’s a minority view that we’ll double dip into recession. The majority feel 2010 is a transition year in the U.S. economy and next year will be better.”
By the Las Vegas Convention and Visitors Authority’s measure of supply and demand, 2010 appears to be a slight improvement from last year’s 3 percent decline in visitor traffic, coupled with a 6 percent increase in rooms. This out-of-whack scenario is a result of an overheated economy cut short — a process that happened too fast for spendthrift, overleveraged Las Vegas resort giants to react quickly enough to changing market conditions.
The recession hit Las Vegas with brute force in 2008, which reported the worst supply-demand balance in recent years: a 6 percent increase in rooms atop a 4 percent drop in visitors. In the years after the 9/11 attacks, visitation grew faster than rooms, although both leveled off in 2007.
Hotels are performing a balancing act to optimize profit. Aria was 80 percent occupied at an average rate of $178 per night — both measures falling short of high-end competitors Wynn Resorts and Las Vegas Sands, which achieved occupancy in the 90-percent range and average daily rates of $184 to $202.
Despite signs of improvement and a potentially growing share of the Las Vegas market, MGM, which expected CityCenter to make money in the second quarter, still suffers from a case of too many rooms and not enough visitors to fill them.
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Jim Murren: "We expect the company to be in a vastly better position two years from now".
You mean three, when dishonorable harry reid and the person currently occupying the office of the president are no longer in office.
MGM made a huge mistake with City Center. It reminds me of Lake Las Vegas. Glum...
DUH
"At the Riviera, occupancy is 82%"
Wow, it blows me away that anyone would stay at that flea bitten pig hotel.
Who are these people who say to themselves: Ya, let's go to vegas, hmmmm,
hotel choices, I know, let's choose the Riviera!" That's got to be the best.
They all must be ditch diggers or something.
City Center/MGM is not a gaming company anymore. No one at the top has any gaming experience and the design and architecture show this. They build a 10 billion property and make tourists from the strip hike up a hill, up steps in an uncovered area in 120 heat. MGM has turned into a union hall, Bellagio is a clip joint. Its sad to see the take over of vegas from wall street. Do not support wall street run casinos. The new mob.
I've decided all this crying about business being 'down' on the strip is a bunch of hooey... My sister is coming in on 8/15 and we're going to see LOVE on Monday, 8/16 and on Tuesday 8/17 we're going to see Terry Fator - so I thought it would be nice to just stay at the Mirage for 2 nights and make a vacation out of it for me too.... The Mirage wanted 189.00 plus 15.00 RESORT FEE EACH NIGHT for a Monday and a Tuesday??? WTF? Over $200 a night on a Monday and Tuesday - are you kidding me???? No wonder no one is coming here (at least that's what they say)..... I got us 2 nights at the Orleans (a very nice place, btw) for $68.00 tax and 5.50 resort fee included. What's up with the Mirage trying to gouge people like that - especially when it's not even the week-end. Oh well, too bad for them - now they can have 2 more nights of an empty room....
jdub - way to go. politicize yet another non-political news piece. sour grapes, i say.
Amen jt2ou!
People see an ad that says: 3 days two nights in Vegas for $110. and they get the IP, Excalibur, or Riviera. Riviera does small conventions, time share promotion bookings, etc. And of course, comped rooms for players. What else is new?
Yeah, someone wants to go to Vegas for 3 or 4 days and spend under $1000 for 2 people including a show, some buffets and gambling, that's half the people driving in from LA.
Angle was saying that City Center was taking customers from elsewhere, so it was no big deal that Reid got a loan for them, of course I don't see any of the other properties closing, just cutting back on staff.
The mistake was made by all the politicians and big wigs. No diversification of the economy, too much growth too fast. We should have had a growth cap on casino and residential development. The boom would have been less, but so would the bust.
azsk8fan; the international magic fall show is starting august 17th and upwards of 100,000 are expected to attend that, i bet all strip properties have upped their rates for those dates
With all the problems I don't see Murren losing his job. Just to make things better Cosmopolitan is opening in Dec. If u can't get a great room for UNDER $75 a night midweek u aren't looking to well (Excalibur ,MGM, Ballys ,Venetian , Golden Nugget)
Ruark and ConcernedNative,
Just wondering why a tourist would walk uphill, outside in the heat, to the entrance of Aria when he can go inside through the air-conditioned Crystals, the high-end retail promenade, and enjoy a leisurely window-shopping stroll?
