Caesars Palace chose to work with Nobu to remodel the Centurion Tower and Appian Way. I have an idea that I would like way better that would entail more work and would never have happened.
First, use the funds differently. Instead of paying for the remodel and any other costs with Nobu – Caesars could have created a desirable hotel room and remodeled the Centurion Tower themselves.
Caesars could have knocked out the walls between the small rooms and made large upscale rooms similar to what Wynn and Encore has with average room size of 600 – 800 square feet.
This would have also increased room rates by creating a better product and decreasing capacity slightly. This also may have decreased some of their tower renovation costs since they would be responsible for less TV’s, Beds, Bathroom materials, etc. It cost Wynn, roughly, about $36,ooo to renovate each room (more for suites, less for resort rooms).
Second, they could have used some of the saved funds to lure new stores and restaurants to Appian Way or they could have relocated the food court and made more room for gambling on the gaming floor.
Yes, this would have created more work internally but it would have been an option to keep the integrity of the property. This clearly isn’t important to Caesars corp. as they took the easy and quick way to do the job that may work short term but probably isn’t something that will stay long term. This is how Caesars has been doing business forever so I wouldn’t expect more from them.
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I think CET is clearly looking to spend *some* money in 2011-2012: finishing out the Centurion Tower, and doing the Project Linq thing between Flamingo and IP. This was a quick and cheap way for them to get their oldest rooms at CP renovated.
Eric, I think this was the least expensive option to increase revenues. I don’t see how the Octavious tower could do that. I could be missing an obvious revenue stream though.
The Nobu name is still a fixture with the cool 30 year olders in NY and LA and should bring those wanting to impress in the casino.
I meant to say finishing out the OCTAVIUS tower. Oops.