Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Quick Hits: Sin City Slowdown


Brief scrutiny of today's headlines.

Betting on Vegas real estate? You might want to reconsider.

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.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos