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Any Hope for the Tropicana? Up for sale again.

Discussion in 'Casino Industry & Development' started by azbob, Jul 31, 2020.

  1. azbob

    azbob Low-Roller

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    Up for sale again...not sure what theme/approach they can implement to move it past mediocre.
    https://news3lv.com/news/local/tropicana-las-vegas-officially-up-for-sale

    They should think about rebranding as the "Tropicana Country Club" and market to locals just as a regular country club does in most cities. That is an annual fee for amenities, (seven room nights, pool access, discounted food/meeting space/spa, and packaging other items including a golf partnership and enhanced tennis). Special events for members too just like the CC model.

    Even though on the strip, the property is easily accessible for locals and every time someone uses a free night, they will be gaming, eating and drinking.

    Simple math indicates if they set aside 50% of their 1,467 rooms for "members" based on giving them seven nights, they could still sell rooms to the general public, but have built in recurring revenue. At a reasonable $1,200 per person per year, that is $45m plus incremental revenue derived from those room nights without even thinking about gambling $$. BTW...I think they could get a lot more than $1,200, but that might be an opening level.

    Lose the celebrity chefs and bring on local favorites...Nacho Daddy, Black Bear Diner, Lotus of Siam or even go for a big move such as a second Peppermill site, Bootleggers, move the Golden Steer or even The Steak House (Circus Circus).

    The other big change would be to convert meeting space to smaller group space to handle wedding events and other local events at a reasonable rate. Events for every LVGN or Raider game.

    The pool will be a big draw as will the ability for locals who are in an upper middleclass category to have this experience without the high end hassle and expense of the strip.

    I do think there is a growing population fed up with parking and resort fees...we haven't been to an MGM property since they started charging for parking. There are upper end locals casinos (GVR/Red Rock), but I think this niche exists and I believe there would be a large demand for this type of venture among people who have a lot of disposable income.

    Someone just needs around $325m. It last sold for $360m, but not sure how many gullible casino operators are left out there unless some tribe wants desperately to enter the market. If so, this idea will have to wait another 3-4 years when they fail.
     
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  2. Paul K

    Paul K VIP

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    I believe it was the land only that sold last time for $360 million. I think you would have to either pay the cost of the land lease or purchase the land as well as the improvements on them. That increases the price significantly.
     
  3. dmr

    dmr Registered Abuser

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    ^^ This! ^^
     
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  4. engicedave

    engicedave VIP Whale

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    IMO, I believe MGM should acquire that property, implode it and start over. I believe it would be a strategic advantage and also be beneficial to their CityCenter concept, by basically owning all four corners and all around it. Put in people movers, either moving sidewalks or with a combo including mini-trams to go between the properties.

    Not having the Trop corner makes it look incomplete on a map, as well as feel incomplete.

    It would basically give the appearance and feel that anything below Cosmo/PH is all MGM, period
     
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  5. vegasvstr

    vegasvstr High-Roller

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    I think they need to tear it down and start fresh. A lot of wasted space in front and nothing to really draw people in. Maybe one or both towers could be gutted, but not sure if that would be worth it.
    I could see the Seminole buying it and putting in a Hard Rock LV. Though I think Bally's or PH might be better deals if they become available.
    Maybe someone will put a baseball stadium there.
     
  6. engicedave

    engicedave VIP Whale

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    IMO, the problem w CET selling Bally's is it's being connected to Paris.

    I have heard the Seminoles have an interest in a HR on the strip now that they've acquired the rights the the name use in LV
     
  7. Stinkfinger

    Stinkfinger Low-Roller

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    I would think moving forward with t-mobile and raiders this could be a great location. I’ve stayed at old Monte Carlo, NYNY several times and MGM. Never even thought about stopping by the Trop though. From what I’ve heard nothing there better then at the above mentioned places.
     
  8. nonahs

    nonahs Low-Roller

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    Let's call it what it is....one of the best pieces of real estate on the strip. If someone could acquire the Trop and the old Hooters piece of property, implode, and build a resort it would do incredibly well. Steve Wynn, I hope you are reading this.
     
  9. dmr

    dmr Registered Abuser

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    No! We need what's left of Real Vegas to stay! Too many mega-resorts, and what happens in the next downturn when we get the shell of a partly-completed fiasco sitting idle at the corner of Trop and LVB for years!
     
