Discuss Detroit » Archives - July 2007 » MotorCity Casino hotel opening delayed « Previous Next »
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Billk
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Username: Billk

Post Number: 147
Registered: 09-2005
Posted on Wednesday, October 24, 2007 - 2:59 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

http://www.detnews.com/apps/pb cs.dll/article?AID=/20071024/U PDATE/710240458
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Detroitrise
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Username: Detroitrise

Post Number: 341
Registered: 09-2007
Posted on Wednesday, October 24, 2007 - 3:06 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Well as long as it's open by Christmas, they can take as much time as they like. MGM will just be getting the tourist until then.
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Cgunn
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Username: Cgunn

Post Number: 135
Registered: 01-2004
Posted on Wednesday, October 24, 2007 - 3:13 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Well that was expected. I didn't see much change in the past couple of months since the new expansion opening.
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Jjaba
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Username: Jjaba

Post Number: 5575
Registered: 11-2003
Posted on Wednesday, October 24, 2007 - 3:13 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

$299 a night to live in downtown Detroit. Man oh man. Does Ohio have that kind of money in a depression?

Where's the market?
jjaba.
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Cgunn
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Username: Cgunn

Post Number: 136
Registered: 01-2004
Posted on Wednesday, October 24, 2007 - 3:14 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Well it seems that MGM isn't having problems.
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Rbdetsport
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Username: Rbdetsport

Post Number: 399
Registered: 11-2005
Posted on Wednesday, October 24, 2007 - 3:15 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

MGM was booked solid this past friday. All 400 rooms.
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Thejesus
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Username: Thejesus

Post Number: 2518
Registered: 06-2006
Posted on Wednesday, October 24, 2007 - 3:20 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

"MGM was booked solid this past friday. All 400 rooms."

Seriously? Where'd u hear that?
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Jjaba
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Username: Jjaba

Post Number: 5577
Registered: 11-2003
Posted on Wednesday, October 24, 2007 - 3:21 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

At $299/night?
That's some serious coconuts.

jjaba.
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Cgunn
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Username: Cgunn

Post Number: 137
Registered: 01-2004
Posted on Wednesday, October 24, 2007 - 3:21 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

jjaba if you go to MCC web site, you can get rooms as low at 139/night.
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Jjaba
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Username: Jjaba

Post Number: 5578
Registered: 11-2003
Posted on Wednesday, October 24, 2007 - 3:22 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Oh, OJ must be there for a wedding and to get his schitt back!

jjaba, Westsider.
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Bobj
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Username: Bobj

Post Number: 2646
Registered: 11-2003
Posted on Wednesday, October 24, 2007 - 3:22 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I heard from a meeting planner at work that she tried to get 40 rooms in mid November and they could only give her 5 rooms - all the rest booked. I didn't verify this with the hotel, but I think there is a lot of buzz because of the newness
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Southofeight
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Username: Southofeight

Post Number: 113
Registered: 07-2005
Posted on Wednesday, October 24, 2007 - 3:36 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Hotel officials have said that the hotel will be open Nov.1, they are just booked through Nov. 28. You can't reserve aa room until then, but it will be open for business Nov. 1.
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Gambling_man
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Username: Gambling_man

Post Number: 1016
Registered: 11-2003
Posted on Wednesday, October 24, 2007 - 3:38 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

MGM is giving rooms away folks.
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Detroitrulez
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Username: Detroitrulez

Post Number: 479
Registered: 12-2006
Posted on Wednesday, October 24, 2007 - 3:48 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

Well as long as it's open by Christmas, they can take as much time as they like.


'cause nothing says Christmas like a hotel room in a Deetroit casino.
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Cgunn
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Username: Cgunn

Post Number: 139
Registered: 01-2004
Posted on Wednesday, October 24, 2007 - 3:49 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

^^ No but Christmas/New Years is a busy time for Casinos and Hotels.
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Gambling_man
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Username: Gambling_man

Post Number: 1018
Registered: 11-2003
Posted on Wednesday, October 24, 2007 - 3:51 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Motor City has booked very few rooms anyhow. Plus, their construction just isn't done yet.
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Iheartthed
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Username: Iheartthed

Post Number: 1976
Registered: 04-2006
Posted on Wednesday, October 24, 2007 - 3:54 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

^^ No but Christmas/New Years is a busy time for Casinos and Hotels.

