Hard
Rock Sale Lures Bevy of Investors
Peter Morton, owner of the Hard
Rock Hotel, surely is getting just what he wanted
-- a bevy of would-be buyers barking at his
heels. As the tale falls into place, it seems
Morton was approached by an investor, probably
Station Casinos, that failed to meet his terms.
Still, talks convinced him of the value of his
holdings, including land that is ready for condominium
development. That, plus the wandering gaze of
a philanthropist in his early 60s and a son,
Harry, who is said to have little interest in
running the business, and he let word out he
was getting proposals from buyers (meaning he
wanted them).
The
result is more interest than Morton can shake
a fist at. The leader seems to be The Rank Group,
to which he previously sold the Hard Rock Café.
At least four other investors are said to be
interested in joint ventures with Rank or as
independent parties, we're told. Analysts say
$750 million would get the deal done. But the
analysts also say not to expect an announcement
immediately as bankers, investors and investment
advisers review a confidential "book"
for the sale and as new bidders line up.
High
rollers at Caesars Palace keep complaining,
but the hotel-casino's management contends they
are off base. Overall, Caesars has cut the number
of slots in its casinos from 1,900 to 1,500,
even if some areas seem more crowded with machines.
High-end slot play is at an all-time high, with
volumes up more than 20 percent in the past
eight months. Also, Caesars points out that
its new poker room is in an area not previously
used for gambling, although high rollers say
it could be used for table play and the traffic
is mostly riffraff.
Loyal
high rollers are probably complaining loudest
about Harrah's Entertainment removing craps
tables from the Forum Casino at Caesars Palace,
and adding one craps table to the Palace Casino,
for a net loss of three craps tables. Caesars
has also added a roulette game that lets bettors
place bets on computer screens, increasing the
speed of the game and eliminating the need for
dealers handling chips. Less manpower is necessary
at the table since the dealer does not handle
money or need to supervise betting with live
chips.
China
is once again proving to be very inscrutable.
Counterintuitively, gaming revenues in Macau
decreased 5 percent in January even though visitor
volume increased 19 percent from last January.
Insiders say the Chinese stay home on their
New Year's, which fell in January this year
vs. February in 2005. Also, more Macau visitors
are going to the new Fisherman's Wharf instead
of hitting the casinos.
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