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Showing posts with label Cosmopolitan. Show all posts
Showing posts with label Cosmopolitan. Show all posts

Sunday, September 15, 2013

LOW WAGE CASINO WORKERS STRIKING!



Posted Updated

Culinary Union to Wall Street: Prepare for strike

Culinary Union members and supporters rally in front of the Cosmopolitan in Las Vegas Friday, June 14, 2013. The union is calling for a contract for workers at the casino. (John Locher/Las Vegas Review-Journal)


The Culinary Union has taken is its contract negotiations on the Strip to Wall Street.

The research arm of the labor organization that represents 44,000 workers whose contracts expired June 1, authored a two-page report that was sent to the investment community, saying the union is preparing for the first citywide strike by hotel workers since 1984.

The message from the union targeted primarily MGM Resorts International and Caesars Entertainment Corp., which operate some 20 Strip-area hotel-casinos, and Boyd Gaming Corp., which has two downtown casinos where contract expired.

The Culinary has been joined in the contract talks with Bartenders Local 165. The contracts cover noncasino departments, such as housekeeping, hotel operations and food and beverage.

“Since June, the unions have held several rounds of talks with the two major multiproperty operators, MGM and Caesars,” Culinary Local 226 research director Kin Liu wrote in the report. “Simmering tensions in negotiations now appear likely to boil over as the weather cools and the city enters its busy fall season.”

Casino company representatives were somewhat perplexed by the tone of the comments from the union.

MGM Resorts spokesman Gordon Absher said the talks with the union have be “substantive” and the company is confident a contract agreement will be reached.

“We feel this new leaflet does not accurately reflect our situation,” Absher said. “Joint subcommittees continue to meet and make progress toward a mutually beneficial conclusion. However, the Unions are negotiating with a number of companies simultaneously. Not all talks may be progressing as well as ours.”

Caesars Entertainment spokesman Gary Thompson said the company has continued “to meet regularly with the union to work toward resolution of outstanding issues. (We) believe we will be able to reach an agreement without a strike.”

Casino operators have signed extensions for expired contracts while talks take place. But union organizers have ratcheted up the rhetoric.

Earlier this year, the union launched a website — vegastravelalert.org — which warns Las Vegas visitors and convention planners of the ongoing contract negotiations and that “a labor dispute could affect your event.”

Liu, in his report, told investors 53 percent of MGM Resorts’ revenues and 34.6 percent of Caesars revenues came form their Strip casinos in the second quarter.

“As all the companies have shown no urgency toward working out a settlement, union member have started to sign up for ID cards in preparation for a strike,” Liu wrote.

Union members have marched on the Strip on several occasions, but the target of the pickets has been The Cosmopolitan of Las Vegas, where union and resort officials have been unable to come to agreement on a contract covering the resort’s non-casino workers.

Culinary members voted in May to approve a 60 percent increase in dues to create a fund that would support workers in the event of a strike.

Liu told the investment community there has been progress on some matters of the contracts, such as updating immigrant worker protection language and changing payroll systems. However, significant issues remain unresolved, he wrote.

“The union’s recent report was the first of what will be ongoing communications to gaming investors and Wall Street analysts,” Culinary spokeswoman Yvanna Cancela said. “Future updates will focus on a variety of issues including the challenges facing gaming companies in negotiations in Las Vegas.”

In the union’s report, Liu claims the company have not made proposals regarding wages and benefits. Caesars proposed an idea to tie wage increases to net revenue growth in Las Vegas. The unions have offered proposals for securing long-term healthcare, pension, and other benefits.

Boyd Gaming spokesman David Strow said the current talks have focused on Strip resorts.

“However, we expect to begin talks soon, and are optimistic we will once again reach an amicable resolution, as we have in the past,” Strow said.


http://m.reviewjournal.com/business/culinary-union-wall-street-prepare-strike







Sunday, August 5, 2012

Cosmopolitan's quarterly loss trimmed from $54 million





Cosmopolitan's strong quarter trims loss
LAS VEGAS REVIEW-JOURNAL
Posted: Aug. 3, 2012
 
The Cosmopolitan Las Vegas reported Friday that revenue surged in the second quarter and the casino cut its loss.

