What do the relative healthy performances of casinos serving regional audiences outside Las Vegas say to the groups who have been slamming doors and kicking tires with an eye toward making offers on one or more of the resorts owned by cash-starved giants Harrah’s and MGM?
Don’t expect to buy anything cheap.
"The interest in the properties we own is extremely high," says MGM CEO Jim Murren, "and the company is keeping all options on the table in terms of possible asset sales as it considers what may be necessary to pay down debt and get CityCenter open.
"But I assure you," his tone taking on the sound of emphasis, "there will be no fire sales here … If we sell any asset it will be because we got a full price based on the market in which we operate today."
Harrah’s with a longer list of major properties from Atlantic City to Las Vegas has had much less than MGM to say publicly on the matter of sales. But the results speak for themselves: nothing has been sold since Harrah’s began major cutbacks to reduce expenses.
Question? Comment? E-mail me at: Phil Hevener