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Excalibur-How's it doing?

Discussion in 'Casino Industry & Development' started by StormHawk, Apr 11, 2015.

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  1. StormHawk

    StormHawk High-Roller

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    I wasn't able to find much on this topic, but figured someone here may know a little.
    How is Excalibur's outlook? I am meaning in regard to it's remaining life cycle, position/future with MGM, and general "health" as a property.

    The reason I ask (this may change how these questions are answered) has to do with potential career moves involving Excal and MGM.

    Thanks!
     
  2. TheCooler

    TheCooler Professional Gambler and the Best Football Handica

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    I think it's doing fine. Most Vegas pros won't ever go there. But it's a big attraction for families and casual tourists on a budget. I'd put it one notch above Circus Circus, which is doing quite well.
     
  3. 44inarow

    44inarow VIP Whale

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    I don't see MGM getting rid of Excal any time soon. It's going through an identity crisis same as Luxor, plus it's gotten decreasingly child-friendly over the years and is essentially ceding that market to Circus Circus, but I can't think of anyone who would want to buy that without the adjacent properties. I also don't really see MGM getting rid of Mandalay, due to the convention and events draw (especially given how much money they're putting into expanding the convention center right now), and I don't know of any operators who have the capital to purchase Luxor and Excalibur together.

    If you're asking if it'd get shut down and imploded, I absolutely can't imagine that happening. It's still making money, and MGM has plenty of open space on which they could build a new resort without having to shut down an existing one any time soon.
     
  4. SH0CK

    SH0CK Stylin' and Profilin' Quasi Tech Admin

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  5. StormHawk

    StormHawk High-Roller

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    Thanks for the replies. With the shift in "class" that seems to be going on with the strip, I wasn't sure what to make of the low-end MGM properties.
     
  6. Krh2o

    Krh2o MIA

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    Excalibur puts out a solid EBITA. It also fills a need as a lower level property. For a big brand like MGM, they can cater to all levels, they would be cannibalizing themsleves if they remodeled Excalibur and made it nicer and then more expensive. I can see them keeping the status quo for a while, making just the moderate improvements and renovate the rooms every 8 years or so like most hotels do but keep it fairly cheap and clean. As it sits it is not a bad "budget" hotel in the main strip. The rooms are on par with lower CET rooms in my opinion.
     
  7. 44inarow

    44inarow VIP Whale

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    I actually think they're nicer. Excalibur is newer and bigger than, say, Flamingo or Harrah's. The property has good bones. My sense is that they've drifted away from the child-friendly demographic and are now attracting more of the college student and bachelor/bachelorette party groups who are looking for a cheap room; it's not that different from what PH tends to attract, except PH is way more expensive to operate.
     
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  8. UTE

    UTE Plastics

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    I go through the casino about once a month to get to a favorite restaurant there. There always seems to be good business going on with plenty of action - even during the week.

    Bill
     
  9. landsburger

    landsburger Low-Roller

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    And the fav restaurant is?
     
  10. wigwam_salesman

    wigwam_salesman VIP Whale

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    If anything, the strip has gone more downmarket in the few years I have been going there.

    The missus, who has lived there for 11 years says the same thing.
     
  11. wigwam_salesman

    wigwam_salesman VIP Whale

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    I hope it's Dick's Last Resort. That place is a great time (if you have a sense of humour).

    Last time I was there, wading through a bucket of some ulcer inducing strength cocktail at 11am one of the staff paraded a little old lady to the restroom shouting "granny's going to piss herself".

    She thought it was even funnier than anyone else.
     
  12. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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    I will chime in with what others have said. I walked through there several times last year and even escorted some friends there for a show last summer. Each time I walked through during a weekend, the casino was very busy. It was all low level play, but it was humming. Considering the overhead for that place, I would be very surprised if it wasn't turning a profit
     
  13. SH0CK

    SH0CK Stylin' and Profilin' Quasi Tech Admin

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    one thing that turned me off Excalibur, which does have a major impact on their overhead, was they would only comp lower level brand or well booze at the bar when you were playing. I don't know how that plays out on the floors, but cost cutting there saves them a ton. Especially if the clientele doesn't mind the cheap stuff and just wants to play and catch a buzz.
     
  14. Krh2o

    Krh2o MIA

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    That is true. The tequilas they could comp were all awful. But their Bud Light on the floor was the coldest I had last trip.
     
  15. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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    That doesn't surprise me. And I expect the clientele does not mind. Can't imagine staying there in its current condition. But the castle will always have a little soft spot for me because it was the first place I ever stayed in vegas and it was the scene of a super hot craps run a buddy and I had experienced once many years ago
     
  16. chitownjohn

    chitownjohn High-Roller

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    Your are spot on with EBITA assessment, Excal is right there with the other MGM mid-tier properties.

    2014 adjusted EBITA (thousands)
    Bellagio 393,702
    MGM Grand Las Vegas 254,854
    Mandalay Bay 175,626
    The Mirage 110,154
    Luxor 70,084
    New York-New York 95,105
    Excalibur 68,219
    Monte Carlo 71,780
    Circus Circus Las Vegas 23,615
     
  17. SH0CK

    SH0CK Stylin' and Profilin' Quasi Tech Admin

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    For those interested... hope I found the right numbers...
    Aria 242,790
    CityCenter (overall) 350,926
    http://www.prnewswire.com/news-releases/mgm-resorts-international-reports-fourth-quarter-and-full-year-financial-results-300036779.html
     
  18. 44inarow

    44inarow VIP Whale

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    What's interesting to me is that Excalibur, unlike Monte Carlo and Luxor, definitely has a reputation for being a cheap place to crash. Monte Carlo definitely considers it to be lower-to-middle, as does Luxor (though with less success, in my opinion). Yet all three are pretty much on the same page in terms of earnings.
     
  19. dannyocean

    dannyocean High-Roller

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    I won't lie. I hate the Excalibur, and it's number one on my list of properties I want torn down. But, I admit, that has something to do with the time a dealer hit 21 seven times in a row on me at blackjack. In a double deck game. No joke. Seven times. Haven't set foot in there since. Won't again.
     
  20. phade

    phade Low-Roller

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    Wow, Monte Carlo and NYNY jump out at me here. I can see what they are re-invigorating MC with its locale and performance.

    I actually think NYNY is outperforming itself. I don't see how that place generates that kind of business.

    Thanks for posting these. I agree that Excal is there to stay for the foreseeable future. Too many things keeping it in favor with leadership. They'll go through a few room updates, maybe a pool update, etc. before talk of unloading or blast and rebuild.
     
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