more feedsNext Stop - Boyd Station
As reported in the Las Vegas Sun, it seems that Boyd Gaming offered $950-million to acquire Station Casinos assets. This would give Boyd everything except Red Rock Resort and the Palace, Boulder and Sunset Stations. Boyd is also interested in purchasing those four exceptions as well.
You see, Boyd is cash-fat as they still have the $2 billion in liquidity for the stalled Echelon, which would probably be canceled and sold. (maybe Wynn will pick it up - wouldn't that be a kick)?
Boyd was planning to build a new resort near and (competing with) Aliante Station. With this acquisition, those plans are unneeded.
This would make Boyd the 'Locals King', with roughly 1/3 of the locals properties and nothing on the Strip. Boyd knows the locals market will most likely recover from this economy crap before the Strip recovers. This would also save Station from their eminent bankruptcy.
Nothing was said about the large parcel Station acquired for their Viva Vegas project on the Wild Wild West site.
Thoughts?...
You see, Boyd is cash-fat as they still have the $2 billion in liquidity for the stalled Echelon, which would probably be canceled and sold. (maybe Wynn will pick it up - wouldn't that be a kick)?
Boyd was planning to build a new resort near and (competing with) Aliante Station. With this acquisition, those plans are unneeded.
This would make Boyd the 'Locals King', with roughly 1/3 of the locals properties and nothing on the Strip. Boyd knows the locals market will most likely recover from this economy crap before the Strip recovers. This would also save Station from their eminent bankruptcy.
Nothing was said about the large parcel Station acquired for their Viva Vegas project on the Wild Wild West site.
So, does this mean that there will be a Aliante Coast and a Texas Coast? -maybe. And will Wynn buy and implode (or incorporate) Echelon and start a new project? - could be, could be.
Thoughts?...
Posted by Mark Adams at 2/27/2009 3:05 AM 
Categories: Vegas News
Tags: station echelon boyd merger news
Categories: Vegas News
Tags: station echelon boyd merger news
This could be a nice move for Boyd Gaming, purchasing established low overhead properties seems fiscal in the current market. I really dont see Wynn picking up Echelon during their current financial woes, i think it will most likely stay vacant for at least another year or so.
Reply to this
Hmmm....Wynn was recently quoted as saying he wants to focus his efforts on his existing resorts.....(around the time Phil Ruffin picked up TI)....but this news from Boyd might give him something to ponder....
Of course he also said he was irritated at the steel skeleton of Echelon just sitting there....and he has pulled cash out of his pocket to beautify the empty New Frontier site with trees and remove the old sign.... guess it depends on what kind of deal he can pull out of it...(for either of those properties)
I imagine Boyd must be regretting their decision to implode the historic (and revenue-earning!) Stardust .....
Reply to this
Say what you will about the new 'corporate' Vegas, but I find the cut throat deal making going on between these companies just a hair less fascinating than the mob rule days of old.
It's a bummer about Echelon as it looked like a cool addition, but if Wynn buys the lot I bet he'll do something exceedingly ornate involving LARGE amounts of gold, so I suppose that's entertaining in and of itself...
BTW, I LOVE the site, and really dig the new RSS feed. Keep up the great work!
Reply to this
Well, If Kirk Kerkorian had the means to make an attempt to take the CityCenter and Bellagio private ... he may have no trouble acquiring the Echelon site for half or maybe even a third of what he was willing to put up for CityCenter and Bellagio.
But then again ... 'The Wynn Echelon' seems more fitting ... not to mention it has a nice ring to it. But after understanding that Steve's only focus during the next two years is paying off his debt, it will be only suprising by a bit should he decide to take over Echelon.
Bottom line is that should Echelon be sold, which would make sense for Boyd, I hope the project continues as is.
Reply to this
Although Echelon was suspended, Steve Wynn might want to incorporate Echelon and start a new project. I have no clue on what Steve Wynn is planning to do with Echelon under suspension.
If incorporated, Echelon would be absorbed by a new resort which I do know Steve Wynn is planning.
Reply to this
What boyd should do along with purchasing the properties is to think of future resorts being built close to other resorts that are pretty much by themselves (ie, South Point and Mresort). Make some competition and give the people in those areas another choice.
Another good idea, i think at least is to make a hotel (particularly where Echelon is) that caters to the lower/mid-level roller as the scene in vegas is already saturated with high roller luxury hotels.
Reply to this
I heard from somewhere that the Wild Wild West lot is also included in the Boyd deal.
Also, where did you get the Wynn story from? Is it a rumor or a speculation?
Reply to this
Just speculation
Reply to this
Wild Wild West is included, yes... Not the surrounding land that was slated to become Viva though.
You guys are on glue if you think Wynn will buy the Echelon site or that Boyd would even sell it. Wynn has plenty of land in Las Vegas to develop and Boyd will finish Echelon on their terms.
Reply to this
Ok... wait so is echlon getting cancelled or not??
PLEASE BE NO!! im keeping my fingers crossed!!!
Reply to this
Wait so is echelon getting canceled? if its sold will it stay echelon w/ a new owner, or a different resort in the same site??
Reply to this
Sorry, i edited to post to clarify. Boyd has not yet announced any plans for Echelon.
However, Since Boyd is willing to part with almost half of their Echelon-earmarked money to acquire a big chunk of the locals market and loans are tight right now, I doubt Echelon fits it to the new plans. The future is too uncertain to continue such an expansive project.
I also doubt that the county would allow the unfinished project just sit there indefinitely.
Even at a bargain price of $20 million per acre, the Stardust land is worth $1.74 Billion. Selling it would allow Boyd to pay off their debt, be cash fat and control the locals market.
Sounds like a winning move situation for Boyd
Reply to this
maybe Boyd might carve up the land that Echelon would be built on - say they sell half of it (maybe to MGM to expand Circus2 to the south) and they build a smaller hotel on the half of the land they keep. The original plans for Echelon only had them using about 70% of the land in phase 1 anyway. It would seem strange to split the property, but they would be able to get a good chunk of money AND still have a strip presence. Overall this Station deal seems like a genius move for Boyd.
And yes, I miss the Stardust...
Reply to this
I am confused, I thought Stations rejected the Boyd offer. I see the date as 4/13/09 does this mean Boyd is at it again? Me personally think it is a wonderful idea. I am a very big fan of Sam's town and their other holdings. They have treated me very well as Stations has not. I get a lot of offers from Sam's and I make it up there at least 4 times a year. My wife and I are not big spenders but we do gamble about 16 hours a day. We tried to do that at The Stations casino's and we don't even get a thank you from them. Sam's takes care of their customers and if they take over stations maybe things will change for the better.
Reply to this