Facebook
Fark
Digg
Reddit
Stumble
Mona Shield Payne / Special to the Sun
CEO John Unwin waves to spectators on the CityCenter bridge from atop the Cosmopolitan of Las Vegas marquee.
Sunday, Aug. 22, 2010 | 2 a.m.
Map of Cosmopolitan of Las Vegas
Cosmopolitan of Las Vegas
3708 S. Las Vegas Blvd. , Las Vegas
Chief Executive Officer John Unwin fields questions from the media regarding the upcoming opening of The Cosmopolitan of Las Vegas Tuesday, August 17, 2010, at the Talent Center.
Chief Strategy Officer Sherry Harris answers questions from the media regarding the upcoming opening of The Cosmopolitan of Las Vegas Tuesday, August 17, 2010, at the Talent Center.
John Unwin might have one of the hardest jobs in Las Vegas.
The CEO of the soon-to-open Cosmopolitan must convince skeptical and recession-weary consumers that his ritzy, $3.9 billion resort offers something different from the myriad attractions built during the most expensive and ambitious growth spurt in local history.
Unwin won’t have an existing database of casino customers or a well-established corporate structure to rely on when the 2,995-room resort opens Dec. 15. Hired a year ago by the bank that foreclosed on the under-construction property, Unwin inherited a two-tower skyscraper conceived by a New York condominium developer with no casino experience.
Yet Unwin, who most recently served as general manager of Caesars Palace, is in high spirits about his risky career move to the startup company.
“This is hard work, no question about it,” Unwin said during a brief respite last week in the Cosmopolitan’s job center, a tastefully decorated cluster of office cubicles and lounge space where the resort is busy hiring 5,000 employees.
Seeing opportunity amid challenge
In an industry known for domineering, defensive personalities and scripted jargon, Unwin has a cheerful, informal manner.
He sounds as if he is actually having fun, quite a feat in a town knocked sideways by record unemployment and downsized workplaces.
“I’ve been practicing for this my entire career,” said Unwin, who describes himself as a creative, open-minded thinker rather than a technical, by-the-numbers manager. “We’re building a resort on the 50-yard line on the Strip and bringing retail and restaurants that are new to Vegas. We’re not a product of a merger, acquisition or expansion. We’re building a new culture that’s going to be part of our genetic code ... I’m working my ass off — and loving 94.7 percent of it.”
Unwin will open the last of the growth-era resorts amid an economy struggling to support an influx of high-end properties such as Palazzo, Encore and Aria. Some observers think he is on a fool’s errand.
But where others see challenge, Unwin sees opportunity. He doesn’t optimistically think that most of the Cosmopolitan’s business will come from new Las Vegas visitors. Rather, he expects to steal customers from his Strip neighbors.
Likewise, CityCenter’s Aria, which posted an operating loss of $383.4 million for the first six months of the year, cannibalized Strip business since opening in December. Although casino operators expect business to improve next year, earnings have worsened compared with 2009, with Strip properties losing money, breaking even or earning less than they did a few years ago.
The Cosmopolitan will have many familiar features, such as eclectic boutique stores and restaurants by acclaimed chefs, a posh nightclub, multiple pools, convention space and a showroom.
Comparable in square footage with its sprawling resort neighbors, the Cosmopolitan is shoehorned onto a 9-acre rectangle at Harmon Avenue and Las Vegas Boulevard — a third the acreage of typical Strip resorts. The vertical footprint is nothing new to big cities yet contrasts with Las Vegas’ supersized hotels.
Elevators are a short stroll across the lobby from check-in. All but two restaurants are on the third floor. Retail shops are grouped on the second floor, accessible from an overhead walkway from Planet Hollywood across the street.
The casino capitalizes on pedestrian traffic on Las Vegas Boulevard in a way that many resorts, both old and new, do not. Four stories above the Strip, a pool and recreation area with beach volleyball and a stage for live acts are taking shape on a narrow rooftop that curves around a 50-story tower, affording guests in upper floors an expansive view of the action from their balconies.
