LAS VEGAS PROVES AGAIN TO BE A STRONG MARKET

Implications: The numbers are in and again Las Vegas has proven that they are still on top of their game. The majors have taken strides to keep their data bases alive and well. The Strip has always been a great place for the Investment community to place their dollars. It's been proven time and again that Las Vegas hotels know how to operate in a profitable manner in good and bad times. 

Analysis: Analysts have wanted to consider the Las Vegas area  up's and down's based on what may be happening in the housing market. The truth of the matter is that the housing market does not have an effect on the strip business. You may get some feedback in the local market, however, it not the cause for this part of the business to flatten out every once in a while. The local hotels deal with an entirely different set of circumstances to lure guests into their properties.

The strip casinos do not depend on local guests to maintain their place in the industry. Whatever part of local business that comes to the strip is strictly gravy for them. The majors use their marketing departments to get the out of state and foreign customers into their properties. It's an extremely competitive form of arm twisting, but these are well oiled people that know their business. The strip properties all have great amenities and use them to entice their customers to come back. Please remember that getting a new player to stay at a property in no big feat -the real effort goes into having these guests come back time after time. This is the primary job of the casino marketing departments. This is also what makes a customer a great customer.

Let's look at what makes the local market what it is. The first company that really had a feel for locals was Stations Casinos. They sought out the locals when no one else really wanted this business.  Looking at the local market now, it has blossomed in to a multi billion dollar business. The main concern of these properties is how to maintain their daily customer base. To the local trade, they are interested in only a few things to keep their business at one or another property. What's the secret - good food for reasonable prices, excellent player club that offer special amenities, loose slots and a good friendly atmosphere. Entertainment is a secondary thought, but does entice players if it's a real special event. When the market flattens a bit you can usually find that a new property has opened. Regulars at other casinos always go to see what is new. It happened when Red Rock and South Coast opened this past year. Speaking of South Coast, the new owners, have changed the name of this property to South Point as they ar no longer affiliated with Boyd Group and Coast Casinos. The name change will not disturb their ever increasing business.

Here is what the investment community is seeing in Las vegas - it's an ever growing city with a very strong gaming industry. There is a great emphasis on building high rise condos and rentals. The new housing market has had a small hit, but will recover as it always has here. The food and beverage industry is at an all time high and retail stands strong. The new Furniture Mart will make High Point stand back and take notice as it won't be the furniture capital any longer. The convention business is stronger that ever and builds every year. New casino projects dot the strip and will continue for years to come. Las vegas is a wonderful place to do business and the numbers show it....................