The Pulse of Las Vegas

Pulse Twitter Weekly Update 2010-08-16

The Pulse — Mon, 16 Aug 2010 20:00:00 +0000

Asian giant Genting New York, promises $380 million upfront to run Aqueduct Racino
http://bit.ly/9gKAbb #
Can Sports Betting Save New Jersey, Lawmakers think so http://bit.ly/a6pibP #casino #

CityCenter Begins to Impact Other Las Vegas Hotels

The Pulse — Tue, 10 Aug 2010 05:50:11 +0000

As Las Vegas Visitor volume grows at only a slow pace and CityCenter adds hotel rooms to the city’s inventory, Las Vegas hotel occupancy has dropped.

Visitor volume – Up 1.5% compared to the first six months of 2009.
Room Inventory – 5.6% more rooms than the same period in 2009.
Hotel Occupancy – 80% for the first six months of 2009 (90% in 2007).

The following story from the Las Vegas Sun provides an in-depth look at how City Center has impacted the market and other Las Vegas hotels. With essentially the same number of visitors and more rooms, someone had to suffer, and occupancy is down at some properties. Also, the competitive environment has created a buyers market, and guests can stay at more upscale properties at rates unheard of in 2007. The Pulse has always believed that Las Vegas functions best in a buyers market, as the competitive environment benefits visitors. The hotel-casino accountants of the boom years up to 2007 would not agree.

The story also mentions how MGM Resorts has concentrated on high roller traffic at Aria to boost revenues. This is interesting in that MGM Resorts receives only half the revenue as Dubai World owns half the property. If those players gambled at Bellagio, MGM would receive all the revenue. The pressure to make City Center successful is huge!

Las Vegas Sun: Too Many Rooms To Fill: CityCenter’s Opening Felt, Even As Visitor Volume Grows

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.

Full Story

Pulse Twitter Weekly Update 2010-07-05

The Pulse — Mon, 05 Jul 2010 20:00:00 +0000

Cosmopolitan taking reservations for December 15 opening http://bit.ly/asvkde #Vegas #Hotel #
3 Bidders-Penn National Gaming, Genting New York, and S.L.Green bid on Aqueduct Racino http://bit.ly/9xOeCJ #

Pulse Twitter Weekly Update 2010-06-21

The Pulse — Mon, 21 Jun 2010 20:00:00 +0000

Wynn Resorts cuts 261 jobs, restores 40-hour work weeks http://bit.ly/9bbfIt #Vegas #Wynn #

Pulse Twitter Weekly Update 2010-06-14

The Pulse — Mon, 14 Jun 2010 20:00:00 +0000

30 meetings moved from Nashville to Las Vegas http://bit.ly/cGO36d #Vegas #Convention #

Pulse Twitter Weekly Update 2010-06-07

The Pulse — Mon, 07 Jun 2010 20:00:00 +0000

Increased group bookings are helping raise Aria’s occupancy rate http://bit.ly/bhYjAs #Vegas #Hotel #Convention #
Just added myself to the http://wefollow.com twitter directory under: #vegas #vegasblogger #casino #hotel #travel #
Owner of land for once-planned Elvis resort, FX Luxury, reorganization rejected by bankruptcy judge http://bit.ly/9Q4itF #Vegas #
Tradeshow Week replacement, Tourism & Gaming news from the Las Vegas Sun http://bit.ly/9qi5iM #Vegas #Convention #
Mike Huckabee interviews Sheldon Adelson (video) http://bit.ly/9HLjqa #Vegas #Convention #
Las Vegas Defends Its Event and Convention Business on Fox News 'Huckabee' (video) http://bit.ly/cUTXfe #Vegas #Convention #
How to complain about your hotel stay and get results http://bit.ly/d8E8ry #Hotel #Travel #
Las Vegas Hotels Waive Resort Fee for Global Tire Expo & SEMA Show http://bit.ly/ax8Qyw #Vegas #Hotel #
Steve Wynn on CNBC (video), Washington and the Las Vegas economy http://bit.ly/clloGS #Vegas #