Unwin has spent most of his career overseeing smaller, posh hotels such as the Fairmont in San Francisco, the Mondrian in Los Angeles and the Delano in Miami Beach, Fla. In New York, he worked closely with Ian Schrager, who is credited with reinvigorating the boutique hotel concept in the 1990s.
Large rooms — designed to be apartment condos, with lounging areas, mirrored hallways and beds situated next to windows that exploit dramatic views — are another selling point, Unwin said. Even bathrooms have Strip views. Most rooms will have furnished terraces ranging from 110 to 490 square feet and kitchens stocked with drinks and snacks. Premium suites range from 910 to 1,255 square feet, some featuring wine refrigerators and large kitchen counters. Three-story suites near the pool are laid out like urban lofts, with Jacuzzis on decks overlooking the Strip.
“It’s like a fantasy high-rise apartment ... in New York or Tokyo,” Unwin said.
The two-tower building had been designed as a condo-hotel but will be mostly hotel rooms owned by the property after condo purchasers backed out of their contracts in the real estate downturn.
The jury is still out on whether tourists — who appreciate Las Vegas for its over-the-top kitsch and whimsical architecture — will take to modern design. Or, for that matter, a building with attractions spread over six floors, said Bill Eadington, director of the Institute for the Study of Gambling & Commercial Gaming at UNR.
“The Vegas audience is different from the New York audience,” he said.
Its prime Strip location may not ensure survival, either, given that Planet Hollywood across the street has struggled financially, Eadington added.
“There may not be that many people to sustain all the five-star facilities in Las Vegas, even longer term,” he said.
Union Gaming Group analyst Bill Lerner said the property has lowered room rates offered through its website for the few months after opening to undercut other luxury hotels — an outcome that is expected to result in even more lost business for competitors. The effect, he said, will probably be worst for MGM Resorts International, which owns half of neighboring CityCenter and three other high-end Strip properties.
The resort’s strategy remains unchanged since it launched room reservations June 30, Unwin countered. “We will be comparably priced within the luxury resort competitive set. Specific days have been moderately adjusted both up and down based on market demands.”
New owner, new look, now hiring
Rather than mothballing the Cosmopolitan as some expected, Deutsche Bank continued construction after taking control in February 2008, signing with the contractor to guarantee completion. The bank bought it for $1 billion in a foreclosure auction in September 2008, the year it was originally scheduled to open at a cost of $1.5 billion.
Deutsche Bank hired consultants and designers who reworked room interiors and public spaces to come up with an opulent look they thought was more suited to Las Vegas and conducive to profit. They moved retail shops upstairs to accommodate a larger, ground-floor casino, for example.
With an unadvertised website containing job postings and an off-Strip employment center known to those who have sought it out, the Cosmopolitan is cycling through more than 500 applicants each day. (The resort will roll out a marketing campaign for job openings next month.) Although that’s not surprising given the local unemployment rate of 14.8 percent, many inquiries, Unwin said, are coming from managers who are gainfully, though unhappily, employed at other major Las Vegas resorts.
There’s a desire for entrepreneurialism that is lacking on the Strip, said Unwin, who claims to reject the predominant “command and control” style of management in Las Vegas.
“We’re a blank slate,” he said. “We’re going to change the marketplace by changing the workplace.”
While many corporate giants rely on thick handbooks to instill customer service standards such as standard greetings, the Cosmopolitan, he said, will encourage an unscripted approach.
“We want you to bring (your personality) to work and let you (serve customers) in your own way,” he said. “Guests know if you’re not being genuine.”
A symbol of that concept hangs on a wall in a display case: handwritten words by new hires asked to sum up their personalities in a word. They run the gamut, from “aloha” to “sexy.”
In a nearby waiting area, job applicants seated in couches that face one another begin a casual conversation. It’s a strategic move to make people feel comfortable before interviews. They will have at least two before they get the nod.
“This is a once-in-a-lifetime opportunity to create a new workplace,” said Chief Strategy Officer Sherry Harris, who led human resources for Paramount Pictures and MGM/United Artists, with the primary task of nurturing employee creativity. She later worked with Unwin during his days at Ian Schrager’s hotel company.
