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.
Showing posts with label mgm grand. Show all posts
Showing posts with label mgm grand. Show all posts
Tuesday, December 09, 2008
Friday, December 05, 2008
No Spa For Greektown; MGM and MotorCity Might Regret Decision
Greektown Casino's hotel, scheduled to open in February, 2009, will open without a planned spa.
Greektown's spa cancellation appears to be a combination of lack of funding, and a recognition that Detroit's casino market differs from Las Vegas. The spas at MotorCity Casino's hotel, and the MGM Grand hotel are implied to be boondoggle money-losers based upon press reports.
Maybe in just this one instance being third to market is a good thing for Greektown. . .
Greektown's spa cancellation appears to be a combination of lack of funding, and a recognition that Detroit's casino market differs from Las Vegas. The spas at MotorCity Casino's hotel, and the MGM Grand hotel are implied to be boondoggle money-losers based upon press reports.
Maybe in just this one instance being third to market is a good thing for Greektown. . .
Saturday, November 08, 2008
Casinos Continue To Feel Impact of Michigan Economy
For those who believed that casinos revenues were immune to the whims of the general economy, October revenues for the three Detroit casinos provided more evidence to the contrary.
In the aggregate, gaming revenues fell $7.1 million in October for the three Detroit casinos.
The lone bright spot was the MotorCity Casino, which saw its revenues increase slightly to $37.9 million, from $37.7 million in October 2007.
MGM Grand Detroit saw the largest drop, to $48.4 million, from $54.9 million in October 2007. MGM's year-over-year numbers are slightly deceiving, however, as October 2007 was the month of MGM's grand-opening of its permanent casino. Accordingly, its October 2007 revenues were unnaturally high.
Greektown Casino continued its slow march into irrelevance, with its revenues dropping to $24.7 million, from $25.6 million in October 2007.
In the aggregate, gaming revenues fell $7.1 million in October for the three Detroit casinos.
The lone bright spot was the MotorCity Casino, which saw its revenues increase slightly to $37.9 million, from $37.7 million in October 2007.
MGM Grand Detroit saw the largest drop, to $48.4 million, from $54.9 million in October 2007. MGM's year-over-year numbers are slightly deceiving, however, as October 2007 was the month of MGM's grand-opening of its permanent casino. Accordingly, its October 2007 revenues were unnaturally high.
Greektown Casino continued its slow march into irrelevance, with its revenues dropping to $24.7 million, from $25.6 million in October 2007.
Thursday, August 14, 2008
July 2008 Detroit Casino Revenues
MGM Grand Detroit: $50.5 million in July 2008, up 23.2% from July 2007, up 19.5% January-July 2008 versus 2007.
MotorCity: $39.6 million in July 2008, down 7.26% from July 2007, down 1.6% January-July 2008 versus 2007.
Greektown: $25.4 million in July 2008, down 13.2% from July 2007, down 6.68% January-July 2008 versus 2007.
MotorCity: $39.6 million in July 2008, down 7.26% from July 2007, down 1.6% January-July 2008 versus 2007.
Greektown: $25.4 million in July 2008, down 13.2% from July 2007, down 6.68% January-July 2008 versus 2007.
Saturday, May 03, 2008
March Detroit Casino Revenues
Revenues for March 2008 at MGM Grand were up 5.94% over March 2007, to $50.2 million. This compared to decreases of 3.7% at MotorCity Casino compared to March 2007, with March 2008 revenues of $41.3 million. Revenues at at Greektown Casino were down 3.58% to $33.2 million in March 2008.
MGM Grand Revenues Up, Employees Laid Off
In some interesting news which appears to highlight the enormous expectations MGM Grand had for its Detroit location, the casino laid off "under 100" employees between January and early April, 2008, even as its revenues continued to increase.
