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Sunday, May 9, 2010 | 5:13 p.m.
Map of Tropicana Las Vegas
Tropicana Las Vegas
3801 S. Las Vegas Blvd, Las Vegas
The Tropicana Las Vegas hotel-casino lost about $7.7 million during the first quarter and its owners are investing more cash in the resort to help finance $165 million in renovations.
Canadian investment company Onex Corp. and co-investors picked up the resort out of bankruptcy last July for $205 million.
Onex said in its quarterly earnings statement last week that the Tropicana sustained a quarterly operating loss “during its restructuring and refurbishment stage'' and that the loss for Onex's portion of the investment was affected by fluctuations in the value of the U.S. dollar to the Canadian dollar.
Comparable numbers for the first quarter of 2009 aren't available, though it's been disclosed the property generated net revenue of $33.6 million and a net loss of $19 million during the second half of 2009.
The Tropicana said in a regulatory filing that occupancy at the property fell from 80 percent in 2008 to 67 percent in 2009, while the average daily room rate fell from $71 to $55 because of “the economic downturn coupled with a severe supply-demand room inventory imbalance in Las Vegas.''
Onex said it and members of its management and partners in the Tropicana in April purchased an additional $45 million of preferred shares in the resort company. These shares accrue dividends at a rate of 12.5 percent and are convertible into common stock. In 2009, the partners purchased $60 million in preferred stock under a similar arrangement.
With 1,772 hotel rooms and a 50,000-square-foot casino at a 34-acre strategic location on the Las Vegas Strip at Tropicana Avenue, Onex has called the Tropicana deal a “distressed-for-control opportunity'' executed during a cyclical low in the gaming industry.
“Alex Yemenidjian, our gaming industry partner and CEO of Tropicana Las Vegas, and his team continue to make progress on the operational and physical transformation of the property. With the expectation of continued weakness in the Las Vegas market, the decision was made to accelerate the second phase of the renovation into a single, comprehensive redevelopment. Once the transformation is complete, we believe Tropicana Las Vegas will be well-positioned when the Las Vegas market eventually recovers,'' Onex said in its earnings report.
The Tropicana last month said its $165 million transformation to be completed in April 2011 will include a redesigned facade, all new rooms and suites, all new amenities, restaurants and bars, and South Beach-style entertainment and nightlife options.
Tropicana Las Vegas sits on the south-east corner of Tropicana Avenue and Las Vegas Boulevard, an intersection which has the most adjacent hotel rooms in the world, also making it one of the most busy. The hotel has 1,658 rooms, three restaurants, a 62,011-square foot casino and a spa.
The Tropicana's five-acre pool complex stretches throughout the center of the the hotel/casino and remains it's most recognizable feature. It features swim-up blackjack during the summer months, a swim-up bar, dining areas and a wedding chapel. The Tropicana is also home to Brad Garrett's Comedy Club. For pre-show dining, take advantage of one the casino’s dinner and a show packages or just head over to Cafe Nikki, Biscayne Steak, Sea & Wine or Bacio Pasta & Vino.
Go Tropicana ! Renovate those rooms, re-do the facade for umpteenth time since this place was built, but don't forget to keep the rooms cheap, food cheap, generous comps, loose slots, and a return to the normal table odds. You will find the tourists will be back in droves!
Never going to happen. Tropicana lost it MOJO in the 60s. Better to implode and wait for the DEPRESSION/RECESSION to end.
Alex Yemenidjian,CEO of Tropicana Las Vegas and his very well know monkey style management believe that new paint, new carpet will rush costumers to his door.
Tropicana has been neglected so many years by two previous greedy corporations has zero chance to come back due to location and competition.Just implode it.
Now do you think Las Vegas over built itself.
I know its hard to compete with the other resorts.
Its time to remodle and when the recession is over back to business as it was.
The Tropicana is a icon like the Riv.good shows,food,comps,show girls and staff that cares. Hold on it will get better.
