Las Vegas Institution Flourishing
The Sahara Hotel & Casino
The glitz and glamour of the Las Vegas Strip draws millions of tourists each year. The new age mega resorts like Wynn Las Vegas, Mandalay Bay and the Bellagio manage to garner most of the attention from the media and in advertising campaigns. However, from a business standpoint, such properties are currently not that big of a concern. While it does appear that huge billion dollar projects are the way of the future, a Las Vegas institution like The Sahara remains successful financially. The large property on Las Vegas boulevard, currently inhabited by The Sahara is a prime spot and in the vicinity of several future billion dollar developments. Naturally this makes a potential sale of The Sahara a big deal.
Other older properties like the Stardust, Westward Ho and the Boardwalk were suffering financially, later sold and are currently set for demolition. Sahara however is making money and has a 95% occupancy rate for its hotel. While on a whole, prices on the strip has increased, the Sahara maintains cheap table minimums, reasonable room rates and a mixture of vintage and new age entertainment. In addition, the hotel plans to open up an attraction, in conjunction with General Motors that will allow tourists to test-drive new cars on a track.
Purchase offers for the Sahara have been abundant, but as of right now a sale is far from a foregone conclusion. The casino & hotel owned by Gordon Gaming Corporation has announced that only offers above $700 million will be considered for their 55-acre property. This is an example of just how high real estate prices have risen. A point that is largely due to condominium developers.
Another historic Vegas property being blown up seems to be a popular rumor in the city, but at this point it seems to be completely unfounded. Obviously though in Las Vegas money talks and if the right deal was proposed things could change drastically and rapidly. In this The Sahara seems to hold all the bargaining power at this point, which is one reason that it going the way of the Stardust et al seems unlikely.
Article by Bob Yausie