A hotel isn’t all that different from a Hollywood back lot, said Harris, whose former employer churned out such hits as “Top Gun,” “Cheers” and “Family Ties.”
That kind of success may be impossible in today’s economy, but Harris’ living room approach, on this particular morning, is working.
“There are things you can’t control,” Unwin said. “We’re keeping everyone focused on what they can do to make a difference.”
What Unwin failed to mention is that he hired a bunch of hacks from Harrah's to run the place. Since Harrah's is doing so great, that totally seems like a great move...
The Cosmopolitan deserves to succeed, and I sincerely hope it does.
The citizens of Las Vegas should get down on their knees and thank the bank ownership for deciding to finish and open this beautiful hotel.
Not only thousands of jobs will be created, but the appearance of that section of the Strip is tremendously enhanced by not having an empty shell sitting for years.
Compare this ownership decision to open with the sad north end of the Strip, where Mr. Icahn has callously decided to let the Foutainebleu fester as an unfinished eyesore, and Boyd Gaming has opted to leave the skeleton of the Echelon poking its misery skyward.
All the best of luck, Cosmopolitan, for your owner's gutsy but fantastic decision to open despite the economy.
Good luck to him. He is going to need it.
If Unwin treats his employees like partners in a successful business rather than subservient idiots he may do better than his neighbors!
Another NON GAMING CEO. Why does the industry continue to empower people with no gaming experience to run these billion dollar properties? Isnt it about the gaming? I recently spoke with a "former" casino host from the Bellagio who quit after being sent to graveyard to accommodate for a new host to work the swing shift. The new host was a cocktail waitress made host. I guess this is not the first cocktail waitress made host there. Gaming has become so ego driven it is killing the business. How can someone run a company when they have no experience with the core business? Ill never know.
"Cosmopolitan CEO plans to steal other customers from Strip competitors" by what.. offering the same thing that every other competitor offers?? Whats so original or special about this place? Honestly, from the side, the two towers look like a big rig semi.. I guess that will make people want to come and check it out LOL...
All the previous new projects in Las Vegas had to justify their investment by stating that they intend to "grow the market" - create and market an attraction that would entice customers to get on a plane to fly to Vegas to check it out, grow the visitor volume. Obviously, "stealing" customers natrually happens due to convenience, realtionships, etc. However, to have stealing as the basis of your pre-opening marketing plan is a recipe for disaster, for both the property and the destination. More rooms and gaming positions with the same number of patrons coming to town only means lower revenues for all concerned. I would go back to the drawing board on that one and at least give us a couple ideas and some lip service on how you intend to grow the market.
Shakespeare said it best, "All that glitters is not gold".
Whatever we think of the Cosmopolitan we should wish it well. We need competition brought back to LV. Stations, MGM Resorts, Harrah's & Boyd monopolize the Strip & local markets and it shows in the lack of service, the lowering of payouts on games and slots, the constant raising of prices, and the general, "If-you-don't-like-it,-go-somewhere-else" attitude of today's "suits" who would never dirty their hands by interacting with the "suckers," er, patrons, who enter their properties. "Customer service" in most resorts is an oxymoron much like "honest politican." I found the "M" resort to be an exception and it, too, is going to be swallowed up by the monopolists!
Unless they plan on having live sex acts on stage they are not going to offer anything new in Vegas, lol.
On a more serious and sad note, this town is becoming a play ground for rich boys and their toy casions.
Ronter pontificates: "On a more serious and sad note, this town is becoming a play ground for rich boys and their toy casions."
Um ... that would pretty much describe the entire gambling history of Las Vegas. Some people don't get enough history with their breakfast.
Good luck, Cosmopolitan. The future of Las Vegas is tomorrow!
With a c.e.o. name like UNwin,I can't help but think HOW can they lose?
Many posters on here are right. The people running these places today have virtually NO experience in the casino industry, they are all corporate a$$'s who think they know how to run a place like the Cosmopolitan or run major companies like Harrah's Entertainment. All they care about is making $ and not the customer and so long as this goes on in Vegas, everything will always be expensive and over the top.
