The price of wifi and water is on the rise at Downtown Grand
According to the booking page for Downtown Grand, the property will now be charging an $18/night Grand Experience fee, up from $11/night. It does not appear that any of the fee inclusions are changing so, sad to say this looks like another ill placed attempt to dig themselves out of the ever expanding hole they've been trying to climb out of since they opened. I really want The Grand to succeed but I'm finding it difficult to remain optimistic that they'll turn it around without some fundamental changes to their marketing approach.
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Chuckmonster responded on Monday, 7th July 2014
Right now, they're readjusting supply to meet demand (none) and playing the resort fee game to try and compete with mass market bookers. Once they start to see the end of the runway, you'll see the top brass starting to flee or be fired. Oh wait. That has already happened.
Schorr & Co did a great job getting the property completed and opened... but that doesn't mean you know how to operate it.
Fortunes at Downtown Grand would change dramatically if Steve Wynn bought back in downtown. I'm getting a contact high just thinking about it.
vespajet replied on Monday, 7th July 2014
Fifth Street Gaming know how to run places that have been open for years and have a well established customer base, as they do own and operate other casinos in town and also ran the gaming side of the Gold Spike for the Siegel Group (and still run the gaming side of Siegel Slots & Suites) before it was sold and turned into a hipster den. With the Downtown Grand, they got in over their heads and maybe should stick with running casinos in North Las Vegas... I predict that before the year is out, CIM Group will fire Fifth Street Gaming and turn over the operations at Downtown Grand to someone like Navegante or maybe even sell it at a deep discount to an existing Las Vegas operator.
adztheman replied on Tuesday, 8th July 2014
But how deep a discount?
We've already seen LVH go for $150 million, which is a fraction of what it may well have been worth a few years ago...
Does the potential failure of Downtown Grand send some troubling signals about the future of Downtown and Las Vegas in general, or is this something that happens in the normal course of business?
anawas replied on Wednesday, 9th July 2014
I wouldn't tout running Gold Spike's gaming as a success story. By the time of my first visit, they didn't even have a working player's club left.
DTG seems like a nice enough looking property. But someone (management/marketing/gambling gods) screwed up by allowing the casino's reputation to be known as unfriendly to gamblers. And since DTG opened without a club, a gimmick, an attraction, or a theme, it had no buzz to draw in the casual crowd gawking at the FSE light show.
Still, I'd love to see the property and maybe even stay in a cheap(ish) room on my next Vegas visit; I haven't been in Sin City for more than a year.
vespajet replied on Wednesday, 9th July 2014
It's really hard to say how deep of a discount it might have be, as what the various properties Downtown are currently worth is hard to determine, especially since the price of the last property sold, Fitzgerald's, was never made public. When the Gold Spike was sold to the Siegel Group, they paid $21 million for it in 2008. Binion's sold for $32 million that same year. CIM Group, the owners of the Downtown Grand, paid $20.4 million for the Lady Luck in 2007 and spent around $100 million turning it into the Downtown Grand. Any sale would be to minimize their losses, as nobody will be paying them enough to cover what they've already spent there. Low end, I'd say the place would go for $40-50 million; high end, $65-75 million.
levans responded on Wednesday, 9th July 2014
I think they had good intentions but had no idea what to do once the doors opened.
Bajagmoe responded on Thursday, 10th July 2014
Would a gimmicky train, trolley from FSE to the grand help? I also think a stage or maybe another leg of Slots Zilla that starts at DTG would help move people.
Also make it gambler friendly. I'm sure the numbers exist and crappy Video poker, and other games increase revenue, but is it really worth it to remove lots of players. Everyone wants this place to succeed, I loved it when I stayed, the walk didn't bother me one bit, hell its closer than any two strip properties to FSE. Get a Sigma derby machine with camels. Try something, not just cost like a mad man.
saharalv responded on Monday, 14th July 2014
Should we all pool our resources and make an offer??
bbcpjc responded on Thursday, 17th July 2014
I stayed recently. WIFI in room was so slow as to be unusable. Worked better in lobby. Staff were not interested in my complaint.
Water is per stay and not per night. Pet peeve of mine when you pay the fee every day you stay yet the benefit is once per stay (its the principal rather than wanting more water).
Free coffee is pre 9:30am. Not going to apply to me as I don't get in until 5:00am.
Fitness centre is five\six cardio machines and a single all purpose weights station in a tiny room.
Not worth $11 yet alone $18 :-(
Did not gamble at all as much better games available close by.