Second Casualty in Lake Las Vegas

Las Vegas is still seeing establishments closing their doors while early visitors signs show consistent improvements.

Second Lake Las Vegas property closes door

Second Lake Las Vegas property closes door

After last week’s news that Ritz Carlton Lake Las Vegas was closing its doors in May, as owner Deutsche Bank (Village Hospitality) refuses to put one more penny into the 400 employee strong daily operation, the Domino effect is now starting to topple other properties such as Casino MonteLago at Lake Las Vegas, which announced yesterday, it will close at midnight March 14. The closure is a direct result of last weeks announcement that the Ritz-Carlton would be closing on May 2. The casino opened in May 2003. John Tipton, a spokesman for the company, said the casino was in the middle of negotiations with other investors when the announcement of the Ritz-Carlton closure hit, resulting in those investors pulling out of the casino.

Other economic news from Las Vegas is confirming that Obama and other politician’s derogatory remarks about spending money in Las Vegas, is having a clear and devastating impact on the city.

The Hawaiian Tropic Zone Las Vegas, a restaurant and club, in the Miracle Mile Shops at Planet Hollywood announced it is closing. The exact closing date will be released shortly and this announcement follows the 03/Feb announcement that the Hawaiian Tropic Zone in NYC was closing pending renovations. The Hawaiian Tropic Zone Las Vegas opened in January 2008.

Also the Green Valley Ranch Resort is looking at some serious implications as Station Casinos, a 50-percent shareholder in Green Valley Ranch, has filed for Chapter 11 bankruptcy for the company that manages and owns its share of the Henderson resort-casino. The Greenspun Corp., which owns the other half of the property, has not filed bankruptcy on its share and the resort itself did not file, either and daily operations are said to continue as normal.

On the strip there was more recession news as the 3-story FAO Schwartz in the Forum Shops at Caesars Palace quietly closed on Jan. 23. Now, all that remains as a reminder is the massive Trojan horse outside, which apparently will be removed soon.

There are however some good news indications for Las Vegas with the announcements that:
• Celine Dion is coming back to Caesar’s Palace in March 2011,
• the Superbowl Betting netted a $6.9 million profit for local operators and
• January marked the 4th month of visitor increase after 15 months of decline

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3 Comments

  1. Hal_Burns

    Hold on just a minute, I thought we were told things were getting much better. We are coming out of this mess and all is going to be well once more? Are we all reading and hearing false reports?????

  2. publisher_sa

    Well Hal, as in every economy and society, there are pockets of wealth and prosperity and if these market have a control over media, the message into the world would be hope and optimism, even if it is loaded with denial. Las Vegas obviously bubbled more in the past than any other area in the US. And since construction always runs behind on real economics because of planning and construction times, in the crossroads of recession and recovery, the message to the public becomes dubious and confusing. This morning I got another confirmation of this, with the financials of MGM Mirage coming in.
    The company recently opened the massive CityCenter resort on the Las Vegas Strip, and reported a fourth-quarter 2009 loss of $434 million. Now to show that Las Vegas will be scrambling for quite a while longer than pockets that are now climbing out of the recession, here are some numbers:

    • The Las Vegas hotels for the most part stayed fairly full, although rates and revenue were down.

    • MGM in the fourth quarter 2009 had occupancy of 86%, compared with 85% the previous year.

    • The average daily rate was $111, compared with $135 in the fourth quarter of 2008. Revenue per available room dropped 14%, from $114 to $95.

    • RevPAR at Las Vegas Strip hotels was down 16%.

    • Casino revenue was down 10% for the year and 7% for the fourth quarter.

    The numbers indicate that there is a very slow turn, that at any time can fall back into the expected double dip recession.

  3. Hal_Burns

    I agree, my only thought was with what we are being told on a daily basis, things are good, things are recovering. I think this is one of the huge problems with Washington today, people can't believe what they hear. People only want to feel that their government is telling them the truth, nothing more , nothing less, just the truth. People aren't as stupid as Washington thinks they are. Regardless if you approve of the tea party movement or not, I think it shows just how mad people are becoming in this country.

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