Tom,
that pretty much sums it up. Crystals offer window shopping opportunity only.
The problem with City Center is the entrance directly into the casino is hard to figure out for folks walkin' on the Strip. Same thing happened with the Alladin. It can be fixed easily with a few signs and a moving stairwell or two. This is NOT rocket science! LOL
things are looking a lot worse, it looks like the government will be pumping more taxpayers money into economy, things are looking bad..
I cannot see how given the debt driven economy which is still tanking how complexes such as city centre can ever pay.
The Riviera and Tropicana were lovely hotels when they opened in the 1950's! So was the Sahara.
"The majority feel 2010 is a transition year in the U.S. economy and next year will be better."
Remember this in 2012 and get a good laugh (while crying).
Here's the bottom line and it doesn't take a Harvard Economist to figure it out.
More hotel rooms in Las Vegas than bodies to fill them + MGM's $13 billion of debt + CityCenter's operating loss of $128 million in the second quarter means simply that MGM is not just cannibalizing rooms in Las Vegas they're doing it at a net loss overall for the entire city.
This isn't a matter of one corporation getting rich by taking away business from another. This is about a corporation making poor decisions which drag down the entire economy of a large urban area. And, since the majority of tax revenues are generated from Las Vegas the entire state is in a deficit and languishing at the bottom for just about every indicator of a state's health and livability.
I find it fascinating that Liz Benston also chose two historically poor performing hotels to make her point. The Tropicana and Riviera were both suffering long before there was a hint of a recession or the massive addition of hotel rooms in Las Vegas. The comparisons that really count are those amongst the corporations themselves and it's not hard to see that Harrah's and MGM have become such swollen behemoths that they're quickly losing circulation in their extremities.
Lastly, Jim Murren needs to understand that it was the Luxor, Mirage, Excalibur, Caesars Palace, Paris and the like that created the enormous tourist boom that allowed his corporation to fund CityCenter. If people want Manhattan then they'll go to Manhattan. People want Vegas to be over the top, fun and sometimes just plain silly. This glut of high-end everything coupled with ridiculously priced rooms and restaurants a la Park Avenue has turned a lot of people off. CityCenter will continue to see operating losses and the more they lose the more we lose. Simple.
There are cheap alternatives. Primm has $20. rooms midweek. A $50. room, midweek at IP, a couple of $50. shows, a $10 buffet at a Station, $50 at a bar etc., and so on... people can spend $300, and have a good time...of course they are not paying off the City Center.
Time to diversify the economy with medical tourism, people will come here for medical procedures, it will catch on and become infectious.
The point about indy hotels like Trop and Riviera struggling because they dont have the customer database of MGM is a good one. It will be the same thing for Cosmo. What ends up happening is the bigger MGM and Harrah's get, the harder it becomes to survive if you are not MGM or Harrah's. Eventually nobody can survive and two companies end up controlling 100% of the Strip. Congrats to the gaming commission for letting this happen. It's true that money speaks in this town.
speaking to some tourists they think city centre is an eyesore, would be interesting to run a survey at street level
They might only pay a few bucks more to stay at Aria but when they see the foof prices they will realize they did not get any bargain, $ 16.95 for a pastrami and swiss sandwich
sportyyetpractical: Thank you. You are right on the mark.
Las Vegas became popular for offering things you could not get anywhere else in the world. The more bizarre Las Vegas is, the more popular it will be. Buildings shaped like pyramids, fake canals, a Roman palace in the desert, a gigantic lighted canopy covering a city block (this is Fremont Street for those of you who won't set foot downtown), etc... is what makes Las Vegas what it is. In order to succeed in Las Vegas, a building should evoke a "only in Las Vegas" reaction from people.
Generic behemoth glass buildings that could just as easily be in New York City, or Miami Beach are very bad for Las Vegas. CityCenter not only has added tons of unnecessary capacity at the moment, but even worse it moves Las Vegas towards being very ordinary architectually. Unfortunately, Cosmopolitan and Fontainebleu are no better. Hopefully future developments will break away from this.
