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Las Vegas News of the Week

 
May 12, 2008
Vegas4Visitors Weekly

by Rick Garman


Tropicana Rolls Snake Eyes
The parent company of
The Tropicana filed for chapter 11 bankruptcy last week, but according to everyone involved it will not affect the legendary Strip hotel’s operations.

The filing has been expected for quite some time as Tropicana Entertainment struggled almost from day one when it bought former parent company Aztar Corp. in 2007 for more than $2 billion. Stories about strife between the owners and employees at the Vegas location have been rampant and I’ve even gotten some comments from readers saying how far downhill the property has gone in a very short amount of time.

But the biggest blow to the company had nothing to do with Las Vegas. Instead it came when gaming regulators in New Jersey took away the company’s license to operate the Atlantic City Tropicana due to a series of alleged management missteps. They wound up having to sell the property.

The bankruptcy seems to put the final nail in the ambitious plan the owners had for redoing the Las Vegas Tropicana, an estimated $10 billion gamble that would’ve seen the bulk of the hotel torn down and rebuilt with as many as 10,000 rooms.

The chapter 11 designation will allow Tropicana Entertainment to keep its properties open while it restructures its debt. A spokesperson for the company said it will be “business as usual” at the Las Vegas Tropicana, although with all of the issues the hotel has been having lately that may not necessarily be a good thing.

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Wynn’s Hole in One
Okay, so I spent ten minutes trying to come up with a better golf pun for the headline to this story but if it doesn’t involve a windmill and a clown’s mouth then I’m not interested so let’s all just pretend that I came up with something really smart and funny and leave it at that, okay?

Anyway… Steve Wynn has announced the next evolution in the grand master-plan for the property that now holds Wynn Las Vegas, the upcoming Encore, and a big, very expensive golf course.

The proposal is to remove the golf course and build a massive convention and hotel complex that would feature nearly 2 million square feet of exhibition space and over 5,000 rooms. It would become the hub of the convention business, stretching from the corner opposite the Las Vegas Convention Center at one end to the corner opposite the Sands Expo and Convention Center at the Venetian. To encourage crossover between the properties, Wynn says he plans to build underground trams to ferry people back and forth, stopping at his hotels along the way of course.

The centerpiece of the new development would be a giant lake like the one he developed at Bellagio only bigger and more spectacular, because that’s what Steve Wynn does.

Wynn says the formal plan for the project will be ready by the end of this year and construction could begin as early as 2009.

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End of an Era
If you don’t know the name Jackie Gaughan you really aren’t a true fan of Las Vegas. Gaughan has been a force in the Sin City gambling arena since the 1950s, owning all or a piece of such legendary properties as the
Flamingo, the Golden Nugget, The Plaza, the Showboat, and most famously El Cortez where he continues to live on the top floor of the hotel at the ripe old age of 92.

But Gaughan’s days as a casino magnate have come to an end with the announcement that he has sold his final remaining stake in the El Cortez.

Gaughan will continue to live at the hotel and continue to act as its ambassador, greeting guests on the casino floor and in the restaurants as he has for the past forty years or so.

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MGM Mirage Split Decision?
Terry Lanni, the guy in charge of gaming giant MGM Mirage, made a seemingly off-hand comment last week during an investor call that has already sent shockwaves through the industry: the possibility that MGM Mirage might split itself into two companies, one to run the casinos and one to run the hotels.

Why would they do that? Well, according to Lanni, straight hotel companies have lots of advantages in the credit and financial markets and gaming companies are often seen as bigger risks. And considering the fact that these days the Las Vegas hotels make more money off room rates, restaurants, shopping, and entertainment than they do off the casinos, it seems to make sense.

The comment sent the company’s stock surging despite having had a very difficult financial quarter that showed it earning about $50 million less than it did during the same period last year. It also set off speculation that other gaming giants might follow suit.

MGM Mirage already has a hotel-only division whose main charge is developing boutique luxury hotels around the globe, especially in areas where gaming is not an option.

The split-up idea is, at this point, just an idea with no formal plan on the table yet.

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Feature of the Week

 
Vegas4Visitors Weekly Awards
More shows canceled.

