In the first quarter of 2011, Aria scored all time high occupancy and room rates. Occupancy was 86% with an average rate of $201.
I've been keeping an eye on Aria's occupancy rate since it opened. They started off slow with a low 63% occupancy in the first quarter of 2010, but the numbers have been improving slowly throughout 2010 and now into 2011.
Aria probably will never be the cash cow that MGM was hoping for when the project was conceived, but breaking the $200 room rate mark is a step in the right direction.
Room rates were higher across the board at MGM properties in the first quarter, so we might be looking at the start of a real economic recovery in Las Vegas.
Aria Occupancy and Average Daily Rate:
1Q 2010 - 63% - $194
2Q 2010 - 80% - $178
3Q 2010 - 82% - $175
4Q 2010 - 80% - $190
1Q 2011 - 86% - $201
Source: MGM Investor Relations.
Tuesday, May 10, 2011
Wednesday, May 04, 2011
Boyd Updates Echelon Status
Boyd Gaming company CEO Keith Smith gave an update on the stalled Echelon Place project during the company's first quarter 2011 earnings conference call question and answer session on Tuesday, May 3rd.
Smith confirmed that nothing will be done on the project anytime soon, and said that Boyd would consider selling some or all of the land if presented the right opportunity:
"With respect to the Echelon development on the Strip, we continue to, kind of, I guess keep it as an option and assess our future. We are not taking any specific actions right now. We're, obviously, continuing to watch the market and try and determine when the best time to move forward on that asset may be. It's clearly not today. It's clearly not this year. It's probably not next year. As we kind of look into the future of the Strip and we look into the future of consumer demand and when it hits a point that you could add another project of that caliber. So if we had an opportunity to sell some of the land, we just sit on 88 acres, would we entertain it? Sure. That opportunity hasn't presented itself. We clearly have long-term confidence in Las Vegas, in Las Vegas Strip. We look forward to having an asset on the Strip at some point in our future as a company. We think, strategically, that's important for us. And still have that as a longer-term focus as we look to the growth of our company."
Source: Q1 2011 Boyd Gaming Corp Earnings Conference Call.
Transcript courtesy of Seeking Alpha.
Smith confirmed that nothing will be done on the project anytime soon, and said that Boyd would consider selling some or all of the land if presented the right opportunity:
"With respect to the Echelon development on the Strip, we continue to, kind of, I guess keep it as an option and assess our future. We are not taking any specific actions right now. We're, obviously, continuing to watch the market and try and determine when the best time to move forward on that asset may be. It's clearly not today. It's clearly not this year. It's probably not next year. As we kind of look into the future of the Strip and we look into the future of consumer demand and when it hits a point that you could add another project of that caliber. So if we had an opportunity to sell some of the land, we just sit on 88 acres, would we entertain it? Sure. That opportunity hasn't presented itself. We clearly have long-term confidence in Las Vegas, in Las Vegas Strip. We look forward to having an asset on the Strip at some point in our future as a company. We think, strategically, that's important for us. And still have that as a longer-term focus as we look to the growth of our company."
Source: Q1 2011 Boyd Gaming Corp Earnings Conference Call.
Transcript courtesy of Seeking Alpha.
Monday, May 02, 2011
Construction Starts on Harmon Corner Walgreens
Ground has been broken on the three story retail complex on the corner of Harmon Ave. next to Planet Hollywood. Walgreens will be the main store on the property, but it will also feature a few restaurants and several other shops.
The key feature of the project will be a large, Times Square style video board that will light up the Strip. This should look good alongside Planet Hollywood, which also features similar video boards as part of its facade.
One of the companies involved with the project has posted this video on YouTube, which includes a rendering of what the final product will look like. The rendering includes logos for Buffalo Wild Wings, McDonald's and Orange County Choppers, but Walgreens is that only store the has been officially announced.
The key feature of the project will be a large, Times Square style video board that will light up the Strip. This should look good alongside Planet Hollywood, which also features similar video boards as part of its facade.
One of the companies involved with the project has posted this video on YouTube, which includes a rendering of what the final product will look like. The rendering includes logos for Buffalo Wild Wings, McDonald's and Orange County Choppers, but Walgreens is that only store the has been officially announced.
Sunday, May 01, 2011
Steve Wynn's Royal Wedding
Las Vegas had its own Royal Wedding this weekend, as Steve Wynn married Andrea Hissom.
The wedding was reportedly star studded. Clint Eastwood was the best man. Garth Brooks and Lionel Ritchie performed. Other heavy hitters expected to attend the event included Donald Trump, Sylvester Stallone, Michael Milken, Sol Kerzner, Brett Ratner, Celine Dion, Naomi Campbell and Hugh Jackman.
Steve Wynn and Andrea Hissom were engaged back in December.
The wedding was reportedly star studded. Clint Eastwood was the best man. Garth Brooks and Lionel Ritchie performed. Other heavy hitters expected to attend the event included Donald Trump, Sylvester Stallone, Michael Milken, Sol Kerzner, Brett Ratner, Celine Dion, Naomi Campbell and Hugh Jackman.
Steve Wynn and Andrea Hissom were engaged back in December.
Thursday, April 21, 2011
Steve Wynn's Fair Share Concept
The Wynn Resorts quarterly earnings conference call was on Tuesday. The call is sometimes called The Steve Wynn Show by insiders because his straightforward answers can be very entertaining and educational.
Here's one tidbit from this week's call that I found interesting. It involves a concept that Wynn calls "Fair Share" that Wynn Resorts uses to judge how well they are doing:
"For those of you who really follow this, don't look at market share per se, look at fair share. We use that term, you can call it what you want. But you basically take how many units of slot machines or tables does a given operator have compared to the total in the marketplace, and then take a look at the share of the money that the person -- that the company has. If that ratio is better than 1:1, then you're a net receiver of the customers and you've sort of made a dorm out of your neighbor. If it's less than 1:1, then you're a dorm to your neighbor, and that's a negative fair share. We have been able to increase our fair share market penetration in the face of increased competition. It happened to us in Atlantic City years ago. We were the smallest place. But the more places came on, the more our premium over the average increased, and we're enjoying that again in Macau. It's a very important number, and it sort of tells you how good a job you are in delivering a good guest experience, a good customer experience that makes those people want to come back again and again and keep you as their favorite place."
You can listen to the conference call at Wynn Investor Relations, and read the transcript at Seeking Alpha.
Here's one tidbit from this week's call that I found interesting. It involves a concept that Wynn calls "Fair Share" that Wynn Resorts uses to judge how well they are doing:
"For those of you who really follow this, don't look at market share per se, look at fair share. We use that term, you can call it what you want. But you basically take how many units of slot machines or tables does a given operator have compared to the total in the marketplace, and then take a look at the share of the money that the person -- that the company has. If that ratio is better than 1:1, then you're a net receiver of the customers and you've sort of made a dorm out of your neighbor. If it's less than 1:1, then you're a dorm to your neighbor, and that's a negative fair share. We have been able to increase our fair share market penetration in the face of increased competition. It happened to us in Atlantic City years ago. We were the smallest place. But the more places came on, the more our premium over the average increased, and we're enjoying that again in Macau. It's a very important number, and it sort of tells you how good a job you are in delivering a good guest experience, a good customer experience that makes those people want to come back again and again and keep you as their favorite place."
You can listen to the conference call at Wynn Investor Relations, and read the transcript at Seeking Alpha.
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