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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.
     
  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 Low-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 Tourist

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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.