Two Way Hard Three | Las Vegas Casino & Design Blog

May 11, 2007

Builder of Cosmopolitan Makes Riviera Bid

Posted by Hunter

Another bid for the Riviera, this time from the folks that are building the Cosmopolitan next to Project City Center.

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Read archived comments (8 so far)
May 12, 2007 4:47 AM Posted by BrianFey

This is their 2nd bid right? This guy already bid once for this thing.

May 12, 2007 6:21 AM Posted by detroit1051

Another example of my lack of vision. I sold my RIV, split adjusted, for $13.85 in December '04. Even three years ago, I doubted that the North Strip would become the new hot spot.

"All of that makes it an attractive neighborhood," Eichner said. "It gives me a sense of time to think through a meaningful redevelopment of the property long-term."

Closer to the center of the Strip, "W" has finally pulled the plug:

May 15, 2007 6:34 PM Posted by detroit1051

Will Wednesday be the day for Riviera?
"The chief executive of the company that owns the 52-year-old Riviera casino-hotel on the Las Vegas Strip called a $30 per share, $374 million bid to take the company private "extremely credible" Tuesday."
Cosmo on the South Strip and Riviera on the North.

May 15, 2007 11:49 PM Posted by mdiederi

Tuesday night the Wall Street Journal website is reporting that Elad Group will announce on Wednesday a $5 billion project on the Strip. The project will be called the Plaza and open by 2011.

Uh, I know they get the name from the New York Plaza and they want to leverage that brand name, but won't it cause some marketing confusion with the grungy Plaza hotel in downtown Las Vegas?

May 16, 2007 12:45 AM Posted by mike_ch

Keep in mind that the CEO of Riv Holdings previously toss his stock into a bid that eventually failed. I can't remember the details but when the last deal was attempted the R-J was close to mocking him for how he sold for so much less previously.

May 16, 2007 7:30 PM Posted by detroit1051

Not so fast, Bruce Eichner. Riv Acquisition Holdings increased its bid $4 to $34, and that was before any ripple effect on values that might result from Elad's announcement on the Frontier. What will Eichner do now?

May 16, 2007 9:52 PM Posted by Mark D

I think there's room for the price to go a little higher. Yeah, they're bidding for shares in the company, but if you break it down by acreage, they are under the market value for the land alone. If I did my math right, Eichner's bid only comes in at just under 14.5 million per acre, and there's another casino in Colorado included in the deal, isn't there?

May 17, 2007 12:14 AM Posted by mike_ch

The land might be valuable, but there's a loss business on top of it depressing the price of sale, and few people see any future for it beyond a removal which will be additional cost.

I agree with VegasTripping's Chuck. Current management seems dead set Riv Acquisition. I'm not sure why that is. It'll be interesting to see what price point causes somebody to call it quits, although I'm hoping it's not Eichner. There's too much distance between the big shots (MGM, Harrah's) and the wannabes (new Sahara owner, Columbia-Sussex, etc) with only a couple in-betweens (Wynn, Boyd.) Having a spot next to CityCenter with another piece of land surrounded with the convention center, the MGM north parcel, Echelon, and the Wynn group would really cement him as an important/influential name on the street.