Net revenues rose to nearly $166 million in the second quarter, compared with $126 million in the second quarter of 2011. The casino's loss also was down from $54 million in the second quarter of 2011 to just under $19 million in the quarter than ended June 30 .

The Cosmopolitan Las Vegas, which broke ground in 2005, opened in December 2010 at a cost $3.9 billion.

Casino revenues for the property, with nearly 3,000 rooms on the Strip between Bellagio and City Center, improved in the second quarter to nearly $39 million, up from $28 million in that period in 2011, but continued to lag behind room revenue and sales from food and beverage.

Room revenue rose to $63 million in the second quarter, from about $46 million in the comparable quarter in 2011. Food and beverage revenue rose to nearly $83 million, from $60 million in 2011.

For the first six months of this year, net revenues have risen to $309 million from $231 million in 2011 . During that period, the company trimmed its net loss 62 percent, from $111 million to $42 million.

http://www.lvrj.com/business/the-cosmopolitan-trims-losses-on-strong-second-quarter-164958186.html

Sunday, August 21, 2011

Bankrupt Casinos blight Las Vegas Strip

Steve Wynn, whose personal greed knows no bounds, is getting mighty testy about those skeletal casino buildings in Las Vegas, in spite of statistics that don't bode well for the Gambling Industry.

Las Vegas has the worst bankruptcy and foreclosure rates in the United States, so casino owners are edgy about the recession still clouding business in the city.



Las Vegas contractors have sued for unpaid work in a city with the highest unemployment in the U.S. (Officially, it’s 15 per cent; unofficially, it’s likely higher than 20 per cent, according to vocational experts.)


In Massachusetts, Beacon Hill leadership is waving the magic wand of Slot Barns and promising wondrous job creation to the delusional tune of 15,000 new jobs with 3 small Slot Barns.

These were Las Vegas' projections for luxury facilities:
Echelon = 10,000 jobs = Cost = $4.8 BILLION
Fontainbleau = 6,000 jobs = Cost = $2.9 BILLION (68 Stories)


‘See-through’ casinos blight Las Vegas Strip
Kathleen Kenna
Special to the Star


LAS VEGAS—Prepare for a battle of some of America’s richest men over desert ruins.

Billionaire Steve Wynn is so angry about unfinished “see-through” buildings on the famous Strip (Las Vegas Blvd.) that he’s preparing to sue.

But the casino mogul’s research so far shows there might be little he can do about two stalled projects, worth an estimated $8 billion, in the worst economy this city has suffered.

Las Vegas regulations do not punish anyone for leaving billions of dollars of unfinished business on The Strip, Wynn complained in an interview.

“The planning commission never had a rule about completion or removal—it’s extraordinary,” he said.

“There is no ordinance that says once you start a building, you have to finish it. We are all now taking action ... it can just stay there forever. It sure is a pain in the butt.”

Las Vegas has the worst bankruptcy and foreclosure rates in the United States, so casino owners are edgy about the recession still clouding business in the city.

They are also voicing private concerns about the addition of 3,000 rooms to an already-battered Strip, when the Cosmopolitan opens Dec. 15. That $3.9-billion project is the only major casino project opening in Las Vegas this year.

Wynn has been credited with spearheading the revival of the Vegas Strip in the 1990s with such projects as Bellagio, The Mirage and Treasure Island. He

is putting the finishing touches on a $200-million reno of Wynn, only five years after the luxury casino-hotel resort named for him opened.

Guests in $1,000-plus rooms in this ultra-makeover get spectacular views of the Mojave desert, some of the Strip’s neon, and mountains surrounding Las Vegas.

They also stare straight at the “see-through” hulk of Echelon, a $4.8-billion project stalled for two years, and the $2.9-billion Fontainebleau, apparently about 70-per-cent complete.

