MotorCity Casino has agreed to become the presenting sponsor of the Woodward Dream Cruise.
For those readers unaware of the Dream Cruise, it is a massive car cruise along Woodward Avenue from Ferndale, Michigan on the south end to Pontiac, Michigan on the north end.
Those who were teenagers in the 1950s and 1960s view the Dream Cruise as the greatest event in the history of man.
Those who were teenagers at any other time in history view the Dream Cruise as a huge pain in the neck that destroys commerce along Woodward Avenue for two solid weeks.
It is unclear what benefit, other than advertising, will accrue to MotorCity Casino as a result of its sponsorship.
Showing posts with label motorcity. Show all posts
Showing posts with label motorcity. Show all posts
Wednesday, June 17, 2009
Tuesday, December 09, 2008
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.
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.
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. . .
Wednesday, December 12, 2007
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.
Monday, December 03, 2007
Three Restaurants At MotorCity To Feature Kiosk Order System
An industry publication is reporting that the MotorCity Casino will feature a kiosk, touchpoint based ordering system for three of its restaurants. One natural fit would be the buffet. I would be surprised if Iridescence featured a kiosk-based reservation/payment system. So, the identity of the other two restaurants that will feature the kiosk-based system is a mystery.
MotorCity's Iridescence To Open In 2007, Hopefully
Not a lot of confidence emanating from today's article about the MotorCity Casino's signature restaurant, Iridescence.
The casino's executive chef, Greg Carroll, was hired in September of this year, after the speedy departure of his predecessor (who left to become executive chef at Chicago's McCormick Place). In two-and-a-half months, Carroll has had to plan for the re-opening of Iridescence MotorCity's signature restaurant, which is being relocated to the 17th floor of the new hotel tower. He also has to plan the opening of Amnesia (the new nightclub), a bistro, and a new buffet.
The photos of the restaurant's current construction status seem to cast doubt on the planned opening of Iridescence in late December. In fact, MotorCity's spokesperson was unwilling to commit to an opening date. December 31, 2007 or January 1, 2008 are mentioned as hopeful opening dates. But "definitely [they] plan" to have Iridescence opened by the 2008 North American International Auto Show the second week of January, 2008.
After getting burned by the one month delay in opening the hotel, MotorCity's staff seems reluctant to commit any definite opening dates for the remaining openings of the casino's staged expansion.
The casino's executive chef, Greg Carroll, was hired in September of this year, after the speedy departure of his predecessor (who left to become executive chef at Chicago's McCormick Place). In two-and-a-half months, Carroll has had to plan for the re-opening of Iridescence MotorCity's signature restaurant, which is being relocated to the 17th floor of the new hotel tower. He also has to plan the opening of Amnesia (the new nightclub), a bistro, and a new buffet.
The photos of the restaurant's current construction status seem to cast doubt on the planned opening of Iridescence in late December. In fact, MotorCity's spokesperson was unwilling to commit to an opening date. December 31, 2007 or January 1, 2008 are mentioned as hopeful opening dates. But "definitely [they] plan" to have Iridescence opened by the 2008 North American International Auto Show the second week of January, 2008.
After getting burned by the one month delay in opening the hotel, MotorCity's staff seems reluctant to commit any definite opening dates for the remaining openings of the casino's staged expansion.
Wednesday, November 28, 2007
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.
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.
NHL Teams' Involvement With MotorCity Casino
Interesting to note that the Minnesota Wild and Ottawa Senators are already booked to stay at the MotorCity Casino Hotel while in town for road trips.
In addition, Detroit Red Wings players were involved in a No Limit Texas Hold 'Em tournament at the MotorCity Casino. There is a special irony involved here, since former Detroit Red Wing Darren McCarty filed for bankruptcy, many citing gambling losses as one significant cause of his financial distress. In addition, NHLers Jaromir Jagr and Rick Tocchet have suffered through gambling-related scandals.
Obviously, the NHL must take a different view of casino gambling than Major League Baseball. Of course, the NBA held its All Star Game in Las Vegas in 2007, so the NHL would not be alone in its changing views of casino gambling.
In addition, Detroit Red Wings players were involved in a No Limit Texas Hold 'Em tournament at the MotorCity Casino. There is a special irony involved here, since former Detroit Red Wing Darren McCarty filed for bankruptcy, many citing gambling losses as one significant cause of his financial distress. In addition, NHLers Jaromir Jagr and Rick Tocchet have suffered through gambling-related scandals.
Obviously, the NHL must take a different view of casino gambling than Major League Baseball. Of course, the NBA held its All Star Game in Las Vegas in 2007, so the NHL would not be alone in its changing views of casino gambling.
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. . .
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