In fact, revenues for March 2008 at MGM Grand were up 5.94% over March 2007, to $50.2 million. This compared to decreases of 3.7% at MotorCity Casino compared to March 2007, with March 2008 revenues of $41.3 million. Revenues at at Greektown Casino were down 3.58% to $33.2 million in March 2008. Greektown appears to be relegated to third place, even with its new parking structure.
The Las Vegas executives at MGM Grand must have had enormously high expectations for non-gaming revenues from the Detroit property, if revenue increases of 5.94% lead to 100 layoffs. At some point, I will crunch the numbers to see if I am correct on my theory: Although MGM Grand Detroit is first in absolute revenues, I believe it may be last in terms of revenues as a percentage of overall capital investment to open a permanent casino.
The layoffs were identified as coming in the casino's "food and beverage" employee base. This just solidifies for me that MGM Grand vastly overestimated its expected occupancy at the hotel portion of the new casino resort.
In fact, revenues for March 2008 at MGM Grand were up 5.94% over March 2007, to $50.2 million. This compared to decreases of 3.7% at MotorCity Casino compared to March 2007, with March 2008 revenues of $41.3 million. Revenues at at Greektown Casino were down 3.58% to $33.2 million in March 2008. Greektown appears to be relegated to third place, even with its new parking structure.
The Las Vegas executives at MGM Grand must have had enormously high expectations for non-gaming revenues from the Detroit property, if revenue increases of 5.94% lead to 100 layoffs. At some point, I will crunch the numbers to see if I am correct on my theory: Although MGM Grand Detroit is first in absolute revenues, I believe it may be last in terms of revenues as a percentage of overall capital investment to open a permanent casino.
The layoffs were identified as coming in the casino's "food and beverage" employee base. This just solidifies for me that MGM Grand vastly overestimated its expected occupancy at the hotel portion of the new casino resort.
Monday, March 31, 2008
February 2008 Revenues for Detroit Casinos
MGM Grand Detroit: $47 million in February 2008, up 27.9% from February 2007.
MotorCity: $38.3 million in February 2008, down 2.25% from February 2007.
Greektown: $27 million in February 2008, down 6.89% from February 2007.
It should be noted that 2008 is a leap year, so revenues would be up 3.5% even if daily revenue remained constant. Put another way, MotorCity was actually down closer to 5% on a comparable day basis, and Greektown was down closer to 10%. Not a good showing at all.
MotorCity: $38.3 million in February 2008, down 2.25% from February 2007.
Greektown: $27 million in February 2008, down 6.89% from February 2007.
It should be noted that 2008 is a leap year, so revenues would be up 3.5% even if daily revenue remained constant. Put another way, MotorCity was actually down closer to 5% on a comparable day basis, and Greektown was down closer to 10%. Not a good showing at all.
Tuesday, January 15, 2008
December 2007 Detroit Casino Revenues Reported
The Michigan Gaming Control Board has released the December 2007 results for the three Detroit casinos, MGM Grand, MotorCity, and Greektown. The full year 2007 results were also released.
For December 2007, MGM Grand Detroit's revenues were $46,746,114, which is down approximately $40,000 from November 2007. Year-over-year, the December 2007 revenues were up $4,000,000 from December 2006. For the full year, MGM Grand Detroit's revenues were $513,480,980, up $24,000,000 from 2006.
MotorCity's revenues for December 2007 were $39,522,591, which was up approximately $1,200,000 from November 2007. The December 2007 revenues were down $3,500,000 from December 2006. For the full year, MotorCity's revenues were $415,214,415, up $11,500,000 from 2006.
Greektown, which is the only Detroit casino not to have opened its hotel yet, revenues for December 2007 were $27,375,747, which was down approximately $750,000 from November 2007. December 2007's revenues were down $2,700,000 from December 2006. Full year revenues for 2007 were down $3,700,000 versus 2006 for Greektown.
These revenue increases was good for a 2.4% increase over 2006 revenues, which is the slowest since the Detroit casinos opened.
These are troubling numbers for Greektown and MotorCity.
For MotorCity, the trouble is that the casino has opened new gaming areas and its hotel, yet revenues for December 2007 were substantially lower than December 2006.
