TIME HAS COME FOR THIS PROPERTY TO BE BROUGHT INTO THE 2007 PICK ME UP

Implications:  The purchase of the Sahara Hotel in Las Vegas could bring the additional push needed to update the north end of the strip. This is a very vital property and has been in need of either a major overhaul or should be taken down to dirt and start over again. The impact of this end of the strip gaming corridor being upgraded is strategic for the for the area.

Analysis: There has been some talk of late about the prospects of making the entire area from Sahara Avenue to Freemont Street hotel casino friendly. It's a terrific idea, and will be the last frontier as far as strip property will be concerned. Unless you buy an existing hotel, there is just no where else to build with a strip address. It seems that Sam Nazarian has purchased a down and out property that has terrific potential- he must do major renovations needed to bring this 50 something hotel into today's market. I can't be sure if he may have decided to renovate rather then tear it down because the Sahara has a major asbestos problem. The removal of which could set them back some serious dollars. They would also have to carry the prospects of being responsible for the asbestos till the end of time. It's much less costly to build around the asbestos and thus the thought of a heavy face lift in place of a rebuild. Seems like a fair choice at this juncture of the proceedings.

There is real importance to this sale - the north end of the strip has been in a bit of flux for a long time. The Boyd Group has begun construction on their new Echelon Place just down the street from the Sahara. There are new Time Shares by Hilton Hotels almost directly across the street. There is 24 acres of raw land also owned by the Bennett family that covers the SW corner of Sahara and Las Vegas Blvd. South - (Bennett's are the owners of record of the Sahara) There have been rumors of sales for the last four or five years regarding the Sahara and the raw land plus the eleven acres also owned by the group behind the Sahara. They were only willing to sell if a buyer wanted to purchase it all and the numbers were getting so ludicrous that it turned everyone off.
 
I am sure that Mr. Nazarian's $300 to $400 million dollar purchase will turn into a billion plus if he plans to do the proper job refurbishing the hotel and casino. It can't be done for less with the soaring cost of construction in this fair city. There is no doubt of the value this property can bring to the neighborhood - there is a strong need to get these older places up to par with the competition. The way the market here is proceeding it will be hard to survive unless they plan something special there.

I look for the Riviera to also sell soon - they just can't compete with what they have to offer. The Frontier has made a commitment to rebuild - The Sahara has big plans - it's time for the Riv to make some serious adjustments.