Is it? I was thinking about going to Vegas the week between Christmas and NYE. I was hoping to get a good deal on a hotel room.

I do know Vegas is a hot spot for NYE.
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Johnlodge
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Username: Johnlodge

Post Number: 3233
Registered: 10-2003
Posted on Wednesday, October 24, 2007 - 3:57 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I've found very good deals in Vegas around Christmastime before. Definitely look into it if you're interested in going out there.

NYE is an extremely busy time for Vegas, but most of the holiday season, they've got their rates lowered to entice people in.
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Detroitrulez
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Username: Detroitrulez

Post Number: 480
Registered: 12-2006
Posted on Wednesday, October 24, 2007 - 8:26 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

^^ No but Christmas/New Years is a busy time for Casinos and Hotels.


uh, you left out one important modifier....I said a hotel room in a "Deetroit" casino. Big diff. Talk about depressing......
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Cgunn
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Username: Cgunn

Post Number: 140
Registered: 01-2004
Posted on Wednesday, October 24, 2007 - 9:37 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Whether you want to believe it or not, Detroit is the 5th American gaming destination by revenue. The hotel rooms in the 6th, 7th, 8th, 9th, and 10th fill up. Saying that, I wouldn't see why the area that has been noted as the 5th American gaming destination have a problem doing the same...even though it is a "Deetroit" casino.

Casino Windsor doesn't have a problem doing the same.

What's so depressing?
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Detroitrise
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Username: Detroitrise

Post Number: 353
Registered: 09-2007
Posted on Wednesday, October 24, 2007 - 10:45 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

If we get one more Casino, we would actually be #3 (isn't that sweet?).
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Lilpup
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Username: Lilpup

Post Number: 3000
Registered: 06-2004
Posted on Wednesday, October 24, 2007 - 11:40 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

sweet provided all the money is coming from far away
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Cgunn
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Username: Cgunn

Post Number: 141
Registered: 01-2004
Posted on Wednesday, October 24, 2007 - 11:59 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

If you include Windsor we would be 3. If you go by revenue and city we would be there. The two above us is a state (Conn.) and a huge metro area (chicagoland)
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Renfirst
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Username: Renfirst

Post Number: 60
Registered: 12-2006
Posted on Thursday, October 25, 2007 - 3:16 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

MGM is never completely booked. You just have to know the right people...

Throw $10K on craps and I'm sure you can get a room when they're "booked"
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Deals21
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Username: Deals21

Post Number: 7
Registered: 03-2007
Posted on Thursday, October 25, 2007 - 6:48 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Neither hotel is finished. Motor City was going to open with only 3 floors done. So, with the delay, 3 floors aren't even finished.
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Detroitrise
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Username: Detroitrise

Post Number: 358
Registered: 09-2007
Posted on Thursday, October 25, 2007 - 6:56 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

"If you include Windsor we would be 3. If you go by revenue and city we would be there. The two above us is a state (Conn.) and a huge metro area (chicagoland)"

That would only happen if Windsor decides to incorporate into our Metro Area (I don't see why they wouldn't).
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Cgunn
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Username: Cgunn

Post Number: 146
Registered: 01-2004
Posted on Friday, October 26, 2007 - 11:51 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

The Windsor-Detroit (or "Detroit-Windsor") region is an international urban area centered around the United States city of Detroit, Michigan, and the Canadian city of Windsor, Ontario. It is the world's largest international metropolitan area.

Windsor-Detroit
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Iheartthed
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Username: Iheartthed

Post Number: 1999
Registered: 04-2006
Posted on Friday, October 26, 2007 - 11:58 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

That would only happen if Windsor decides to incorporate into our Metro Area (I don't see why they wouldn't).

They would have to give up free healthcare? Metropolitan boundaries are determined by the respective governments.
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Verifiable
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Username: Verifiable

Post Number: 74
Registered: 05-2007
Posted on Friday, October 26, 2007 - 1:47 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Detroit's casino revenues were lowest for the year in Sept. MCC revenues dropped in August and Sept. even though an expanded Gaming floor was opened in June (recognized a two month positive blip); and revenues are likely to fall in Oct as well given lockout, MGM opening, etc.

MotorCity Casino hired a VP of hotel operations in July that didn't last very long; hired a second VP of hotel operations in Sept. They've got big problems! Lost executive chef too.

Moody's and S&P already have MCC on negative credit rating (dropped their ratings after one year of Ilitch ownership) and Moody's had indicated any blip will force another drop in ratings.