The trouble for Greektown is more substantial. Greektown has long blamed its third-place revenue finishes on the casino's lack of abundant free parking close to the casino. Yet, even after November 15, 2007, when Greektown opened its 2,900 space free parking structure connected to the casino, Greektown's revenues continue to lag.
For December 2007, MGM Grand Detroit's revenues were $46,746,114, which is down approximately $40,000 from November 2007. Year-over-year, the December 2007 revenues were up $4,000,000 from December 2006. For the full year, MGM Grand Detroit's revenues were $513,480,980, up $24,000,000 from 2006.
MotorCity's revenues for December 2007 were $39,522,591, which was up approximately $1,200,000 from November 2007. The December 2007 revenues were down $3,500,000 from December 2006. For the full year, MotorCity's revenues were $415,214,415, up $11,500,000 from 2006.
Greektown, which is the only Detroit casino not to have opened its hotel yet, revenues for December 2007 were $27,375,747, which was down approximately $750,000 from November 2007. December 2007's revenues were down $2,700,000 from December 2006. Full year revenues for 2007 were down $3,700,000 versus 2006 for Greektown.
These revenue increases was good for a 2.4% increase over 2006 revenues, which is the slowest since the Detroit casinos opened.
These are troubling numbers for Greektown and MotorCity.
For MotorCity, the trouble is that the casino has opened new gaming areas and its hotel, yet revenues for December 2007 were substantially lower than December 2006.
The trouble for Greektown is more substantial. Greektown has long blamed its third-place revenue finishes on the casino's lack of abundant free parking close to the casino. Yet, even after November 15, 2007, when Greektown opened its 2,900 space free parking structure connected to the casino, Greektown's revenues continue to lag.
Tuesday, January 08, 2008
December Revenues Not Yet Reported For Detroit Casinos
The monthly revenue reports for the three Detroit casinos (MGM Grand Detroit, Greektown, and MotorCity) are generally released at the monthly meeting of the Michigan Gaming Control Board. However, there is no meeting scheduled for January, 2008. The release of the December monthly revenue report will provide interesting information regarding the impact of the first full month of revenues after the opening of the new parking structure at Greektown and the hotel at MotorCity Casino.
Stay tuned. . .
Stay tuned. . .
Saturday, December 15, 2007
Columnist: Harry Reid Responsible For Pulling Of Port Huron Casino Bill From Committee Agenda
According to a radio host writing a column in the Port Huron Times Herald, Nevada Senator Harry Reid is responsible for the "off-again" status of the on-again/off-again bill before the Natural Resources Committee, sponsored by Michigan Rep. Bart Stupak, which would allow the Bay Mills Indian Tribe to open a casino at the site of the Edison Inn in Port Huron. Reid allegedly pressured Speaker Nancy Pelosi, who pressured Committee Chairperson Nick Rahall of West Virginia to pull the bill from the Committee's agenda, thus preventing it from reaching the floor for a vote. The columnist speculates that Reid's motivation may derive from one of his largest corporate constituents, MGM Mirage, which owns and operates the MGM Grand Detroit, which would theoretically suffer from competition in Port Huron.
Wednesday, December 12, 2007
Women Trapped In MGM Grand Elevator, Score Jackpot
Four women who intended to enjoy a night at the MGM Grand Casino, and then attend a performance of the Lion King in Detroit, were instead trapped in an elevator at the casino.
In a move that should be noted by public relations departments at other casinos (and businesses), the casino immediately made matters right by offering a night's free accommodations, dinner, and tickets to another Lion King performance for the ladies AND THEIR HUSBANDS.
Nice move. Much cheaper than bad publicity.
In a move that should be noted by public relations departments at other casinos (and businesses), the casino immediately made matters right by offering a night's free accommodations, dinner, and tickets to another Lion King performance for the ladies AND THEIR HUSBANDS.
Nice move. Much cheaper than bad publicity.
