M Resort may be acquired by Boyd Corporation
Nearby South Point was originally part of the Boyd Corporation when Boyd acquired Coast Casinos owened by Michael Gaughan. Clashing management styles led William Boyd to turn over complete ownership to Michael Gaughan in exchange for all of his Boyd stock.
Michael originally built all of the Coast Hotels which he sold out to Boyd. South Point was originally called South Coast but changed it's name as part of the buyout agreement.
Michael has stated that he is too old to start another casino. He intends for South Point to be his swan song. Right now it is the largest locals casino. I think M-Resort is the most expensive locals casino however. It cost a lot more than Green Valley Ranch or Red Rock casino.
I guess all casinos are financially troubled. I recall a pre-existing thread here concerning the M being financially troubled, but was unable to locate it.
>Boyd is negotiating directly with the bank that holds the largest loan.
I didn't know Boyd was in that great a shape itself.
I wonder in what way the bank thinks Boyd would do a better job than present management would.
>Nearby South Point
is a sweat the money slots joint that backs off even green-chip card counters, offers 2x at craps and in general seeks only Red Button Pushers rather than skilled gamblers.
>I think M-Resort is the most expensive locals casino however.
Yes, but it is definitely an up-market locals casino which if it can hang on will do wonders once people learn that its okay to venture that far south. I wish them luck.
Quote: FleaStiff>The financially troubled M Resort
I guess all casinos are financially troubled. I recall a pre-existing thread here concerning the M being financially troubled, but was unable to locate it.
Actually some are not that bad off. Boyd is doing very well on it's Downtown Vegas properties, it's Midwest properties, and the Borgata in Atlantic city is probably the brightest star in that city.
Boyd invested $1/2 billion in Echelon, but stopping work has probably kept them out of bankruptcy. They have a lot of financing available that they secured for Echelon which they can use for another property.
All in all, I think they will probably come out of this in better shape than many companies.
If M can't pay their interest payments and the bank forecloses, why would the bank want Boyd to take over? What makes anyone think Boyd can do a better job than present management?
The Boyd family has been running at least a small casino since 1963. They now own 16 casinos (9 in urban Vegas area). Their loyalty program may allow them to bring in more customers. In addition they have a strong credit line established when they intended to build Echelon. They may be able to buy out some or all of the debt that the present bank owns.
The region of Vegas near the M Resort is ultra affluent (they are near the executive airport), but sparsely settled. Many of the new developments in the area were cancelled. Boyd casino has some experience in bringing the small tiny conventions (100 rooms) to their Suncoast property. Some convention organizers like to be in a more golf oriented area, and they find their attendees are more likely to show up for the meetings when they are not directly on the strip.
I think that M Resort is a little too flashy. The nearby competition (South Point and Silverton) emphasises value experience (large rooms and suites for much less than strip prices. Green Valley Ranch is also nearby, and is well established in the high end locals casino.
Also M Resort owns all 9 of its restaurants. Today that is considered risky. Boyd will probably replace some of them with chains like TGIF.
I don't know if Boyd will cancel the agreement to open a cinema with Galaxy Theatres which currently has a cinema at Cannery Resorts in North Las Vegas. Century South Point already has 16 screens only a mile away and closer to town. Green Valley has 10 screens, and Town Square has 16 screens. That seems like a lot of movie screens along the same stretch of town.
Quote: pacomartinI believe that present management only runs three casinos (two small aged casino in Laughlin they bought from MGM Grand) and M Resort. Tony Marnell's father built the Rio which he sold to Harrah's. The Marnell family is still better known as casinos builders than operators. They built all of Steve Wynn's casino hotels in Vegas.
The Boyd family has been running at least a small casino since 1963. They now own 16 casinos (9 in urban Vegas area). Their loyalty program may allow them to bring in more customers. In addition they have a strong credit line established when they intended to build Echelon. They may be able to buy out some or all of the debt that the present bank owns.
The region of Vegas near the M Resort is ultra affluent (they are near the executive airport), but sparsely settled. Many of the new developments in the area were cancelled. Boyd casino has some experience in bringing the small tiny conventions (100 rooms) to their Suncoast property. Some convention organizers like to be in a more golf oriented area, and they find their attendees are more likely to show up for the meetings when they are not directly on the strip.
I think that M Resort is a little too flashy. The nearby competition (South Point and Silverton) emphasises value experience (large rooms and suites for much less than strip prices. Green Valley Ranch is also nearby, and is well established in the high end locals casino.
Also M Resort owns all 9 of its restaurants. Today that is considered risky. Boyd will probably replace some of them with chains like TGIF.
I don't know if Boyd will cancel the agreement to open a cinema with Galaxy Theatres which currently has a cinema at Cannery Resorts in North Las Vegas. Century South Point already has 16 screens only a mile away and closer to town. Green Valley has 10 screens, and Town Square has 16 screens. That seems like a lot of movie screens along the same stretch of town.
The region near the M is hardly "ultra-affluent". It's middle-class, and it is not the lowest neighborhood for foreclosures in the city. There are a lot of Asians there, which accounts for their high percentage of attendance at the Friday night seafood buffet at the M.
Boyd owns Sam's Town and that place is a dump. The M is a very classy property and operation, far overshadowing the boring warehouse-style of the South Point. If the M ends up in Boyd's hands expect them to destroy the ambience and welcoming attitude of the M.
TGIF is a low-class hangout serving unimpressive, greasy food to a bunch of overweights. If one appears at the M they've seen the last of me.
Quote: JerryLogan
The region near the M is hardly "ultra-affluent".
check out Southern Highlands.
Yes, Boyd will downgrade the property. But probably more in keeping with Suncoast Casino than Sam's Town. But it will limit financial exposure if it isn't trying to run every single restaurant.
Quote: pacomartinWell I think that M Resort is within ten miles of some of the most ultra-affluent areas of Vegas (Southern Highlands, McDonald Heights , etc.). Nancy Walton Laurie paid $19 million for a home in McDonald Heights.
Yes, Boyd will downgrade the property. But probably more in keeping with Suncoast Casino than Sam's Town. But it will limit financial exposure if it isn't trying to run every single restaurant.
10 miles? By that measurement Texas Station could be considered nearby an affluent area.
The higher end restaurants at M never seemed very busy to me. It seems to make sense to run one's own restaurants, but it must be a problem in this economy.
