Podcast 109: Caesar’s Resort Fees; Cigar Aging; The Jason Bramble

Podcast 109, 3/10/13 … In today’s action-packed excursion into podcasting excellence,

  • Jason and Tony riff in dismay over the introduction of resort fees for Caesar’s Entertainment properties in Las Vegas,
  • Long-time friend of the show Ted Newkirk calls in …
  • … prompting a discussion about cigar aging,
  • Jason introduces his variation on the Bourbon Bramble (called, fittingly, the Jason Bramble), then
  • the boys offer a quick show note about the 360 Vegas Vacation and its impact on our schedule.

Click >> HERE << to download the MP3. [31 minutes]

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2 thoughts on “Podcast 109: Caesar’s Resort Fees; Cigar Aging; The Jason Bramble

  1. AccessVegas Reply

    I’m two episodes behind, as always. Thanks for playing the call, sorry it was a little long-winded (something one does not realize until they listen back to themselves speaking).

    Little inside baseball on the CET resort fees:

    MGM and CET are setting up for a huge pissing match.

    CET is doing Linq and banked on getting some public help for their arena (which would sit in back of Linq and help drive traffic down their new shopping alley). Also, CET CEO Gary Loveman announced room refurbishment and spending on property improvements last year at G2E.

    Alas, CET is having trouble getting the public money to help with their arena.

    MGM has now countered. Their room improvements are underway, they have announced their own privately funded arena, and will be doing their own version of Linq along with it (minus that Ferris wheel, which I believe is doomed to under-performance because the sight lines from the wheel won’t be that great during most of the ride).

    Enter Kirk Kerkorian who just filed the necessary paperwork to up his share in MGM Resorts and despite his age (95), looks to be stepping up to bat one more time. He has nothing to lose and one final victory to gain in sending CET spiraling and winning Las Vegas as that final triumph.

    Both companies are debt laden, but MGM has already shown they will dump a property if they have to. I don’t think CET will do so unless their back is against the wall (although they may dump Rio to help them complete everything they have on the drawing board).

    This pissing match is precisely the reason (in my view) that CET needs that resort fee revenue. CET has nearly 25k hotel rooms here. Times that by the $20 you suggested and you are looking at around (drum roll please)…

    $175,000,000 per year. (2450x20x365 rounded off).

    Or… enough to do much of their room remodeling.

    Also, CET is second to none when it comes to creating and keeping customer loyalty. Like Tony noted, people are locked in and many will be less likely to stray. The ones who do aren’t the good gamblers they really want anyway.

    Bottom line is that they really didn’t have a choice.

    • Jason Gillikin Reply

      Fair points, across the board. The recent news (in the last few days) about what’s going on with the MGM version of Linq fascinates. I continue to believe that 10-15 years from now, “The Strip” is more likely to be like Bourbon Street: Yes, you have an iconic boulevard, but in truth, it’s turning more and more into blocks rather that two sides of a street. Picture it: The west side of the Strip turns into an MGM megapolis, the east side for CET, and then “The Strip” is really more like four blocks wide than two blocks wide.

      And heaven help us if anything pops up between Wynn/Encore and Trump, and Strat/Riviera.

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