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.
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.
Tuesday, December 11, 2007
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.
"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.
November Detroit Revenues: MGM Falls Back To Earth; Parking Helps Greektown; MotorCity Treads Water
The November revenue report is now out for the three Detroit casinos.
MGM Grand Detroit fell back to earth a bit from its gargantuan October numbers. MGM's November revenue was $46.8 million, down from $54.9 million in October, but still up $6 million from November 2006.
Greektown's new parking structure was only open for half of the month, but it still led to an approximately 10% increase in monthly revenues, to $28.1 million from $25.6 million in October.
MotorCity, which opened its hotel at the tail end of November, essentially stayed static, with its revenues at $38.3 million, compared to $37.7 million in October.
MGM Grand Detroit fell back to earth a bit from its gargantuan October numbers. MGM's November revenue was $46.8 million, down from $54.9 million in October, but still up $6 million from November 2006.
Greektown's new parking structure was only open for half of the month, but it still led to an approximately 10% increase in monthly revenues, to $28.1 million from $25.6 million in October.
MotorCity, which opened its hotel at the tail end of November, essentially stayed static, with its revenues at $38.3 million, compared to $37.7 million in October.
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.
Wednesday, November 28, 2007
People Mover Extension To MotorCity Casino?
One of the more interesting, albeit off message, comments during the press coverage of the opening of the MotorCity Casino Hotel is the statement by Marian Ilitch, owner of MotorCity and wife of Mike Ilitch, owner of the Fox Theatre, Detroit Tigers, Detroit Red Wings, and Little Caesars, regarding an extension of the People Mover.
Ms. Ilitch stated that they are seriously investigated an extension of the Detroit People Mover, a fixed-circuit, elevated, light rail transit system that currently encircles the core of downtown Detroit. A couple of thoughts about that statement.
First, the People Mover has been controversial because of its low ridership and substantial annual subsidies. So, an expansion could be a double-edged sword. It would logically increase ridership, as the station at the Greektown Casino is one of the busiest in the current loop, and one would assume a second casino location would increase ridership overall. But who is going to fund the land acquisition and construction of the expansion? MotorCity Casino? The City of Detroit? If the rumored construction of a new hockey arena behind the Fox Theatre comes to fruition, there would be two logical beneficiaries, the Detroit Red Wings, and the MotorCity Casino (both of which, of course, are owned by the Ilitch family).
The second thought is that such a statement, at the grand opening of the new casino hotel, merely highlights for me that the casino's executives have come to grips with the fact that MotorCity Casino has the worst location of the three Detroit casinos. An extension of the People Mover to MotorCity would arguably reduce the gap in location benefit that MGM Grand Detroit and Greektown Casino currently enjoy.
Ms. Ilitch stated that they are seriously investigated an extension of the Detroit People Mover, a fixed-circuit, elevated, light rail transit system that currently encircles the core of downtown Detroit. A couple of thoughts about that statement.
First, the People Mover has been controversial because of its low ridership and substantial annual subsidies. So, an expansion could be a double-edged sword. It would logically increase ridership, as the station at the Greektown Casino is one of the busiest in the current loop, and one would assume a second casino location would increase ridership overall. But who is going to fund the land acquisition and construction of the expansion? MotorCity Casino? The City of Detroit? If the rumored construction of a new hockey arena behind the Fox Theatre comes to fruition, there would be two logical beneficiaries, the Detroit Red Wings, and the MotorCity Casino (both of which, of course, are owned by the Ilitch family).
The second thought is that such a statement, at the grand opening of the new casino hotel, merely highlights for me that the casino's executives have come to grips with the fact that MotorCity Casino has the worst location of the three Detroit casinos. An extension of the People Mover to MotorCity would arguably reduce the gap in location benefit that MGM Grand Detroit and Greektown Casino currently enjoy.
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. . .
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.
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.
Tuesday, November 27, 2007
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.
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.
Tuesday, November 20, 2007
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.
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