It will be interesting to see what happens when yet another 3000 rooms come on line in a few months, when Cosmopolitan opens for business right between CityCenter and Bellagio.
"Time to diversify the economy with medical tourism, people will come here for medical procedures, it will catch on and become infectious."
ROFL
This is what happens when you have free-for-all laissez-fairism operating instead of having urban planning. But if you take a poll of local residents, which do you think they'll go for, the free-for-all or the planning? "No, don't stop anything that anybody wants to do, government is bad, don't tell us what to do!" Any moron could've seen that this city was being overbuilt - too many houses, too many hotel rooms, not enough water. But your average resident would support it happening again!
Chunky says:
Don't believe everything the MGM Resorts PR machine cranks out!
With $2b in cash "liquidity" why are all the Cap-Ex renovations and improvements on-hold for all the properties? Why are so many of the employees still fearing for their job security? Why hasn't Jim Murren put forth a plan and VISION to the rank and file so someone other than him knows what direction the company is going in?
Chunky doesn't buy this bag of baloney and thinks this is a PR push to shore up the market and investor confidence so MGM Resorts can make their next loan payment!
That's what Chunky thinks!
The sheer number of unemployed casino and hotel executives that post on the Sun news stories is remarkable. You guys should all get together and open a casino! Clearly, it would be the best place on Earth!
In ten years, CityCenter will be counted as one of the places that pushed Las Vegas into the future ... Which is where we belong.
Why hasn't the Sun done an investigation of short-seller John Paulson and his investments (Harrahs, MGM,Boyd)?
Why haven't they done a significant report on gambling and organized crime in Macau?
Why hasn't the Sun written an article on the Greenspuns and their investments in local predatory casinos?
T.S.
The Great Ruins of Las Vegas Tour
If the high rollers are what supports the casino net profits and taxes are going up on these people starting in January, does anyone think this will cut into visitors in 2011 and 2012? It seems when government takes more from the people we want to come play there will fewer of them doing so.
For those that like to put down what happens on the strip, this is the engine that runs Las Vegas and Nevada.
Without the strip hundreds of thousands of jobs would disappear. The strip jobs provide jobs in many other areas though out the valley. We need more new industry, but you will never get rid of the gaming/hospitality industry. We as the ones who live here and benefit with this have to promote Las Vegas, not put it down. Don't cut off your nose to spite your face.
ATVDAD1, what are you talking about? Enjoy your motorcycle, but that has nothing to do with Las Vegas. Vegas haters like you have been wasting their breath for 100 years. Get over yourself.
So Reid saved City Center and all those jobs? This according to the recent political ads.
Now the jobs are gone and the City Center is going to bleed the rest of the properties dry.
Should have let the chips fall where they may have.
If Reid pushes thru the new on-line gaming bill, that should be very good for the BIG Vegas companies!
The doom and gloomers who frequent this comment section would've been saying the same stuff twenty some years ago when Wynn built the Mirage and then Treasure Island. I often hear them sing the praises of "Old Vegas", you know the one run by mobster's. I don't suggest we run from that history, but let's not overglorify what it really was either. I agree with RPJ, City Center will propel us into the future, but it may be a bit of a bumpy ride till we clear the atmosphere.
wow after saving 22000 jobs king reid with city cnter it seems now that the people who said dont save were right. i know 3 people who work there and after starting at full time are now only working 3 10s. 2 of them had to file bankruptcy .this place is a tregedy a mistake
Can I barter for better room rates with a chicken?
Comment removed by moderator. Language.
My favorite part of City Center??? The Jockey Club that somehow stood the test of time!
Now wedged between the Bellagio and Cosmopolitan it still has it's super 70's style.
I wish the Sun would do an in-depth article on the Jockey Club, especially now since it's now dwarfed in all directions.
City Center is mediocre compared to Bellagio, Mirage, TI, or Wynn. There's nothing outside or not much inside to attract tourist. I've been back to Bellagio dozens of times but it still wows me to watch the water fountain show.
There were once people in Las Vegas who thought that Benny Binion was crazy when he put carpet down in his casino. Who wants carpet when we can have wood and sawdust?
There were once people in Las Vegas who thought that putting a casino on the old Los Angeles highway was a waste of money. Who would drive so far away from Fremont St to gamble?
