Treasure Island Has Been Sold
December 15, 2008
MGM Mirage has sold the Treasure Island hotel for $775 million.
Las Vegas Treasure Island
Las Vegas Treasure Island
$500 million will be in cash, $275 million will be in notes.
The sale is expected to be completed in the second quarter of next year, which means that it could conceivably fall through.
Nonetheless, the proposed sale of a conglomerate property from MGM or Harrah’s is always a big deal.
MGM/Mirage has stated that they expect to make a “substantial gain” on the sale, which means that the current T.I. is obviously worth “substantially” less than $775M.
The interesting thing about the sale, is that the purchaser is Phil Ruffin, the former owner of the New Frontier Hotel and Casino.
Anyone who has read my articles for any length of time is aware that the New Frontier is the only property on The Strip that I have ever outright hated.
I’ve had poor experiences there as a guest, and even worse experiences at the gaming table. I cheered when the place was knocked down … but in my defense, I thought something better would be built in its place.
How was I to know that the lot would sit vacant for well over a year?
Anyway, this is a major development here in Las Vegas.
T.I. Made several attempts at being a “hipster” property, but never quite pulled off the Hard Rock/Palms vibe they attempted to be going for at the time.
This begs the question, what is Ruffin going to do with it?
Sure, he is listed as the 606th richest man in the USA, but the guy is 70 years old.
Unless he starts handing out Geritol at the door, I’m guessing that new, fresh, and cutting-edge ideas aren’t going to be in the works for the “newly managed” Treasure Island.
Then again, this is the guy who brought us bikini bull riding, so maybe he has something up his sleeve. He seems to be horny, perverted, and eccentric enough to at least give us something completely bizarre.
One other question that begs to be asked … what happens to the Treasure Island/Mirage Tram?
Fine, perhaps I’m the only one that asks that question. What can I say? I’m a transit freak. I actually take the thing pretty often, and I find it incredibly useful, but the thing is usually empty.
What about the Sirens of TI show?
That’s a pretty big attraction, and its fate will be of interest to many.
I have no idea what changes this sale will bring, but I assume that if somebody plunks down $775 million for a property worth less than that amount … then they certainly plan to do something with it.
Written by hug it out on December 15, 2008 at 6:29 pm
I like TI, it has a good location and with the remodeled rooms and decent room price, it was a good value for once a year traveler like me. It had turned into a nondescript and detheme hotel like the many MGM Mirage hotels, some changes was good i.e. restaurants and some bad, i.e. gaming conditions, overprice bars and club (Christian Andinger)
I am assuming there’s going to be changes besides the tram and siren show. No more Cirque (Mystere)?
‘
Written by Carole on December 15, 2008 at 6:51 pm
I have fond memories of the Frontier. I stayed their for NYE a while back. It had a small, “local’s casino” ambiance to it. Isn’t TI just a hop and a skip from the torn down New Frontier? I guess Mr. Ruffin likes that area of the Strip. I Love LV!
Written by hug it out on December 15, 2008 at 9:51 pm
So ELAD (the Plaza development people) overpaid for the new frontier property at 1.2 billion to Ruffman. Then Ruffman according to news report paid a premium for TI at 775 million. Looks like he has some spare millions from the New Frontier deal. We’ll see if he puts it into use.
At least MGM Mirage now has the money to finish City Center.
Written by SolarFloral on December 16, 2008 at 5:16 am
Just make you wonder…..
The hotel itself is over 15 years old, and younger than its semi-sister property to the south.
As a two-time visitor to this town, I kinda liked Treasure Isalnd. Even though they took out some of the pirate theme out (going from Buccaneer Bay to Sirens Cove)and some of the ’90′s Vegas for Kids addtiude was an adjustment. But the pretentious, “look at me: I’m hip, I’m the Bling, I’m a douchebag” mentaity that was installed at the property, along with one of the tightest slots on the Strip, bad economic times, and lack of a Palms-like recipe of sucess place pushed TI to its current sale (if it ever goes through.)
And add to that, a strong desire to finish the CityCenter pit on the former Boardwalk property, as well as high debt (some of it coming from CityCenter’s construction,)forced them to do what they did.
As far as Ruffin buying the property, I think he is trying to get back in the market, and to give people who come to Treasure Island (or whatever it will become in the future,) as well as Vegas itself. I think that a lot was lost after the closing of his old joint, the (New)Frontier, and up the street at the Stardust (now an incomplete concerte stump.)
I wish the best of luck to Ruffin. I hope he does better than when he owned the Frontier, which continued to go downhill even after he bought it. I do agree with Rex that the Frontier wasn’t pleasant to be in, despite that the games and rooms were a bargin. I encountered a somewhat rude cocktail waitress while there, and ended up leaving. I wasn’t so angry, but rater saddened after I left; I felt the place was troubled inside and out. The place, despite its non-luxorious popularity, I felt it needed a hospice.
Ironcally, I went over to Treasure Island, and just to pass the time, I played some of their slots. At one point after playing a 25 cent machine(and not paying attention,) didn’t know I had a extra pull left; a couple maintenece workers got my attention that I still had antoher pull. Though I didn’t win, I thanked them for helping me out in a way. (Much different scenario played out than what was at the Fronter.)
If Ruffin bends Treasure Island out of shape, it will no doubt be like the property that was once to the north: a decrepit dump. On the other hand, Treasure Island wasn’t that troubled like the Frontier was, and I think he can do something worthwile with this property, even getting rid of Christian Audigier’s place in favor of Gilley’s again, it would be much fun than what is happening today at any of the joints up and down the Strip.
The pirate show….whatever it’s form, should and must stay.