Inside
Gaming: Strange Bedfellows: Wynn and his Bankers
Wall Street is waiting with
bated breath for details of Encore, Phase 2
of developer Steve Wynn's uppest-scale development
at the Strip's north end. Expect an announcement
in the next two months, sources say. But while
stories swirl that Wynn really has his heart
set on an urban village with up to 18,000 rooms,
don't expect more news out of Wynn Resorts Ltd.
than just Encore. Bankers warn there are terms
in his financing that set a high cash-flow hurdle
before he can go beyond the two towers and apply
his creativity to the golf-course lands. More
to come.
OK,
here's the deal on all the public opinion surveys.
It appears that in the MRC Group's most recent
surveys, the question is not how many visitors
are spending money, but how much money visitors
are spending for the value they think they are
getting. Most visitors still think Las Vegas
is a great value, MRC chief Jim Medick said.
There is some leakage from California, with
some less-affluent folks not visiting or not
visiting as often. But they are being succeeded
by younger, more affluent visitors who are spending
more. Not a bad trade.
More
on the Harmon Avenue extension. Businesses on
both sides of town say they hear there may be
a one-year delay in construction, but at lease
a five-year delay in access, thanks to the development
of the $1.8 billion Cosmopolitan and the $6
billion Project CityCenter. They say the word
is developers will use the roadway as a staging
area for their developments. Cosmopolitan developer
Bruce Eichner says no way. He has complex plans
to keep the street clear. No word yet out of
CityCenter developer MGM Mirage about how it
plans to mitigate the effect on traffic and
parking.
A
lot of readers took exception to last week's
column about the common sense behind the condo
craze. In particular, they challenged the assumption
that condos would rent at $300 a night. However,
no one ever predicted they would. Instead, the
column laid out how to analyze the possible
return on investment from a $500,000 condo,
making certain assumptions. If $300 a night
is unrealistic, the return on investment might
not warrant a purchase.
However,
these are condos, not hotel rooms. Most are
at least a living room, dining area, kitchen,
master bedroom and major bathroom. Some are
much more. Cosmopolitan units even include an
oval living room and MGM Grand Residences feature
two-story loft homes. MGM Mirage staff say condos
already are renting for $1,000 to $2,000 a night,
a lot more than a hotel room costs. But therein
lies the rub in estimating returns on investments.
Gaming
Wire Editor Rod Smith can be reached by e-mail
at rsmith@reviewjournal. com or by phone at
477-3893.
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