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Old 08-27-2009, 11:15 AM
 
53 posts, read 208,955 times
Reputation: 23

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Calling all pocket protector owners.........

TIME Magazine reported that rooms at the City Center cost 1.5 million each to build. Let's determine how much they will need to charge/make to break even and avoid Bankruptcy. I hope this will be a thread that has a good learning curve and matures with time, as new and better information emerges. I didn't want to put it in the CC thread, because they are focused on the hiring process. This thread is about the viability of the place.

Let's forget about the labor side for a moment. Let's just look at interest, and taxes. I'll guestimate they are paying 6% (might be more like 9) interest.
That would mean 90,000 USD per year on interest. That's 246.75 per day/per room in interest. How about property taxes. Another guestimate wil be 9000 per room/per year or 24.67 per day. Now we are at 271.42 per day, before the first proud union employee clocks in. How much would we allow for maintenance? If these were condos that included electric, cable, water, pool, roof, insurance The hoa fee would run another 9000 per year.
Add another 24.67 per day. New total 296.09--PER DAY. But, this is a hotel, and rooms will require daily maid service. Add 25 per day. 321.09 per day. Let's throw in room tax/sales/tax to make it an even 350 per day.

If we could assume that the casino/food/beverage/entertainment will break even (might be pushing it) than they will need to charge people 350 per night; just to service their debt and keep the place operating.

Is a casino that ha to charge 350 per night for EVERY ROOM, EVERY night just to break even going to make it?

Maybe if I was on my honeymoon and it were on the beach at Del Mar during the racing season, I would do it. Yes, CC is on the beach alright, so is the city of Phoenix; but there ain't no water!

What are your comments?
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Old 08-27-2009, 12:06 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 38,187,029 times
Reputation: 2661
Costs are more like $500 or so per SF. Overall cost are about $650 per sf but casino and public space is a lot more expensive than hotel rooms.

So something that cost 1.5 million is going to be 3000 SF. That will probably go for 3 or 4 grand a night. 500 SF rooms are going to go for a premium but not an outrageous ones.

Note that bankruptcy is not an unusual thing in Las Vegas. Planet Hollywood and the Rampart both went that way.
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Old 08-27-2009, 12:21 PM
 
Location: Kingman AZ
15,370 posts, read 39,098,836 times
Reputation: 9215
I have not read the article...however....you seem to forget that there are casinos involved here and they have a rather unique way of seperating the suckers from their sheckles.......
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Old 08-27-2009, 12:32 PM
 
53 posts, read 208,955 times
Reputation: 23
It looks like they would need 600 million++ per year just to pay interest and taxes on the property, before they supplied one roll of toilet paper.
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Old 08-27-2009, 01:06 PM
 
437 posts, read 792,290 times
Reputation: 306
Fleece the customer base with bad "gaming" odds then fleece the other end by going bankrupt. Wow, great plan! I love you guys!
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Old 08-27-2009, 01:18 PM
 
53 posts, read 208,955 times
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Maybe there will be an MCD in CC, so we can buy 4 Dollar Big Macs and get some nice gut cramps.
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Old 08-27-2009, 01:53 PM
 
Location: Kingman AZ
15,370 posts, read 39,098,836 times
Reputation: 9215
Quote:
Originally Posted by jdrtx View Post
Fleece the customer base with bad "gaming" odds then fleece the other end by going bankrupt. Wow, great plan! I love you guys!
in case you hadn't noticed this IS LAs Vegas and we DO have Casino Gaming here......


and we DON'T pay any state income tax as a result
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Old 08-27-2009, 02:05 PM
 
53 posts, read 208,955 times
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They're paying Federal and they are paying massive property taxes. The same TIME article also states that the State government is virtually insolvent.
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Old 08-27-2009, 03:46 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 38,187,029 times
Reputation: 2661
Quote:
Originally Posted by rrrafael View Post
They're paying Federal and they are paying massive property taxes. The same TIME article also states that the State government is virtually insolvent.
Sorry? Property tax are quite low in Nevada. 1/3 of Texas...1/4 of NY.

The state government is a little rocky but quite sound compared to say CA.
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Old 08-27-2009, 04:23 PM
 
53 posts, read 208,955 times
Reputation: 23
The rate isn't bad, Captain, but 1% of 8 Billion is a massive amount of money.
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