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  10. buckeyeguy

    buckeyeguy Tourist

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    The Trop is opening in September, just got a welcome back offer in the mail this week
     
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  11. joespoolhall

    joespoolhall VIP Whale

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    I agree that the location is premier and ripe for a beautiful new resort. That being said, I think LV is a long ways removed from any tear down, build up situation. I think recovery from this virus is going to make 2008 look like a hiccup. The only possible chance is that by the time (3 years?) it would be done, visitor numbers might be back to a decent level. So in summation, if you're willing to make a 4-5 billion dollar investment with no return for at least 3 years, you're in!
     
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  12. Rooster0620

    Rooster0620 Low-Roller

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    Now isn’t the time to sell your casino if you can avoid it. Market is at an all-time low and probably won’t reopen for another year.
     
  13. Ten_On_The_End

    Ten_On_The_End High-Roller

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    This ^^^^ I've stayed at the Trop and Hooters and I don't want to see another spiffy place that I'll never go to because I'm,,, not very spiffy.

    spiff·y
    /ˈspifē/

    adjective
    INFORMAL•NORTH AMERICAN
    1. smart in appearance.
      "a spiffy new outfit"
     
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  14. dmr

    dmr Registered Abuser

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    In my not so humble opinion, Tropicana has always been and will continue to be very spiffy!

    [​IMG]
     
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  15. notfromconcentrate

    notfromconcentrate Connoisseur of dive casinos and obnoxious outfits

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    One unique thing about the Tropicana is its proximity to the airport. No other casino resort in the city other than OYO/Hooters can make the claim that it’s on the same block as the airport.

    Of course, this means nothing if you’re driving/taking a rideshare or shuttle in. I’m not sure if this is legal given how regulated airports are... but one major advantage the Trop could theoretically have is direct access to the airport if a walkway or loop train could be built. Never mind the fact that it would be one hell of a selling proposition (e.g., “Only Vegas hotel you can access straight from the airport!”), it would be an awesome way to get foot traffic into the casino for non-hotel guests. Most people arriving in Vegas are itching to gamble... so even if they’re staying at NYNY and are going through the Trop, it’s pretty inevitable a lot of them might stop in and play a bit.
     
  16. dmr

    dmr Registered Abuser

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    Uh, we may have to agree to disagree about that fact! Even in Vegas-speak that's pushing it. Koval and Reno (and whatever they are calling those other streets this week) separate Tropicana from the 'block' the airport is on.
     
  17. notfromconcentrate

    notfromconcentrate Connoisseur of dive casinos and obnoxious outfits

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    Looking on a map, you are absolutely correct :)

    I guess I don't tend to notice such details on my way out of the airport (from the excitement of arriving in Vegas) or my way into the airport (usually being too busy internally saying "I don't wanna go home!"). Either way, my general point is still that it would be far easier and more plausible to make the Tropicana connected to the airport than any other resort in the city... and it would be an awesome selling point.
     
  18. The Rumor

    The Rumor VIP Whale

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    Locals joints in Vegas draw people who live very close. Where are the mass of upper middle class people who live within 10 minutes of here? There's a reason higher end places like Green Valley Ranch already exist to serve people in Vegas who have disposable income - there are locals joints in Vegas, right now, that are nicer than the Trop, and they also have things like movie theatres and much easier parking/road access situations. The land is also worth far too much to justify this (and keep in mind it's in a REIT with all that entails.)

    Really, the Trop just can't get anything going. It probably needs a big rebrand, similar to how Aladdin became P. Ho in the 2000s. No one wants to go to this tired name. It really should have been knocked down in ~2010 when they spent a few hundred million to redo it. Penn tried, but it's clear they have no real ability to funnel enough of their local players to the joint. I don't see what you do other than run it to harvest cash (i.e. low capex) or start over.

    It's amazing that Circus Circus is worth more than the Trop given the locations. Trop has been seriously mismanaged for a very long time.
     
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  19. Champster1

    Champster1 VIP Whale

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    Hope they don’t sell before November. I have a 4 day comp there in October with $200 FB daily and a some fsp. Putting my youngest daughter (32) there with her best friend for those 4 days. Will drive down from Ballys at least once a day to eat there though lol.
     
  20. LolaDoggie

    LolaDoggie VIP Whale

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    I like the private club idea. I like the idea of (whispers) t-i-m-e (cough) s-h-a-r-e. It has so much going for it and nobody knows. Maybe if they had a good coffee shop...now that Hooters is gone and any semblance of the old coffee shop idea there is gone...