Boz
Boz
Joined: Sep 22, 2011
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October 24th, 2012 at 9:26:08 AM permalink
Just spent 5 days at Planet Hollywood in a comped Strip Suite, mainly due to my wife's slot play. Did the downtown beer fest Saturday and spent the rest of the time drinking and playing, but the overall theme of trip was the lack of detail at all of their properties. I understand they are broke, but somewhere, someone needs to be paying attention. Just a few of my observations:

Paris- Advertisement above slots for Le Artists Steakhouse that closed for Gordon Ramsey 10 months ago
PH- Still have the sign for the charity drop 10 days after the event
Flamingo- Huge Nathan Burton sign on building- He left a month ago
PH- Bikini contest signs all over the pool area for the finals on Labor Day Weekend
PH- Adds still running for Surf-The Musical in elevators- Show ended in July
Ballys- Signs for Football Contest- Sign up by Sept 12th

Overall most employees provided great service, so public morale is not down. In fact morning BJ dealers were very talkative about Linq and sounded excited about their jobs and even said tips have been good.
midwestgb
midwestgb
Joined: Dec 8, 2009
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October 24th, 2012 at 10:12:13 AM permalink
It's odd. Here in K.C., the Harrahs property seems to be moving forward full steam, although I believe they have dropped to no.3 in the local marketplace. They used to compete toe-to-toe with Ameristar for leadership in the K.C. market. Now, Penn's Argosy is ahead of them at no. 2. The Harrahs folks make a big deal at that property of greeting customers and one another all over the place, not just in the casino. Their dealers and wait staff are just fine as well.
TIMSPEED
TIMSPEED
Joined: Aug 11, 2010
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October 24th, 2012 at 12:52:58 PM permalink
It's the same with Harrah's Rincon..absolutely great atmosphere!
I guess they just have bigger fish to fry in LV...
Gambling calls to me...like this ~> http://www.youtube.com/watch?v=4Nap37mNSmQ
tringlomane
tringlomane 
Joined: Aug 25, 2012
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October 27th, 2012 at 7:11:11 PM permalink
Quote: midwestgb

It's odd. Here in K.C., the Harrahs property seems to be moving forward full steam, although I believe they have dropped to no.3 in the local marketplace. They used to compete toe-to-toe with Ameristar for leadership in the K.C. market. Now, Penn's Argosy is ahead of them at no. 2. The Harrahs folks make a big deal at that property of greeting customers and one another all over the place, not just in the casino. Their dealers and wait staff are just fine as well.



According to MO slot data, Harrah's is still ahead of Argosy, but with their terrible slot/vp payback percentages, they probably shouldn't be. I did have a $400 VP hit there while doing the Race to Rewards this yr, so I like the place. ;)
SanchoPanza
SanchoPanza
Joined: May 10, 2010
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November 6th, 2012 at 5:05:20 PM permalink
Quote: Boz

I understand they are broke, but somewhere, someone needs to be paying attention.


How Long Can Caesars Entertainment Survive? motley fool
Travis Hoium
November 6, 2012
Ever since Caesars Entertainment (Nasdaq: CZR ) hit the public market, the questions I've asked about the company have had more to do with survival than anything else. The company consistently reports huge losses, its markets aren't improving at all, and it has a debt load that points to bankruptcy unless something dramatically changes with its balance sheet.
The company's recently released earnings report does little to ease any of those fears. The third quarter showed little in the way of improvement for Caesars. Revenue rose a paltry 0.4% to $2.2 billion, adjusted EBITDA rose the same amount to $484.5 million, and net loss tripled to $505 million, or $4.03 per share.
The number of trips from vacationers decreased in every one of Caesars' markets in the third quarter, and if it weren't for a 7.8% bump in spending in Las Vegas, spend per trip would have been down in each locale as well.
Zero growth wouldn't be a problem if Caesars wasn't spending every penny it got on servicing debt, but with over $20 billion in debt that's exactly what the company is doing. Take a look at EBITDA minus interest expense below. This shows that Caesars is barely able to pay for its debt, and this doesn't even include ongoing capital improvements and some other operating expenses, which brings overall cash flow lower.
The biggest problem for Caesars is that it has little upside in most of its markets. Las Vegas is mature and won't likely grow double digits unless the economy makes a surprising turnaround. In regional markets, the company is contending with a growing number of casinos across the country as states approve gaming to expand tax revenues. Compare this to Macau, where Las Vegas Sands (NYSE: LVS ) , Wynn Resorts (Nasdaq: WYNN ) , and MGM Resorts (NYSE: MGM ) have limited competition and growing demand from gamblers. All three of these companies own Las Vegas casinos but they also have resorts in Macau, where gaming is far more profitable.
Even in the U.S. there are better gaming stocks. Penn National (Nasdaq: PENN ) is in the same slow-growth gaming markets as Caesars, but the company is solidly profitable because management didn't pile on debt during the boom years. Caesars can't even see profitability on the horizon.
So, how long can Caesars survive? The company doesn't have any major debt maturities before 2015, so there's no reason to think the company will go under before that, unless conditions really deteriorate. But that's when the rubber really meets the road.
midwestgb
midwestgb
Joined: Dec 8, 2009
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November 6th, 2012 at 5:24:31 PM permalink
It looks to me as if they need to keep downsizing over the next couple years, as they are doing in St. Louis this Fall. We shall see...
tringlomane
tringlomane 
Joined: Aug 25, 2012
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November 6th, 2012 at 7:50:00 PM permalink
Quote: midwestgb

It looks to me as if they need to keep downsizing over the next couple years, as they are doing in St. Louis this Fall. We shall see...



I agree, but they are struggling to find buyers. They were probably able to sell off Harrah's STL since it lead the state in revenue.
boymimbo
boymimbo
Joined: Nov 12, 2009
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November 8th, 2012 at 7:49:57 AM permalink
The best that CZR can hope for is a bounceback in the economy. I did a couple of days at Windsor a few months ago and all seemed fine there. My wife / 14 year old and I are heading to Vegas next month for a three night stay at Caesar's as they gave me free rooms as a result of my spending at Windsor.

But without an overseas casino to help it along, CZR may be doomed if the economy doesn't pop back into shape.
----- You want the truth! You can't handle the truth!
Boz
Boz
Joined: Sep 22, 2011
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November 8th, 2012 at 8:39:32 AM permalink
And yet Loveman keeps spending. I understand Linq somewhat, but $180 Million into Bills doesnt make sense to me.
FarFromVegas
FarFromVegas
Joined: Dec 10, 2010
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November 8th, 2012 at 8:56:10 AM permalink
Quote: Boz

And yet Loveman keeps spending. I understand Linq somewhat, but $180 Million into Bills doesnt make sense to me.



Some call it spending while others call it investing. Maybe he believes in his product and wants to make it better, or at least more attractive to a buyer?
Each of us is entitled to his own opinion, but not to his own facts. Preparing for a fight about your bad decision is not as smart as making a good decision.

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