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Look at me 10K Daily Profit.

Discussion in 'Downtown Hotels & Casinos' started by WHIVGOYTUBE, Jun 23, 2013.

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  1. WHIVGOYTUBE

    WHIVGOYTUBE MIA

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    The Downtown hotels have a higher room tax (1.5% more, iirc) than the resorts on The Strip and thats to pay for things like security on Fremont Street and to help cover the costs of The Fremont Street Experience...

    If The Golden Nugget adds this fee then it would be pretty hard not to see all the other hotels doing the same thing: not only would $5 per night cover The Golden Nugget's costs for the show, but it would actually allow them to make a profit off it:
    --> Each hotel contributes about $10,000 per month to cover the costs of the FSE show (I am pretty sure thats the number, I remember reading it a few years ago so we'll go with that for this example)
    --> $10,000 divided by $5 = 2,000 which is how many times they would have to collect the fee to cover their share of the FSE bill
    --> 2,000 divided by 30 days in a month = 66 which is how many rooms they would need occupied each night to cover their monthly FSE bill through a $5 daily fee
    --> 2,419 is how many rooms The Golden Nugget has... only having 66 rooms occupied on the average over the course of a month would be a 2.7% occupancy rate

    So basically if they have, on average, more than 66 rooms per night occupied they will making money off this fee...

    Then when you consider the average Las Vegas hotel occupancy rate for 2012 was 86% and that they are the top hotel Downtown it'd be fair to say that they would meet or exceed the average occupancy rate...

    But if they only met the average occupancy rate that would be 2,080 rooms occupied per night on the average, which at $5 per room would translate to $10,400 per day they are making from such a fee

    And bear in mind that none of this covers that additional room tax that hotels on Fremont Street are charging


    I can say that personally I don't mind resort fees, I don't mind baggage fees... but this one is pretty much a bad ripoff I'd have to say
     
  2. bubbakitty

    bubbakitty native Texan; born and bred.

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    Good point. But compare it to a large resort like TI or MGM....many more rooms and much more than 5$; do the math at 70% occupancy rate. You are a very generous and forgiving board member to not let resort fees bother you but allow this to do so. Not a dig at you. I think there are many that look at this same situation with the same opinion.

    As an aside, if they would just give you House Credit for use in restaurants / bars etc. in the hotel charging the fee they would still make a mint and be more customer friendly. IMHO.
     
    1st Super Bowl DT...Panthers / Browns no doubt
  3. C0usineddie

    C0usineddie VIP Whale

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    I am not overjoyed with this $5 idea and hope it doesnt last. I dont want the other places to get the same idea.

    I think in general consumers are sick of getting nickle and dimed with stupid useless fees.
     
  4. atom

    atom High-Roller

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    I don't like resort fees, but this fee is actually worse. You get absolutely nothing for this fee that isn't free to anyone who shows up downtown - resort fees at least cover some kind of hotel guest exclusive amenity. On top of that, the hotel management continues to tout that they are not charging a "resort fee", which makes me feel that they think their customers are stupid. You're right, GN, you're not charging a "resort fee" - that would be far too straighforward and honest, and you'd have to pony up for some kind of amenity to attach to it.

    It's too bad, because aside from this nonsense I have always liked and recommended the Golden Nugget.
     
  5. WHIVGOYTUBE

    WHIVGOYTUBE MIA

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    This is not my information. I do not own it, or did I create it. I forgot to say so... for it is cut an paste from the Blondie Site. I posted it here under a separate heading, but the MOD moved it to the FSE fee posting, so I posted it here. :peace:
     
  6. zamboni

    zamboni VIP Whale

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    You are the first person in the world to say that. Ever!!
     
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