There were once people in Las Vegas who thought that building a resort with a "theme" -- like, say, a circus, or ancient Rome -- was ridiculous. Who would want to do faux stuff like that in Las Vegas?
There were once people in Las Vegas who thought that building a lush, tropical themed resort with thousands of rooms was a folly. Why did we lose the Castaways and the Silver Slipper for a Mirage?
There were once people in Las Vegas who thought that building a complex of Modern Urban themed resorts was a waste of time. Who wants modern and sleek when we can have lush and tropical?
And the beat goes on ... With or without you.
Empty rooms equals better deals. I have flown from Ohio to Vegas 5 times the past 15 months & have never paid more than $60 a night (that includes any resort fee and tax).
I have stayed on the strip, off the strip & downtown during this time. I only need a clean room to sleep. I don't spend much time in my room outside of sleeping. The last five trips I have stayed at Luxor, Circus Circus, Orleans, Mandalay Bay & Golden Nugget.
I usually gamble at several casinos each trip. I usually play blackjack, poker & occassionaly slots with my wife when she comes along. I'm not a high roller but do usually bring a bankroll of about $2500 for each trip which usually last 3 nights. Out of the bankroll I pay any hotel costs, food costs & all gambling.
I usually only pay around $20-$30 per night due to players card specials but did recently pay around $60 a night at Mandalay Bay for a weekend trip & that included all fees & taxes (another players card special).
I know bringing on all these new rooms are hurting the hotel/casinos & causes most of them to raise prices in other areas in a attempt to recover some of this lost revenue. But remember you can choose where you gamble, eat & sleep. It never has to be all at the same place.
We enjoy two to three trips per year to my favorite vacation destination, Las Vegas. MGM has treated us well.
I agree that CC was not well thought out. Now that it exists, what can you do to bring in people? Maybe lower hotel room rates and loosen the slots. You can make less and still be profitable. A huge turnoff about Vegas is the constant gouging at every restaurant, bar and Coffee Store.
Everyone else is struggling through the recession and we need a fair deal to afford to travel to LV.
Gbigs, you do realize you are but one of tens of thousands of people who have predicted the death of Las Vegas over the decades? Las Vegas could lose 1 million residents and 15 million annual visitors and be at the height of its prosperity.
For the record, the Silver Slipper was not lost for the Mirage.
The Silver Slipper and the Last Frontier Village was roughly where the Fashion Show mall is today.
Riding the bumper cars at the Last Frontier Village was my favorite thing to do as a kid.
I also believe that CityCenter is an atrocity committed on our beloved strip.
I've always said it's too big, too much and a mistake from a decision made in the old economy.
Remember when Stations said they were going to top it with "Viva"? That was obviously more hubris and topping the other guy.
Give me a break.
http://www.pollina.com/publications/prob...
Top 10 Pro-business states are:
1 Virginia
2. Utah
3. Wyoming
4. South Carolina
5. North Carolina
6. Nebraska
7. Kansas
8. South Dakota
9. Alabama
10. Missouri
The study evaluates and ranks states based on 31 factors including taxes, human resources, right-to-work legislation, energy costs, infrastructure spending, workers compensation laws, economic incentive programs and state economic development efforts.
Nevada should put everything on the table to get on this list! Unemployment in these states is actually going down! Demand more from our leaders and don't believe the "No New Taxes" mantra- it is not true.
Boomer111, Let me tell you I am no ditch digger or something. But I and several friends and family members have stayed at the Riviera, for many years. I am a Professional in my work and old or new I have always been treated very well at the Riviera. So don't be so quick to judge a good old book by its cover.
Who the heck is Pollina and why should I be concerned with their list? I've seen other lists that have Nevada in a favorable position for attractive business climate, but one major thing businesses want are quality, educated employees. We won't have much of that around here when the Las Vegas Chamber of Commerce is done pulling the strings to decimate education.
I used to have such admiration for the business community, but sadly many... not all, but many just use up a town, state or a resource and move on to the next cheap place and do it again. It's all about shareholder value and greed. As long as that's the playin' field, can't blame 'em I guess.