I for one am glad to see a hotel invest money to rebuild itself. What do you think would be there if it was torn down, an empty lot.
chazbean,
RIGHT ON!!
IMPLODE THAT RESORT!!! GUT IT!!! OH YEAH!!!
BUILD A CONSTANINOPLE ANCIENT THEMED 5 STAR RESORT UP TO 70 STORIES BABY!!
Oh Yeah!!
Will be owned by either MGM or Harrahs by year's end. Sad but true.
Why not just close half the rooms? Open a floor when there is a big demand, like a fight weekend, etc.
It also does not help that the Trop is a sawdust joint with 40+ years of tobacco stench wafting through it.
Of course, if they offered fair blackjack and loosened up the machines, it might be busier. I guess they missed that memo like Harrah's and MGM...
If the Trop keeps their prices low, they will succeed. The fact is that Las Vegas needs more mid-level properties that are nice, but not crazy expensive. We will never survive if all the resorts are charging $200/night for a room.
The renovation work being done at the Trop is just what it needs. It keeps it classy, yet clean and simple. As for the comment that it will be owned by MGM by year's end - it already was and they sold it to the current owners.
You can't shine a sneaker.
I'll be staying there again, if just to avoid giving more money to MGM / Harrah's.
The Tropicana has a great location, staff is cheerful, the place has hints of old Vegas. Perfect place to stay and have fun. Go Tropicana!
Sorry, the Tropicana was not owned by MGM.
The people making comments on here obviously are not in business for themselves or managing a business. Your business philosophy of offer cheap rooms, cheap food, loose slots and low limit table games will bring exactly that, cheap people, unsavory characters and crime. Instead of losing 7 million they will lose 3 times that amount and people that actually have money will stay away. Has anyone ever seen the characters at Jerry's Nuggett? Scary!!!! Lets see, I believe downtown has cheap everything and look how those properties are doing financially!! There is a place for people who want cheap everything and that place is HOME!! Stay Away from Vegas please!!!!
I remember one time in 92 I walked in he Trop looking for a dealing job. I was new in the business then. The lady at the application looked at me and says "Dont you know where you are? You are at the Tropicana, we don't take applications, you gotta know somebody. She then looked at me like I was some idiot. How the mighty have fallen. I never forgot that witch and now where are ya honey. I made it to the top and never talked down to people like her.
denver21 :
You obviously have no clue how Las Vegas works or became the great tourist destination it was prior to the crash. My guess is that your just another one of those young kids who never experienced Las Vegas in it's days of greatness. By the way, gambling odds are set up so that the house edge makes it so they are profitable even with the cheap rooms, food, and loose slots, that's how this city was built youngster!
I just came to the Trop after 10 years of forgetting about it, I stay at MGM most of the time. I was very impressed with the changes. They seem to be about in the middle of it all but it was more than I bargined for. The Staff was very friendly and happy and could not say enoughn about how great it was to be gettingg a facelift. not sure who owns the trop now but whoever it is got me to book my next stay there.
We have the BEST employees on the Strip!!! Nobody is more experienced or better than US!!! Come to the Trop and you will be treated better than any other hotel in the city, maybe the world!!!
I spend my money at the Tropicana and other independents like Treasure Island simply to avoid Harrahs and MGM.
Go Tropicana!
I wonder if the Trop charges a resort fee?
The Tropicana was bought by Carl Icon, There is money to be made with the property, or he would not have invested in it. It is being remolded for a reason, since he has practically nothing in it, he will sell it for a huge profit or make a huge profit on it's operation. Either way he saw money in the Trop, he doesn't invest for kicks and grins.
I don't believe that Icahn bought the Las Vegas Tropicana--I think that is in the possession of the Onex Corporation. Icahn bought the Trop in Atlantic City and some of their other properties in a variety of states, including NV--but not the LV Trop.
Trop made a bet that they could create demand and charge a premium by renovating the rooms and throwing out a glitzy marketing campaign.
