Wow, if this is true, it's mighty insane. The Las Vegas Business Press is reporting that Harrah's might swap the Rio with Boyd Gaming for the Barbary Coast, enabling Harrah's to create their massive Strip project.
Technorati Tags: boyd, casino design, gaming industry, harrahs, las vegas, vegas
Categories: Boyd Gaming, Business of Gaming, Caesars/Harrah's, Las Vegas Strip
Mighty insane indeed. I'm sure Boyd would love to have Rio right next to Gold Coast.
Is Harrah's not interested in the Westin property behind them?
I just can't imagine Vegas without the Barbary Coast... sad day indeed if this happens. Damn you, Harrah's!
" I can understand Harrahs being willing to do this swap. They'd be THE player at that intersection on the strip. And Boyd's would get additional property next to their developing areas. Allthough, I do hate to see B Coast go just like other of the older icons are gone.
How can Harrah's give Boyd the Ho site? I thought that it was owned by Thralsdon Companies. Oh well, I'm kind of partial to this trade-off. Harrah's hasn't been keeping Rio up, and maybe Boyd could come in and make it a luxury resort again. I don't think Harrah's controlling that corner will do very much, I mean, one of their biggest competitors is right on that corner too. Come on, there is nothing that Harrah's could possibly pull out of their cost-effective/customer loyalty based hat that could even come close to competing against Bellagio.
I guess we'll just have to wait and see what happens.
I can see some kind of deal, but not in the full terms that this article says. No way they would give them the Rio for 4 acres, and cash??? NO Chance in HELL. Rio has to be worth what 1 Billion plus? Right? That comes out to 250+ Million per acre. Somebody has their wires crossed somewhere, unless I completely misunderstood what they were saying! Harrah's does need that land, but no where near that bad! Maybe they meant, Boyd would put up some cash for Rio, and that property also ???
It fits with my expectation, that you're really going to have to bowl over Boyd with an offer to get them off of the strip. Their only strip presence, if BC goes, would be the Dust. Were I Boyd, you'd have to pry it from my cold dead hand. And yes, the Ho is not theirs to deal, not sure where that came from.
Why does everyone keep giving the Rio away on behalf of Harrahs? I remember at the time of the Caesars merger, rumors that Rio would be sold to Colony Capital/Resorts Int'l. Makes no sense - it's a huge, modern, multi-purpose facility, and the only significant convention space Harrahs owns in Las Vegas.
Count me among the skeptics on this one. For Harrah's to trade the Rio for the BC and then implode everything on the block to make way for some new mega resort would mean forfeiting a significant chunk of revenue in the world's biggest gambling market for 3-4 years. It's cheaper to simply write a great big check and buy the property outright.
Well, the Las Vegas Advisor, is saying, that there are rumors, that the Barbary Coast Trade- or sale- have taken place. Here is the "blurb" reporting it.
July 8 -- Barbary Coast/Harrah's Rumors Swirling
We've gotten reports from two separate sources that a sale of the Barbary Coast to Harrah's may have taken place. One has Barbary Coast being swapped for the Rio. These reports are unverified, but it's been long known that Harrah's was seeking the BC property to complete its ownership of the entire east side of the center Strip.
Maybe we'll get actual news about it on Monday.
Still if Harrah's were to buy the Ho for a reasonable amount (at least 15 million per acre so around $200 million) that's still buying the BC at around $50 million per acre! They must really need that property to complete their master plan.
Harrahs, hopefully, will continue to service the middle market even after their redevelopment. I would hate to see Vegas price itself too high and cease to become a destination option for the regular folsk. If this is the case, in a sense Harrahs won't be competing with their high end neighbor across the street. Two different markets and different types of customers.
The August 6 RJ says Boyd may not be too anxious to unload Barbary Coast. Harrah's really needs that property, in my opinion.
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