MCC is reportedly leveraged something like 8 to 1 (hire than investors were originally told) which means it would take eight years to pay back creditors if owners never took a dime. Marian Ilitch borrowed $1.1 billion to purchase, expand and finance initial payback until the property could turn a profit. Can you say T-R-O-U-B-L-E?
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Iheartthed
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Username: Iheartthed

Post Number: 2002
Registered: 04-2006
Posted on Friday, October 26, 2007 - 1:51 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

^So the gloves come off!

They'll need to build that new hockey arena over there in order to attract patrons into the place...
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Viziondetroit
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Username: Viziondetroit

Post Number: 1257
Registered: 11-2003
Posted on Friday, October 26, 2007 - 1:51 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

^Source?
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Gistok
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Username: Gistok

Post Number: 5574
Registered: 08-2004
Posted on Friday, October 26, 2007 - 2:01 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Verifiable... isn't MotorCity making a profit right now??

Sure Marian has a large mortgage (so to speak)... but you state that it would require 8 years to pay it off. So they must be making a profit on the casino right now, right?

As for MGM opening, the MCC people I've talked to were expecting a drop in attendance. But that never happened. The long lines to get into MGM forced a lot of potential patrons to bypass MGM for MotorCity and Greektown.
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Verifiable
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Username: Verifiable

Post Number: 75
Registered: 05-2007
Posted on Friday, October 26, 2007 - 4:55 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

It is reported that MCC debt is eight times annual profits and the debt-to-profits ratios are greater than what investors were originally told they could anticipate.

That may be a complex concept to grasp but it does seem to indicate TROUBLE. The ratings agencies have indicated that in the event of default, investors could expect to lose up to 20% or more of their investments...And given the state of things, that number is likely to grow higher.

Borrowing $1.1 billion on a business that at the time was valued at $1 billion stretched things a little!

For the Doubting Thomases among you: you'll find everything to back up my previous post in the local newspapers; at the MGCB Web site; and on both Moody's and Standard & Poor's Web sites. Or if you chose, at www.TheVerifiableTruth.com (use the "labels" to find related posts)
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Verifiable
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Username: Verifiable

Post Number: 76
Registered: 05-2007
Posted on Friday, October 26, 2007 - 5:17 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

From Moody's:

"Moody's maintains CCM Merger's negative rating outlook -- New York, August 29, 2007 -- Moody's affirmed CCM Merger, Inc.'s (CCM") ratings and negative outlook. CCM has a B1 corporate family and probability of default rating, a Ba3 (LGD-3, 35%) senior secured bank loan rating, and B3 (LGD-5, 88%) unsecured senior note rating. CCM Merger, Inc. is a holding company whose primary operating subsidiary is Detroit Entertainment, LLC doing business as MotorCity Casino."

LGD = Loss Given Default
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Cgunn
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Username: Cgunn

Post Number: 152
Registered: 01-2004
Posted on Saturday, October 27, 2007 - 3:16 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Detroit casinos dip in revenue is kind of justified. MGM was closed for a couple of days, and the construction in Greektown has led to less patrons.

MCC revenue INCREASED in August and Sept.
MCC revenue Aug06 - S38,906,972.15; Aug07 - $ 41,091,844.90 -- Sept06 - $ 38,893,739.65; Sept07 - $ 39,884,824.57

MCC did however loose the VP of Hotel Operations due to a disagreement between Marian and the VP on quality and cost of the hotel.

So can you source where you received your other information? What is CCM Merger? I thought Marian bought out Detroit Entertainment, LLC when MGM sold MotorCity.
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Cgunn
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Username: Cgunn

Post Number: 153
Registered: 01-2004
Posted on Saturday, October 27, 2007 - 3:21 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

In business don't you compare previous years revenue and not previous months?
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Verifiable
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Username: Verifiable

Post Number: 77
Registered: 05-2007
Posted on Monday, October 29, 2007 - 4:53 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

In business you track various data tables and trends.

Given that MotorCity Casino was expanded 25% this past year, one would hope that the numbers were up for the same month over last year. But there is a downward trend in monthly revenue that is significant and telling (and reported at the MGCB Web site); and which is being closely watched by analysts.

As for the entity CCM Merger, Moody's writes:

"CCM Merger, Inc. is a holding company whose primary operating subsidiary is Detroit Entertainment, LLC doing business as MotorCity Casino."

