Tropicana Undergoing Facelift

The Las Vegas Sun reported that the Tropicana will be undergoing a renovation that will cost upward of $165 million. Part of the thrust of the article is that the Tropicana will be losing some of its history, which is accurate. Of course, recent history for the property hasn't been that good, as it emerged from bankruptcy just last summer.

What the management team wants to do is retheme the Tropicana to a South Beach theme from the mix and match of decor installed over the 50 year history of the property. This is actually a very good thing. As the article states, often properties get "renovated" by blowing them up and rebuilding from scratch. The Tropicana will spend a fraction of the cost of a new build to refresh the property.

In addition, management is focusing the market position to a "best in class" position, which means that in their market tier, they are tops. That is also a good thing. The Tropicana isn't going to be able to compete with Wynn or the Bellagio, but they can compete with the mid-tier properties. Also, since the Tropicana is on the northern end of the Strip, their close competition, the Sahara, Circus Circus, Stratosphere (and the Las Vegas Hilton to the east), appear to be beatable properties. The makeover could put the Tropicana as the top property in this area.

I, for one, look forward to visiting after the renovation is complete.

Las Vegas Construction Meltdown Details

To say that Las Vegas' construction has taken a hit is one thing, but to see the details of the crisis makes it quite poignant. The Las Vegas Review Journal as a great article that discusses the current status of several large construction projects halted mid-construction due to the economic downturn.

What drives the point home are the pictures of project after project showing building frames and skeletons. One of the buildings looks more like something you would see from a war photograph rather than Las Vegas. Very sad.

Las Vegas gaming revenue is still down significantly, with Nevada casinos actually posting a loss last year (you can see the blog post here). I don't see the Las Vegas construction situation improving anytime soon unfortunately which is disappointing because Las Vegas is a great town.