DURANGO STATION CASINO WILL BE BUILT - WILL IT BE STARTED IN 2009 ???

Implications: Money has a way of raising concerns for most new construction in Las Vegas. Colony Capital will have to make the decision along with their partners ( the Fertita family) if the timing is right for early 2009. The money is there, however, will they pay the inflated price to get financed? 

Analysis: Station Casinos is a good, viable and strong company. They have good leadership and excellent staff that maintain the daily course of doing business. Their ability to run a property was never in question. It may be premature for them to consider new construction early in 2009. They are getting ready to open another new hotel and the timing for this is not the best. Their new Aliante Station was started prior to the business downturn and they were obligated to get it open regardless of how business was. It may not be their best opening, however, with some time this will be a very good and profitable hotel/casino. It's in a very solid area just north of downtown and very convenient to the Las Vegas speedway. The planned Durango project was announced some time ago and seemed to be hanging in limbo. Their decision to start construction in in 2009 was a bit of a wake up call as the money lending market is rather soft. The make matters worse, construction costs have been steadily elevating. It's a tough combination to be up against. It would not shock most insiders if they decide to delay putting that first shovel in the ground.

The powers to be within Station Casino have always used wise judgement in the past. I feel that they will take full advantage of timing to start this new property. They certainly are aware that we will eventually see a rainbow in the business recession. Hopefully it will come,as most think, during the first half of 2009. With that in mind it may be their feel that by 2011, all will be well again with the economy. Maybe............