Las Vegas, A City In Slowdown Mode
LAS VEGAS -- After a six-year building frenzy that transformed this city, casino companies are shifting strategies dramatically toward slower growth, paying down debt and cutting back on spending.
Many casino executives don't expect to break ground on another major building project in Las Vegas for at least 10 years.
"The old model has been thrown out the window," says MGM Mirage Chief Executive Jim Murren.
For most of this decade, casinos embarked on a debt-fueled expansion, plowing more than $30 billion into casino and hotel projects around Las Vegas. When the economy collapsed, it left casino companies with dwindling revenues and mountains of debt. Several entered bankruptcy-court proceedings.
Now, casino companies are eschewing capital-intensive projects to focus on increasing profit margins through branding, marketing and customer loyalty.
To see entire WSJ article click the link below.
http://online.wsj.com/article/SB125470120316763089.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsSecond
Many casino executives don't expect to break ground on another major building project in Las Vegas for at least 10 years.
"The old model has been thrown out the window," says MGM Mirage Chief Executive Jim Murren.
For most of this decade, casinos embarked on a debt-fueled expansion, plowing more than $30 billion into casino and hotel projects around Las Vegas. When the economy collapsed, it left casino companies with dwindling revenues and mountains of debt. Several entered bankruptcy-court proceedings.
Now, casino companies are eschewing capital-intensive projects to focus on increasing profit margins through branding, marketing and customer loyalty.
To see entire WSJ article click the link below.
http://online.wsj.com/article/SB125470120316763089.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsSecond
posted by Ron Futrell at
7:05 PM
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