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Another GEEZERS (CET) mistake..

Discussion in 'Misc. Vegas Chat' started by Packer, Mar 3, 2015.

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  1. Packer

    Packer VIP Whale

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  2. UTE

    UTE Plastics

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    Two things that struck me about the article:

    The High Roller is not necessarily losing money. Though ridership numbers have been released, actual gross and net profits have not.

    The High Roller is an attraction in itself. Like the Bellagio Fountains, people are drawn to it. It's advertising. It's no coincidence CET lined the walk to it from The Strip with stores, pubs and entertainment venues. Business is generated - even if the wheel itself does not make money.

    I was there with friends again last week and business was good. It was the third time I've been on the High Roller.

    Bill
     
  3. mrstealth

    mrstealth High-Roller

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    I agree with Ute on this one, last time sent the wife, sister, mother, etc on the thing during the day, now they can't wait to go back and do it during the night. I drove in from Lake Havasu/Laughlin on the way back and it's really an amazing visual at night with the changing lights. I also admit that the new oshea's is kinda fun as well and the whole linq area in general. Tried a couple of the new smaller restaurants and had a lot of fun. Haven't been to the Brooklyn Bowl but we all agree we want to go.

    It's nice to have some new and different options, and I think for a lot of people, the high roller will be a "must see"attraction.
     
  4. Packer

    Packer VIP Whale

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    A one time must see.. I too like the restaurants, bars, cleanliness, overall vibe and it adds new life to the strip which the strip needed but will CET make money from this 550m project?
     
  5. WichitaMuskie

    WichitaMuskie Low-Roller

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    I think the High Roller is kind of silly...but then again, I've ridden it twice now.
     
    Conference Tournament Weekend
  6. Krh2o

    Krh2o MIA

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    I doubt they will make enough money from this to justify the capitol if they ever make money at all. Yes it is a nice addition, but no way will it make money to justify the cost.

    Also how many of those 5k riders are paying the walk up prices? With the credit card giving tickets away, living social/groupon, all the 2 for 1, free tickets with a suited blackjack it appears as if they are driving people there with a discount. The time I rode it it was pretty empty, and I saw a lot of employees. They have a lot of overhead for this operation.
     
  7. dfeltman

    dfeltman Tourist

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    I do wonder how much of the plan is to get people to the area and the two casinos immediately adjacent. It's difficult to track, but there must be some uptick - however small - of people walking into Linq or Flamingo after the ride.
     
  8. Kickin

    Kickin Flea

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    You're right they haven't publicly released the financial performance of the wheel itself, and they probably won't. If it were doing well you can bet they would. I can't technically say its a fact that it is losing money, but I'll still say its a fact that it is losing money. With passenger volume at 50% of projections it has to be losing money unless they projected 100% margins which they didn't, and there probably aren't many places to cut operating costs.

    We went on the wheel only once, last summer with some free tickets. That was a weekday (I think Monday) so understandably not a busy day. But it was a ghost town. The line system they have set up can probably fit thousands of people but it was completely empty. We went straight from the ticket counter to the wheel, straight through all the empty line areas, the bar, etc. No wait to get into a pod, they were only putting people in every other one or maybe every third one. There were maybe 5 or 6 people in ours including the 2 of us. My only issue with the wheel was I didn't think the views were anything spectacular for its location. The views from a place like Mixx or Foundation Room are much better. So I think it falls short of its key selling point.

    This wheel had a lot of skeptics, and so far it looks like they were right. The LINQ as a whole is a different story. But I wouldn't be too optimistic about its performance when its centerpiece is doing poorly.
     
  9. ams722

    ams722 Side Bet Shunner

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    You could tell from day 1 this thing was a dud when you could walk right up (through the miles and miles of waiting area) and get on it in like 5 minutes.
     
  10. tringlomane

    tringlomane STP Addicted Beer Snob

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    Walking to the line on a Tues. afternoon took longer than the actual line.

    Considering it was financed with debt though, it probably wasn't nearly as big of a mistake as it would have been if they were in the black.
     
  11. BlacklabberMike

    BlacklabberMike VIP Whale

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    I'm not an accountant by any means, but won't they be able to write of depreciation over a few years?

    didn't do the wheel, but the street is a nice place to stroll through and maybe have some food and drink at the various joints
     
  12. Corey Zimmerman

    Corey Zimmerman Tourist

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    why not put some table games and slot machines in them
     
  13. Kickin

    Kickin Flea

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    True. In the strange world of corporate finance for a company in CET's position, a project like the High Roller that produces free cash flow can be a net positive, even if its losing money.
     
  14. ruralhipster

    ruralhipster Low-Roller

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    Its a weird project. I imagine the wheel itself would have been much more successful if it was out front right on the Strip but the Linq would have been under-performing then. It would still make a great loss-leader had they directed traffic flow through the casinos instead of down a retail promenade. I wonder what the price sensitivity is, would a price decrease increase ridership much? how many people walk down the the entrance, see the price, and turn around.
     
  15. Mooda

    Mooda Low-Roller

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    In 5 yrs. the High Roller will be a thing of the past.
     
  16. Royal Flusher

    Royal Flusher Savvy Gambler

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    The solution is simple.

    They need to put beds and stripper poles in every other pod and rent them out for private 'parties'. Thems that ain't gettin' laid will be watching thems that is.

    It's pure genius, I tell ya.
     
  17. CalifLovesVegas

    CalifLovesVegas Low-Roller

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    The London Eye gave me the willies......so I wasn't sure about the High Roller.......
    HR is a piece of cake. I've been on it a few times now..........#4 will be this Sat. night.
    Diam. tix. bringing more friends......
    I think having HR as a Diam perk, helps get more bodies on it.
    I can't see spending $35 ea.
    Thought having HR made about as much sense as the Monorail that doesn't go to the airport.
    But its an attraction, and seems to be ok.
    Agreed, it will be a thing of the past in a few years.
     
  18. Kickin

    Kickin Flea

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    I wonder that as well. Despite the ads with images of young, well-dressed, upwardly mobile types riding the wheel the reality is its main audience is camera-toting tourists and families. It costs around $100 for a typical middle-class family of four which I think is a pretty steep price for a quick shot at a view.

    But I think their bigger issue is it just doesn't seem worth the money, time, or effort. We had free tickets when we went on it and we kind of forced ourselves to go, if we got tickets again I'd give them away. Ridership levels are half of what they expected and this is during a period where it is still new. As the newness wears off those numbers will probably soften even more.
     
  19. Tellafriend

    Tellafriend High-Roller

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    I was relayed a rumor recently by a higher up at another casino that Caesars didn't really own it, that someone/group funded its cost, and they had some sort of profit sharing on it, maybe for the property or connection with Caesars. Again, I have no idea, just a rumor. But it is interesting how they haven't released any of the figures for how its doing financially, so maybe this could be true?
     
  20. Packer

    Packer VIP Whale

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