More competition is good news to Las Vegas.
Brutal competition is going to support economy... means more jobs, more tourism lured by cheap prices etc.
Profit margins (@LV Strip) were inflated couple last years and with this oversupply they will be rather modest in future. And now that bill is paid by casino owners.
does this story look familiar? there's same one about coming december opening of very new project... a year ago
"Yet Unwin, who most recently served as general manager of Caesars Palace..."
I think that would classify him as being familiar with knowing how to run a gaming operation.
Some of you trolls will never be happy with any new thing that comes to market. People seem to want casinos to give out bags of money and offer a "fly you to the moon" space shuttle as a new attraction to get business. Well, that's not happening so get over it. This casinos/hotel/resort is bringing a lot of new stuff to market if only people had bothered to read the entire article and possibly check out the website.
Visited Vegas for the first time last month. It's the best place. It's nice this project is moving forward, it's helps everyone on the strip. John has his work ahead of him. He's got to figure a way to do it better and for cheaper. Huge competition there and a soft economy. Hang in there.
We spent last night at the Choctaw resort in Durant OK and could not have been more impressed. Every single aspect of their operation is top notch. Customer service, food quality, price of food, price of liquor, hotel design and gaming options. This will continue to be a real problem for Vegas.
The real problem for Vegas isn't the Choctaw resort. It's the recession.
How STUPID comparing an Indian Reservation casino to anything Vegas ! Raise gaming taxes on reservation casinos to what Las Vegas casinos pay. Make Indians pay sales tax on the goods they purchase to run their casino. Then tell us about your great experience at Choctaw. Until then shut up !
Really Hiloyo63? Have you looked at the year to year statistics on indian gaming? Earnings are increasing every year. Of course I realize that the indian casinos are not Vegas. That is not the point. For every person that enjoys a venue close to home that is one less person visiting Vegas. It is a real component in the Vegas situation whether you like it or not. There are many Vegas supporters on this site that have posted regarding this issue. Rather than you attacking the indian casinos you really should realize the many issues facing Vegas that had better be addressed or the problem will just get worse.
Las Vegas has ALWAYS been about gambling. If the Indian casinos are offering a better gambling experience, then that is where the players and money are going to end up. Las Vegas gambling sucks right now. This means bankruptcy for the Las Vegas properties..
I have no idea if this plan will work. However, if the following steps are taken, the place will be packed and will take business from greedy MGM and evil Harrah's:
--Have no 6/5 blackjack tables. Advertise no 6/5 blackjack. Have plenty of double deck games, with some shoe games. On shoe games have the decency to deal 5 decks out of 6 decks.
--Have reasonable table minimums: On a busy weekend have plenty of $25 min. blackjack tables. During slower times kick it down to $15 or $10.
--Make check in to the hotel as fast as possible. Do not make people wait for an hour to get their room.
--Do not deny particular drink requests for table games patrons. If I want a Gran Marnier do not tell me that drink is not approved for table games.
--Have fairly priced drinks in hotel bars. Example: A draft beer and a margarita should be around $8-$12, not $20 or more.
--Have a fair and reasonable comp system. Reward players with no hassles that have played enough.
--Hire pit bosses who are at least somewhat friendly and personable.
--Do not charge $16 for a deli sandwich in a casino snack bar.
--Do not insult casino patrons with a "party pit."
This formula is quite simple. It can work. It can make this casino stand out from the rip off casinos it is surrounded by. I guess time will tell. Best of luck to them. They will need it.
Check out my LV blog, it's pretty cool:
http://jimmyhoofa-lv.blogspot.com/
What a joke this place is going to be. A bunch of overrated, overzealous former Harrah's execs who are going to bring their "wisdom" to a property with nothing in the way of a database or history. Harrahs has the worst reputation in the industry as far as just being lemmings that all follow the leader. They get buried in the organization and leave it all up to the Peter Principle to climb the ranks. All of the Cosmo execs are pompous and arrogant and think they're going to rule the city. It's hilarious. They hired an ad agency from Minnesota. The Cosmopolitan will be snapped up after it under achieves in less than two years.
