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MGM In Talks To Rebrand Luxor As Hilton

By Chuckmonster on Wednesday, 15th February 2012 5:05pm
  » filed under Las Vegas  comments: 16

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Here's an interesting piece from the tips and innuendo file.... someone familiar with the subject but not allowed to publicly discuss it spoke to VT on condition of anonymity that MGM Resorts International is in talks to rebrand part of Luxor as a Hilton property.

Hoo huh whuh?

Yes. MGM Resorts International is looking at rebranding the Luxor tower (not the pyramid) as a Hilton hotel, bringing the number of "Luxor Hilton's" in the world to two.

On the surface it seems a little weird, but knowing how MGM operates these days - cut risk, cost (and reward) - rebranding Luxor as a Hilton makes whole a lot of sense. MGM might be looking to shuffle off operations (and employee expense) of the tower to Hilton in exchange for a constant usage fee regardless of occupancy. This would also put the onus of dealing with future outbreaks of Legionella on Hilton as well. There also might be a partnership to bolt Hilton's HHonors rewards program onto M Life in the same way they've done the Ameristar deal. Did I forget to mention that there are two gigantic convention centers within walking distance?

The Vegas Gang spent a good half hour recently discussing MGM's "mall operator" strategy at great length. Part of the discussion included prognosticating future opportunities for MGM to outsource employees/space/responsibilities. Bingo.



Tagged: mgm   luxor   hilton   



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Comments & Discussion:

Interesting. My wife and I stayed in the Tower in October in an upgraded \"players deluxe\" room. It seemed roughly Hilton-quality, so I can see this.

A little weird? Yeah.

On the other hand, all the other Hiltons in Las Vegas are/were kinda skanky too, so Luxor should fit right in with that proud tradition.

Maybe they'll bring back the LVH Star Trek Experience, only do it all Egyptian-style...no, wait, they kind of already did that in 1993...

maybe they can tie it in to Mandalay Bay and it can be THE Hilton.

they pay mgmt fee, like FS and MO
maybe cosmo is helped by marriott?
or hilton is being aggressive trying to get back to vegas casino?

starwood didnt seem to work for aladdin/pho

Luxor is entirely wrong for this. Yes, Hilton wants on the strip and MGM wants to minimize its losses in a decaying property. However, its not just the rooms at Luxor that need a total refurb (which Hilton might pay for), but they are still sandwiched between two dumpy casinos. It's a long walk to either MB or MGM's convention centers. There are several much better fits (e.g. Monte Carlo, MGM Grand, Mirage, and MB). If the condition of LVH was any sort of factor in Hilton leaving, then this makes no sense at all. I would not be surprised to see Hilton agree if it were another property.

I'm ready for "The Mansion at MGM Grand - A La Quinta Resort"

If they come to agreement, I have to believe that a big part of this is that MGM is finally realizing that they just have far too many rooms on the strip for the player they are interested in attracting.

I'm dubious at best. A November 2011 article in Travel+Leisure went into great detail about how Hilton was moving in the direction of new, interesting, unusual, boutique hotels. While not mentioned directly, it seems they want to get away from the stodgy (like LVH). Certainly the Luxor is unique, so we'll give them that. But too mass market to fit the new Hilton strategy.

I really didn't take this as any surprise- As soon as I heard Hilton was revoking the name from the now LVH I expected two reasons- One, they didn't want their name associated with a hotel in default on loans (Colony Capital), and two, they wanted to return the name to the Strip somewhere. I don't see the Luxor as a good choice though. I would bet that Elad and Sam (the Sham) Nazarian would trip over each other trying to get out from under their Sahara/Frontier blunder purchases.

Are we sure it's not going to be a Hampton Inn?

^Don't knock Hampton Inn. They offer once-a-day maid service, free breakfast, free wifi, and a newspaper in the morning. Far as I'm concerned, they're a better value than Cosmo.

For some strange reason, I got tired of casino hotels one year and stayed at the Hampton Inn behind Sunset Station, near Stephanie and Warm Springs. I liked it.

I eat my words.

Maybe they are trying to get a sister hotel to this:

http://www1.hilton.com/en_US/hi/hotel/LUXHITW-Hilton-Luxor-Resort-Spa/index.do

What would Conrad do.....What would Paris do?

Well...no one took my advice when Las Vegas Hilton was rebranded, so I'll try it again here. America's Best Value Inn at the Pyramid!

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