Pulse Twitter Weekly Update 2010-05-31

The Pulse — Mon, 31 May 2010 20:00:00 +0000

Las Vegas hotels getting the message that customer service should be a top priority http://bit.ly/9kk096 #Vegas #Hotel #Travel #
Wynn Executives among the highest paid in Las Vegas http://bit.ly/9qG8Mq #Vegas #
LV Sands to bring two Playboy Clubs to Macau, stock improves http://bit.ly/bAl8oJ #Vegas #Macau #
IMEX Frankfurt closes on high note, planning IMEX America in Las Vegas http://bit.ly/c6VOYk #Vegas #Travel #
XL Airways France begins twice-weekly nonstop service, Paris to Las Vegas, until Sept 23 http://bit.ly/9KJy0V #Vegas #Travel #
PricewaterhouseCoopers' Lodging Industry Forecast Anticipates Pricing Power to Return in 2011 http://bit.ly/d5mDNo #Hotel #
Mayor Goodman tours Mob Museum, says ‘there is no competition’ http://bit.ly/du2yYG #Vegas #
MGM seeks meeting with Perini's Subcontractors June 9th http://bit.ly/aieat9 #Vegas #
Las Vegas Sands shareholder sues over stock price, claims violation of fed securities laws http://bit.ly/9AecDE #Vegas #Finance #

Las Vegas Delegation Attends Global Travel & Tourism Summit in Beijing

The Pulse — Wed, 26 May 2010 21:00:09 +0000

The LVCVA is targeting international travelers as Las Vegas’ largest market for growth. Las Vegas is already a very desirable destination for international travelers, with Canada, the UK, Japan and Germany as the top producers. The LVCVA has identified China, India, Turkey, and Brazil as their primary target countries for growth.

The Summit will be in held Las Vegas in 2011. Conducted by the World Travel & Tourism Council, the Summit is the world’s highest-level gathering of Travel & Tourism industry Chairs, Chief Executives and senior government officials, working together to unlock the travel and tourism industry’s significant potential for sustainable development and economic growth across the globe.

KVBC-TV Channel 3 reports: Travel & Tourism Summit Proving to be a Big Payoff for Las Vegas

The opening ceremony is complete and now it’s down to business for tourism leaders meeting this week in China.

A delegation from Las Vegas is in Beijing to attend the Global Travel and Tourism Summit.

It includes Rossi Rallenkotter, President of Las Vegas Convention and Visitor’s Authority, and Chuck Bowling, Executive Vice President of MGM-Mirage’s Mandalay Bay and a member of the LVCVA Board of Directors, who are both busy promoting Las Vegas and preparing themselves to host the summit here next year.

The travel summit will visit Las Vegas in May of 2011; CityCenter’s Aria will host the event.

The closing ceremony of the Global Travel and Tourism Summit will include a video presentation focusing on Las Vegas.

Full Story

The 10th Global Travel & Tourism Summit will takes place in Beijing, China on 25-27 May 2010, under the theme ‘World’s Leading Industry — Reaching New Frontiers’.

“Las Vegas is one of the best-known tourism destinations in the USA, and globally,” said Roger J Dow, President & CEO of US Travel. “According to WTTC’s figures, Travel & Tourism in the USA is expected to account for 9.2% of GDP (US$1,375.9 billion) in 2010, employing some 13.7 million people in the wider Travel & Tourism Economy – 9.9% of total employment.”

The World Travel & Tourism Council (WTTC) is the global forum for business leaders in the Travel & Tourism industry, with a unique mandate and overview on all matters related to Travel & Tourism. The Council works to raise awareness of Travel & Tourism as one of the world’s largest industries, employing more than 235 million people worldwide and generating some 9.4% of global GDP.

