1. Welcome to VegasMessageBoard
    It appears you are visiting our community as a guest.
    In order to view full-size images, participate in discussions, vote in polls, etc, you will need to Log in or Register.

$500 million for the Monte Carlo?

Discussion in 'LV Strip Hotels & Casinos' started by smartone, Dec 11, 2012.

Thread Status:
Not open for further replies.
  1. smartone

    smartone VIP Whale

    Joined:
    Jul 17, 2011
    Messages:
    5,262
    Location:
    Northern Nevada
    Trips to Las Vegas:
    204
    Last night on a local program (Ralston Reports), TI owner Phil Ruffin disclosed that he'd offered MGM/Mirage $500 million for the Monte Carlo and was turned down earlier this year. He went on to say he continues to float offers on The Mirage, but to this point, no success. I love listening to him when he comes on this program. He remains "bullish" on Las Vegas and remains actively looking for more strip investments.

    He also praised Jim Murran (MGM/Mirage) for having weathered the recession with an incredible amount of debt, by doing some masterful restructuring and commented on the property his former Old Frontier sat on being worth $200-$250 million now after the Israeli investment group paid, I think he said $600 million for it before the recession. All just for the dirt! Wow... things got bid-up to ridiculous amounts!
     
  2. blackjacknut

    blackjacknut VIP Whale

    Joined:
    Nov 26, 2008
    Messages:
    3,380
    Location:
    Northeast Ohio
    Trips to Las Vegas:
    52
    They paid more than $600M for the old Frontier, they paid over $1B for it. And if Phil Ruffin purchased the Monte Carlo that would be one of the worst things that could happen. I'm not impressed by what he has done so far with the TI. TI could be great but I'm not sure Phil Ruffin is the guy to make it great.
     
  3. SH0CK

    SH0CK Stylin' and Profilin' Quasi Tech Admin

    Joined:
    Nov 2, 2001
    Messages:
    12,917
    Location:
    Tennessee
    Trips to Las Vegas:
    36
    One thing I overheard from several of the TI dealers was how cheap the higher ups were in regards to spending money on things in the casino. One specifically said the shuffle machines they were using were so old that it was easy and cheap to find replacements since no one else uses them anymore.

    The one thing I'm afraid Ruffin will do is run TI on a shoe string budget like he did the Frontier and the property will fall all to shit.
     
  4. dankyone

    dankyone VIP Whale

    Joined:
    Oct 15, 2011
    Messages:
    1,449
    Location:
    Los Angeles
    Trips to Las Vegas:
    105
    Yeah--TI has a good "skeleton" and the rooms are fine, but the casino is now very dingy looking and the restaurants very poor.
     
  5. C0usineddie

    C0usineddie VIP Whale

    Joined:
    Jun 7, 2011
    Messages:
    2,513
    Location:
    San Diego
    Trips to Las Vegas:
    12
    I am all for this, we need more grind joints on the strip.
     
  6. smartone

    smartone VIP Whale

    Joined:
    Jul 17, 2011
    Messages:
    5,262
    Location:
    Northern Nevada
    Trips to Las Vegas:
    204
    I didn't intend for this to become the TI/Phil Ruffin complaint section, but OK... there are those that are well documented non-lovers of the TI, but he paid cash for the property and word has it Gilley's and Senor Frogs are doing very well there. He purposely wanted to make the joint an "everyman's" place and moved to put in pizza and hot dogs, where there formally were higher-end restaurants. He's convinced that it will take awhile, if ever for the per-person spend in Las Vegas to get back to '06''07 levels when folks were spending "paper-equity", not cash and is positioning himself to do well in that environment. He's a owner/operator and I think Vegas would be better off with more like him and less of the mega-operators. The TI isn't trying to be all things to all people... he's identifying his clientele and marketing to them. Time will tell if he's successful... Personally, it's been 18 months since the last time I stayed there, but I make it a point to visit 3-4 times a year... it's not the Bellagio, but it ain't Circus Circus either.

    I'm just happy he seems to remain confident in the investment opportunities in Las Vegas!
     
  7. JWBlue

    JWBlue VIP Whale

    Joined:
    Feb 24, 2010
    Messages:
    1,660
    Location:
    Irvine, CA
    Trips to Las Vegas:
    10
    Buy low sell high.

    Vegas will be back.

    I always wondered where the Monte Carlo ranks in profitability for MGM. I wonder if their income statements show this.
     
  8. dawgfan11

    dawgfan11 Low-Roller

    Joined:
    Nov 1, 2010
    Messages:
    239
    Location:
    On the golf course
    Trips to Las Vegas:
    9
    I would wager that MC would be pretty close to unsellable now that is directly connected so well to City Center/Bellagio. MGM would not want someone else to have that access IMO
     
  9. sco5123

    sco5123 VIP Whale

    Joined:
    Jul 29, 2011
    Messages:
    2,698
    Trips to Las Vegas:
    11
    Great point!
     
  10. GeorgeandTheBear

    GeorgeandTheBear Low-Roller

    Joined:
    Jan 14, 2010
    Messages:
    450
    Location:
    Kentucky
    Trips to Las Vegas:
    12
    I figured that when MGM/Mirage dropped the "Mirage" off of their name, they were positioning themselves to be able to "cut it loose" easier if needed. Since it is a little removed from most of their other properties and somewhat connected to TI, it made sense that it would be the easiest sell if they needed to generate cash.
     
  11. mdee

    mdee VIP Whale

    Joined:
    Feb 22, 2010
    Messages:
    1,369
    Location:
    Orlando
    Trips to Las Vegas:
    28
    TI is one of those places (Casinos) I rarely visit. Has it gotten better or worst?
     
  12. jgates8

    jgates8 VIP Whale

    Joined:
    Jun 25, 2007
    Messages:
    6,158
    Trips to Las Vegas:
    19
    Last time I was in there it just seemed 'dark'. Didn't appeal to me so I am afraid I haven't been back in a while.
     
  13. zamboni

    zamboni VIP Whale

    Joined:
    Mar 31, 2012
    Messages:
    1,996
    Location:
    Minnesota
    Trips to Las Vegas:
    8
    It is one of the few I have yet to set one foot in. Still have yet to go in Wynn, Aria, Mirage, either. There are just so many, and so little time when I am in town.
     
  14. Terry Benedict

    Terry Benedict VIP Whale

    Joined:
    Jun 27, 2010
    Messages:
    1,427
    Trips to Las Vegas:
    15
     
  15. nostresshere

    nostresshere Mr. Anti Debit Card

    Joined:
    May 4, 2009
    Messages:
    11,108
    Location:
    TN
    Trips to Las Vegas:
    19
    We do Vegas way too much. Been to many hotels for either a visit or stay. TI is not on our radar for a number of reasons. As far as staying, we get freebies at MGM, CET and maybe one last shot at Cosmo and V/P.

    As far as spending time - they are basically at the end of the strip. Too many other places to go. Contacted a host once and shared our play levels, never got an email back. Never mind.

    If they ever bought MC, that might change. But, I think MGM is too smart to let them get that. As said, they are somewhat integrated with their other properties.
     
  16. leo21

    leo21 VIP Whale

    Joined:
    Jan 9, 2010
    Messages:
    4,706
    Location:
    Chicago South Suburbs
    Trips to Las Vegas:
    14
    It makes it untouchable to MGM but its also the reason people are offering for it. They don't seem to like MC in the portfolio but the way City Center came up, they can't part with it. I figure eventually they will part with Mirage.
     
Thread Status:
Not open for further replies.