The low-level Echelon, owned by Vegas-based Boyd Gaming Inc., looks as though it’s rotting.

Echelon was touted as an “ultra-luxurious, uber-mega-resort” in 2006, before the historic Stardust was imploded to make way for a casino, four hotels with 5,300 rooms, 25 restaurants and bars, convention center, retail and more.

One of the few high-rises in Las Vegas, the 68-story Fontainebleau was supposed to open in 2007, but was stalled again and again by financing woes.

Fontainbleau’s original Miami owners, Turnberry Associates, filed for bankruptcy on the project last year, and billionaire Carl Icahn, known as a corporate raider, snagged it earlier this year for a reported $156 million.

The Miami bankruptcy judge declared, “This case is a total disaster.”

Las Vegas contractors have sued for unpaid work in a city with the highest unemployment in the U.S. (Officially, it’s 15 per cent; unofficially, it’s likely higher than 20 per cent, according to vocational experts.)

Echelon was promoted as producing 10,000 jobs, and Fontainebleau, 6,000, in a city dependent on tourism and construction.

Requests for comment from Boyd Gaming and Turnberry were unsuccessful.

Friday, November 19, 2010

Loveman addicted to Loveman

Gary Lovemen, brilliant mathematician, who drove Harrah's from a non-entity to the MacDonald's of Pop and Slots by sucking in the suckers, whose success has gone to his waistline can't understand that as folks have figured out that along with his financial success comes cannibalization and crime, not everyone wants his snake oil.

Loveman seems addicted to Loveman these days.

It seems money markets have defined casino capitalism for what it is - Gambling.

Harrah's pulls $575m flotation
as gaming hits a losing streak

Caesars Palace owner hit by slump in US consumer spending, while debt from private equity buyout costs $1.5bn in interest


Las Vegas, and Harrah's, have been badly hit by the US recession, with property values collapsing and the municipality insolvent.


Harrah's Entertainment, the major US gambling group, which operates Caesars Palace in Las Vegas and four casinos in London, has abruptly shelved plans for a $575m (£360m) share offering in New York, citing weak investor demand.

The cancellation, which came on the heels of a $22bn General Motors share offering launched successfully in New York, has sent a chill through the gambling and private equity industries.

Harrah's, which is renaming itself Caesars Entertainment, operates the Rendezvous Casino in Mayfair and the Golden Nugget off Piccadilly Circus, the World Series of Poker tournament, as well as 50 hotels and casinos in the US under the Caesars, Harrah's and Horseshoe brands.

One of the largest global gaming companies, Harrah's public offering comes less than three years after it was purchased for $31bn by the New York private equity firms TPG and Apollo Management.

Leading financiers, including the sub-prime hedge fund king John Paulson, are exposed; the company says it is keeping its options open on a future offering.

The failure to complete the initial public offering (IPO) suggests that the eagerness of banking and private equity to get into the gambling business was misguided.

Expectations of an online gambling boom have not been realised; the US industry, where Harrah's is focused, has been hit hard by the two-year downturn in consumer spending. Last year, the casino operator MGM nearly collapsed under its $14bn debt. While stocks in operators such as Las Vegas Sands and Wynn Resorts have risen this year, most growth has come from a Chinese-driven gaming boom in Macau.

Despite Las Vegas's ardent efforts to promote itself through Hollywood movies as the anything-goes capital of America, the desert city is experiencing the worst downturn in its history. Property values in what was the fastest-growing city in the US five years ago have collapsed and the surrounding municipality of Clark County is in effect insolvent. Unemployment stands at 14.3%, well above the 9.5% national average.

In the post-credit crunch landscape, banks have had to pick up the pieces. Next month, Deutsche Bank will become owner of the Vegas strip's newest hotel-casino, The Cosmopolitan, after its original developer defaulted on a $1bn loan. The bank then put $3bn more into the hotel, which features the rapper Jay-Z at its New Year's Eve party and is promoted with the slogan: "Just the right amount of wrong."

