The Future of Vacation Village is Bright
Location: Vacation Village is the only Casino located
on two major freeways, I-15 and I-215 as well as the Las Vegas Strip.
Vacation Village, Inc. has entered into a
management contract with Holiday Inn Inc. and Bass Hotels .
Bass Hotels & Resorts operates 2,700 properties with 400,000 guestrooms around
the world including Holiday Inn (R), Crowne Plaza (R), and Inter-Continental (R)
Hotels. It is their intent to replace the 700 rooms that are being demolished at
The Boardwalk (further North on the Strip) with at least that many more
rooms at the Vacation Village site.
With the vast database of Holiday
Inn’s preferred customer list it is anticipated that the occupancy rate and
the room rates will be increased substantially. The cost of construction per
room will be approximately $45,000 and will generate over $25,000 per year in
gross revenues. With them managing the rooms it will be assured that
they will generate the maximum revenues and occupancy rates.
Holiday Inn presently turns away
500,000 guests per year and is looking to Vacation Village to make up those lost
rooms. With 25 acres on the strip, Vacation Village is the ideal choice to
accomodate Holiday Inn's need to fill the 1,000 room deficit and an occupancy
rate of over 90% is assured. 118 bowling lanes underground will bring another
6,000 visitors each week to the Vacation Village. This alone could fill the
treasured vacation spot, with or without Holiday Inn.
Holiday Inn has agreed to let Vacation Village use
some of the new rooms for a timeshare operation. They will be implementing some
innovative concepts that are expected to generate very substantial revenues.
The demand is there. All we have to do
is meet that demand and we have people year-round, enjoying the fun of Las Vegas
and playing the slot machines, buying the timeshares and so on.
The American Bowling Congress
generates 120,000 bodies per year at its Reno facility which provides only form
of entertainment; bowling. It has, along with the WIBC and NABI ,
committed to bring in 6,000 bowlers per week upon completion of a 118 lane
This will be built underground and
will be the largest bowling alley in the world. This will provide the
bowlers with the casino facility, shopping and the Las Vegas Strip which are not
available at the Reno facility. The estimated cost to build is $10,000,000 and
should generate at least $2,500,000 per year and favorably effect the casino.
The main Use of Proceeds of this loan
will be to add approximately 700 rooms. They are contemplating about 100
Extended Stay Units and 60 Time Share Units which can also be used as deluxe
suites. The cost of construction for the basic room will be approximately
$45,000, plus fees and permits and will generate over $25,000 per year in net
The current Vacation
Village operation occupies only 3 acres of the 25 acre site.
With an influx of $150,000,000 to payoff the current debt and the
implementation the above concepts, the net profits could exceed
$50,000,000 per annum. It is strongly recommend that you to
consider this $150,000,000 investment at 13% for two years.
The Roller Coaster at New
York, New York cost $10,000,000 to build and generates revenues of
$18,000,000 per year in addition to bringing large number of bodies through the
casino. The management at Vacation Village finds the profit potential an
'interesting' prospect and hopes that investors like the 'return on investment'
Howard Hughes Corporation currently owns 70 acres to
the North of this site that has a limited value due to building height
restrictions imposed by McCarran Airport and the FAA. It is the intent
of Vacation Village, Inc. to enter into a lease or purchase agreement and
provide Kentucky-Derby-style horse racing or dog racing on that site. This
would be a natural adjunct to the gaming already provided on the Las Vegas
Mr. C.J. Harris, Director of Development & Asset Management
for Bass Hotels & Resorts, the parent company of Holiday Inn and several other
chains, provided a copy of the market study they did to determine if they wanted
their franchise on the Vacation Village property. He said the study
showed that the occupancy rate at the Boardwalk was always over 90%
and that they had to turn away thousands of customers last year and the same
would be true for the Vacation Village property.
|Vacation Village Casino-Hotel
|6711 South Las Vegas Blvd
Las Vegas, NV 89119
|$400+ million after rehab and additions
|$150 million (fund-controlled )
|$52 in million Phase I
$98 in million Phase II
Use of Funds:
pay off existing loans
pay off creditors to release bankruptcy
pay broker commission
rennovate 315 hotel rooms
pay prepaid interest 1 year
set up a check-cashing fund
pay permits, fees and contingency
add 700 rooms to existing 314 rooms and
add 118 underground bowling lanes
100 extended-stay units
|Larry Wingo/Redondo Mortgage
2305 West 190th Street
Redondo Beach, CA 90278
Gary Douglas/Crystal Clear Management, LLC.
4080 Paradise Rd., #15225
Las Vegas NV. 89109
rentals: 1,000 hotel rooms
lease: movie theaters
leases: shopping center
revenue stream of $254,375,000 annually