MGM Grand Receives Two AAA Four Diamond Rankings

In a report in Crain's Detroit Business (subscription req.), MGM Grand Detroit has received two separate AAA Four Diamond ratings.

The first Four Diamond rating is for the hotel itself.

The second Four Diamond rating is for the Saltwater restaurant within the casino complex.

Iridescence restaurant at the MotorCity casino complex had been previously awarded a Four Diamond rating.

Windsor Casino Being Renamed Effective June 19

As of June 19, 2008, the Windsor Casino will be renamed Caesars Windsor. Caesars Windsor will also open a 5,000 seat venue, named the Colosseum.

Scheduled performers at the Colosseum in Summer 2008 include: Billy Joel, Patti LaBelle, Michael Bolton, Ringo Starr and His All Starr Band, Reba McEntire and Donna Summer.

Caesars Windsor will feature a new 369 room hotel tower, the Augustus Tower. The adorably named Augustus Tower will complement the casino's existing 389 hotel rooms, for a total capacity of 758 hotel rooms. It will also feature 100,000 square feet of convention space.

MGM Grand Detroit And MotorCity Casino Hotels Full During Auto Show?

Contrary to prior reports, the Detroit News is now reporting that both the MGM Grand Detroit and MotorCity Casino hotels will be at full occupancy during the North American International Auto Show. Perhaps the hotels' vacancy issues will cure themselves, or perhaps the Detroit News is an unwitting servant of a good public relations agency.

Detroit Free Press Reports On Vacancy Issues At MGM Grand

The Detroit Free Press published a story today which reports the vacancy issues plaguing MGM Grand Detroit in its first months open. Of course, Michigan Casino Blog first reported about the vacancy issues involving both MGM Grand Detroit and MotorCity Casino hotel on October 29, 2007, with follow up reports on November 21, November 28 (including a second post), and December 11, 2007.

As we noted on October 29, 2007, the opening of the three casinos alone will add 438,000 room nights to Detroit's hotel inventory, a vast increase that makes these vacancy issues inevitable until demand increases to match the vast new supply.

MGM Grand Detroit Having Occupancy Issues?

This little tidbit from a report of the November meeting of the Michigan Gaming Control Board:

"Also, using some language that might be interpreted as inexact, MGM Detroit indicated hotel bookings in the first two months of operation did not meet expectations."

Perhaps MotorCity Casino is not the only casino hotel with occupancy concerns among the new permanent casino hotels.

NY Times Lists Detroit As One Of Top 2008 Travel Destinations; Cites MGM Grand Detroit and MotorCity Casino Hotel

The New York Times has identified Detroit as one of its top travel destinations for 2008. The Times specifically noted the opening of the MotorCity Casino Hotel and the MGM Grand Detroit in its article.

MotorCity Casino Hotel Already Has Second Tower Planned?

One of the interesting nuggets that slipped out during the press coverage of the opening of the MotorCity Casino Hotel was that the casino has master-planned for a second tower, the footprint of which is already known.

However, I would not count on the second tower being constructed soon. With the opening of the three casino hotels in an approximately 12 month period, the Detroit market will have to absorb approximately 438,000 room nights per year, a significant addition to the current room inventory in the City of Detroit.

In addition, the occupancy of the first tower of the MotorCity Casino Hotel on its grand opening night was reportedly approximately 35%, and the first tower is not yet sold out for the 2008 North American International Auto Show, traditionally the week with the greatest hotel demand in Detroit.

The motivation for increasing hotel revenue is clear, however. The casinos are not required to pay the 28% tax on revenues from hotel rooms, unlike gaming revenue. Of course, the profit margin on hotel revenue is substantially lower than gaming revenue, as well.

MotorCity Casino Hotel Only 35% Occupied On Opening Night?

One of the interesting items noted in the press coverage of the opening of the MotorCity Casino Hotel is that the hotel expects to be only 35% occupied on opening night, and "is looking to be" to be sold out for New Year's Eve and the North American International Auto Show.

Compare that occupancy level to the sold out opening night at MGM Grand Detroit, and the sold out Book Cadillac for the 2009 North American International Auto Show. So again, the question is: Is the vacancy due to the location of the hotel? The management? Or something else. . .

More News From The Press Tour of MotorCity's New Hotel

Yesterday was the VIP and press tour of the MotorCity hotel tower. The Detroit Free Press, Detroit News and Associated Press all have detailed stories up about the hotel opening.