So far they have been dead wrong. The economy is not allowing anyone to charge a premium for anything in Vegas.
Not sure what made the execs at Trop think that they could somehow magically avoid the slump the rest of the market is in. Probably blind arrogance.
Room inventory imbalance? Trop was never part of the real room inventory, they are classified in the motel category. It is sad, you can redo, restore, remake, but the beams in that place stink, sad. Bring the white trash mob stuff maybe will draw the want to be guido's from New Jersey. They smell so bad they won't notice the smell of the rooms.
WDM :
Your comment is stupid and makes no sense whatsoever.Any property can be re branded and improved, the Trop is NOT motel status with the two big towers and huge casino space, pools etc. The real question is if the re branding will try to re introduce the Las Vegas formula for cheap rooms, food, loose slots, back to fair table games odds, and quality free entertainment. If they follow through all the way it could be a huge success.
i think if you do exactly opposite City Center, it will be a success.. yes i would change the facade, do a massive update to the pool area, put in a gimmick, etc.. but keep the rooms reasonable (on the level of NYNY, TI, etc) any it will work.. no $18 martinis needed.. keep the beer at 4 bucks and they will come.. open the pool to locals (You can charge for this) during certain hours, etc..
I still prefer going to the Cannery. It's newer, cleaner, has decent restaurants, reasonable rewards and a good sports book. Not need to travel down to the strip with all the traffic problems. I still think that ALL casinos need to be smoke free!
@environprotector-
Odd, your perception of when Las Vegas was "great". By the numbers, it would be from 1990 to 2008- the era of change you declaim as all that is wrong with Las Vegas.
Your Luddite brand of socio-economics and recreation would have everyone playing "Red Dog" and dining on bad $9.99 steak-and-lobster specials at Vegas World.
Denver21's got it right. The future of Las Vegas resorts will be smaller, yet up-scale, less glitzy, more comfortable, and aesthetically stimulating and pleasing. Everything CityCenter, M, and Wynn Resorts offer. Gaming has lost it's status as a unique selling proposition for Las Vegas. It will never be the top draw again.
environprotector,
You just have no clue what you are talking about. All you expect is stuff to be cheap and/or free. How can any business survey with that model? It just makes no sense. You talk about glory days. Clearly, you like living in the past and look at the current economic factors. The most successful casino organization right now is Wynn. His business model is excatly the opposite of everything you talk about. Make the place attractive and high end. Discourage the poor & trashy from coming in.
Green_Dragon_Regular & navedd :
As usual you guys just don't remember I'm guessing because of your age, just how glitzy, glamorous and high brow Las Vegas used to be. It wasn't always that these older properties were aged and run down. You guys are commenting from lack of being there when they were nice "smaller, yet upscale, comfortable, and asthetically pleasing" to quote Mr. Green Dragon up there. Your just not old enough to remember, end of story..
The Tropicana Property is an excellent corner location close to the airport, and events at Grand Garden Arena and Thomas and Mack.
It's hard for any stragetic business plan requiring extensive capital infusion in this market of oversupply to turn immediate positive results.
But, bet on the Tropicana's success because Mr. Yemenidjian is that smart, and also diligent and fair-minded with his team.
The Tropicana is not opposed to any business segment, but not directly targeting the same YOUNG megaclub-weekend swim party crowd every other 2000 room plus property with much higher debt structure is going after. The Trop is offering good customer value, with design and delivery of offerings that reflect common sense with a nice new theme.
They are probablty looking for a more mature customer, who welcomes value for money spent.
Denver, I think your business model of screwing the customers as much as possible is better suited to another industry, like the for-profit education business. Go to pbs.org and watch the Frontline show "College Inc." Or go to cbsnews.com and watch the 60 Minutes segment "Walking Away" on a topic very relevant to LV.
I just love reading the comments from posters about who owns what in this town!
Lets see,1 person said MGM,another person said carl icahn,oh and another said onex corp.
