Vultures Circling MGM Mirage

I only suspect that this would be a good thing for MGM Grand Detroit customers. Owners with pockets to grow the property....

However, it would eliminate the link to Las Vegas for patrons and it means rewards and 'gifts' would be become even more locally based (e.g. No Trips / Promos to the MGM Mirage properties across the country).

MGM Mirage Facing Breakup

February Revenue & Market Share Data

The numbers are in...

The interesting thing is that all three casino posted revenue increases in a year over year comparision. This was completely unexpected according the projections at the begining of the month...

Here is the breakdown of the numbers:



Secondly here is the Market Share and Revenue results over the past ~30 months:



The short story is that MGM is slowly falling. I find it very difficult, given the problems with their parent, as to how they will stem the loss of market share in the short term. It looks as if Motor City is flat to slightly up while the big winner is Greektown. Not that this is a surprise given they openened their hotel last month. But long term indications look favorable for Greektown, neutral to Motor City and negative to MGM.

I'm interested in your comments... Please share them below.

Misc. Commentary and the Final Four in Detroit

Several news articles this morning...

Detroit News Article Link: Greektown Casino aims for upturn

The last paragraph of the article says it all...

"We're not serving yuppie club-hopping types who want $15 gourmet hamburgers," Fine said, digging at the posh, upscale image promoted by MGM Grand. "We're not going to compete on that level. But we will do one thing: succeed."

Detroit Free Press Article Link: Greektown Casino: $99 room rate a sure bet

As I've said earlier... Greektown is back... watch out. February revenue numbers come out on Tuesday.

Detroit Free Press Article Link: College basketball's Final Four a slam dunk for downtown Detroit hotel bookings

Detroit Free Press Article Link: MGM Grand Detroit: 4-star luxury at a price

The last line "But even at those prices, MGM is booked solid for the Final Four weekend." is wrong...

Busy yes... Book solid no. For a single Saturday Night stay? Forget about it. Staying for the entire weekend... You'll be in business. Some hotels still have rooms available despite advertising that they are 'sold out'. You just have to stay 4 or 5 nights at the full 'rack rate'. Not uncommon practice in the hotel industry..

Greektown Casino Occupancy

I've had concerns over the hotels at MGM Grand and MotorCity ever since they announced their rates were in the $300 per night range. As a frequent traveler, I don't even see that in New York City all the time. Something had to give...

Well it looks like it has...

The $99 rate and Greektown is Detroit's version of the $5 footlong at Subway and the $1.00 Menu at McDonalds. It just make sense. GTC hit the price point perfectly. Yes there will be nights when the rates are higher but advertising rates at the $99 pricepoint is genius.

Have you tried to get a weekend room at Greektown Casino thru April. I'll save you the trouble. You can't. Have you tried to get a room during the Final Four at MGM Grand or MotorCity.... Yep, contrary to what was published earlier. You can.

Now that the construction fiasco at Greektown is in the past, they will now have to deliver on the customer service aspect of the business to ensure that this new traffic from the other properties gets 'stuck' at their property.

A bold prediction/hunch... 12 months from now... The market share of the 3 Detroit Casinos will be about evenly split. Not going to put any money on it, it is just a hunch. Right or wrong, I'll be sure to remind you of it a year from now (don't let me forget).

The Eyes of Detroit Are Upon You...

I'm a little late to the party on this, but I find the fuss over the 'Eyes' campaign by the MGM Grand Detroit to be borderline comical...

Just for those who haven't seen the issue:

MGM's 'golden eyes' billboards called sinister

While I am a firm believe in freedom of speech and that everyone is entitled their opinion. Many times, there are those who try to inflict their beliefs onto the population as a whole. I feel that Councilwoman Alberta Tinsley-Talabi and Rev. James A. Smith may have good intentions, but should no way be calling for petitions and demonstrations to stop the campaign.


What we have hear is a very successful add campaign that has been launched by MGM Grand Detroit...

- Free media coverage (local, regional and national)
- Water cooler discussion about the issue
- No mention of your competition

If the citizens of any area (not just Detroit) don't like something, vote with your wallets and feet. But don't penalize a successful business just because they have successful generated some buzz in this tough economic times.

Good work MGM ... Keep up the cutting edge advertising.

One side note to keep in mind... There is a line that would be going too far. You don't know exactly where that line is, don't let this success push you over that line.

MGM Grand Detroit May Be Collateral Damage in Cash Crunch

Nothing is a surprise anymore... Is it?

While I don't have concerns about the viability of the MGM Grand Detroit property, this issue definitely validates the Casino Comp reduction issue raised earlier in the week.

Short story... Don't look for the MGM Grand to be offering and extravagant promotions and comps in the short term. However, if (or when) the property gets sold, you could see a customer service barage to ensure retention of high value patrons....

A Link to the Detroit News Article:

MGM parent hits cash wall