For Harrah's, the only US operator without a casino in Macau, the plan to sell less than 10% of company stock in an uncertain market for public offerings was itself a gamble.
Harrah's has reported a loss of $634.4m in nine months. As the most highly leveraged of the big casino firms with $20bn in debt, it paid about $1.47bn interest over the same period.

Analysts say the industry is picking up but is not strong enough to withstand the test of an IPO amid fears over European debt woes and China's currency controls.

In a speech to a gaming convention last week, Harrah's president Gary Loveman indicated that a major block to growth of casino companies was lack of consumer access. Loveman said casinos should be given the same freedom to market as other products or activities considered unhealthy, such as alcohol or fast foods. "It should offend us every day that adults can't entertain themselves in the way that they want to when they have access to so many other things," Loveman said.
[Oh? Never one to suffer pangs of conscience when confronted with an Industry that only profits by continuing to create Gambling Addicts!]

Gambling industry executives in Vegas claim the market is improving, with international visitors up 8% on a year ago. But after years of price-cutting, many visitors are considered "low rollers" drawn by cheap hotel rooms but gambling little.

Monday, November 16, 2009

Deutsche Bank Drowning in Vegas on Costliest Bank-Owned Casino

From Bloomberg --


Nov. 16 (Bloomberg) -- Deutsche Bank AG’s Cosmopolitan Resort & Casino complex in Las Vegas, already the most expensive debacle in the city for a single lender, is now two years behind schedule, $2 billion over budget and under water -- literally.

Deutsche Bank, the resort’s owner since it foreclosed on developer Ian Bruce Eichner last year, requires 24-hour pumps and containment walls after workers hit an aquifer below the Nevada desert floor. It’s another challenge for a project whose delays and redesigns have sparked lawsuits from condominium buyers and sales agents amid record declines in Las Vegas’s gambling revenue, home prices and hotel-room bookings.

The German bank’s foray into the heart of the U.S. gambling industry, where it’s also a lender to bankrupt Station Casinos Inc. and the unfinished Fontainebleau, looms as an “impending disaster,” casino magnate Stephen Wynn said on a conference call with analysts last month. Wynn, who presides over the Wynn and Encore Las Vegas resorts, built the Bellagio next door to the Cosmopolitan.

Deutsche Bank took over the project after Eichner defaulted on a $760 million loan last year. The Frankfurt-based lender hired Related Cos., the developer of New York’s Time Warner Center, to oversee construction of the development’s two high- rise condominium and hotel towers, resort and casino. Cosmopolitan sits on 8.5 acres between the 76-acre Bellagio, MGM Mirage’s most profitable resort, and CityCenter, the firm’s newest development, packed on 67 acres.

Betting on Rebound

So far, Deutsche Bank has had to write down 500 million euros ($748 million) on Cosmopolitan. The sum could rise if the Las Vegas market fails to revive, said Dirk Becker, an analyst at Kepler Capital Markets in Frankfurt. The bank is offering condominium buyers in one Cosmopolitan tower 74 percent of their deposit to walk away, according to a copy of the proposal provided by a lawyer for some purchasers.

“Deutsche Bank had a difficult choice: selling an unfinished project or building the casino itself,” Becker said. “The bank probably never wanted to become a casino-builder in Las Vegas, but selling the project right after the real estate crash could’ve led to higher losses.”

Next door to Cosmopolitan, MGM Mirage and Dubai World, an investment arm of the emirate of Dubai, are completing the $8.5 billion CityCenter after lenders, led by Bank of America Corp., agreed to finance $1.8 billion. Further north on the Las Vegas Strip, work halted on the Fontainebleau in June with a bankruptcy filing after its lenders, including Deutsche Bank, refused further funding. The 63-story casino resort is about 70 percent complete.

‘Appropriate Strategy’

In the case of Cosmopolitan, “the bank concluded last year that completing the project was an appropriate strategy,” said John Gallagher, a Deutsche Bank spokesman in New York. “We cannot comment on the bank’s long-term plans for the Cosmopolitan. However, the bank has been and remains committed to building a world-class resort and casino that will become an integral, vibrant part of the Las Vegas economy.”