Hell maybe the herbst bros own the tropicana
ROFL
peace out
Actually if anyone cares the TROP is owned by canadiens of all people
peace out
Can't we just all get along?
High-end properties bring high-end customers. Low-end properties bring low-end customers.
The bigger, fancier properties on the strip currently have a low 90's occupancy rate, but have slashed their rates to get there. The Trop dipped as low as 67% last year. For a few dollars more, visitors are staying in the high end locations. As the economy rebounds, the low-end niche will open up again.
Renovate the Trop now, because hard-core visitors have had a taste of the nicer hotels. They won't want to go back to dingy old same-old same-old. If they want that they can hit downtown.
@environprotector-
You are a classic case of perception vs. reality. You'd be surprised how far back I go and how much I remember. Newsflash- The Dunes, the Sands, and even Caesar's were hardly tasteful or aesthetically pleasing. The food and drinks in Las Vegas sucked until the 90's, and the PRIMARY reason people came to Las Vegas during the 60's and 70's was because it was located in the only state where gambling was legal- which is no longer the case! "Glitzy and high-brow"? Seriously? Who, Charo and Bobby Berosini? Compared to where, Reno? Las Vegas has always struggled with the concept of tastefuleness and is, per capita, the most culturally void and uneducated major city in the U.S.
You're operating from an obsolete paradigm and ignorant of market propensities because you probably lack the financial prowess and wherewithal to be a part of it. You don't grock modern cuisine and entertainment, and so you curse them as the reasons for a decline in business that is simply a result of economics. The fact is, the Bellagio is packing them in to the tables for both eating AND gambling. $250 a seat concerts are selling out. Want to know which properties are struggling? Go down to Harrah's, Circus Circus, the Rio, Riviera, Monte Carlo, and Bally's on a Friday or Saturday night, then visit MGM Grand, Paris, Bellagio, Mirage, and Caesar's, Aria, and Crystals. Any guess where you'll find the crowds?
environprotector:
Judging from what you think as "tasteful" and "hugh towers and casino spaces" you no doubt drive a 1990 Cadillac and live down on bolder highway,slithering up to the strip to find a special under $9.99 with the bait shrimp for a cocktail. The old vegas was never tasteful, it was not built to be. Even the homes built by the Casino executives and owners were tasteless and cheaply built. I should know I own one, gutted it and now it works.
denver21 is right. And some of you guys have got to stop comparing Vegas in the old days to Vegas now. People are different, the economy is different, the gaming industry is different.
I have stated my case and am satisfied that there is an entire silent majority out there who understands what I am saying about how Las Vegas used to be. You guys are entitled to your preferences and certainly entitled to spend 300 dollars for a bottle of Grey Goose, and twelve dollars per drink, while you are getting fleeced at the 6/5 BJ table, or on the server based system slots witht eh screw tightened as tight as it will go on down to 65% payback. Oh yes and dinner for two at about 2 hunny if you bring your honey, and don't forget to dole out at least 150 to 200 for a show. Hope you guys earn a good living because Vegas will take every penny you got fast!!! Have fun.
Jlouise, I won't disagree with you there--People are in a lot more debt, the economy is sinking fast (today the Europeans put together a $1 trillion rescue package for Greece and some other countries) and the gaming industry is in BIG trouble. In 2008 MGM stock was at 100. Today it closed at $16.
http://www.marketwatch.com/investing/sto...
Gaming will NEVER be the top draw again? Really
teambeam :
Gambling (hate that term gaming) could be a top draw again if they here in Vegas return it to it's previous fairness and a good gamble..