I won't do any more homework for you ... there is plenty of information available if you avail yourself -- not the least of which is available at the SEC and relative to the acquisition from Mandalay/MGM Mirage.

MotorCity Casino is a d/b/a! It is not an entity. Marian Ilitch formed CCM Merger, Inc. to secure the financing for MCC and uses it as a holding company for Detroit Entertainment LLC which uses a d/b/a "MotorCity Casino."

application/vnd.ms-excelMGCB 2007 Revenue Tracking
MGCB revstaxes_2007_186947_7.xls (23.6 k)
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Gistok
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Username: Gistok

Post Number: 5594
Registered: 08-2004
Posted on Monday, October 29, 2007 - 5:34 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Not all the gaming space is open yet at MotorCity.

They moved all the 3rd and 4th floor gaming to the 1st and 2nd floor. The 1st/2nd floors are still partly under construction. The addition to the north of MotorCity is opened, but there is still construction going on in the old part of the Casino.

So they have not yet increased their gaming space by 25%.

(Message edited by Gistok on October 30, 2007)
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Billk
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Username: Billk

Post Number: 154
Registered: 09-2005
Posted on Tuesday, October 30, 2007 - 3:03 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I don't know nothin' bout nothin', but I've always heard that owning a casino is akin to having a license to print money.
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Verifiable
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Username: Verifiable

Post Number: 78
Registered: 05-2007
Posted on Tuesday, October 30, 2007 - 8:55 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Gistok,

Wow, I bet their out of town investors, the people who have ponied up hundreds of millions for Marian's acquisition of the gambling hall and its expansion would be surprised to hear that the casino expansion is not yet actually open, considering that local newspapers reported (and the Ilitch PR machine officially announced) the expansion of the gaming floor was complete and open to the public in June that would seem someone's not being honest.

Marian originally reported that the casino expansion and addition of the hotel would be complete in 2007. Now the hotel opening has been delayed and you're also suggesting that the casino expansion hasn't really been completed? Because investors are being lead to believe otherwise.
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Cgunn
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Username: Cgunn

Post Number: 154
Registered: 01-2004
Posted on Tuesday, October 30, 2007 - 10:13 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

"Given that MotorCity Casino was expanded 25% this past year, one would hope that the numbers were up for the same month over last year. But there is a downward trend in monthly revenue that is significant and telling (and reported at the MGCB Web site); and which is being closely watched by analysts."

However you don't seriously analyze month to month data in the hospitality industry. It would be stupid for an airline, hotel, gaming, amusement park, or any other hospitality industry to look at and compare Oct revenue w/ Nov; Nov. revenue to Dec, etc. It goes the same with casinos.
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Lefty2
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Username: Lefty2

Post Number: 556
Registered: 07-2007
Posted on Tuesday, October 30, 2007 - 10:49 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

"There are hotels that probably won't be around in a year," he said. "Only the best with the best values will be left standing.

http://detnews.com/apps/pbcs.d ll/article?AID=/20071026/BIZ/7 10260355/1001
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Billk
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Username: Billk

Post Number: 161
Registered: 09-2005
Posted on Friday, November 09, 2007 - 1:40 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

MotorCity Casino Hotel to open November 28.

http://www.crainsdetroit.com/a pps/pbcs.dll/article?AID=/2007 1108/REG/71108013/1035/-/-/mot orcity-casino-hotel-to-open-no v-28
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Bobj
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Username: Bobj

Post Number: 2731
Registered: 11-2003
Posted on Friday, November 09, 2007 - 2:02 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

It is great to see first class hotels opening Downtown, I hope some new business can be brought in to keep them all afloat. The casinos will get some business from people that most likely would not have spent the night, I know of a few people who have stayed at the MGM just for the casino and never would have stayed anywhere else.

But the non casino traffic must grow to keep all these going
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Timeless
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Username: Timeless

Post Number: 13
Registered: 09-2007
Posted on Monday, November 19, 2007 - 10:31 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

http://www.detnews.com/apps/pb cs.dll/article?AID=/20071115/U PDATE/711150490/1361
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Genesyxx
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Username: Genesyxx

Post Number: 817
Registered: 02-2004
Posted on Tuesday, November 20, 2007 - 8:12 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

5pm, huh? I wish I would have brought the good video camera today. I'm sure someone will get some good shots of it. **wink, wink, nudge, nudge**

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