How long before they shutter a few glitzy places? More layoffs - more fun!
I say hire Jimmyhoofa to run the place. He knows exactly what people want. Anyone listening?.......just what I thought, casino exec=no ears.
I bet jimmyhoofa could open up a shack (Mini-Strato) downtown and make more money than all these places combined.Does that guy make sense or what? Jimmy,when can I buy some shares in Your Place?
All of your posts make so much sense to me, I can't believe the casino execs don't listen to you. Have you sent your resume's in to be considered as advisors or at least Deputy CEOs? I mean, jeez, the talent lurking on this comment chain is inspirational. So many Fortune 500 caliber leaders, just waiting around for some big casino owner to punch their ticket. Frankly, I'm shocked that managers with your background and skills aren't being put to better use.
Harrah's has millions of customers in its database and are struggling. Cosmo has virtually no one in their database, who exactly are they marketing to? The article indicates that they've undercut the market, which they haven't! (I checked their website), they still too expensive in my book.
Vegas casinos suck the money out of my wallet, I don't want or need expensive air fare or hotel rates as well. I work in the gaming industry and I've vowed not to return to LV any time soon, it's too expensive to get there. And don't get me started on 'resort fees' (at least Harrah's doesn't have them!). I can increase my gaming allowance equivalent to the airfare and not put up with the hassle of air travel. The local casinos offer the same gaming experience (same table games, slot machines, smoke polluted air, etc.) that LV offers.
I don't think LV is the victim of recessionary measures, I think it's a good percentage of the population waking up to the fact that they now can gamble close to where they live. The average Joe/Jane only has X amount of discretionary income for gambling, and there's more and more local casinos out there with more opening every day. LV has to wake up to the fact that it's no longer a destination, just as AC is no longer a destination. People are gambling in their own back yard now, they don't need the hassle of the airport nor the lousy service overprices airlines and rude passengers.
Let's get to opening FIRST. Then we can talk about the thievery of customers from the other casinos that are having trouble retaining customers NOW...in August.
Cosmo should follow the lead of Michael Gaughan at South Point.
Go against the grain of policies used by MGM and Harrah's.
It's paying off for the South Point, I believe.
Let the word get around that things are different, have a niche.
Following the big boys will have you go the way of Planet Hollywood and get you swallowed up, unless that's the plan.
At a price-tag of 3.9 billion how can these moron exec's even think of paying the note on this pig!!! Where is the money going to come from to pay these imbeciles????
Being bank owned, it more likely to be financing or note free, other than a return on investment.
Deutsche Bank has plenty of capital. No doubt all they need to do is make it cash flow or at a minimum, carry itself.
That's a pretty good position to be in.
My guess is they will have it run for them until it can be sold for as much as they can, in hopefully better times to come.
Already they seem to be interviewing illegal mexicans to hire. They don't read, write or understand English, yet they're being interviewed.
Doing the same thing MGM/Mirage corp does!
I also believe that the locals casinos across this country are also very customer oriented. They understand, as Vegas used to, that it is all about taking care of the customer so that they will return. Prices are very reasonable($3 beers, $7.99 buffets, ect). We have been to Vegas two times this summer and even as a diamond member it just seems that the Vegas attitude is to squeeze every dime out every customer. I realize that they are just attempting to support their debt load but really all that it does is drive the customers away.
For all of you who think it costs too much to fly it is cheaper to fly now than twenty years ago.
To think that the Venetian and Bellagio cost $1.5 billion and this, let be honest here, rather less interesting resort cost $4 billion. Of course, The Wynn cost $2.7 billion. I wonder how all these guys make money when construction costs have skyrocketed and what they can charge for a room has hardly changed in the last 10 years.
Jimmyhoffa-
Agree 100%.