GDR. If you rate Las Vegas as the undereducated capital of the USA, what is your criteria? A piece of paper that says someone is smart while those without a paper are dumb? All those Las Vegas casinos with major problems got that way being run by people with that piece of paper. Wall Street and the banks. More fancy paper, big failures bailed out by the non papered ones. The USA is bankrupt due to the actions of the President, Congress, and their staffs (current and past). Ditto for most of the states and a lot of the big cities. In case you hadn't noticed all those folks got paper saying they're smart. From the way this country and the world are run and the future hiding behind some pretty dark clouds, one would conclude that we wasted a lot of paper on those "smart" "educated" people.
navedd, I do not believe there is anyone that has a jackass mentality as low as yours, keep the poor out More then half the country is poor ,these are the people that make the economy (they spend there money thats why there money pour) When I worked there in the 70's early 80's we made sure they were NO. 1 ON THE LIST WAS SAFE, #2 welcome and comfortable (we want them to come back) and the list goes on, Your must be college educated because u know nothing about the casino biz.
environprotector
I am a old timer too.Remember the good time with
Frank, Dean, Sammy,Joey and Elvis.Great shows made you feel special people always smiling.People dress up for the shows.gambling was at it all time Hi.
Drinks, food and ??? were comp.
Those days are gone,the (junk bonds, share hold,Wall Street)run the show now.
But never forget the times when Vegas was Vegas.
wolf85023 :
You can say that again brother!
@environprotector-
Interesting mentality you have. Banging away at the blackjack tables while lamenting drink and dinner prices that are the norm in most large cities. So indicative of the education levels and mentality of your city. I'm among the roughly 50% of visitors who don't gamble because rule #1 of gambling is THE HOUSE ALWAYS WINS- which is why I side with the house and own stock in the casinos.
That "silent majority" you surmise about- perhaps they're so silent because so many are septagenarian respiratory patients who used to spend a great deal of time at the blackjack tables enjoying the comped cigarettes.
@teambeam-
No, gambling will never be the top draw to Las Vegas so long as gambling is legal in nearly every other state and Macau continues to thrive. What part of paradigm shift don't you and environprotector understand? You're the type who's running out and buying up payphones and audio CDs because they're so cheap these days.
Try to keep up, you two.
@odeman-
All one has to do is look at the economic makeup of Las Vegas to clearly understand that city's education level. It's not the casino executives who bought homes on ridiculous ARM terms and paid $600K for 2500 square foot homes with a view of nothing while working as a valet or waitress.
@green dragon--so when is MGM going to go back up to $100?
@manfromuncle1-
Possibly never. I bought it at $1.60, so who really cares?
Well good luck finding your high-end customers with unlimited money, like Nicholas Cage and Wayne Newton and Pamela Anderson. I thought the stock market had some hope, but looks like Greece screwed up everything. And I still think City Center looks like a high tech prison.
@manfromuncle1-
You named three people (all of dubious taste) out of a potential customer base of millions. I guess you missed the report yesterday that gaming on the Strip was up while gaming at the local and "bargain" properties (the exemption being Laughlin) was down. Again.
As for CityCenter, sorry you feel that way. My friends, my family, and I find it a breath of fresh air with its clean, open lines and use of natural light. Feels and looks like something you'd find in a real city like Seattle or Denver. I can sort of understand its lack of appeal to the Stardust, chicken-and-ranch, Wayne Newton crowd. It caters more to the W, grass-fed-beef, Leonard Cohen crowd.
I hope when they tranformed the rooms they left
the mirrors on the ceilings!
Wow, quite chippy on here. I do take exception to the Green Dragon's comments:
"I'm among the roughly 50% of visitors who don't gamble because rule #1 of gambling is THE HOUSE ALWAYS WINS- which is why I side with the house and own stock in the casinos."
Mr. Green Dragon: I am part of a card counting team that regularly hits casinos around LV. Nothing like in the movies, but we hold our own, have excellent cover, and bang casinos out of thousands each month or so. For us, it more than the money -- it's screwing over the casino at their own game. Guess what Green Dragon, we win, not the house... and we have fun doing it. We probably hit some of the companies you hold stock in, and they have barely a clue of what we are doing.
Hope you enjoy your next visit to LV. I have heard Paris has nice rooms. Make sure you get tickets to Cher also...