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Croupier
Croupier
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February 1st, 2011 at 2:10:25 PM permalink
The Las Vegas Sun is today carrying an article about the Hard Rock Hotel in Vegas.

Long story short, The Hard Rock recently underwent some big money renovations. A company partly responsible for lending the money for this is foreclosing on its debt.

Could Caesars Entertainment buy up the debt in a bid to add to its portfolio in a similar way to the way it acquired Planet Hollywood?
I dont know if they are in a financial position to, and MGM are probably less so.

But who do you think will pick up the debt, and why?
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Ayecarumba
Ayecarumba
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February 1st, 2011 at 3:45:04 PM permalink
The HRH is in an odd location. It is several long blocks off the strip and not an easy walk. As expressed in the article, they are victims of their own success, with the strip hotels copying their "hot club" young clientele model.

I would be surprised if Ichan buys the debt. He likes to take established properties and suck the cash out of them. I don't think HRH has much to give.
Simplicity is the ultimate sophistication - Leonardo da Vinci
DJTeddyBear
DJTeddyBear
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February 1st, 2011 at 4:14:18 PM permalink
Isn't Harrah'sCaesars selling the Rio? Isn't one of the reasons being that it's off-strip?

The Hard Rock is even further off-strip. Although not convenient, at least the Rio and Caesars are somewhat adjacent properties. There are several properties and lots between the Hard Rock and the closest Caesars property.

So I don't see Caesars making the purchase - unless the price is DAMN cheap.
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mkl654321
mkl654321
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February 1st, 2011 at 4:22:54 PM permalink
A company acquiring additional debt in order to expand its casino empire would be about the dumbest thing it could do right now. I think the hotel/casino, as a business entity, is undergoing a radical shift, from glitz and sizzle to actual entertainment value; from overpriced food, drinks, rooms, and even gambling to something more value-oriented. The HR was built on the premise of catering to the drunken frat boy crowd: earsplitting music, cocktail waitresses with Inflata-Boobs (patent pending), and a healthy dose of rock memorabilia. That offering isn't even particularly unique any more, and the HR still labors under the handicap of its location.

All that said, some casino giant is somehow going to manage to leverage its way into buying the HR at fire-sale prices. Major casino corporations can still borrow billions of dollars with no meaningful collateral at all; after all, the banks have to do SOMETHING with all that money that they will no longer lend to us ordinary scum.
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lucky13
lucky13
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February 1st, 2011 at 6:22:16 PM permalink
As someone who loved the "old" Hard Rock (before the sale to Morgans Group and subsequent expansions), I would love to see Peter Morton reacquire the property. Sell at the peak, buy back low. Could be a good arbitrage for him. Does anyone have his initial purchase price, sale price and an estimate for what it may go for in a reorganization? Pacomartin, you seem to have that kind of information available.
Nareed
Nareed
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February 1st, 2011 at 6:34:32 PM permalink
Is the casino worth the trip? I assume you can get there, or close, by bus.

To the question, i don't think Harrah's/Caesars/Whatever will buy it. Nor MGM. Not for some time, or unless something changes radically. But in vegas who knows? When you get down to it the town is weird (no offense to any locals, I love Vegas). For instance, why is there no Planet Hollywood restaurant at the Planet Hollywood Hotel?
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Ayecarumba
Ayecarumba
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February 1st, 2011 at 6:40:11 PM permalink
Quote: Nareed

why is there no Planet Hollywood restaurant at the Planet Hollywood Hotel?



I think the restaurant was already at Ceasears when the PH hotel was still the Aladdin. I don't know why they didn't move it. Perhaps they wanted to put in an, "Ultralounge" and run into problems with Gaming Control.
Simplicity is the ultimate sophistication - Leonardo da Vinci
gambler
gambler
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February 1st, 2011 at 6:43:22 PM permalink
Quote: Nareed

Is the casino worth the trip? I assume you can get there, or close, by bus.



Yes, I would say that the trip to the Hard Rock Hotel is worth the trip. It is a fantastic place to people watch. Sit out by the front entrance in the evenings and watch the parade of people walking in as well as the parade of drunks being escorted out. But is it worth the stay... That depends on your personality.

For me, the Hard Rock Hotel and Casino is a little bit too young and crazy for my tastes. While it is a fun place to spend an afternoon or early evening, I personally like to gamble and play some place a little more quiet, elegant and reserved. It is fun for short doses, but for a week long trip, I would go elsewhere.
Wavy70
Wavy70
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February 1st, 2011 at 6:48:15 PM permalink
Quote: Nareed

why is there no Planet Hollywood restaurant at the Planet Hollywood Hotel?



I'm not good with physics but I think it would spawn a black hole.
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Nareed
Nareed
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February 1st, 2011 at 6:53:44 PM permalink
Quote: Ayecarumba

I think the restaurant was already at Ceasears when the PH hotel was still the Aladdin. I don't know why they didn't move it. Perhaps they wanted to put in an, "Ultralounge" and run into problems with Gaming Control.



I've read a number of explanations. I don't recall any at the moment. It's just weird that it worked that way, for whatever reason. Just as it's weird to have huge malls adjacent to hotels, or extravagant street-side entertainment.

First time I went to Vegas I comapred it to a theme park for adults. Any day now I expect Las Vegas Blvd. to be closed to traffic for the lenght of the Strip. Then there can be daily parades, more street entertainment, a proper monorail or trolley and a nightly fireworks and laser show ;)
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