I hope Unwin makes it. I don't think he will unless he is able to copy the elco downtown just to get people in the door. I have been going to Vegas since 1979. 80's were great, 90's sucked, 00's were schzoid. Now who knows. Vegas is not fun anymore. I do not mind paying for my entertainment, but when the Casinos/Hotels constantly try to overcharge me, and nickel and dime me, I say no more. The value of the service is gone. My personal opinion, the casino/hotel managers simple want to cover their large salaries and not plan on long term growth. Get what they can and get out. They obviously have never sat at a $3 table and listen to customers or listen to people complain about a $14 foot long at subway on the strip. I really miss the fun of Vegas. I had a good run.
This town has no future,no hope,and soon no water!LOST WAGES IS DEAD!!!
rumrunner: This town has no future,no hope,and soon no water!LOST WAGES IS DEAD!!!
My answer: BUHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!
Side note. Yesterday I was at my favorite casino in Northern NV. I informed one of the pit boss's I would not be returning because of the reduced comps, bad customer service, changes in house table rules, short penetration of single deck, increase cost of mins, tight slots, increase cost of food, and general feel it was not a fun place anymore. Been going there for 20 years. Now I will be dropping certian casino/hotels from my list to go visit in Vegas. Maybe the good old days are just gone.
Wow.. Hater Nation jumping aboard this story.
Wouldn't this place being successful mean a positive step for LV and our community?
I was given a tour of this property recently and it's is WAY nicer and more appealing than City Center was at thier pre-opening stage.
Time will tell, but if they can execute once open, I think they have a good chance at building a solid following.
We'll see...
I thought that was part of the City Center complex!
MGM stole the whole place.
Oh well, I'm just a tourist.
great location--BbbbaaaADDDD TIMING--lets see---they've been bankrupt before opening, now you have a harahs ceo and harahs people---not a good start. maybe they should start with some corporate training classes--they've done such a great job for the harrahs properties!(hahahahaha) These corporate wanable executives should go to work at boa or ibm or png and stay out of the gambling business--they are so clueless. Diversity training and the like---are you kidding me. Opening this place is the countdown to going bankrupt the second time.
They're going to start their hiring campaign next month? I hope they don't have too many jobs to fill. Did City Center open the same time last year and have all their offers made by September. Someone's a little behind the 8 ball.
Already they seem to be interviewing illegal mexicans to hire. They don't read, write or understand English, yet they're being interviewed.
Doing the same thing MGM/Mirage corp does!
___________________________________________________________________________
Where does it say that in the article?
Other than the balconies, I'm not seeing what this cookie cutter complex is offering that thousands would flock to. Now, if customers could bunjee off the balconies...that would be a draw. Oh, wait, Stratosphere already has that.
I met with some of their people recently and am just amazed at their arrogance. They actually had the gall to criticize MGM Resorts during the meeting. Granted, there's a lot of things MGM could be doing better but they are leaps and bounds better than Harrahs and their properties. Its hard to believe people from Harrahs properties can be so obnoxious, and now they're on the Titanic of the strip. . .
They might do okay at the beginning but come next April. They're done. We'll see who will be so arrogant in two years. . .
to "concerned native":
Mr. Unwin was the GM of Caesars Palace (Harrah's Entertainment), and therefore has casino/gaming experience. It's the current CEO of MGM Resorts (Mr. Murren) who had NO industry experience when he was hired by then CEO Lanni.
The composition of newly hired at Cosmopolitan are former LV Sands, MGM Resorts and of course, Harrah's Entertainment personnel, not just from HET.
___________________________________________________
As a member of the Las Vegas community, "Best wishes for the success of the newest entry on the strip!!"
Anywhere in the United States you are now 2 hrs. or less from a casino. I remember when
Atlanic City opened there first casino in 1978 and everybody said in Vegas "no way can it ever hurt us it will create more gamblers for
Las
Vegas". How ignorant we were. There are too many casinos now in every single state and a lot more to come. The Indians now dwarf Las Vegas in gaming revenue and Macau makes more money than both combined and the strip charges 8 dollars a beer!!!
I can't wait for the "flashing" and other misbehaviors that will occur on those balconies.
