Two Way Hard Three | Las Vegas Casino & Design Blog

Posted by mike_ch

A resort designed by Goldman Sachs. Mmmm hmm..

Is there some reason they don't make a deal with the Strat considering Goldman basically owns it?

Common sense tells me that whoever is hired to operate the place will want to decorate it in their own "vision". I still think MGM is the only long term answer, but I can understand where they might just wish it would go away, especially until the money gets right.

Alright I am a little confused. It said that Deutsche wanted MGM to operarate or take part ownership in exchange for $1.2 billion to finish City Center. So MGM would get to run/own another casino on the strip plus get $1.2 billion to finish their crown jewel, where is their downside? Is running a new casino that big of a pain in the ass or did i miss something?

It seems a bit odd that they would bother to waste time and money redesigning anything that's already been constructed, when there's so many uncertainties weighing against the immediate and long term success of the project. I'm curious if this would have to do with the condo portion? Is it possible they are looking to add more hotel rooms and in turn are redesigning some or all of the condo portion to better fit that model? I believe Cosmo was originally envisioned as another condo-hotel property, with only 500 some rooms dedicated as ordinary "hotel" rooms. I imagine Hilton would like more hotel rooms to make money off of, and less dead condos to deal with. It is a great location, especially once City Center opens in full swing. Even in bad times they could still fill a few extra rooms considering the location, and the fountain view for the anniversary/wedding crowd.

Duffman - I took it, that DB wanted MGM to buy Cosmo, and operate it. And they would give them the loan for CC if they took Cosmo off their hands also. But I could be wrong. I'm sure the last thing MGM wants to own right now, is 3000 more hotel/condos in Las Vegas.

I think DB wants a large percentage of MGM ownership in return for their contribution of the Cosmo and the $1.2 Billion. I wouldn't be surprised if they aren't wanting more than half of Mr. Kerkorians shares, which I think would be over 25% of the company. I think Cosmo has critical design flaws, and, much like P Ho, it is always going to struggle to overcome them. I think MGM is the only long tern solution for this property. But, I also believe it could take 5 years for them to be willing and able to take on this additional headache.

One of the reader comments in the Sun mentioned jokingly of bringing in Wynn to do the interior design work. In all seriousness, does Wynn Design ever take on outside projects like this, or do they solely focus on in-house projects? Would they involve themselves with a project where they did not have total control to begin with? In this economy, it seems as though any opportunity to get a little new business should warrant consideration.

Posted by Hunter

No outside jobs - though Roger Thomas does have a separate design consultancy that might do that stuff, I dunno. He's about 98% retired now.

By Hilton, I take it they mean the operators of the LV Hilton casino and not the Hilton hotel chain (which would still require a gaming license). This could work, but I believe LV Hilton has some serious money issues with their AC properties and is likely heading into bankruptcy.
I think both DB and MGM are just negotiating/stalling to get a better deal. DB can afford to sit tight and wait this out. I agree that they probably wanted to big a % of MGM and probably some downside protection if CC really tanks. MGM is really close to desperation and has to get this done; plus it really makes sense as a business proposition. The redesign will probably remove kitchens from some of the condos so they can be better used as hotel rooms.

Posted by Hunter

I dunno, I think they meant the Hilton chain, or a subsidiary thereof.

The Las Vegas Hilton is a Colony Capital joint and they can't keep Station Casinos afloat, let alone take on another property.

Hilton has a lot of history in gaming. Park Place Entertainment (became Caesars Entertainment and was then bought by Harrahs) was a spin off of that company IIRC.

I read on the hotel forum board that Hilton is looking to launch a new hotel brand called Q or Quinn (something like a 'W' I take it) and that Cosmo could be their launch for that. That might also explain why Deutsche is needing to rethink interior design since I'd assume a brand new hotel brand is gonna want substantial design input. If it was gonna be just a plain old Hilton they might not be as interested as long as the interior is not too terrible.

I think pretty much all signs point to t he cosmo becoming a "Denizen" seems like a good launching point for this new brand

http://www.reuters.com/article/lifestyleMolt/idUSTRE5292K320090310

Deutsche Bank picks Hilton to run Cosmo.

http://www.bloomberg.com/apps/news?pid=20601087&sid=atpkL95fnqE0&refer=home

One company who has designed some very incredible casinos, both interior and exterior is www.i5design.com If you check out the portfolio/casino section I think you'll really like what you see!

Mary,

Thanks for posting that link. I live about a mile away from Soboba Casino and always wondered who did the remodel.... it's still not a great place compared to other local indian gaming (Morongo, Pachanga, Pala, Harrah's Rincon, etc)

The one thing I notice is most of these renders have the same look and feel (stepped stone, arts and craft insperation, etc).. Not sure if any of these can really compare to whats in Vegas or even Atlantic City.

"...Hilton is looking to launch a new hotel brand called Q or Quinn (something like a 'W' I take it)...."

This sounds pretty serious: Starwood is charging Hilton with something like corporate espionage, regarding the hiring of Starwood execs from the division that handled the W brand, and theft of proprietary information (100,000 electronic files' worth).

http://www.lasvegassun.com/news/2009/apr/21/hilton-abandons-hotel-brand-planned-las-vegas/

Oh, mike_ch already posted this in the Open Topic, but without the cloak-and- dagger angle. (Sorry mike....)

Things don't seem to get any better for Cosmo. Now, buyers are suing.
http://www.lvbusinesspress.com/articles/2009/06/22/news/iq_29465588.txt