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Inside Gaming Column: Investors Froth Over the Cosmo, Las Vegas Strip

There is no end to the investors who would like in on New York real estate magnate Bruce Eichner's $1.8 billion, 3,000-room Cosmopolitan, just south of Bellagio, Wall Street bankers say. Timing is key. The Cosmo appeal mirrors that of Las Vegas Sands' Palazzo, the first chance for investors to buy into Sheldon Adelson's Las Vegas bonanza, bankers say. Plus, Palazzo financing coincided with the tourist upsurge following the terrorist attacks and the invasion of Iraq. Plus, Eichner embraces high-end condominium units for which investors are frothing.

Whether it's the power of the Planet Hollywood brand or Las Vegas as a destination, Los Angeles wags here say Robert Earl is turning heads in California. Not only is he filling the Aladdin, but he's striking it rich with the demographics hotel-casino operators here are looking for: free-spending baby boomers and cash-rich young professionals. Earl says there's more to come, with the casino only starting to take on the new Hollywood cachet with which he made his name.

Whatever the cash flow at Wynn Las Vegas, image maestro Steve Wynn is said to be the draw for high rollers -- and not so much from Los Angeles as around the world. "It's the image," an Asian booking agent said. Visitors from Asia want to roll the dice against the development guru because they believe they will win. Americans want the cachet they win playing against "Steve." High rollers may try other joints, but they want to play Wynn Las Vegas. "Steve's genius -- or luck -- was to make it personal," another agent said.

Despite rumors of quick development or sales moves in the works, the Tropicana, across from MGM Grand, is proceeding steadily, at its own pace, with development plans. There's really no reason for the company to rush, Wall Streeters say. It may be getting strong expressions of interest from would-be buyers, but so is everyone on the Strip. However, Tropicana owner Aztar Corp. has a clean balance sheet, strong earnings and deep pockets. Unlike the owners of the Riviera or the Sahara, Aztar is a company with a dated property that can afford the time to write its own ticket.

Big plans are in the works for the Laughlin waterfront, sources say. Tilman Fertitta, the new Golden Nugget owner, is planning to add several hundred rooms to the property, about doubling the 300-rooms in the existing hotel. He also plans to add a Joe's Crab Shack and Saltgrass Steak House since they fit with the property's demographics. Local Laughlin casino honchos are expecting the Fertitta expansion and branding will represent a chance for a sluggish market to start chugging again.

Gaming Wire Editor Rod Smith can be reached by e-mail at rsmith@reviewjournal.com or by phone at 477-3893.

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