iT'S JUST WHAT THE HARD ROCK NEEDED - BROUGHT UP TO DATE AND EXPANDED

Implications: The thought of the Hard Rock Hotel & Casino staying as is, would have needed a miracle to survive in today's market. They, at one time, had a lock on the 30 something clientele. That monopoly no longer exists. They now have an opportunity to make a major impact on the Paradise Road gaming corridor. They still have a good niche in the market but need a make over to keep up with competition.

Analysis: The problem with all of the older properties in Las Vegas is that don't keep up with their rival properties. In the case of the Hard Rock, they specialized in the young, hip, fast moving crowd. In the last couple of years all the majors have put in high end night clubs catering to the same groups. This is in addition to Palms opening and the move by Stations Casinos to service that same younger customer with the opening of the Red Rock Hotel last summer. It's not hard to see that the new owners of the LV Hard Rock quickly found out that paying close to $800 million for their purchase hardly had the room density to make a go of the property as it exists. They have about 650 rooms, a small casino and certainly not the amount of good restaurants they need. Their entertainment venue is adequate, but could use a little up lifting to bring it in line with today's market.

It must be remembered that the Las Vegas Hard Rock was not part of the buy out by the Seminole Tribal Council in Florida. The Seminoles picked up all the other properties including hotels and restaurants. They also have picked up the Brand Name, which was an essential part of their plans. It is my understanding that should the LV Hard Rock wish to expand to other properties or a different area they would not be able to carry the Hard Rock name with them. There should be no cause for alarm, just yet,  as they could always try and buy the use of the name from the Seminoles. It's a possibility but no sure thing at this writing.

Here is the real positive in the favor of the LV Hard Rock - They have a terrific reputation - they made money in a property that was to small - they pursued a clientele that no one seemed to want at the time - they enticed big name entertainment when other properties went for the dazzling shows. They sold their rooms at reasonable prices and made their guests feel they were part of the happening scene. It was great marketing that had one thing in mind - keep them coming and keep them returning. It worked for them and hopefully the new owners will take a lesson from what was successful in the past. They have an excellent data base and the new marketing team will need to work very hard to keep up the effort needed for that property.

The Hard Rock has a very real opportunity to make a solid impact on gaming along Paradise road. They have great plans for their future and some very innovative venues in mind. It won't be an easy job for them, but when all the improvements are completed and the expansion of rooms and public areas are done - look out - they can make some serious noise in the Las Vegas gaming market.