Sahara to close May 16
Quote: AZDuffmanHey, locals, just curious how this place is going out. Stories I reas said the Sands was booked solid its last 3 months in existance. Saw news reports about "one last night at the Stardust." Are they trying to salvage *anything* out of the last 20 days?
Stardust and Sands were both very profitable resort that were closed to try and make a more profitable resort. The story is a little different. Other than the name there is not much left to be happy about.
Quote: zippyboy
I just got that emailed to me as well. I wonder what the sum of their in-house progressives is? a few thousand dollars?
No, I did not get my name drawn for $500.
And if anyone could also get me 20-40 small value (.50c/$1) chips to give out as souvenirs back home I might spring to for a few more.
Quote: zippyboyOh man! Should've asked that yesterday, since I'm sure there were a few of us there tonight. No reason to back now. Well, except to fill your request of course.
Timing never was my strong point! Although im not expecting anyone to go out of their way, just if they happen to be there.
Quote: CroupierIf any locals that are attending WoVCon and who are not busy could go to the Sahara and pick me up a souvenir chip of any value up to $25 for me, I would be happy to throw in a few beers as a finders fee, (as well as cash reinbursement of full face value).
And if anyone could also get me 20-40 small value (.50c/$1) chips to give out as souvenirs back home I might spring to for a few more.
I have a $1, $5, and $25 I recently picked up. They are in near mint condition. I'll sell them to you at face value when I see you in June.
Quote: WizardI'll give sell them to you
a "give sell" deal from the WoO is to be feared methinks [g]
Quote: odiousgambita "give sell" deal from the WoO is to be feared methinks [g]
He didn't ask for his soul :P
Quote: WizardI have a $1, $5, and $25 I recently picked up. They are in near mint condition. I'll give sell them to you at face value when I see you in June.
In that case, I definitely owe you dinner. Let me know when will be good for you, and we will work something out. The only reason Im starting a chip collection now is because I dont think I will be making it to vegas for a few years after this.
And just to add to my begging: If anyone can get hold of some Sahara cards for me I would be most grateful.
Quote: CroupierIn that case, I definitely owe you dinner. Let me know when will be good for you, and we will work something out. The only reason Im starting a chip collection now is because I dont think I will be making it to vegas for a few years after this.
And just to add to my begging: If anyone can get hold of some Sahara cards for me I would be most grateful.
Thanks. How about Joul Robuchon at the MGM? If you want to add $8 Chinese new year chips to your collection I've got some extras. I'll keep an eye out for the cards. I wasn't going to go back lots of stores sell cards from a host of different casinos.
Quote: WizardThanks. How about Joul Robuchon at the MGM?
Mike, I want the chips, but I dont Joel Robuchon want them. Although I will spring for Wolfgang or Emeril's at the MGM. And the Chinese New year chips are a cool addition. Thanks.
Does anyone have any more details? Don't the dead stay dead in Vegas anymore? ;)
Quote: NareedDoes anyone have any more details? Don't the dead stay dead in Vegas anymore? ;)
No details on the situation, but I can see the appeal in taking an existing property and renovating it. It's a LOT less expensive to renovate, especially since it was kind of ongoing anyways. It probably just needs a facelift; throw about 20mil that way and that should solve that.
The only problem is the real estate in that area is nothing special. Yeah, it's a monorail stop, but that doesn't get all that much traffic. Without Fontainebleu open, there's still nothing there to go to North part of the Strip. I guess more power to them though... hopefully it can come back.
Quote: TiltpoulThe only problem is the real estate in that area is nothing special. Yeah, it's a monorail stop, but that doesn't get all that much traffic.
I stayed there in '08 and I used the monorail a lot. There were many times I got off alone there.
Quote:Without Fontainebleu open, there's still nothing there to go to North part of the Strip. I guess more power to them though... hopefully it can come back.
You'd have to give a reason for going there specifically. Either low rates, for example (which won't happen), or good games like the Riviera is trying to do, or something. That's really ahrd, with so much going on already in the Strip and Downtown. And I don't think they'd want to make it a locals casino, either.
Quote: PokeraddictGoogle "sahara reopen sls las vegas" and there is countless info about it.
Thanks. I'll do that.
The debt may be insane, but he's willing to contract it and people are willing to lend it. So maybe someone has a good business plan, or a bunch of people have made bad decisions.
Quote:I am glad they are wanting to spend this kind of money, and it will help the city tremendously, but they are going to have to make a lot of money off of the nightclubs, restaurants, and casino to keep it going.
I'm glad it makes the Strip less moribund. If it works, that is. But just maybe Vegas is finally turning around..
Quote: PokeraddictGoogle "sahara reopen sls las vegas" and there is countless info about it. He got a $350 million loan at 13%, which is outrageous. The interest alone is going to be $45.5 million a year, and they still need to raise another $115 million. That is $128,000 a day, or $80 per room per night (assuming 100% occupancy), before you have paid the labor or other bills. There is also a $115 million note not yet secured that will have to be serviced. I am glad they are wanting to spend this kind of money, and it will help the city tremendously, but they are going to have to make a lot of money off of the nightclubs, restaurants, and casino to keep it going.
Circus Circus is making $140 per available room per day. Since 24% of room are empty on average, that is $184 per rented room of which $54 is the average daily hotel rate. So that is $130 per day per rented room on buffets, drinks, the theme park and gambling. Circus Circus has a negative operating income.
Since Sam Nazarian and SBE were rumored to pay $300 to $400 million for the casino (deal signed in March 2007) I would think they have bigger unsecured notes than you indicated.
It is difficult to believe he can attract that kind of money to that portion of the Strip. At a minimum they would have to get double the room rate of the surrounding hotels.
Quote: pacomartinCircus Circus is making $140 per available room per day. Since 24% of room are empty on average, that is $184 per rented room of which $54 is the average daily hotel rate. So that is $130 per day per rented room on buffets, drinks, the theme park and gambling. Circus Circus has a negative operating income.
Since Sam Nazarian and SBE were rumored to pay $300 to $400 million for the casino (deal signed in March 2007) I would think they have bigger unsecured notes than you indicated.
It is difficult to believe he can attract that kind of money to that portion of the Strip. At a minimum they would have to get double the room rate of the surrounding hotels.
SBE bought back their bonds used to buy Sahara after they closed it. AFAIK they own that property free and clear now. I think it was part of their strategy. Close the casino, making the property worth much less. This crashes the value of the collateral, lowering the value of the bonds. They then bought back the bonds at a steep discount. Closing the casino actually improved the balance sheet since the debt was bought back well below face value. It was reported they bought the bonds back very cheap, but I don't know what that number was. I think it is safe to assume that the property has lost 75% of its value since they bought it, especially with it sitting there abandoned.
Quote: pacomartinIt is difficult to believe he can attract that kind of money to that portion of the Strip. At a minimum they would have to get double the room rate of the surrounding hotels.
A complete revamp to attract Asian gamblers would be the only way to get them there. Even then, they are still fighting Wynn, Bellagio and Venetian for that business. It would be interesting to see if a Macau business model would work in that area (like the loss rebates and largely table game business). On the one hand, it would be a very limited gambling population for VEGAS; on the other hand, what do they have to lose?
Quote: PokeraddictClosing the casino actually improved the balance sheet since the debt was bought back well below face value. It was reported they bought the bonds back very cheap, but I don't know what that number was. I think it is safe to assume that the property has lost 75% of its value since they bought it, especially with it sitting there abandoned.
Very insightful. Perhaps you would be willing to comment on my question: Why isn't government revenue increasing?.