MGM used their database to increase the gamblers form 15 percent to 30 percent....Really..This town will comeback when the party people are broke and people realize paying 185 a night is stupid...if that is what Wynn and the Bellagio are actually getting...Then the people that actually built this town, the gambler, will get a break..
"one major thing businesses want are quality, educated employees"
My best prospect recently was interviewing for a position,and at the point where I was going to ask What qualities do you possess,or bring to the table to excel with us?
He recieved a cellular call,and
HE ANSWERED IT!
god help us all in the valley
peace out
vegas has lost most of the "vegas".
the luxor is no longer eqyptian, the awesome fao schwartz store is gone, the stardust and frontier are gone, all the clubs are essentially the same, etc., the malls are the same 8 or 9 stores over and over again.
yuck.
Concerned native gaming is still the tree of life the mothers milk if you will permit the phrase to say that none at the top have no gaming experience would be less than factual considering you have two very seasoned yet soft spoken persona's representing gaming for the company the two Mr. B's both highly regarded and some would say even loved by their employees.Yes old Vegas new Vegas but still Vegas and still a growing ever changing place we call home.
It's ironic that the 3 major gaming companies, (Wynn, Sands and MGM with Harrahs on the prowl), are destroying demand for Las Vegas. The Asian market is huge but it is being diverted to Macau and soon Singapore. The numbers aren't quite supporting that statement yet, but then why are these gaming companies expanding ever so fast in Macau and Singapore with nothing developing in Las Vegas?
All I know is I'm not staying at any Vegas hotels with resort fees. I will stay at Aria and MGM Grand instead.
...the sky is falling, the sky is falling...!!
"paging mr. little, mr. chicken little please..."
oh yeah, he's written just about every other posting here... the sky is falling, we're doomed!!
Time to buy MGM, too much doom and gloom!
City Center is the bastard child of Casino Executives that don't have a clue how to run Las Vegas. The Bosses would have never built such a mess.
it's funny to hear all you people complaining. why don't you move if you hate las vegas so much? probably because you didn't save enough money or have no skills to make your own work. it's okay though, coming on to the comment page and whining will solve all your vegas problems.
This is interesting, MGM expected City Center to make a profit in the second quarter of 2010 but instead it lost $128 million. This is not like it broke even, in this one quarter alone City Center lost the equivalent of 5% of its write down value of $2.5 billion (a huge loss). If this came as a surprise to MGM management they have morons running the company. Also, "Chipping" away at their debt does not mean pushing it back for a year or two. The key word is "away" which it is not, and sooner or later they will have to "pay the piper". Unless they have Station Casino's very own Judge Zive for their bankruptcy judge, I expect the lenders and banks will end up owning all of MGM Resorts. Any fool dumb enough to invest in MGM Resort Int. should have their head examined.
Just another big waste of place and space. Somebody better realize quick that it is not the celebrities and high rollers that will keep Vegas in business, but the mid level gamblers, middle class people. Also, they never should not have torn down the Stardust. Did construction ever resume on its replacement Echelon Place? The "Dust" could have been still standing and making some money which would have been better than the sight of stalled, unfinished construction. When will the "suits" that run things ever learn?????
The room occupancy rate in 2007 was 99%. This was when Las Vegas was in a Build&Expand mode. Relics of this mode can be seen across from Wynn-unless you "Surrender" yourself from this view. Also the MGM Debt is 15% of the equity as compared to Harrah's-which is 1%. The City Center is an architect Showcase for window shopping. They could have built 8 "Mirages" costing a billion each with different Themes instead of this confluence of buildings that slant in different directions. Murren--more a confusionary-than a visionary.
Many other states are permitting the casinos and gambling that once only existed in Atlantic City and Las Vegas. This surely has a major impact on the tourism industry in Vegas.
I live in Pennsylvania, where they decided to start allowing casinos with slot machines a few years ago. Recently they decided to allow table games. It's taken off like wildfire, and pretty much killed the casino business in Atlantic City.
I own a TimeShare in Vegas over off of Tropicana (near The Orleans), and used to take a yearly trip out. Now I have two small children, so travel is difficult at this time. But I wll be returning to Vegas when they get a little older, and plan on bringing them with me.
We don't gamble much...less than $100 per trip (1 week). But we do enjoy the sights...the sounds...the shows...the food. That's where our tourism dollars go. Things like that, in such a large quantity, you can only find in Las Vegas.
