HARRAH'S HAS OTHER PLANS IN THE FUTURE FOR THIS PROPERTY

Implications: The take over of the Barbary Coast by Harrah's Entertainment was in the works for quite a while. It was a costly trade for them with the Boyd group, the former owners. It does, however, seal the properties from the Venetian to the Barbary Coast in the hands of Harrah's. It completes the 350 plus acres they needed for their up coming mega resort. It remains to be seen seen just what direction the new owners of Harrah's will travel. This mega resort should be their main priority.

Analysis: The transfer of the name and motif of the Barbary Coast to Bill's Gamblin' Hall & Saloon is a good move for Harrah's. Keeping this property opened will at least allow them to take in some hard dollars and help create additional cash flow. Even though it's a relatively small property for a strip location, it has always held it's own. It had been noted for it's great restaurant "Michael's" - maybe one of the best in Las Vegas. They have announced that they have planned to open a new steak house, so it's my guess that Boyd took the Michael's name with them. An additional boost for their Echelon Place resort now under construction. This is just my thoughts as nothing has been set in stone yet and no announcements have come forward from the Echelon team. Bill's was named after the founder and operator of the original Harrah's in northern Nevada. Bill Harrah was a guy that had some real moxie and could see the forest and the trees. He was a good solid operator and was well aware of the needs of his clientele.

The real idea of acquiring the Barbary Coast was to solidify the properties along the strip giving Harrah's a lock on a solid piece of frontage on the strip. Bill's, along with the other properties owned by Harrah's are on borrowed time. They eventually all will come down to make room for their new resort. It would be my belief that they are now interested in creating as much cash flow as possible from these resorts prior to the start of construction. Having to close that many properties on the strip will certainly put a dent in their income structure for the term of the new construction. There have been many street rumors that they plan to sell the Rio - not a bad idea as they originally purchased it to create a property for high rollers. Now that they have Caesars Palace there is really no need for them to continue with the Rio. It should also be noted that they have sent most of the Rio's high end players to CP. It helped CP but placed the Rio in a rather tough position. Harrah's has denied this sale rumor, but it's getting more and more play on the street. It would certainly put a billion or so dollars into their pockets at a time they might be looking for construction loans.

Bill's should do well while it lasts - it's a nice, easy going hotel that has a loyal customer base created over many years. Here is hoping that the new powers to be at Harrah's Entertainment will move ahead with the plans for their new resort... It's vital for them...