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Do you think we'll ever see a new strip resort from CET or MGM?

Discussion in 'Misc. Vegas Chat' started by Jidery, Jun 20, 2017.

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  1. Jidery

    Jidery Low-Roller

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    CityCenter was the last major project from MGM, and CET hasn't had anything in nearly 2 decades.

    I know the economy slowed down in 2008 and almost ruined CityCenter, but do you think with the way things are picking up we'll see some progress from the 2 big players?

    Technology has changes so much in the 10 years since a resort was built, I know a new resort would be pretty awesome.
     
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  2. bdautch

    bdautch VIP Whale

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    I for one believe the answer is no. I think CET will focus on renovating and redecorating their existing properties. This is on the theory of, "Hey, we've got ideal mid-Strip location...now let's get the subpar properties up to snuff and charge a little more without having to go back into that vast mountain of debt that we just got out of."
     
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  3. hail2skins

    hail2skins VIP Whale

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    Fairly tough to say. I seem to recall Jim Murren of MGM saying that he didn't anticipate MGM building another Strip resort in his lifetime.

    I know you say technology changes a lot, heck seemingly exponentially, but around the time of the last big wave of resorts in the late 90s (Bellagio, Mandalay, Venetian, Paris, Aladdin), I started wondering "just how much nicer can they really make these places?" Wynncore and Aria are great complexes, but are they really that much above and beyond the joints built in the late 90s? And unfortunately, even if Resorts World ever gets built, its going to likely have the same elements of resort fees, paid parking, and crappy gambling rules that have come to permeate the Strip in the past 10-15 years.

    I'm looking more forward to see what Derek Stevens does with 18 Fremont than anything on the Strip right now. Well, Wynn's Paradise Park should be cool, but even the hotel component of that has been scrapped for now.
     
  4. The Rumor

    The Rumor VIP Whale

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    I hope not, it's terrible for this much of the Strip to be owned by 2 companies.

    It feels like the building is over for the main part of the strip and we're more into the rehab/update/expand phase. What would they knock down to build new, especially after spending loads to rehab some of their lower tier places like IP and Monte Carlo?
     
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  5. leo21

    leo21 VIP Whale

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    MGM was interested in developing property North Strip but I don't think the plans ever included a resort. CET has made it clear they are pursuing revenue potential from developing their existing resorts but it didn't seem like even new hotel towers would be involved in those plans. I can see them both wanting to acquire more existing properties over building new ones. I would hope that some entity would stop them from doing either for the sake of competition.

    The cost to build a new resort is extremely expensive. During the building boom the casinos could open a property and be in the black in a year. There is no guarantee of recouping construction costs that quickly these days and it would me introducing more rooms the strip may not really need. That's why even the more attractive holes in the ground heading north of the strip still aren't developed. It's just not a good idea for MGM or CET to even try a completely new property.
     
  6. vegasdev

    vegasdev VIP Whale

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    hope not
     
  7. Sonya

    Sonya Queen of VMB

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    "Ever" is a very long time. :p Im sure at some point there will be another implosion to make room for a new resort where one already exists now.
     
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  8. Jidery

    Jidery Low-Roller

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    Idk honestly, I think Vegas may have hit it's prime. I don't see enough confidence in the long term plans of the strip to sustain another building spree. I fear we may have gotten our last new resort with the Cosmo
     
  9. thecarve

    thecarve Misanthrope

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    Will CET or MGM? No clue. Will someone? Absolutely.

    What she said!
     
  10. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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    I wouldn't count Resorts World out just yet
     
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  11. chitownjohn

    chitownjohn High-Roller

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    another CET or MGM resort .... :vomit:
     
  12. VegasTravelNews

    VegasTravelNews MIA

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    Since MGM and CET are public companies, any major investment will be based on the bottom line.

    I don't see either company building a new resort form scratch. However, I would not rule out the possibility of one or both of them tearing down an older property and building a new one. For example, you have to wonder how long Circus Circus will last (it opened in 1968).
     
  13. Sonya

    Sonya Queen of VMB

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    Ever? 2176 Quatrennial Celebration under the tent at Circus Circus? :wink2:
     
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  14. woodsie

    woodsie VIP Whale

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    Things change quickly when the economic stars align. Room rates can hit a point where the money to add inventory pours in on gravity alone.

