Quick Hits: Sin City Slowdown
Brief scrutiny of today's headlines.
The slowing economy and credit crisis has jeopardized a number of casino projects in Las Vegas, according to Reuters. Among the many casinos facing difficulty are The Cosmopolitan and Boyd's Echelon, a $4.8 billion project unable to secure over $950 million necessary for part of its construction. Existing casino operators like Las Vegas Sands (LVS) and Wynn Resorts (WYNN) are readying for a recession.
While the slowdown is bad news for Vegas investors, it's good news for travelers. Resort rates have gone down across the board. Hotels like the Sands Palazzo, for example, are offering packages starting at $179 per night, significantly less than the $350 it typically charges. You know what that means? More money to lose playing video poker!
But there's another upside to Sin City's slowdown. Because big time investors are skipping town, old properties that were going to be converted into new casinos are up for grabs. Like the former site of the Wet n' Wild water park, which Australia's Crown Limited decided to abandon.
So, if you've been wondering how to invest those couple hundred million bucks you've got lying around, look no further. Prices for Vegas real estate may never be this cheap again, and the defunct Bomb Bay speed slide is due for a comeback.
For more on sin and vice, check out Hoofy & Boo's always astute report.
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