Tuesday, May 02, 2006

Initial discussion about the new partnership between Strip titan MGM Mirage
and the tribe that owns and operates the world's biggest casino has focused
on the deal to build a $700 million MGM Grand-branded casino next to the
tribe's Foxwoods resort. While the plans to use an MGM Mirage brand on a
casino owned by the Mashantucket Pequot Tribal Nation are big news, expect
bigger developments closer to home.

Much closer.

MGM Mirage Chairman Terry Lanni told me he thinks one likely spot for a
joint venture is right here in Las Vegas, on the Strip, where MGM Mirage has
a wealth of undeveloped and under-used land.

And a project could start sooner rather than later, he said.

The cash-rich tribe has been looking for ways to diversify its business off
its Connecticut reservation. The tribe has already applied for a license to
run a Pennsylvania slot parlor and announced plans to build a casino in
Biloxi, Miss.

Lanni says the company's deal with the tribe should please investors,
demonstrating MGM Mirage's intention to aggressively pursue prudent growth
opportunities. After buying Mirage Resorts in 2000 and Mandalay Resort Group
last year, along with its $7 billion CityCenter development south of
Bellagio, its $1 billion-plus MGM Grand Macau and bid to build a
multibillion-dollar resort in Singapore, no one should question MGM Mirage's
commitment to growth.

...

Focus group guru Frank Luntz, in town to deliver the results of the survey
he and pollster Peter Hart annually do for the American Gaming Association,
says the sky is the limit for the city's resort business.

Luntz says research he does for the major casino resort operators - and he's
worked for all of them - indicates that, as good as times are now for
operators, they can get much better.

"There are no limitations; I see no danger signs," Luntz told me. "I see
opportunities, particularly at the highest of the high end. I tell these
guys (resort operators) to be aggressive. The potential of this place hasn't
come close to being realized. It's about the feeling, the emotion, the
experience - you can have a once-in-a-lifetime time here."

The new shows, the great restaurants and world-class hotels mean that
visitors have to come here three times to see what they need to, he said.

"Las Vegas can legitimately say - and this is what separates it from
anywhere else - 'Come see what you haven't seen before.' "

...

MGM Mirage President Jim Murren is rightfully proud of his company's record
of spending big money to keep its Strip resorts fresh. Major renovations of
the MGM Grand, Treasure Island and the Mirage are some of the best examples,
with new showrooms, restaurants and attractions luring bigger-spending
guests.

Hotel rooms are redone every five years and carpeting is regularly replaced.
"If we're not moving forward we're falling behind," Murren told me last
week.

Expect major work to begin soon at the former Mandalay Resort properties,
including Mandalay Bay, Monte Carlo, Luxor, Excalibur and Circus Circus,
Murren said.

...

Strip developer Steve Wynn and wife, Elaine, used the occasion of Friday's
Encore ground-breaking ceremony to praise Wynn Las Vegas' 9,500 employees
and promise them major professional opportunities as the company grows. Wynn
said that resort construction would probably be taking place on the old
Desert Inn site "as long as I live."

Wynn's big announcement about the $1.7 billion Encore, slated to open in
December 2008, was that he plans a retractable glass roof that would cover
the resort's pool and poolside nightclub and restaurant. Wynn's not worried
about copycats. "They're always one hotel behind me," he said.