There is a lot of interesting info in these articles, which I will be addressing in separate posts later. In general, though, what is most notable to me is the sense that, while the MGM Grand Detroit executives at their grand opening focused almost exclusively on the resort they were opening, the focus of the MotorCity executives appears to be on what is still to come. It is as though the expectation level for the current hotel tower is intentionally being lowered. More to come in later posts, though.

After Delay, MotorCity Casino Hotel Opens Tomorrow At 3:00pm

After a one month delay, the MotorCity Casino Hotel will officially open to the public Wednesday, November 28, 2007 at 3:00pm. Even after the one month delay, the casino is billing Wednesday's opening as a "soft opening," as portions of the hotel remain under construction.

It is interesting how much more excitement and press coverage the MGM Grand Detroit opening generated. MotorCity's phased-in openings of new casino spaces and the hotel has spread the publicity for the MotorCity out over several time periods. One school of thought is that the big bang of publicity MGM Grand received was more worthwhile. However, perhaps the constant drip, drip, drip of news from MotorCity will keep the venue in the gamblers' minds more often.

I suppose the Deceber 2008 monthly revenue report will tell the real story.

UPDATE: The Detroit News has a story posted after a tour of the hotel, which is largely positive.

UPDATE 2: The Free Press now has its story of the hotel tour posted. The story also gives a deadline of the end of March, 2008, for the opening of all remaining renovated gaming areas.

MotorCity Casino Hotel Has Lights, Vacancies

I'm not exactly sure how this is a story, but MotorCity managed to garner some press coverage for turning on the LED lights that encircle the new hotel tower. The tower can display up to 16.7 million different colors, and will be lit from dusk til dawn, with programmed light displays to match the seasons and holidays. Good job by the MotorCity public relations gurus to get this non-story covered.

The only actual news reported in the story is that MotorCity still has approximately 50 rooms available for the North American International Auto Show in January, 2008. That seems a bit troubling, since that is the one week each year when downtown hotels are universally fully-occupied, and MotorCity has a 12.5% vacancy with only one month remaining. By way of comparison, the Book Cadillac hotel, which does not open until October 1, 2008, is reportedly already fully booked for the 2009 auto show, one year out.

I am not sure whether MotorCity's vacancy rate is an indication of the poor location of the hotel for downtown convention business, or a testament to the lack of confidence in the hotel's management, given the unexpected one month delay in opening the hotel.

Chicago Tribune Has Glowing Review of MGM Grand Detroit

The Chicago Tribune's travel section has a glowing review of the MGM Grand Detroit. The review focuses not on the casino, but rather on the hotel and restaurants. The reviewer (a restaurant reviewer, not a travel critic) dined at all three "high-end" restaurants, and rated Saltwater as the jewel of the three.

MotorCity Casino Hotel To Open November 28

Satisfying the marketing that has promised a "November" opening of the MotorCity Casino Hotel, it was announced that the hotel would open on November 28, 2007, nearly a month after the originally announced opening date of November 2, 2007.

The casino's new restaurants, nightclub, spa, and convention facilities are now scheduled to open in the first quarter of 2008.

More Info On MotorCity Casino's Hotel

Crain's Detroit Business has a story out in today's issue with a good rundown on the challenges that will face the three Detroit casinos as they open their hotels. Namely, they will have to create hundreds of thousands of hotel room nights of business each year, where none previously existed. (By my calculation, at full capacity they would have to create 438,000 room nights among the three hotels: 400 rooms per hotel multiplied by 365 room nights multiplied by three hotels).

Also interesting in the story is that the "excuse" for the MotorCity's delay in opening the hotel has now apparently been expanded beyond the delayed delivery of furniture to also include: (a) the state shutdown [of four hours] on October 1, 2007; and (b) the labor negotiations with the Detroit Casino Council.

Opening of MotorCity Casino Hotel Delayed Until November 28, 2007

The opening of the MotorCity Casino Hotel, which was scheduled for November 1, 2007, has been delayed until approximately November 28, 2007. The casino was unwilling to commit to an exact opening date, and blamed the delay on vendor delays in delivery of furniture, fixtures and other furnishings.

Compare this delay with the clockwork precision with which the MGM Grand Casino hotel opened.