Echelon sold; Soon to be Resorts World Las Vegas

This is a few days old, but since this place is dead anyway...

lvrj.com-genting-buys-echelon

I don't remember reading any fantastic financial results from City Center or Cosmopolitan so I'm a little surprised they are going forward with this. It does appear they are doing it in stages at least, which would seem to be the smart way to go. If the economy does start to accelerate they could find themselves in a great position.

Maybe the old Frontier site will be next. Since Max Baer's Beverly Hillbilly's casino seems to be having trouble in Reno maybe he could move it there. I'm sure Steve Wynn would be thrilled to have an oil derrick across the street instead of the vacant lot.

This is the company that wanted to build the mega casino project in Miami. I am sure they are building for five years from now when the economy is stronger. The market could not absorb the project now.

This is a Malay company run by Chinese. Just another example of how the US will be owned by them for years to come. But this project will fail. They probably believe all the Chinese high-rolling gamblers will stampede to the place. But Asia has plenty of new mega-casinos for those people already, and it is absolutely the wrong time economically to be building anything that big & on the wrong end of the Strip. Kudos to Boyd for taking these confused people for a ride here.

Any construction project now will cost a lot less than it will in five years. There are so many out of work construction people in Vegas that wages are way down and so are material costs. For a company like this, building now to take advantage of the lower production costs and having the buildings ready when the market turns around in a few years might be a very wise investment.

I think this is why Fontainebleu is still standing. It's probable cheaper to keep the building "mothballed" and hope that the market turns in a few years. In the meantime, furnishings were sold off which probably will provide revenue for "mothballing costs."

I remember several different condo crashes along Miami Beach, and each time prices came back much higher before. The same will be true for Vegas hotel rooms and condos.

Boyd's took some hideous losses on this, correct? But it was the best they could do under the circumstances.

Quote:

---

Originally Posted by redietz

Boyd's took some hideous losses on this, correct? But it was the best they could do under the circumstances.

---

Yes they did take huge losses. What they did was clear off their books a big liability. Genting picked up what will someday be prime Strip real estate for pennies on the dollar. Genting wins. The losers will be Wynn, Venetian, Caesars, Bellagio who will lose part of their Asian market.

But I wonder if Genting would have jumped into this project if Florida had approved the casinos for Miami?? In a few years, the leaders of Florida and South Florida could be looking at Vegas and saying "we could have had that -- we let that one get away too."

This is as much a story about Miami and Florida as it is about Vegas. When I worked in Miami in the early 1980s there was a push for casino gambling in Miami Beach and Miami to revitalize the city. But casino gambling couldn't get the support it needed -- except for the Indian casinos who had federal legislation on their side.

Miami lost its chance then, and lost it again last year when Genting and others wanted to bring mega developments to the Miami area which is a hub for tourist travel from Europe and Latin America.

My initial reaction is that this was a great deal for the Chinese. It places them, physically, near Wynn, which could benefit both properties. It damages MGM/Mirage by sucking high-rolling Asian players away from MGM and Bellagio.

It may also be a good thing for customers, as I suspect a higher percentage of floor space will be devoted to table games than in your current American-style casinos. If the Sahara decides to go semi-retro, you could get a different vibe in this area -- more European and/or "Old Vegas." That would be refreshing.

Quote:

---

Originally Posted by redietz

It may also be a good thing for customers,

---

It certainly is going to add a lot of hotel rooms to the Strip and that should keep a lid on prices. Competition is always good for customers/players.

Just curious--everyone is referring to the Chinese here. Is Malaysia not under its own control? Is it under Chinese control?

Looked at the geography--interesting that there are 2 Malaysias separated by a big body of water. Not bordering China.

I am also curious about the references to China and the Chinese? I never heard any reference to China and Genting before? I looked at the corporate profile and I don't see anything about control by Chinese? Rob, do you know something the rest of us don't know, since you brought it up?

By the way, the stock trades for about $1.55 a share on the Singapore exchange. Low? Yes. But there are 12-Billion shares outstanding.

My brief reading on Malaysia indicates no Chinese control. In fact, they are a Muslim country which would not be allowed in China. Now obviously, that has nothing to do with the Corporation which could be managed or controlled by Chinese.

Guess this belongs in a geography thread.

Quote:

---

Originally Posted by regnis

My brief reading on Malaysia indicates no Chinese control. In fact, they are a Muslim country which would not be allowed in China. Now obviously, that has nothing to do with the Corporation which could be managed or controlled by Chinese.

Guess this belongs in a geography thread.

---

Well All 'dem Orientals look the same anyway.....


JOKING!

Quote:

---

Originally Posted by regnis

My brief reading on Malaysia indicates no Chinese control. In fact, they are a Muslim country which would not be allowed in China. Now obviously, that has nothing to do with the Corporation which could be managed or controlled by Chinese.

Guess this belongs in a geography thread.

---

The reference was to the corporation's management team. Malaysia has a sizeable population of Chinese, and they run many of the larger busineses.

Muslims are everywhere....until they aren't.