Monday, March 26, 2012

Amazing Hotel Turn-Around

Many of us who have been going to Las Vegas for some time have been dismayed at the changes taking place in many of the hotels after the last ownership consolidations. I%26#39;m talking about HET buying Caesars Group, MGM-Mirage obtaining Mandalay Bay Group and even Boyd taking control of Coast.



Many loyal guests of Rio barely recognize it now, and what used to be considered an off-strip jewel is now an HET afterthought. And of course old-time Caesars followers (and there were many) bemoan the dropping of their favorite from the elite LV hotels. There is a lot of grumbling about change at Orleans the last year. And we%26#39;re not even going to talk about the demise of Barbary Coast.



MGM hasn%26#39;t done much better. Despite their best efforts Mirage is dropping this year down one level to where TI used to be, and even after the economy recovers will not command the rates or respect it used to. They have absolutely no clue what to do with THEhotel. They were handed the best rooms on the Strip and have let them go to waste. And their efforts to commercialize Mandalay Bay have aliented many of the older weekday crowd, damaging the balance MB had created.



Many would say these consolidations have not been a roaring success, certainly from the customers POV.



But there are 2 exceptions, and this post is to give props to HET and praise a remarkable turn-around. Both Flamingo and to a lesser degree Imperial Palace have seen a huge improvement since being taken over by HET. It doesn%26#39;t matter what I think of them, they are held in much higher esteem now, and very simply they are filling their rooms. I know all the hotels are down in occupancy at the moment, but these 2 have made a remarkable recovery.



HET is using IP as part of their reward system, and they are filling a valuable role equal to Harrahs. Yes everyone knows IP is not much of a hotel by LV standards, but that doesn%26#39;t matter. TR members are glad to accept the comped rooms or even pay discounted rates. The hotel and ameneties aren%26#39;t any better than they were before HET took over, but HET is utilizing the property better and has provded the perfect market.



Flamingo is an even a greater success story. Again, with the exception of the GO rooms, and every hotel has to renovate eventually, there have not really been any changes since HET took over. The restaurants are still low quality, there aren%26#39;t many ameneties and the pool is still the properties only nice feature. But HET has done a good job getting people in the doors. And upgrading the image. Of course it doesn%26#39;t hurt that Flamingo looks good when compared to other HET hotels like IP or Harrahs.



Flamingo now seems to have the reputation of an economy alternative with a great pool. By stressing this they are actually widening their base somewhat to include more tourists and 1st time Las Vegas visitors.



Basically Flamingo hasn%26#39;t changed much. It%26#39;s been a cheap hotel with a good pool for a long time now, but it%26#39;s image has improved consideraby the last couple of years under HET.



And we can see this on this board. Look at how often Flamingo is recommended to people who don%26#39;t know Las Vegas. This wasn%26#39;t happenning 5-6 years ago.



So my congrats to HET. Even though I wouldn%26#39;t stay in either of these hotels myself, they have done a wonderful job with these properties.



Amazing Hotel Turn-Around


HET hasn%26#39;t done anything significant to the properties.



The rates are low, which helps with occupancy, and many consider the locations one to covet.



Both IP and Flam are the victims of delayed maintenance.



The best thing HET did was to move Vinny F from O%26#39;Shea%26#39;s to Flam.



People here suggesting Flam means nothing - it is a small group in comparison to all internet LV forums.



Flam and IP are what they are - cheap enough to fill a niche market - nothing else.



Amazing Hotel Turn-Around


ktinca, thanks for your thoughts, I%26#39;m sure many will appreciate them.



Why ';someone'; above me has to knock what you have taken the time to write is beyond me but what do I know.....





Dave.




It%26#39;s a discussion forum, for discussing. Not an agreeing-with-everything-everyone-says forum, for agreeing with everything everyone says.





I do agree that Harrahs is marketing IP and the Flamingo properly. I believe the Go rooms were a great idea for them, too -- they%26#39;re nice enough to justify spending the money on an upgrade for most people, and they%26#39;re bright and extravagant enough to get people to talk about them. If they did it to all their rooms they%26#39;d have to raise rates, and it seems like they%26#39;ve got a good balance between the two.





Now all they need is a people-mover installed in the hallways of the damn place. Those halls go on forever. I feel like I%26#39;m in a Stephen King movie when my room is at the end of one.




I don%26#39;t think you can credit HET for any improvement at IP. The previous ownership did much of the remodeling before they sold. And the Total Rewards members really don%26#39;t want it as an option. By using it so much as a freebie hotel for their lowest rollers, they are freeing up other rooms in their inventory for higher paying customers in their other hotels. If HET wasn%26#39;t involved, IP would still do well as they have a loyal following.





As for Flamingo, they are a hidden success story. Harrahs has done a lot more than just bring in Vinnie Favorito. Toni Braxton was a success and Donny and Marie has topped even that. With Nathan Burton and Geoge Wallace in the mix, Flamingo can make a claim for having one of the best entertainment lineups on the strip. And with Margaritaville, the GO rooms and the pool, Flamingo can be competitive for younger guests without forcing it. If I were HET, once I got out of the hole, I would put my money into renovating the rest of the rooms there to raise the average room rate.





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