    With that said both MGM and CET have zero vision so it'll likely be someone else from the outside who comes in with a plan to reshape the town with a new resort.

    Downtown we've got Derek Stevens. Love him or hate him, he is truly showing some serious guts with all of the projects he is juggling. I don't know if everyday regular folks appreciate the nads it takes to buy up an entire block, knock it down, and build a new resort from the ground up. It's almost a certainty that something on this scale requires a lot of debt to finance and judging by the ever expanding scope of the project I bet that number is well into the hundreds of millions. He's gotta be betting the farm.
     
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  15. hail2skins

    hail2skins VIP Whale

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    Kind of splitting hairs. Pretty much every place built in the Vegas boom from the late 80s on involved tearing down an existing resort. Which always brings up the question of "which existing resort is the most likely to be imploded next?" Circus Circus is an obvious one, although its in an isolated location up there on the north Strip......but if Resorts World eventually opens and the Convention Center somehow expands to the Strip, that'll change the equation. Excalibur is another one often mentioned......although MGM just built a new parking garage there.
     
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  16. dmr

    dmr Registered Abuser

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    I'm sure CET and/or MGM will acquire more on the Strip eventually, but I can't see them actually building anything in the near future.
     
  17. Nevyn

    Nevyn VIP Whale

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    Probably not.

    Cromwell and LINQ are the wave of the future. Monte Carlo slowly becoming Park MGM is the next one.

    They will refresh and rebrand. But the costs and timeline and lost revenue on tearing down one of their operating properties and building a new resort are daunting to say the least. And as for buying a new parcel of land and building on it, having a hot new property away from their current portfolio could cannibalize their own existing business and hasten the decline of their higher end properties.

    If they expand the number of casinos they own (and both companies need to clean up their balance sheets much more first), it would likely more be about takeovers than building something.

    CET in particular this is obvious for. They have quietly spend hundreds of millions refreshing their hotel rooms, and rebranded 2 places (and Bally's could be next). They clearly want to improve the brand perception of their existing rooms and charge more for them.

    The rest of the strip spending seems to be on pedestrian retail space designed to pull tourists out from the strip.
     
  18. hammie

    hammie VIP Whale

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    Never say never, but for the near future, CET will soon emerge from bankruptcy. The plan is to split into a property company and an operating company. I have read they want to develop land behind the Linq. They missed the boat in Macau and there is mention of Japan licensing casinos, so CET wants in on this new market.

    MGM just dropped out buying the Sands in Allentown, PA due to proposed legislation to expand gaming in PA. But I think in the short term they are focused on running the business, their Profit Growth Plan (aka, screw the customers in Vegas with more fees, reduce comps, and surge pricing at restaurants). Someone needs to remind Murren you can shear a sheep many times but skin a sheep only once.
     
  19. shokhead

    shokhead No big spender unless eating drinking having fun!

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    I think we will see them sell one before buying or building one.
     
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  20. Vegas Insight

    Vegas Insight King of no media

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    Great question... not something I've given much thought to.

    Vegas tourism seems to have no ceiling. Visitor numbers seem to eclipse the previous year's total every time there's a report. I'm sure that's not always the case, but it's not as if the visitor total takes a major dive from one year to the next. The room rates may take a dive due to a bad economy, and that hurts the profit, but there seems to be a guaranteed 40M visitors per year.

    So how much will it grow in the years to come? Every industry wants to grow, every year. More is better. Higher demand for the same inventory of rooms is a good thing.

    Most industries tend to get oversatured in competition for the dollar. If Vegas room demands get too high, somebody will bring new rooms to the market, somewhere.

    As has been said previously, it seems unlikely MGM or CET will be building anything new, but when the time is right, somebody will build something new, somewhere. Perhaps it will be as modest in footprint as Lucky Dragon, perhaps it will finally be Resorts World. Perhaps it will be a new off-strip entity to compete with Orleans, Palms and Station casinos.

    We know about plans to remodel/refresh properties. We know about the dream that is Resorts World. I suspect within 10 years we'll have something new that none of us have heard of or dreamed of today. Will it be as majestic as a major casino on the strip? Your guess is as good as mine.
     
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