When MGM built the city-center project they did not think they needed walk in tourist from the strip like me and you because they were going to sell 2400 condo units that is why they named it "city-center" their thinking being that we now have a city as our customers. Well guess what happened? The concept in good times is risky and not a gimme and the architecture is really pathetic at best very unappealing from a sales standpoint and now the great depression hits!!! MGM better start selling there hotels (Mirage) not condos............
I would love to see them sell The Mirage to someone willing to take the level of service back to when Steve Wynn owned it in the early nineties and it was the hottest place in town. They had the absolute best staff in town that took care of their guests and one could tell they loved working there.
tearing down the stardust and leaving that empty hole in its place is really a black mark on vegas. they should have embraced the smallness and history of that place and made it a cool, retro, boutique hotel.
I guess all it's good for is it's looks! It looks like silver and gold. Beautiful.
lv1967 that is one of the most plausible posts I've seen. Good job, I like it. Also, the post on the taxes to be paid from the loss of value is something interesting to be watching for in the future.
They should just have built a cool resort fronting the street and a mid range shopping experience with restaurants etc.
CityCenter is beyond the pale and confusing to navigate.
I saw it once and see no reason to go back.
I just got back from my first stay at Aria, and I have to say, as much as I am a fan of clean modern architecture, something about the place left me cold.
I think the designers in attempting to emulate a big city, urban feel, forgot that people come to Las Vegas for a unique resort feel. I was amazed at how much of the entry way was just barren concrete everywhere. And while I enjoyed the ample natural light in the hotel, I couldn't help but wonder how quickly all of the quasi-70's hipster design cues would age. It reminded me of how much trouble Walt Disney World has keeping the "Contemporary" resort contemporary. Inevitably it seems like the most dated hotel in their portfolio.
It's been five years since I last visited and I was surprised by how much the newer developments, especially City Center seem to suck the life out of the Strip vistas. I know the execs want to reject kitsch and be more sophisticated, but I think that even sophisticates want a little kitsch in their Vegas vacation. It just seems like the whole theory behind the place was flawed.
Here in LA you have to look no further than the success of the theme park-like Grove, versus the flailing of the more modern Hollywood and Highland with it's weird non-intuitive traffic layout and attempt at being hip. Architects may sneer, but I think people just like to hang out in warm inviting environments. There's plenty of concrete and glass in the workday.
I would love to see more Boutique Hotels like The Artisian and Rumor.... The staff make you feel welcome and appreciated
I wonder why so many people look only for the "high-end, high-fashion" places... Stayed at the Luxor a few times, it was totally okay... to me, a hotel room is a place to sleep and rest. I do not see enough surplus "value" to spend 120+ bucks a night at CC instead of 60 (or less) right next door (MGMG - NYNY - Excalibur - Luxor).
Seriously? What is the matter with all of you people griping that $120, $130 or even $150 is too much to spend for a LUXURY hotel room? Have any of you people ever been outside of Las Vegas? Las Vegas is quite possibly the ONLY city where you can stay in a 5-star, 5-diamond luxury hotel for less than $150 a night. For that price, you're lucky to get a Travelodge or Days Inn in downtown Vancouver, Toronto or Seattle. Don't even get me started on San Francisco. Stop complaining, people. Oh, and then there's those who say, "Yeah, I might get a decent deal on a hotel room, but then I have to pay $16 for a burger." Get out, walk around, enjoy the city... you're not legally bound to eat in the restaurant of the hotel you're staying in. My husband and I will be visiting your fair city tomorrow. Our flight and four-night stay at Encore will cost hundreds less than a flight and 3-star hotel for two nights in any major Canadian city. Time to get a grip and appreciate what you've got.
Ask a tourist -- We visit Las Vegas 2-3 times a year and after 15 years of building loyalty we stay at the hotel that gives the best offer -- Free rooms, free food, free play" Luxor was #1 until the renovation, now we stay at the Main Street Station -- non-luxury, but they are generous! City Center looks like a New York or Los Angeles law firm, and that is not good to a tourist on vacation.
I'm no expert but you can read my take on the Vegas question at:
http://ventureboost.blogspot.com/2010/04...