Full Story

Pulse Twitter Weekly Update 2010-05-24

The Pulse — Mon, 24 May 2010 20:00:00 +0000

LV Sands closes on $1.75 billion financing for 6,000 rooms and infrastructure in Macau http://bit.ly/c0KHBE #Macau #
LV Sands Singapore sues its first meeting client following complaints http://bit.ly/9ym3Co #Vegas #Hotel #
Las Vegas Remains Number One Trade Show City For 16 Years – Hosts 45 of the Top 200 Shows http://bit.ly/aFyC6e #Vegas #Convention #
Station Casinos reports first quarter loss of $53 million http://bit.ly/9nVfeh #Vegas #Casino #
Wynn Resorts disputes it owes $32 million to investment firm over Macau IPO http://bit.ly/dcPpGj #Vegas #Macau #Finance #
Paulson Fund buys MGM Mirage, Boyd Gaming shares in bet on casinos http://bit.ly/aiJeRp #

MGM Mirage and Perini’s CityCenter Dispute Grows Following Perini’s Meeting with Governor Gibbons

The Pulse — Sat, 22 May 2010 01:31:54 +0000

Update – May 26, 2010 – The MGM Mirage meeting with CityCenter subcontractors will take place on June 9 at 10:00 AM in Aria’s Bristlecone Ballroom.

Bobby Baldwin met with Governor Gibbons on Wednesday and expressed MGM’s committment to the subcontractors. The Las Vegas Sun reports: MGM Mirage to Pay CityCenter Subcontractors Soon

Casino operator MGM Mirage is pledging to quickly pay some 600 subcontractors who helped build the $8.5 billion CityCenter complex on the Las Vegas Strip.

Bobby Baldwin, the company’s chief design and construction officer who oversaw the project, said at a Wednesday meeting with Nevada Gov. Jim Gibbons that paying the subcontractors is the right thing to do.

Full Story – Las Vegas Sun

Update – May 25, 2009 – Las Vegas Sun reports: MGM Mirage Seeks CityCenter Subcontractors Meeting

MGM Mirage said Tuesday the company wants to meet with subcontractors June 9 at the Aria Resort & Casino. Chief MGM Mirage Design and Construction Officer Bobby Baldwin will host the meeting.

As mentioned in our earlier post, MGM Mirage and Perini Construction in CityCenter Construction Dispute, lawsuits resulting from construction disputes in building some of Las Vegas largest properties are not new. In the largest cases, subcontractors and material suppliers have suffered greatly, as they are a victim of the general contractor not receiving payments in the agreed time period.

As promised, Governor Gibbons met with Perini Construction in an attempt to arbitrate a settlement between the two companies. It was unlikely that the Gov. could solve the dispute at one meeting, and he said he would ask MGM for their side of the story. He asked that both companies work to make sure the subcontractors are paid. He said “Don’t penalize and damage these small contractors who have fully performed their jobs”.

The dispute has not calmed, it fact it has become even more contentious, as the Las Vegas Sun reports in: MGM Mirage, Perini Spar over CityCenter After Gibbons Meeting. There are some very interesting comments concerning “retention” of payments within a construction contract, and subcontractors not receiving full payment due to not correctly following change orders. Will the two big players settle, and the subcontractors not get paid? In 1999 the Venetian’s builder took legal action to receive $300 million in payments, they settled out of court for $44.2 million. How many of the their subcontractors were paid in full?

The depth of the conflict between Perini Building Co. and MGM Mirage was on full display today as both companies exchanged barbs in what has become one of the most acrimonious disputes between businesses in Southern Nevada’s history.

Perini executives and representatives of the company’s army of subcontractors verbally torched MGM Mirage after meeting for 45 minutes with Gov. Jim Gibbons about their frustration over not getting paid after completing one of the world’s largest construction jobs.

MGM Mirage is Nevada’s largest company with 17 hotels and hotel-casinos in the state, including the city’s three largest resorts, while Perini is the state’s largest commercial general contractor with more than 1,000 local employees.

Perini officials say MGM Mirage still owes builders about $491 million after paying $5.79 billion of the total bill. The company said Perini’s 600 subcontractors are owed $391 million and the company itself is due $100 million.

“I wouldn’t do business with MGM again if they were the last owner on the planet,” said Ron Tutor of Tutor Perini Corp., the parent company of general contractor Perini Building Co., which completed work on MGM Mirage’s $8.4 billion CityCenter project in December.

MGM Mirage didn’t attend the meeting with the governor, but returned fire against Perini in a statement issued by the company.

Read More – Full Las Vegas Sun Story