The radical genius of Sarno and Mallin is timeless, as is the desire of others to expand and conquer. In the case of Caesars Palace, each owner or manager has added something that enabled sustainable success, but it took the generation of hospitality leaders in the 2000s to reimagine what it meant to be a Caesar for the 21st Century.
MGM Resorts sells Aria and Vdara to Blackstone.CityCenter was originally owned 50/50 by MGM Resorts and Infinity World. In July 2021, MGM shuffled things around, buying out Infinity World (so MGM owned the real estate 100%), then immediately selling Aria and Vdara to Blackstone.
Macy’s Has Big Plans for a Beloved Classic Brand
There were rumors afloat that a sale of a Las Vegas Strip property was necessary to keep regulators happy, but it never came. In July 2019, when the Las Vegas Review-Journal reported that a sale was likely, it was thought that Tilman Fertitta or Phil Ruffin were the expected buyers. Ruffin already owns two Strip casinos in Circus Circus and Treasure Island, while Fertitta is the owner of Golden Nugget Casinos. The policies that led the common law to limit the right of an innkeeper to exclude a member of the traveling public still have force today. Originally, innkeepers had a duty to serve guests absent good cause to exclude because inns were so far and few between that travelers found themselves at the mercy of the innkeeper and were vulnerable to extortion from the innkeeper. See Bruce Wyman, The Law of the Public Callings as a Solution of the Trust Problem, 17 Harv. Thus, innkeepers were viewed as having a “virtual monopoly” over a market serving the essential needs of the traveling public.
How did I avoid the timeshare people after CET closed the buffets, Laurel Lounges, and spa access. I had a standard response when accosted by one of the pushy sales people. “I’m so glad you stopped to talk to me. I have been trying to reach you about your car’s extended warranty”. The new leadership of a casino whale, Caesars, was the former leadership of a relative guppy, Eldorado. The mentality is different, and the company isn’t just continuing to do what it’s doing just because that’s the way it’s always been done.
Caesars Entertainment is the largest casino-entertainment company in the U.S. and one of the world’s most diversified casino-entertainment providers. Since its beginning in Reno, Nevada, in 1937, Caesars Entertainment has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment’s resorts operate primarily under the Caesars®, Harrah’s®, Horseshoe® and Eldorado® brand names.
As experiences, such as restaurants, gaming and entertainment became more generic, the competitive drivers diminished. It was also in the 1970s that strategic management became a dominant business philosophy, advocated by the likes of Peter Drucker and Igor Ansnoff.
Brands by Caesars
In June 2019, Caesars accepted Eldorado’s offer to purchase Caesars for $18 billion in stock and cash. Eldorado operated 26 assets compared to Caesars, which controlled 53. Eldorado would change its name to Caesars Entertainment after the completion of the acquisition, and the companies’ loyalty programs would be combined under the Caesars Rewards brand. The deal was expected to be completed in the middle of 2020.
In the quest for ever increasing profits, once manageable businesses had led to highly diversified sprawling conglomerates which were becoming increasingly difficult to manage. One of those was to become hospitality giant, Starwood, which acquired ITT in 1997. Drivers for competitive advantage, as we now can assess, are very few. In the period when it seemed that each quarter brought a new Strip opening or two, the prevailing thinking was that there was an under-supply to the market and differentiation strategies such as theme and architecture were sufficient to capture market share. The dynamic that played out was that theme alone proved to be not enough; it allowed for successful differentiation in marketing, but not much else. What became more evident in this period was that the theme became a brand, but it was the experience that determined customer loyalty and retention.