A LEGEND PROPERTY MAKES ROOM FOR A NEW MEGA RESORT

Implications: The ending of an era in Las Vegas has come to the famous Stardust Hotel and Casino. It is making room for Boyd Groups "Echelon Place". To all concerned is was time to move on. This is a strategic move for the Boyd group who was mired in the old property. The only way to stay in the game was to take the property to a new level. That is just what they are doing.

Analysis: The stardust was always the place to hang out - they had the best race and sports book in town before most other properties found out the importance of this type of betting. That's not to say that the town did not have betting pallors or spots books - Churchill Downs was the book of choice for many of the wise guy types for years. The Stardust was smart enough to see the commercial value having it inside their property. Their entertainment was very suited for the time with a high end show in their main room - THE LIDO was a terrific extravaganza featuring some of the very best dancers and showgirls Las Vegas had to offer. The food and beverage was always top notch and the rooms were more than sufficient for their needs. It was the place to go if you were a local player. 

Now that you have a general look at the background of this historic property - why the need to close and take it down. The answer is really very simple. The Boyd Group who are the owners and majority stock holders had to face some real time decisions. Would it be possible to just face lift the old place and keep things improving with some adjustments. What would you have if you did - the same old stuff with a clean face. The wiser thought was to put entire new project on a pretty good size piece of the strip. Their new project will be a multipurpose development that will make a big difference to the north end of the strip. It will help properties like the Riviera and the Sahara make stark decisions as what to do with their old and tired hotels. Competition is so keen in Las Vegas that one can not stand on what was -  they need to see the need for what is NOW.

When investment groups look at Las Vegas they generally see a way to enhance profits while making solid dollar choice for them selves and their investors. It's not a hard market to invest in - by the same token it is a very tough market to keep properties in profitable positions. Every major and for that matter minor operation in the Las Vegas area continually try and find ways to improve. Their customer base is always at stake to the other guy that is a bit more innovative, gives up a bit more to their guests and finds ways to have their customers come back to their properties time and again.

The Stardust was losing that hold on their clientele and were not keeping up to the value of their property as it stood. Smarter minds in their management took hold and decided the investment needed to create their new development was well placed. Look for a very a very creative, upscale and terrific new property on the old Stardust grounds....................... A GREAT MOVE