The Wall Street Journal of Wednesday, March 18th, has a story of how MGM Mirage is on the verge of defaulting on payments on billions of dollars in loans as early as mid-May.
MGM Mirage has 10 casinos in Las Vegas, and it has more than $13-billion in debt, posting a fourth-quarter loss of $1.14-billion compared to net income of $872-million for the fourth quarter of 2007. Pending the possible default, the opening of the $8.4-billion 67-acre City Center project on the strip could be delayed, and the debt for the existing construction loan of $1.8-billion may also go into default.
You scared yet?
Las Vegas has always felt that as long as there is the urge to gamble, owning a property in the town and much of the state, would be tantamount to having a license to print money. When the economy started heading south a year and a half ago, the fallacy of building more and more hotel rooms and waiting for people to fill them up has made itself obvious. Ain't got the jack, ain't gonna come.
The result is to the advantage of those who want to go to Las Vegas, but want to do it on a budget, which does not include a 4,000 square foot suite with butler service and a stretch limo standing by. Resorts/casinos need cash today, even for reservations far down the road. It is for that reason that the deals are out there!
We offer this advice: if you are planning to go to Las Vegas, for business or for fun, and you are relatively sure of your dates, book rooms as soon as you hear of or read about a "flash sale." Once again we remind you that these are SHORT TIME sales, so a delay may actually cost you money. However, always book a reservation with a credit card (preferably with a "virtual number" for security sake) and read your reservation's details before you hit the BUY button. If the hotel should happen to close up [not really likely] you will at least be able to have a little leverage when it comes to demanding a refund; you will have the credit card company behind you.
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