That part of the Strip will be wild when this place opens! Go to the front of Planet Hollywood with some binoculars -- I think it will be quite a show!
However, I predict an "accident" or suicide within the first 3 months the hotel is open. Those balconies are just set up for something bad to happen...
Check out my LV blog:
http://jimmyhoofa-lv.blogspot.com/
I don't see evidence within the article that Mr. Unwin actually said that it was his plan to "steal customers from strip competitors". There doesn't seem to be a direct quote as such. And I doubt that he actually said that , at least in so many words. However , he would certainly have no reason to not "think" that much of his business , in the short term , will come at the expense of the other properties. That said , if this is the business plan in the absence of anything else , then there is "no plan" and I agree that this is doomed to failure.
This is likely the last major casino-hotel that will be built and opened in Vegas in our lifetimes. Fontainbleau may open after others close and the Echelon property will be for sale with no takers for years to come.
Some have commented that the Cosmo doesn't have anything new to offer that can't be found everywhere else. And herein lies the problem - Everything has been invented .... there is nothing new. There is only so much you can do to arrange 3,000 rooms , a hundred-thousand square feet of gaming , some shops and restaurants , all within a 9 acre property and have any reason to think you've re-invented something now as new or different. In short , Vegas doesn't have anything new to offer ,not in this property or any other , that now can't be found in most other states. Vegas is no longer seen as the logical destination for gaming and entertainment. There are many other choices to make and people are not any longer thinking of Vegas first.
Vegas lost it's way when building billion dollar palaces became the standard fare in construction for new properties. Any income realized is consumed to service the debt with no real possibility for profit. How long can these properties continue to lose millions of dollars each month/quarter ?
Everyone will someday see that the real problems that brought down these businesses was always something greater than this recession.
""We're building a resort on the 50-yard line on the Strip and bringing retail and restaurants that are new to Vegas"
YES of course you are!
Are you kidding me with this statement
more restaurants,and retail that are new
this is such a joke!
peace out
Dale Carneigie summed it up decades ago when he said "ANY FOOL CAN COMPLAIN, CRITIZE AND CONDEMN, AND MOST FOOLS DO." All of our mothers summed it up when they said: " If you don't have anything nice to say, don't say anything at all." All you negative people out there need to take a deep breath and relax. Is there an ounce of entreprennial spirit in you? Have you never taken a chance, and if you failed, then what?
All you armchair quarterbacks should be thankfull there will be 5000 fewer unemployed people in Las Vegas. Give this project a chance. Las Vegas will bounce back, and I applaud the spirit and attitude of the creaters.
I am putting my money where my mouth is, as I will probably leaving a secure postion in the industry to go there, with all the hope and optimism of the pioneer philosophy that built this great city. And our best days are not behind us!!!
leonard;At least read the headline.I seriously doubt this will not effect the other casino's bottom line,thereby reducing their employment numbers considerably,if not equal to your added 5,000.The bank bought the place for 1 billion,from themselves!They still lent out the original 3.9 billion.That is their cost basis for the place.This was all done with a cost overun of 2.4 billion.But now they will have to compete with City center,who itself is already losing tons of money.If u went there because they will be paying u more,well there is another higher cost basis.Try actually making any money with this kinda debts around your neck!Oh I guess they can if they charge 50 bucks for a rum&coke,or 300 for the basic room,but thats not going to happen!Roguerunner says;It's better to make less money for a long long time,than to make more money for a very very short time!Stay where your at Lenny!A bird in hand is worth 2 in the nest!
Nobody envies him. It is no fool's errand either. It certainly is a tough assignment. I believe,though, he has two things going for him, i.e a) a belief that there is opportunity amid challenge, and b)a creative and open mind. While I am not saying that he would be successful, at least these two qualities will give him a fighting chance. In a market that is stilling reeling from the effects of a recession, one must be able to spot opportunity to 'create' demand. In trying to do so would require one to craft strategies that are different from other competitors. In an almost zero-sum game environment, where success requires one to be able to draw customers from the competition, creativity and an open mind are are pre-requisites for taking bold initiatives.