The Painful Price Increase of the Week goes not to the cost of a gallon of gas (although that is painful) but instead to the cost of a cocktail full of shrimp at the Golden Gate, which has gone up from 99 cents to $1.99. The shrimp cocktail has been a famous fixture at the hotel for 50 years, featured on TV shows, guide books, magazines, and more but rising shrimp prices have forced the hotel to tack on the extra buck for the legendary treat. This is only the second time the price has been increased – it was 50 cents for the better part of four decades and then went up to 99 cents in 1991.

The However of the Week Award also goes to the shrimp cocktail at the Golden Gate. Yes, the price has gone up by a buck, HOWEVER, if you sign up for the casino’s free players’ club card you can still get it for 99 cents. See how that works?

The Big Winner of the Week Award goes to Connie Thiele of Austin, Texas who invested just under $200 in a couple of Megabucks slot machines at The Palms and walked away with over $21 million. I’m happy for her. Really I am. The progressive jackpot has reset at $10 milion.

The Real Estate List of the Week Award goes to Fitzgeralds, which may very well be going up for sale soon. The owner, Don Barden, has put the hotel up as equity for a proposed casino being planned for just outside of Pittsburgh, Pennsylvania, which will probably mean that he’ll have to sell it to generate the cash for the deal. Rumors are already running rampant about possible buyers including Terry Caudill, the Downtown mini-mogul who currently owns the Four Queens and Binion’s.

The Get Better Soon Award of the Week goes again to singer Toni Braxton whose unspecified health issues have forced her to cancel another month’s worth of shows at The Flamingo. The entertainer was rushed to the hospital last month after experiencing chest pains and was forced to cancel her stand of April dates. The plan now is that she’ll be back in June to finish out her last few weeks of shows before Donny and Marie take over the showroom in August.

And finally, the Smooth Segue of the Week Award goes to The Mirage who will be replacing defecting impressionist Danny Gans with… yes, another impressionist. According to Vegas Confidential, “America’s Got Talent” winner Terry Fator will be the next headliner at the hotel after Gans takes his bag of vocal tricks across the street to Encore.

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Question of the Week

 
From: Christine in Lubbock, Texas

Question: We had not planned on going to Vegas this summer because of how expensive everything is, but I’ve heard that things are slower because of the economy and I’m wondering if things are cheap.

Answer: Hi Christine. It sort of depends on your definition of “cheap.”

Summer time is generally the least expensive time of the year anyway, so yes prices are usually lower than normal. But there is some evidence that things are even more economical than they usually are.

Note how I’m avoiding using the word “cheap” because while things may “cheaper” they certainly aren’t cheap if you’re determined to stay at one of the fancy hotels.

For instance Bellagio’s rate calendar between June and August is showing things as low as $159 during the week but most days are still over $200. The good news is that there are only a couple of days in late August that are over $300, which is fairly unusual for this particular hotel. For instance for the rest of this month, you can expect prices not only over $300 but often over $400 and in a couple of cases over $700 per night!

Over at the MGM Grand I’m seeing rates for as low as $100 during the week and as low as $180 for the weekend although $150 and $230 respectively are more common.

The Mirage has a few days as low as $99 during the week but if your stay includes a weekend expect to pay just over $200 for the privilege of rooming here.

It’s at the hotels that are usually cheaper anyway that you can get some good deals this summer. Luxor is showing many dates for only $80 during the week and I only found one – Labor Day weekend – that was over $200. Likewise, next door at Excalibur the most expensive rate I could find for the summer was $151 on a Saturday night with most weekends about $20-30 cheaper than that and weekdays as low as $61.

Other quick checks showed Bally’s as low as $99 during the week and $159 on the weekend, Paris all the way down to $90 on some weekdays and $160 on some weekends, and Harrah’s bottoming out at $60 and $150 respectively.

Go Downtown or stay off The Strip and you can do even better.

These prices are softer than the norm but not dramatically. Last summer I was seeing rates comparable to this in some instances although not as often and not at as many different hotels.

So if you have the budget to do it, you can get a bargain in Vegas this summer. Enjoy!

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