Deutsche Bank executives who have applied for gaming licenses from Nevada casino regulators include Jon Vaccaro, global head of commercial real estate; Jeffrey Baer, head of global logistic services; Donna Milrod, head of regional oversight and strategy; and Eric Schwartz, a managing director in the bank’s commercial real estate group, according to Deutsche Bank and the Nevada Gaming Control Board. They are all based in New York.

The four may become the first Las Vegas Strip casino-owning bankers to obtain the credential. The closest comparison: an affiliate of Goldman Sachs Group Inc.’s Whitehall Street Real Estate Fund underwent licensing as it took control of a portion of the Las Vegas Hilton, according to Thomas Hanna, coordinator of applicant services at the Nevada Gaming Control Board.

Hotel-Room Glut

Gambling revenue on the Las Vegas Strip tumbled more than 12 percent this year through September, more than last year’s record 11 percent drop, according to the Nevada Gaming Commission. Las Vegas home values dropped 55 percent from their August 2006 high, according to the S&P/Case Shiller single family home price index.

When Eichner, developer of the luxury condominium Continuum in Miami, broke ground in October 2005, the Cosmopolitan was slated to cost $1.8 billion and open in mid-2008, according to a press release at the time. Deutsche Bank now plans to open the doors in September 2010.

The current projected total cost of the project, according to analysts: $3.9 billion. That’s part of the reason the Cosmopolitan is the costliest project in Las Vegas for a single lender, according to New York-based research firm Real Capital Analytics Inc.

More Premium Rooms

As the costs of the development mount, high-end hotel rooms are popping up on the Strip, including 6,000 at CityCenter, the hotel, condominium, casino and mall complex opening next door to Cosmopolitan next month.

CityCenter will add 29 percent more so-called premium rooms on the Strip to the more than 20,000 available before Cosmopolitan opens, said Dennis Farrell, a casino debt analyst at Wells Fargo Securities LLC in Charlotte, North Carolina. Citywide, Las Vegas already has about 140,000 hotel rooms, according to the Las Vegas Convention and Visitors Authority.

“The Cosmo is going to be a dormitory for people who want to go to CityCenter and Bellagio on either side,” said Farrell. “You’ll have great views of both neighboring properties from the rooms, but I don’t know what other amenities they’ll be able to offer their customers that will be profitable enough returns on investment.”

‘Cosmo Beach Club’

Cosmopolitan’s original design included a 75,000-square- foot casino, a 1,800-seat theater and a five-acre “Cosmo Beach Club” overlooking the Strip, according to the press release. Deutsche Bank declined to discuss subsequent modifications.

Now the project is swimming in water from an underground aquifer that once irrigated the golf course at the now- demolished Dunes. These days, the water helps refill a fountain at the Bellagio that “dances” to ballads every half-hour -- and twice as often after dark.

The aquifer forms as runoff seeps into the ground and pools atop a layer of caliche, a cement-like rock, according to Bronson Mack, a spokesman at Las Vegas Valley Water District. Resorts often excavate through the caliche to build footings and parking garages, creating an ongoing need to pump water, Mack said.

“The relatively high water table on this site required the installation of a pump system and containment walls,’’ said Gallagher, the Deutsche Bank spokesman. “This is not uncommon for any Las Vegas project that includes underground parking or other underground facilities. The temporary certificate of occupancy for the entire parking garage, including the pumping system itself, was granted in February 2009, and we have encountered no problems whatsoever.”

‘Just Bad Luck’

Built around the Jockey Club resort, Cosmopolitan had no choice but to dig deep and build its parking garage below ground, regardless of the water, said Dan Fasulo, managing director for Real Capital Analytics. The Cosmopolitan’s subterranean parking structure was designed to hold 3,800 automobiles, according to the 2005 press release.

“Any construction project of this size runs into problems,” Fasulo said. “But to bump into an aquifer is just bad luck.”